Kothari Sugars Q2 FY27 Revenue Rises 30.73% to Rs 88.95 Cr

Kothari Sugars And Chemicals Limited reported standalone revenue of Rs 88.95 crore for Q2 FY27, up 30.73% year-on-year, while net profit turned to Rs 1.02 crore from a Rs 7.23 crore loss in the corresponding quarter. The July-September performance marks a return to profitability after a loss in the prior-year period.

What did Kothari Sugars report in Q2 FY27?

Kothari Sugars reported revenue from operations of Rs 88.95 crore for the quarter ended September 30, 2026, compared with Rs 68.04 crore in Q2 FY26. The company announced the standalone results on November 5, 2026, after its board meeting to consider the quarterly and half-year financial statements.

The company posted a net profit of Rs 1.02 crore, against a net loss of Rs 7.23 crore reported in the financial highlights for the year-earlier quarter. Operating profit also moved into positive territory at Rs 4.20 crore, compared with an operating loss of Rs 7.95 crore in Q2 FY26. This shows that revenue growth was accompanied by an improvement in the operating result.

The reported quarterly figures cover the July-September 2026 period. Kothari Sugars had reported revenue of Rs 83.40 crore in Q1 FY27, with net profit of Rs 0.10 crore. Its Q2 revenue was therefore higher by 6.63% sequentially, based on the figures provided.

Which business segments supported Kothari Sugars' performance?

Kothari Sugars' distillery business was the main profitable segment in Q2 FY27, while the sugar and power segments continued to report losses before tax and interest. Distillery revenue rose 44.6% year-on-year to Rs 39.10 crore from Rs 27.05 crore, and segment profit before tax and interest nearly doubled to Rs 8.70 crore from Rs 4.37 crore.

Sugar segment revenue increased 22.8% to Rs 51.36 crore from Rs 41.82 crore. However, the segment recorded a loss before tax and interest of Rs 0.85 crore. The loss was lower than the Rs 8.30 crore loss reported in Q2 FY26, indicating a substantial improvement but not a return to segment profitability.

The power segment reported revenue of Rs 2.65 crore, compared with Rs 1.83 crore a year earlier. Its segment loss narrowed to Rs 2.63 crore from Rs 3.20 crore. The results therefore show improved revenue across the reported businesses, with the distillery segment providing the principal positive contribution.

How did operating profitability improve during the quarter?

Kothari Sugars reported operating profit of Rs 4.20 crore in Q2 FY27, reversing an operating loss of Rs 7.95 crore a year earlier. The operating profit margin was 4.72%, based on the reported revenue and operating profit figures. The move to a positive operating result coincided with higher revenue in the sugar, distillery and power businesses.

The company reported other income of Rs 2.28 crore and profit before tax of Rs 2.22 crore during the quarter. Other income was higher than reported profit before tax, which indicates that non-operating income had a material bearing on the pre-tax result. This is important when assessing the underlying profitability of the core operations.

Employee cost stood at Rs 6.35 crore, or 7.14% of net sales. Depreciation was Rs 3.71 crore, reflecting the fixed-asset intensity of sugar manufacturing operations. Finance costs fell to Rs 0.55 crore from Rs 1.46 crore in the prior-year quarter, reducing the burden on profitability.

What do the half-year numbers show for Kothari Sugars?

Kothari Sugars reported a net profit of Rs 1.10 crore for the first half of FY27, compared with a net loss of Rs 5.98 crore in the corresponding six months of FY26. Revenue from operations for the half year rose to Rs 172.37 crore from Rs 134.73 crore.

The company also reported net cash generated from operating activities of Rs 83.11 crore during the first half, against a net cash outflow of Rs 8.52 crore in the corresponding prior-year period. Cash generated from operations was Rs 83.38 crore, aided by an Rs 86.54 crore reduction in inventories and an Rs 11.37 crore inflow from changes in trade and other receivables.

Kothari Sugars used Rs 1.11 crore in investing activities and Rs 2.17 crore in financing activities during the six-month period. Cash and cash equivalents increased by Rs 79.83 crore to Rs 10.39 crore at September 30, 2026, from a negative Rs 69.44 crore at the start of the financial year.

Why do these results matter for investors?

Kothari Sugars' Q2 results matter because the company moved from operating and net losses in the comparable quarter to positive reported profits. Revenue growth of 30.73% was supported by higher sales in the sugar and distillery businesses, while lower finance costs also helped the earnings outcome.

However, the segment data show that the sugar and power businesses remained loss-making before tax and interest. The distillery business generated the strongest segment profit, while other income of Rs 2.28 crore was material to profit before tax of Rs 2.22 crore. These details distinguish reported net profit from the profitability of each operating segment.

For the sugar industry, the results also reflect the importance of diversified operations. Sugar manufacturing carries material employee, depreciation and working-capital costs, while distillery operations can provide a separate revenue and earnings stream. Kothari Sugars' half-year cash flow was also influenced by changes in inventories and receivables, which investors can track alongside earnings in future results.

Conclusion

Kothari Sugars delivered higher standalone revenue and returned to a reported net profit in Q2 FY27. Revenue reached Rs 88.95 crore, while operating profit improved to Rs 4.20 crore and net profit was Rs 1.02 crore. The distillery segment was the primary earnings contributor, whereas sugar and power continued to record segment losses.

The next area to watch is whether operating profitability strengthens without a comparable reliance on other income and whether the sugar and power segment losses continue to narrow. Investors can also monitor the company's inventory movement, finance costs and cash position in the remaining FY27 results.