Ugar Sugar swings to profit, recommends first dividend in two years
The sugar segment's operating profit nearly quadrupled. The board recommends its first dividend since the last payout.
What's new
- Net profit of ₹13.61 cr versus a net loss of ₹16.25 cr a year earlier.
- Revenue rose 7.6% to ₹1,515 cr. Sugar segment operating profit nearly quadrupled to ₹80.4 cr.
- Board recommended a 10 paise per share dividend, the first payout in two years.
Why this matters
The turnaround is driven by a near-quadrupling in sugar-segment operating profit. That surge, combined with improved co-generation, erased the prior-year loss and generated enough cash for a dividend after a two-year pause. The payout is modest but signals a reset in cash flow.
What we're watching
- Whether sugar-segment margins hold at the new level.
- Whether the dividend payout grows from the 10 paise base.
- Co-generation revenue trajectory as a second profit leg.
The full read
Ugar Sugar has swung to a ₹13.61 crore net profit for FY2026, reversing a ₹16.25 crore net loss in FY2025. Revenue climbed 7.6% to ₹1,515 crore, but the real story is the margin explosion in sugar. Segment operating profit nearly quadrupled to ₹80.4 crore, with co-generation also contributing. The improvement was strong enough for the board to recommend a 10 paise dividend, the first payout in two years. For a nano-cap sugar maker, this is a clean reset: a swing from a net loss to a net profit, backed by the core business, and followed by cash returned to shareholders.
Questions answered
- What drove the turnaround from a loss to a profit?
- The sugar segment's operating profit nearly quadrupled to ₹80.4 crore, which, combined with improved co-generation revenue, swung the company from a ₹16.25 crore net loss to a ₹13.61 crore net profit.
- How much is the dividend, and how does it compare to history?
- The board recommended a dividend of 10 paise per share. This is the company's first dividend payout in two years.
- What was the revenue growth?
- Revenue rose 7.6% to ₹1,515 crore for the year ended March 2026.
- Is the sugar segment now the dominant profit driver?
- Yes, with an operating profit of ₹80.4 crore, the sugar segment is clearly the core earnings engine. Its near-quadrupling year-on-year was the primary driver of the company's overall profit swing.