Sweet Finish To The Year: Avadh Sugar Posts ₹671 Crore Quarter, Profits Surge, And Declares ₹10 Dividend

The Uttar Pradesh-based integrated agro-industrial company (NSE: AVADHSUGAR), part of the K. K. Birla Group, delivered its strongest quarter of FY26 in terms of both revenue and profitability today, May 12, 2026. The company had reported a net loss of ₹6.60 crore in Q2 FY26 despite revenue of ₹668.15 crore, reflecting the seasonal pressure typical of the sugar industry during non-crushing months. The Q4 turnaround, arriving during the peak of the crushing season, confirms the underlying earnings power of the business when sugarcane availability and distillery volumes align.

The Business That Drives The Numbers

Avadh Sugar operates 4 sugar mills in Uttar Pradesh with a total cane crushing capacity of 34,800 tons crushed per day, distilleries with a total capacity of 325 KLPD, and co-generation facilities capable of producing 74 MW of power. The company is the largest producer of sugar in Uttar Pradesh, producing over 2.5 million quintals of sugar annually, alongside a 50 MW co-generation power plant, a distillery producing over 50 KLPD of ethanol, and a chemical plant producing industrial grade alcohol.

The Ethanol Story Behind The Profitability

The diversification into ethanol has become the most important structural pillar of Avadh Sugar's earnings quality. Q3 FY26 saw EBITDA of ₹554 million, up from ₹359 million year-on-year, with EBITDA margin rising to 8.7% from 5.83%, driven significantly by the distillery and co-generation segments. India's ethanol blending programme has been a consistent tailwind for companies like Avadh that have invested heavily in ethanol capacity.

The company also upgraded the Hargaon unit capacity from 10,000 to 13,000 TCD during FY26, a capacity expansion that positions it to crush more sugarcane per day in the seasons ahead, directly supporting revenue growth.

A Dividend That Has Become A Tradition

The ₹10 per share final dividend recommendation for FY26 continues a consistent pattern. In the quarter ending March 2025, Avadh Sugar had also declared a dividend of ₹10 per share, translating to a dividend yield of approximately 4.87%. For the full year FY2024-25, the company had paid a total of ₹20 per share across two tranches. The FY26 ₹10 per share recommendation, given the early losses in Q1 and Q2, reflects management's confidence in the full-year earnings picture now that Q4 numbers are confirmed.

The Birla Group Legacy And Financial Position

Avadh Sugar and Energy has roots tracing back to 1932 and was formally incorporated in 2015 as a joint venture of The Oudh Sugar Mills Limited and Upper Ganges Sugar and Industries Limited, with Nandini Nopany as Chairperson and Chandra Shekhar Nopany as Co-Chairperson. As of September 2025, current borrowings had reduced sharply to ₹278.70 crore from ₹1,073.43 crore at the previous fiscal year-end, reflecting strong cash flow generation from operations.

Key Highlights

• Q4 FY26 consolidated revenue from operations at ₹671 crore
• Q4 FY26 consolidated net profit after tax at ₹55.61 crore, a strong rebound from Q2's net loss
• Final dividend of ₹10 per equity share recommended for FY2025-26, subject to shareholder approval
• Dividend maintained at ₹10 per share, consistent with the prior year's Q4 payout
• Company operates four sugar mills with 34,800 TCD total crushing capacity across Uttar Pradesh
• Distillery capacity of 325 KLPD supports India's ethanol blending programme contribution
• Hargaon unit upgraded from 10,000 to 13,000 TCD, adding production headroom for future seasons
• Current borrowings reduced dramatically to ₹278.70 crore from ₹1,073.43 crore in the prior year
• Q3 FY26 EBITDA had surged to ₹554 million with margins improving to 8.7%, paving the way for a strong Q4

Sources: NSE/BSE Exchange Filing, INDmoney, Screener.in, ScanX, ICICI Direct Research, Bajaj Broking, Groww