Shree Renuka Sugars' quarterly loss narrows as refinery profits

Shree Renuka Sugars Limited reported a consolidated net loss of Rs 193.9 crore for the quarter ended September 30, 2026, compared with a Rs 319.3 crore loss a year earlier. Revenue from operations fell to Rs 1,905 crore, but sugar refining reported a Rs 63.5 crore segment profit, against a Rs 35.8 crore loss in the prior-year quarter.

Why did SRSL's quarterly loss narrow?

SRSL's loss after tax narrowed by Rs 125.4 crore year on year to Rs 193.9 crore in the September 2026 quarter. The loss was also lower than the Rs 251.1 crore loss reported in the quarter ended June 30, 2026. Loss before tax narrowed to Rs 201.9 crore from Rs 401.3 crore a year earlier, while total segment results turned to a Rs 7.8 crore profit from a Rs 151.9 crore loss.

The improvement came despite a decline in revenue from operations to Rs 1,905 crore from Rs 2,486.5 crore in the September 2025 quarter. Sugar-refinery revenue declined to Rs 1,297.9 crore from Rs 1,733.4 crore, while trading revenue fell to Rs 5.7 crore from Rs 85.1 crore. Sugar-milling revenue was Rs 392.2 crore, compared with Rs 391 crore a year earlier. The unaudited consolidated results were approved by SRSL's board on October 30, 2026.

Which SRSL segments changed most in the quarter?

SRSL's sugar-refinery segment recorded the largest improvement, reporting a Rs 63.5 crore profit in the September 2026 quarter. The segment measure is profit or loss before tax, finance costs, other income and net foreign-exchange loss or gain. Sugar refining had made a Rs 35.8 crore loss in the September 2025 quarter and a Rs 98.5 crore loss in the June 2026 quarter.

Sugar milling remained loss-making but improved to a Rs 25 crore loss from a Rs 80.5 crore loss a year earlier. Engineering reduced its loss to Rs 0.9 crore from Rs 13.7 crore, while co-generation reported a Rs 25 crore loss compared with a Rs 30.6 crore loss. Distillery moved to a Rs 18 crore loss from a Rs 2.5 crore profit, and trading contributed Rs 1.6 crore, down from Rs 5.5 crore.

What costs affected SRSL's September-quarter result?

SRSL recorded a Rs 120.9 crore loss from commodity derivatives in the September quarter, compared with a Rs 66.2 crore loss in the prior-year period. The group said it enters commodity derivative instruments to manage commodity-price fluctuation risk. It classifies the net realised and unrealised impact as other operating income or expense according to the year-to-date net gain or loss.

Finance costs were Rs 178.5 crore, down from Rs 183.6 crore a year earlier, and net foreign-exchange loss declined to Rs 30.8 crore from Rs 80.9 crore. Depreciation and amortisation expense fell to Rs 59.3 crore from Rs 73 crore. Inventory changes for finished goods, work in progress and intermediate products were Rs 299.8 crore, compared with Rs 987.3 crore in the prior-year quarter. SRSL said some of its segments are seasonal, affecting individual quarterly results.

What do SRSL's half-year results show?

SRSL's consolidated loss after tax for the half year ended September 30, 2026 was Rs 445.4 crore, narrowing from Rs 631.6 crore a year earlier. Loss before tax decreased to Rs 517.8 crore from Rs 742.7 crore. Revenue from operations for the six months was Rs 4,025.2 crore, compared with Rs 4,494 crore in the corresponding prior-year period.

Sugar refining made a Rs 35 crore loss in the half year, compared with a Rs 50.3 crore loss a year earlier, despite its September-quarter profit. Distillery reported a Rs 74.7 crore profit, reversing a Rs 6.5 crore loss, while sugar milling reduced its loss to Rs 69.4 crore from Rs 151.1 crore. Aggregate segment loss narrowed to Rs 69.8 crore from Rs 273.2 crore before finance costs, unallocable expenses, foreign exchange and other income.

What do SRSL's cash flow and liabilities show?

SRSL generated Rs 194.2 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 175.7 crore in the prior-year half. Cash flow included a Rs 793.5 crore decrease in inventories and a Rs 119.3 crore decrease in trade receivables. Cash and cash equivalents stood at Rs 66.6 crore on September 30, up from Rs 45.8 crore at March 31, 2026.

Current liabilities exceeded current assets by Rs 3,818 crore at September 30, 2026. Current assets were Rs 2,390.5 crore and current liabilities were Rs 6,208.5 crore. SRSL said its working-capital loans of Rs 1,561.7 crore were secured by a pari-passu charge over current assets and a letter of comfort from ultimate holding company Wilmar International Limited.

Conclusion

SRSL's September-quarter loss narrowed even as revenue declined by Rs 581.5 crore year on year. The main reported operating change was sugar refining's shift to a Rs 63.5 crore profit, alongside smaller losses in sugar milling and engineering. The improvement was partly offset by distillery's move into loss and a higher commodity-derivative loss.

The next quarterly result will indicate whether the refinery's September-quarter profit continues in SRSL's seasonal businesses. The group also disclosed a Rs 3,818 crore excess of current liabilities over current assets and said Wilmar Sugar and Energy Pte. Ltd. had provided a letter of support for normal business obligations, an unresolved funding position to watch.