K M Sugar reports Rs 23.36 crore quarterly continuing profit

K M Sugar Mills Limited reported Rs 23.36 crore profit after tax from continuing operations for the quarter ended September 30, 2026, compared with restated Rs 11.13 crore a year earlier. Total income rose to Rs 197.92 crore from Rs 163.36 crore after the distillery business was excluded under the demerger accounting.

What did K M Sugar report for the September 2026 quarter?

K M Sugar reported Rs 194.33 crore revenue from operations and Rs 197.92 crore total income for the quarter ended September 30, 2026. In the restated quarter ended September 30, 2025, revenue from operations was Rs 160.10 crore and total income was Rs 163.36 crore, making the reported year-on-year increase in total income Rs 34.56 crore.

Profit before tax from continuing operations was Rs 31.57 crore, compared with restated Rs 14.98 crore a year earlier. Tax expense was Rs 8.21 crore, comprising Rs 7.83 crore of current tax and Rs 38 lakh of deferred tax, leaving Rs 23.36 crore of profit after tax from continuing operations against Rs 11.13 crore in the prior-year quarter.

K M Sugar recorded Rs 166.35 crore of total expenses in the September 2026 quarter, versus Rs 148.38 crore in the restated prior-year period. Finance costs were Rs 4.13 crore compared with Rs 3.98 crore, while depreciation and amortisation were Rs 3.92 crore against Rs 3.85 crore.

How did K M Sugar perform in the six months ended September 2026?

K M Sugar reported Rs 370.34 crore of total income and Rs 29.43 crore profit after tax from continuing operations for the six months ended September 30, 2026. The restated comparative period reported Rs 356.49 crore of total income and Rs 23.14 crore of continuing-operations profit.

Revenue from operations for the six months was Rs 363.45 crore, up from restated Rs 351.87 crore, while profit before tax increased to Rs 39.99 crore from Rs 31.37 crore. Total tax expense rose to Rs 10.56 crore from Rs 8.23 crore, and basic earnings per share from continuing operations increased to Rs 3.20 from Rs 2.52.

The September quarter contributed Rs 23.36 crore of the six-month continuing profit, while the June 2026 quarter contributed Rs 6.07 crore. Total income increased from Rs 172.42 crore in the June quarter to Rs 197.92 crore in the September quarter, although K M Sugar states that sugar is seasonal and quarterly performance may not represent annual performance.

Why were K M Sugar’s results restated after the distillery demerger?

K M Sugar restated its continuing-operations results because the Distillery Division was demerged into KM Spirits and Allied Industries Limited with an appointed date of April 1, 2026. The National Company Law Tribunal, Allahabad Bench, Prayagraj approved the scheme on August 19, 2026, and it became effective on October 1, 2026.

K M Sugar said the distillery division transferred as a going concern, with its carrying value of assets and liabilities moved to the resulting company. Its investment of Rs 5 lakh in the resulting company was adjusted against reserves, and the difference between the transferred assets and liabilities was adjusted against other equity.

KM Spirits and Allied Industries Limited allotted 1,84,00,034 fully paid equity shares of Rs 10 each to K M Sugar shareholders on the October 2, 2026 record date. It consequently ceased to be a subsidiary from the April 1, 2026 appointed date, so K M Sugar said it was no longer required to prepare consolidated results for the September 2026 quarter.

What happened to the discontinued distillery operation?

K M Sugar reported no discontinued-operations profit or loss for the quarter and six months ended September 30, 2026 after applying the demerger accounting. The current-period continuing figures exclude the distillery division from the April 1, 2026 appointed date.

For the quarter ended September 30, 2025, the restated discontinued operation had Rs 20.80 crore of total income and a Rs 96 lakh loss after tax. For the six months ended September 30, 2025, it recorded Rs 44.37 crore of total income and Rs 5 lakh profit after tax.

The restated full year ended March 31, 2026 included Rs 92.83 crore of total income from the discontinued operation and Rs 57 lakh of profit after tax. These discontinued-operation disclosures separate the former distillery activity from the sugar-focused continuing business used in the September 2026 comparisons.

What changed in K M Sugar’s balance sheet and cash flow?

K M Sugar reported total assets of Rs 394.54 crore at September 30, 2026, compared with Rs 749.74 crore at March 31, 2026. Total equity was Rs 354.59 crore, down from Rs 391.88 crore, while total current liabilities declined to Rs 33.98 crore from Rs 339.77 crore during the period in which distillery assets and liabilities were transferred.

Current assets were Rs 122.61 crore at September 30, compared with Rs 411.53 crore at March 31, and inventories were Rs 74.85 crore against Rs 380.87 crore. Current borrowings were Rs 6.89 crore, compared with Rs 246.21 crore at the March year end, while non-current borrowings were Rs 14 lakh versus Rs 3.53 crore.

Net cash generated from operating activities was Rs 281.85 crore in the six months ended September 30, 2026, compared with Rs 253.67 crore a year earlier. Investing activities used Rs 37.58 crore and financing activities used Rs 241.44 crore; cash and cash equivalents closed at Rs 3.83 crore after Rs 46 lakh was transferred pursuant to the scheme.

Conclusion

K M Sugar’s restated September-quarter statement shows higher continuing-operations income and profit, with Rs 23.36 crore of profit after tax on Rs 197.92 crore of total income. The comparison is designed to show the remaining sugar operation, because the distillery division was removed from continuing operations from April 1, 2026.

The next reported periods will show whether the Rs 29.43 crore continuing profit for the six months ended September 30, 2026 develops through the seasonal sugar cycle. K M Sugar has specifically cautioned that quarterly results may not represent annual performance, while its standalone reporting will continue after KM Spirits and Allied Industries Limited ceased to be a subsidiary.