Dalmia Bharat Sugar and Industries Ltd., one of India’s leading sugar manufacturers, announced its Q4 FY25 results on 14th May 2025. The company delivered an exceptional financial performance, with net profits jumping 126% year-on-year to ₹206.32 crore and revenue increasing by 35.07% YoY to ₹1,017.87 crore. This robust earnings growth triggered a strong rally in the company’s stock.
Shares of Dalmia Bharat Sugar opened with a 12% gain at ₹464.50 on the NSE, up from the previous close of ₹414.00. Although the stock pared some gains later in the day, it still closed 8.45% higher at ₹449.00, reflecting investor confidence and positive sentiment.
This article provides a detailed breakdown of Dalmia Bharat Sugar’s Q4 FY25 performance, business drivers, segment-wise revenue, market reaction, and outlook.
Dalmia Bharat Sugar Q4 FY25: Key Financial Highlights
| Metric | Q4 FY24 | Q4 FY25 | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹753.64 crore | ₹1,017.87 crore | +35.07% |
| Net Profit | ₹91.32 crore | ₹206.32 crore | +126.00% |
| EBITDA | ₹118 crore | ₹195 crore | +65.31% |
| EPS (Basic and Diluted) | ₹47.78 | ₹25.49 | -46.64% |
| Sugar Segment Revenue | ₹663.02 crore | ₹878.34 crore | +32.45% |
| Export Revenue | ₹— | ₹55.19 crore | New Revenue Line |
Revenue and Profit Analysis
Dalmia Bharat Sugar recorded significant revenue growth of over 35%, driven primarily by higher realizations in sugar and ethanol sales. The revenue from operations reached ₹1,017.87 crore in Q4 FY25, compared to ₹753.64 crore in the same quarter of FY24.
On the profitability front, the company posted a net profit of ₹206.32 crore, a remarkable 126% increase from ₹91.32 crore in Q4 FY24. This substantial jump was fueled by:
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High Average Realizations in both domestic and export sugar markets.
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Enhanced Ethanol Production driven by better distillery utilization.
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Improved Operational Efficiency in both sugar and co-generation segments.
EBITDA rose to ₹195 crore, up 65.31% YoY, with improved margin dynamics across the value chain.
Segmental Highlights
1. Sugar Segment
The sugar segment contributed ₹878.34 crore to total Q4 FY25 revenue—an increase of 32.45% from the ₹663.02 crore recorded in Q4 FY24. The company benefitted from:
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Better price realization in domestic sales.
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Strategic volume allocation between domestic and export markets.
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Efficient cane procurement and crushing operations.
2. Exports and Ethanol
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Exports Revenue: ₹55.19 crore in Q4 FY25, supported by favorable global demand and export quotas.
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Ethanol Production: While specific figures are not disclosed, management confirmed that ethanol output and realizations improved YoY.
The company’s growing ethanol capacity is aligned with the Government of India’s Ethanol Blending Programme, which aims for 20% blending by 2025.
Market Response and Share Performance
On 14th May 2025:
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Opening Price: ₹464.50 (+12.21%)
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Closing Price: ₹449.00 (+8.45%)
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Previous Close: ₹414.00
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Intraday High: ₹469.60
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52-Week High/Low: ₹487.40 / ₹298.50
The stock has been on an upward trajectory, reflecting strong institutional and retail interest in fundamentally sound sugar companies benefitting from ethanol, exports, and margin expansions.
EPS Decline Explained
Despite a net profit surge, the EPS (Earnings Per Share) declined to ₹25.49 from ₹47.78. This can be attributed to:
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Higher base EPS in Q4 FY24 due to exceptional one-time gains or tax write-backs.
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Equity base adjustments such as bonus issues or capital restructuring in the previous year.
However, the core operating performance remains robust, and investors should focus on the earnings trend and margin sustainability rather than EPS alone.
Strategic Drivers Behind Q4 Success
1. Government Support
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Timely announcement of Minimum Support Price (MSP).
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Ethanol procurement at attractive prices under long-term contracts.
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Subsidized loans for distillery expansion under SATAT and PM-PRANAM schemes.
2. Strong Supply Chain Management
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Efficient procurement from farmers in UP and Maharashtra.
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Low overheads due to lean operations and process automation.
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Integrated model with sugar, power co-generation, and ethanol ensuring consistent cash flows.
3. Diversification Through Green Energy
The company has been actively exploring bio-energy, ethanol from B-heavy molasses, and compressed biogas (CBG) plants. These ventures reduce dependence on volatile sugar prices and enhance long-term sustainability.
Analyst and Industry Sentiment
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Brokerages expect further upside due to the ethanol push and steady sugar pricing.
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Domestic and global sugar markets are seeing firm demand, which benefits producers with export capabilities like Dalmia Sugar.
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Analysts remain optimistic, with target prices ranging from ₹475–₹500 in the near term.
“Dalmia Bharat Sugar is executing well on all fronts—profitability, capacity expansion, and exports. FY26 may see even better traction if ethanol policies remain supportive,” said an analyst at ICICI Securities.
Challenges and Risks
While Q4 results are impressive, the company faces some industry and macroeconomic risks:
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Monsoon Dependency: Crop quality and cane availability are heavily weather-dependent.
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Global Sugar Prices: A decline in international prices can affect exports.
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Policy Uncertainty: Changes in ethanol procurement pricing or export restrictions can impact revenue mix.
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Input Costs: Fluctuation in cane prices, fuel, and labor can impact margins.
However, the company’s integrated business model and geographic diversification mitigate many of these risks.
Outlook for FY26
Looking forward, Dalmia Bharat Sugar is likely to maintain its growth momentum based on:
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Expansion of ethanol production capacity.
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Higher utilization of export quotas.
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Ongoing capex in green energy initiatives.
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Government support for the sugar and ethanol sectors.
With a robust pipeline of projects and strong Q4 performance, the company is well-positioned for continued profitability.
Final Thoughts
Dalmia Bharat Sugar and Industries Ltd. has posted a phenomenal Q4 FY25, marked by a 126% jump in net profit and 35% growth in revenue. This performance is a testament to its strong fundamentals, efficient operations, and favorable macroeconomic environment for sugar and ethanol producers.
The sharp rise in share price on 14th May 2025 reflects investor enthusiasm backed by real financial performance. While EPS shows a decline due to technical reasons, all core operational indicators point to sustainable growth.
For long-term investors, Dalmia Bharat Sugar offers an attractive blend of earnings momentum, policy tailwinds, and diversification into renewable energy. The company has effectively positioned itself as a leading player not just in sugar but in India’s broader green economy transition.
For more information, visit the company website:
https://www.dalmiasugar.com
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