Dhampur Sugar Mills Limited is a well-established, integrated sugarcane processing company with a rich history dating back to its first sugar mill in 1933. The company has evolved significantly from a standalone sugar manufacturer into a diversified entity with operations across five key segments: Sugar, Distillery (Ethanol), Co-generation (Power), Chemicals, and Potable Spirits. Its manufacturing facilities are located in Uttar Pradesh, a key sugarcane-producing state in India, with a sugar unit in Dhampur and another in Rajpura. The company's integrated model is a core strength, allowing it to utilize by-products from the sugar manufacturing process to create value-added products, thereby mitigating the cyclicality inherent in the sugar business. For instance, molasses, a by-product of sugar production, is used as a feedstock for its distillery to produce ethanol and potable spirits, while bagasse is used to fuel its co-generation power plants.

The company is managed by an experienced leadership team. The promoter group, represented by Chairman Mr. Ashok Kumar Goel and Vice Chairman & Managing Director Mr. Gaurav Goel, brings over eight decades of combined experience in the industry. This is complemented by a board of independent directors with diverse expertise in retail, finance, and engineering, providing robust corporate governance. The company has consistently invested in capacity expansion and modernization, as evidenced by its key milestones, including significant increases in distillery and co-generation capacities and a recent foray into grain-based distillation. It has also demonstrated a commitment to shareholder value through recent equity share buybacks. Financially, the company holds a strong credit rating of IND AA- from India Ratings & Research (a Fitch Group company), indicating a high degree of safety regarding timely servicing of financial obligations.

Official Website: http://www.dhampursugar.com/

• Q3 FY26 Performance (vs. Q3 FY25)

• Revenue from Operations: Increased by 13.7% to ₹667.4 crore from ₹587.0 crore.

• EBITDA: Grew by 28.9% to ₹62.0 crore from ₹48.1 crore.

• Profit Before Tax (PBT): Surged by 72.2% to ₹37.1 crore from ₹21.5 crore.

• Profit After Tax (PAT): Increased by 73.3% to ₹26.5 crore from ₹15.0 crore.

• EPS (₹/Share): Improved to ₹4.1 from ₹2.3.

• Key Drivers: Growth was driven by higher sugar sales volume (0.69 vs. 0.58 lakh tons) and better realization (₹40,259/ton vs. ₹38,048/ton), along with increased ethanol sales. This performance was achieved despite a significant decline in chemicals sales and higher sugarcane prices (SAP).

• 9M FY26 Performance (vs. 9M FY25)

• Revenue from Operations: Increased by 14.8% to ₹2,119.1 crore from ₹1,845.4 crore.

• EBITDA: Grew by 22.4% to ₹103.1 crore from ₹84.2 crore.

• Profit Before Tax (PBT): Rose by 12.0% to ₹24.8 crore from ₹22.1 crore (Note: PBT on slide 11 for 9m Dec24 is shown as 3.3, but 9m Dec25 is 24.8, which seems like a typo in the source document. Using the absolute figures from the table: PBT for 9m Dec 25 is 24.8, for 9m Dec 24 it is 3.3. This represents a substantial increase. The analysis will proceed based on the absolute numbers provided). PBT increased significantly to ₹24.8 crore from ₹3.3 crore.

• Profit After Tax (PAT): Increased to ₹18.4 crore from ₹2.8 crore.

• EPS (₹/Share): Improved to ₹2.9 from ₹0.4.

• Key Drivers: Similar to the quarterly performance, the nine-month growth was supported by higher sales volumes and realizations in the sugar segment, coupled with a substantial increase in ethanol sales (459.87 vs. 371.40 lakh BL).

The company demonstrated strong top-line and bottom-line growth in Q3 and the first nine months of FY26, successfully navigating input cost pressures through better sales realization and volume growth in its core segments.

• Segment-wise Revenue Growth (Q3 FY26 vs. Q3 FY25)

• Sugar: Revenue grew by 23.2% to ₹376.9 crore, driven by a 19% increase in sales volume and a 5.8% increase in realization.

• Power: Revenue increased by 44.5% to ₹89.9 crore.

• Ethanol: Revenue grew by 12.7% to ₹110.0 crore.

• Potable Spirits: Revenue increased by 21.1% to ₹241.7 crore.

• Chemicals: Revenue saw a sharp decline of 61.5% to ₹18.3 crore.

• Segment-wise EBIT Growth (Q3 FY26 vs. Q3 FY25)

• Sugar: EBIT improved to ₹18.8 crore from ₹7.2 crore.

