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Dhampur Bio Organics Limited
₹748 Cr
Market Cap
29.8
P/E
0.08
PEG
5.0%
ROCE
2.6%
ROE
1.03
D/E
6.6%
OPM
-11.8%
% from 52W High
83
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 2022, Dhampur Bio Organics Ltd manufactures sugar, chemicals, ethanol, co-generation of power and other allied products

✓ Strengths 2
  • Stock is trading at 0.65 times its book value
  • Company has been maintaining a healthy dividend payout of 43.9%
! Concerns 4
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 2.61% over last 3 years.
  • Company might be capitalizing the interest cost
  • Earnings include an other income of Rs.89.5 Cr.
Key Ratios Snapshot
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📈 Growth Pattern
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Mixed quarter: revenue grew 4.5% YoY thanks to a 267% surge in Country Liquor, but core PAT was negative ₹12 Cr and both Sugar and Biofuel & Spirits segments shrank sharply. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹553.88 Cr
+4.51% YoY (continued operations)
EBITDA Margin
2.22%
Continued ops; down from 2.56% YoY
PAT
₹38.40 Cr
Includes ₹63.89 Cr gain on sale of Meerganj; core PAT was -₹12.14 Cr
Long-term Debt / Equity
0.18x
Improved from 0.28x in Mar 2026 due to ₹93 Cr debt repayment
What Went Right
  • Country Liquor revenue jumped 267% YoY to ₹103.41 Cr, driven by 61% higher case sales (18.15 lac vs 11.25 lac) and opening of own depots.
  • Biofuel & Spirits EBIT margin surged from 0.50% to 8.17% despite a 37% revenue drop, indicating better cost absorption or product mix.
  • Long-term debt reduced by ₹93 Cr in the quarter; debt-to-equity fell to 0.18x from 0.28x, strengthening the balance sheet.
  • Avg sugar realisation rose 3.8% YoY to ₹42,403/ton, helping partially offset volume decline.
What to Watch
  • Core PAT from continued operations was a loss of ₹12.14 Cr, compared to a profit of ₹13.56 Cr in Q1FY26, due to weak EBITDA and higher depreciation/taxes.
  • Sugar segment revenue fell 13.8% YoY to ₹392.31 Cr, and EBIT margin slipped to 1.21% (from 1.30%) as the crushing season ended and inventory remained high.
  • Biofuel & Spirits revenue plummeted 36.7% YoY to ₹80.78 Cr, with ethanol sales nearly halving (9.81 Mn BL vs 19.33 Mn BL) due to lower demand or policy changes.
  • Country Liquor EBIT margin collapsed from 15.37% to 3.34% (down 1203 bps), despite revenue surging, likely due to higher excise duty pass-through and depot operating costs.
  • Overall EBITDA margin dipped to 2.22% from 2.56% YoY, indicating limited operating leverage.
Investor Lens
The thesis of repositioning as a value-added spirits and bio-energy company is under pressure: the core sugar and ethanol businesses are contracting, and Country Liquor's margin collapse raises questions about sustainability. The one-time gain from Meerganj sale masks deep operating losses. The bright spot is aggressive debt reduction, but without clearer guidance on ethanol policy or sugar pricing, the near-term outlook is uncertain. Watch for Q2 recovery in ethanol sales and whether Country Liquor margins can stabilise as the depot network matures.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Net profit surges 268% YoY to ₹37 Cr driven by ₹52 Cr other income.
Revenue
Revenue grew 8.3% YoY to ₹533.0 Cr, with a strong sequential improvement of 15.9% QoQ from ₹459.7 Cr in Mar 2026. The top line shows moderate annual growth but healthy quarter-on-quarter momentum.
Profitability
Net profit jumped 268.2% YoY to ₹37.0 Cr (from ₹10.1 Cr in Jun 2025), but dropped 19.6% QoQ. EPS turned positive at ₹5.54 vs ₹-3.31 a year ago. The sharp profit rise was largely due to ₹52 Cr in other income and a negative tax rate of -14%, which boosted bottom line.
Margins
Operating profit margin remained flat at a mere 2% both YoY and QoQ, indicating core business pressure. The company's operating performance is weak, and profits rely heavily on non-operating items.
Cash Flow
No cash flow data provided in the quarterly summary.
Balance Sheet
Debt-to-equity ratio stands at 1.03, indicating moderate leverage. ROCE is 4.98% and ROE is 2.61%, both low, reflecting low returns on capital employed and equity.
Key Risks
Core operating margin is negligible (OPM 2%), leaving the business vulnerable. The profit surge is driven by unsustainable other income (₹52 Cr) and a negative tax benefit. High debt (D/E 1.03) amid low returns poses financial stability risk.
Outlook
Without improvement in operating margins, earnings quality remains weak. The sustainability of elevated other income items is uncertain, and core revenue growth must accelerate to justify the current PE of 29.23.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q2FY26 Q3FY26 Trend
Bio Fuels & Spirits
96
EBIT -4
83
EBIT 3
Country Liquor
296
EBIT 5
294
EBIT 5
Sugar
451
EBIT 1
422
EBIT 47
Total 843 799

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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