Dalmia Bharat Sugar: Q4FY25 Net Profit Jumps 126% on Strong Realisations, Share Price rises up to 9%

Profit Soars on High Realisations and Revenue Growth

Dalmia Bharat Sugar and Industries Ltd delivered a strong financial performance for the fourth quarter ended March 31, 2025, reporting a significant increase in net profit. The company's net profit for Q4 FY25 jumped 126% year-on-year to ?206.3 crore, up from ?91.3 crore in the corresponding quarter of the previous fiscal year. This substantial increase was primarily attributed to record-high average sales realisations and robust revenue generation. Following the announcement of these results, shares of Dalmia Bharat Sugar and Industries Ltd opened at ?451.80 on Wednesday, up by 9.07%

Quarterly Operational and Financial Highlights

During Q4 FY25, Dalmia Bharat Sugar's revenue from operations saw a 35.7% surge, rising to ?1,018 crore compared to ?750 crore in the same period last year. At the operational level, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) demonstrated strong growth, climbing 65.3% to ?195 crore from ?118 crore in Q4 FY24. This improvement was reflected in the EBITDA margin, which expanded to 19.2% in the reporting quarter, up from 15.7% previously.

Key operational metrics also showed positive trends. Sugar sales volume stood at 1.5 lakh metric tonnes (LMT) in Q4, with exports contributing 0.1 LMT, representing approximately 9% of the total volume. The company benefited from a favourable market environment, achieving an average net sales realisation (NSR) of ?38.9 per kg, a 5% increase year-on-year. Ethanol production also saw a notable increase; the cane distillery produced 3.4 crore litres in Q4 FY25, a 31% volume increase compared to 2.6 crore litres in Q4 FY24. This was supported by the unrestricted diversion of sugar towards ethanol production via the B-heavy molasses and juice routes.

Full Year FY25 Performance Overview

For the full financial year FY25, Dalmia Bharat Sugar reported record-breaking revenue from operations totalling ?3,746 crore, marking a 29% growth year-on-year. The company achieved an all-time high in domestic sugar sales volumes at 5.9 LMT, leading to a significant reduction in year-end sugar inventory, which stood at 3.8 LMT compared to 4.3 LMT in FY24. The average sales realisation for sugar for the full year also reached an all-time high of ?38 per kg.

The grain distillery segment also contributed positively to the full-year performance, delivering 6.2 crore litres in FY25, a 72% year-on-year increase. This growth was supported by capacity expansion initiatives. For the full year, the company reported an EBITDA of ?544 crore and a profit after tax (PAT) of ?387 crore.

Financially, the company made notable progress in deleveraging its balance sheet, reducing total borrowings (current and non-current) by ?386 crore, bringing the figure down from ?1,430 crore to ?1,044 crore.

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