Kothari Sugars distillery profit offsets September losses

Kothari Sugars and Chemicals Limited reported Rs 8.70 crore of pre-interest, pre-tax profit from its distillery segment in the quarter ended September 30, 2026, offsetting losses in sugar and power. Kothari Sugars recorded Rs 2.22 crore profit before tax, compared with a Rs 10.80 crore loss before tax in the September 2025 quarter.

Which Kothari Sugars segment carried September-quarter earnings?

The distillery carried Kothari Sugars’ September-quarter earnings, generating Rs 8.70 crore of segment profit before tax and interest. Sugar reported a Rs 85.11 lakh loss and power a Rs 2.63 crore loss, leaving total segment profit at Rs 5.22 crore for the quarter ended September 30, 2026.

The distillery result was Rs 4.49 crore higher than the Rs 4.21 crore reported in the June 2026 quarter and Rs 4.33 crore above the Rs 4.37 crore recorded a year earlier. Sugar’s loss narrowed from Rs 10.18 crore in June 2026, while power moved from a Rs 8.39 crore profit in June to a loss in September.

The segment measure is profit or loss before tax and interest, rather than Kothari Sugars’ consolidated profit before tax. From Rs 5.22 crore of total segment profit, the company deducted Rs 54.63 lakh of finance cost and Rs 2.45 crore of net unallocable expenses to report Rs 2.22 crore of profit before tax.

How did Kothari Sugars’ segment revenue change in September?

Sugar was Kothari Sugars’ largest segment by revenue in the September 2026 quarter, at Rs 51.36 crore, while distillery revenue was Rs 39.10 crore. Sugar revenue increased from Rs 29.09 crore in June 2026 and Rs 41.82 crore a year earlier, even though the segment recorded a Rs 85.11 lakh loss.

Distillery revenue declined from Rs 48.33 crore in June 2026 but rose from Rs 27.05 crore in the September 2025 quarter. Power revenue fell to Rs 2.65 crore from Rs 12.50 crore sequentially, although it exceeded the Rs 1.83 crore reported in the comparable prior-year quarter.

Total segment revenue rose to Rs 93.11 crore from Rs 89.91 crore in June and Rs 70.70 crore a year earlier. After eliminating Rs 4.15 crore of inter-segment revenue, Kothari Sugars reported Rs 88.95 crore of revenue from operations, up from Rs 83.42 crore sequentially and Rs 68.04 crore year on year.

Did Kothari Sugars return to quarterly profit?

Kothari Sugars returned to quarterly profit from continuing operations, reporting Rs 1.02 crore for the quarter ended September 30, 2026. This compared with Rs 7.98 lakh in the June 2026 quarter and a Rs 7.23 crore loss in the quarter ended September 30, 2025.

Total income was Rs 91.23 crore, including Rs 2.28 crore of other income, while total expenses were Rs 89.01 crore. The resulting Rs 2.22 crore profit before exceptional items and tax was followed by current tax of Rs 38.50 lakh and deferred tax of Rs 82.13 lakh.

The year-on-year turnaround occurred alongside a Rs 20.91 crore rise in revenue from operations, but the filing does not give volume, selling-price or cost explanations for individual segment changes. It also states that sugar is a seasonal industry and that performance in any quarter may not represent the company’s annual performance.

What do Kothari Sugars’ half-year segment results show?

The distillery remained Kothari Sugars’ largest contributor to segment profit in the six months ended September 30, 2026, generating Rs 12.91 crore before tax and interest. That was below the Rs 16.18 crore it generated in the corresponding six months of 2025, despite distillery revenue increasing to Rs 87.43 crore from Rs 58.99 crore.

Sugar’s half-year loss narrowed to Rs 11.03 crore from Rs 18.21 crore a year earlier, while power generated Rs 5.76 crore of profit compared with a Rs 2.07 crore loss. Total segment profit was Rs 7.64 crore, compared with a Rs 4.10 crore total segment loss in the prior-year half.

After Rs 2.17 crore of finance cost and Rs 3.16 crore of net unallocable expenses, Kothari Sugars reported Rs 2.31 crore of profit before tax for the half year. The result included Rs 7.95 crore of exceptional-item income, all recorded in the June 2026 quarter; the September 2026 quarter had no exceptional item.

How did Kothari Sugars’ balance sheet and cash flow change?

Kothari Sugars’ total assets were Rs 353.28 crore at September 30, 2026, compared with Rs 445.74 crore at March 31, 2026. Inventories fell to Rs 31.66 crore from Rs 118.20 crore, while cash and cash equivalents increased to Rs 10.39 crore from Rs 22.23 lakh.

Total liabilities were Rs 56.54 crore at September 30, down from Rs 150.11 crore at March 31. Trade payables to creditors other than micro and small enterprises declined to Rs 12.82 crore from Rs 42.47 crore, while the September 30 balance sheet does not display an amount for current borrowings, against Rs 69.66 crore at March 31.

Net cash generated from operating activities was Rs 83.11 crore for the six months ended September 30, 2026, compared with Rs 8.52 crore of net cash used in the prior-year period. The cash-flow statement recorded a Rs 86.54 crore reduction in inventories and a Rs 29.65 crore reduction in trade payables during the latest half year.

Conclusion

Kothari Sugars’ September-quarter result shows that distillery profit of Rs 8.70 crore outweighed combined Rs 3.48 crore losses in sugar and power, allowing the company to report Rs 1.02 crore of profit from continuing operations. Revenue from operations increased to Rs 88.95 crore, while the largest operating segment by revenue, sugar, remained loss-making.

The next results will indicate whether sugar can move beyond its Rs 85.11 lakh September loss and whether power can recover after its shift from a Rs 8.39 crore June profit to a Rs 2.63 crore September loss. Kothari Sugars has also cautioned that sugar’s seasonal nature means quarterly performance may not represent the full-year outcome.