ZUARI INDUSTRIES LIMITEDDiversifiedZUARIIND
Q1 FY27 earnings callZUARI INDUSTRIES LIMITED
The quarter featured mixed operational results with higher sugar sales but pressured margins, significant progress on debt reduction through real estate profit repatriation, and a strategic focus on consolidating investments and growing the real estate and engineering businesses.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone Total Income | INR283.9 crores | 26% YoY | |
| Standalone EBITDA | INR31.3 crores | — | |
| Consolidated Total Income | INR327.5 crores | 22% YoY | |
| Consolidated PAT | INR0.05 crores | — | |
| Sugar Sales Volume | 4.7 lakh quintal | 29% YoY | |
| Sugar Realization | INR4,116 per quintal | — | |
| Ethanol Sales | 10,248 KL | 5% YoY | |
| Value of Listed Strategic Investments | INR4,223 crores | 15% QoQ |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹204.83 Cr— YoY— QoQ | ₹-7.36 Cr— YoY— QoQ | ₹-2.47— YoY— QoQ |
| Q2 FY25 | ₹237.29 Cr-11.7% YoY+5.1% QoQ | ₹-14.78 CrLoss narrowed YoYLoss narrowed QoQ | ₹-4.84Loss/share narrowed YoYLoss/share narrowed QoQ |
| Q1 FY25 | ₹225.71 Cr+18.2% YoY-14% QoQ | ₹-33.61 CrLoss narrowed YoYTurned loss-making QoQ | ₹-11.20Loss/share narrowed YoYTurned negative QoQ |
| Q4 FY24 | ₹262.41 Cr-7% YoY+126.7% QoQ | ₹63.38 Cr-37.3% YoY-91.3% QoQ | ₹21.35-37.2% YoY-91.3% QoQ |
| Q3 FY24 | ₹115.75 Cr-54.1% YoY-56.9% QoQ | ₹727.98 CrTurned profitable YoYTurned profitable QoQ | ₹244.51Turned positive YoYTurned positive QoQ |
TL;DR
- Standalone sugar sales volume grew 29% YoY to 4.7 lakh quintal, but segment profit fell due to an 8% increase in cane costs.
- Profit repatriation from the St. Regis Dubai project has begun, with INR 142.58 crores received and a total of INR 900 crores expected in FY27.
- The company is actively consolidating its strategic listed investments into the main holding company.
- Debt reduction is a key focus, with expectations of loan repayment from Zuari Agro and continued deleveraging.
- Real estate subsidiary is progressing on asset-light DM projects with a goal to reach INR 10,000 crores in Gross Development Value.
Said on the call
“The good news is that the prevailing prices of sugar are quite high and it's easy for anybody to do some math around what would it do to the numbers of sugar companies.”
From the Q&A
| Topic | What management said |
|---|---|
| Dubai Profit Repatriation | Management confirmed receipt of AED 55 million (INR 142.58 crores) and expects total repatriation of INR 900 crores in FY27, with no challenges from buyers or geopolitics. |
| Debt Reduction and Interest Cost | Repaying ~INR 1,100 crores debt is expected to reduce finance costs, with the average borrowing cost at 9.73%. |
| Consolidation of Investments | Explained the rationale for buying shares from group companies is to consolidate all listed equity investments into Zuari Industries and help deleverage those entities. |
| Sugar Margins and Outlook | Attributed margin pressure to an 8% increase in sugarcane prices (SAP). Expressed optimism for upcoming quarters due to high current sugar prices and good cane crop in their command area. |
| Ethanol Capacity Expansion | Capex plans are on hold due to industry overcapacity; the company will wait for clarity from October OMC tenders and potential government policy shifts before investing. |
| Real Estate Business Growth | The asset-light DM model has a Gross Development Value target of INR 10,000 crores; they are currently halfway there with projects in Hyderabad and Bangalore. |
Guidance
- Expect to repatriate INR 900 crores in total from the St. Regis Dubai project during the current financial year (FY27).
- Expect the outstanding loan of INR 258 crores from Zuari Agro Chemicals to be repaid in the current quarter.
- Real estate subsidiary aims to grow its Gross Development Value (GDV) to INR 10,000 crores under the DM model.
Source
Summary written from the transcript filed by ZUARI INDUSTRIES LIMITED for the call held on 17 Aug 2026; published 21 Aug 2026, 15:08 IST.