• Power: EBIT grew to ₹43.9 crore from ₹25.6 crore.

• Ethanol & Chemicals: This combined segment saw EBIT decrease to ₹15.8 crore from ₹21.6 crore, primarily due to the weak performance of the chemicals business.

• Potable Spirits: EBIT increased to ₹18.2 crore from ₹17.6 crore.

• Overall Growth Trajectory

• The company's primary growth engines are currently Sugar, Power, and Potable Spirits, all of which posted double-digit revenue growth.

• The ethanol segment continues to contribute steadily to the top line.

• The significant underperformance in the chemicals division acted as a drag on overall profitability.

The company's growth is being propelled by strong performance in its sugar, power, and potable spirits divisions, although the sharp decline in the chemicals business is a significant headwind.

• Recent Capacity Expansions

• Sugar: Crushing capacity at the Rajpura unit was increased to 9,000 Tons Crushed per Day (TCD) in 2023.

• Distillery: Total distillery capacity was expanded to 350 Kilolitres Per Day (KLPD) in 2021. A 100 KLPD grain-based distillery was also commissioned in 2021, diversifying feedstock away from just molasses.

• Potable Spirits: Production capacity was significantly enhanced with the commissioning of two additional tetra pack lines, each with a capacity of 5,000 cases per day, in April 2024 and December 2024.

• Co-generation: The Rajpura co-generation plant capacity was increased to 48 MW in 2018.

Recent capital expenditures have been strategically focused on expanding capacity in core and high-growth areas like sugar crushing, distillation, and the value-added potable spirits business.

• Diversification into NBFC

• The Board has approved a diversification into the Non-Banking Financial Company (NBFC) vertical.

• This strategic move is subject to the completion of specified conditions and obtaining necessary approvals from the Reserve Bank of India (RBI) and other relevant authorities.

The company is planning a significant strategic pivot by diversifying into financial services, which could create a new, non-correlated revenue stream in the long term.

• Margin Analysis (Q3 FY26 vs. Q3 FY25)

• EBITDA Margin: Improved to 9.3% from 8.2%. The increase indicates better operational efficiency and the ability to pass on some of the higher input costs through better product realization.

• PBT Margin: Expanded significantly to 5.6% from 3.7%. This demonstrates strong leverage, where profit growth outpaced revenue growth.

• PAT Margin: Increased to 4.0% from 2.6%.

• Margin Analysis (9M FY26 vs. 9M FY25)

• EBITDA Margin: Improved to 4.9% from 4.6%. The year-to-date margin improvement is less pronounced than the quarterly figure but still positive.

• PBT Margin: Showed a substantial increase to 1.2% from 0.2% (based on absolute figures of ₹24.8 cr vs ₹3.3 cr).

• PAT Margin: Rose to 0.9% from 0.2%.

The company successfully expanded its profitability margins in Q3 FY26, driven by higher operational income that more than offset the negative impact from the chemicals segment and increased cane costs.

• Input Cost Volatility

• The company explicitly notes that "Higher cane price (SAP) resulted in higher cost of production of sugar." Sugarcane is the primary raw material, and its price is regulated by the government. Any adverse change in pricing directly impacts production costs and profitability.

• Segment Concentration and Volatility

• The chemicals business experienced a severe downturn, with sales volume falling by over 61% year-over-year in Q3. This highlights the risk of depending on segments that can experience sharp, unfavorable market shifts.

• Business Seasonality

• The company operates in a seasonal industry. As noted in the presentation, a single quarter's performance is not necessarily representative of the full year's results. Investors must consider the entire crushing season cycle to assess performance accurately.

Key risks stem from raw material price regulation, severe downturns in specific business segments like chemicals, and the inherent seasonality of the sugar industry.

• Shareholder Returns

• The company conducted two buybacks of its equity shares, one in 2023 and another in 2025. This action signals management's confidence in the company's valuation and serves as a tax-efficient way to return capital to shareholders.

• Credit Rating

• The company maintains a stable and strong credit rating of IND AA- for its issuer rating and long-term loans, and IND A1+ for its short-term instruments. This investment-grade rating reflects a strong financial position and creditworthiness.

• Shareholding Pattern (as of Dec 31, 2025)

• Promoters: 49.03%

• FIIs (Foreign Institutional Investors): 5.75%

• DIIs (Domestic Institutional Investors): 2.21%

• Public: 43.01%

• The significant promoter holding ensures alignment of interests with other shareholders.

The company has actively managed its capital structure through share buybacks and maintains a strong credit profile, supported by a stable shareholding structure with high promoter ownership.