Loading…
Avadh Sugar & Energy Ltd
₹1,450 Cr
Market Cap
22.0
P/E
PEG
6.8%
ROCE
5.6%
ROE
1.25
D/E
8.5%
OPM
-18.2%
% from 52W High
66
α RS
⚖️ Compare 🔒 Generate Report 🔒 Research Packet 📚 Guides
📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 2015, Avadh Sugar & Energy Ltd manufactures and sells sugar and its by-products, spirits and power

✓ Strengths 1
  • Company has been maintaining a healthy dividend payout of 24.4%
! Concerns 3
  • The company has delivered a poor sales growth of -0.13% over past five years.
  • Company has a low return on equity of 8.87% over last 3 years.
  • Company might be capitalizing the interest cost
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
📊 Quick Scorecard
Loading…
🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
Mixed but improved: revenue and EBITDA rose sharply and PAT turned positive, yet cane crushing/production collapsed and profitability remains razor-thin. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹781.05 Cr
+9% YoY
EBITDA Margin
4.9%
Q1FY26 was 4.0%; +~90 bps YoY
PAT
₹0.24 Cr
vs -₹8.41 Cr loss in Q1FY26
Key Metric
Sugar sales 14.86 lac qtls
+10% YoY; sugar realisation ₹4,088/qtl (+2%)
What Went Right
  • Revenue rose 9% YoY to ₹781.05 Cr and EBITDA jumped 34% to ₹38.25 Cr; cash profit surged 565% to ₹15.95 Cr from ₹2.40 Cr.
  • Sugar sales volume grew 10% to 14.86 lac qtls and average realisation improved 2% to ₹4,088/qtl, lifting sugar segment EBIT from ₹4 Cr to ₹9 Cr.
  • Distillery EBIT improved to ₹21 Cr from ₹18 Cr despite lower volumes, driven by better product margins and sales mix.
  • PAT turned positive at ₹0.24 Cr against an ₹8.41 Cr loss a year ago.
  • Total debt reduced to ₹917 Cr from ₹1,406 Cr at Mar-26 and from ₹1,089 Cr at Jun-25; interest cost fell 15% YoY to ₹22.30 Cr.
What to Watch
  • Crushing collapsed to 6.19 lac qtls from 14.44 lac qtls YoY and sugar production fell to 0.86 lac qtls from 1.81 lac qtls, reflecting sharply lower cane availability.
  • Ethanol production dropped 18% YoY to 221 lac litres and ethanol sales fell 3% to 258 lac litres, exposing feedstock constraints.
  • Co-gen & Others segment EBIT remained negative at -₹4 Cr, and power production fell 19% to 173 lac units.
  • Profitability is still exceptionally thin: PAT of ₹0.24 Cr on ₹781 Cr revenue is just ~0.03% margin; EBITDA margin of 4.9% leaves little cushion against cost inflation, regulatory action, or price shocks.
  • Sugar recovery dipped to 11.18% from 11.23% and government stock holding limits threaten to restrain realisations despite firm sugar prices.
Investor Lens
The integrated thesis remains broadly intact — distillery EBIT, better sugar realisations, and deleveraging drove the YoY improvement. But the quarter exposes structural fragility: cane availability is the binding constraint, and Q1 crushing fell by more than half, leaving earnings dependent on inventory sales and a thin margin. The ₹0.24 Cr PAT on ₹781 Cr revenue shows the business is barely covering costs in an off-season; tight sugar supply is supportive, but export restrictions and stock limits cap upside. Ethanol is the stabiliser, yet 18% lower production raises feedstock-security questions. Watch cane acreage/yield entering SS 2026-27, the post-monsoon export decision, and whether the company reaches full ethanol supply against its 7.54 Cr ltr allocation — only 6.37 Cr ltrs were supplied as of 24 July 2026.
From investor presentation · AI-generated analysis · Not investment advice
🔒
Premium Feature
Investor Presentation One-Pager — quarterly highlights, what went right/wrong & management guidance
Upgrade to Premium
Already a member? Log in
📊 MIXED Revenue up 8.7% but PAT nearly breakeven at ₹0.23 Cr; QoQ profit drops 99.6%
Revenue
Revenue grew 8.7% YoY to ₹779.2 Cr, with strong 16.2% sequential growth. The quarterly revenue run-rate remains moderate for the FMCG sector.
Profitability
Net profit turned positive at ₹0.23 Cr vs a loss of ₹4.20 EPS a year ago, up 102.7% YoY, but crashed 99.6% QoQ. PAT margin is negligible at 0.03%, with ROCE and ROE at 6.83% and 5.63% respectively.
Margins
Operating margin improved YoY to 4.68% from 3.94%, but collapsed from 17.84% in Mar-2026. Operating profit of ₹36.5 Cr was largely absorbed by interest costs of ₹22.3 Cr.
Cash Flow
No cash flow data provided in the release.
Balance Sheet
Debt/equity stands at 1.25, reflecting elevated leverage. No reserves or total debt details were disclosed.
Key Risks
High leverage with interest cover of only 1.64x operating profit. Net profit is extremely volatile, swinging sharply QoQ. The tax outgo at 35% on a thin PBT further reduces retained earnings.
Outlook
Revenue growth is positive, but sustaining margins is critical for meaningful profitability. High debt and interest costs remain overhangs; a recovery in Q2 will be key for earnings normalisation.
Generated by AI · Jun 2026 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Documents.

Access concall transcripts, annual reports, credit ratings, and investor presentations.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Catalyst Timeline.

Every result, order win, insider trade, SAST trigger, pledge change, concall, and corporate action for this company — in one chronological lane.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Forensic Report.

A filings-based disclosure review of this company's most recent Annual Report — Accounting Quality Signals, Related Party Disclosures, Auditor Signals, and Governance Watchpoints, generated with your own AI key.

Upgrade to PremiumCreate Free Account

📊 Sector KPIs

Industry-specific KPIs with historical trend — AI-extracted from investor presentations
🔒
Premium Feature
Industry-specific KPIs with historical trend across quarters — AI-extracted from investor presentations
Upgrade to Premium
Already a member? Log in
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This report may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. The author does not undertake any obligation to update such statements in the future.

Regulatory Compliance:
This report is intended to comply with the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, as amended, and other applicable Indian laws and regulations.

Limitation of Liability:
The content of this report is provided "as is" without any warranties, express or implied, including accuracy, completeness, merchantability, or fitness for a particular purpose. The author and publisher expressly disclaim any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.