Kothari Sugars and Chemicals LimitedQ1 FY27 Results & Financial Update
Kothari Sugars and Chemicals Limited: Q1 FY27 standalone results and company financials – revenue ₹83.42 Cr, PAT ₹0.08 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Kothari Sugars and Chemicals price & chart
Quarter overview
Quarterly earnings analysis
For the quarter ended June 30, 2026, Kothari Sugars and Chemicals Limited reported revenue from operations of INR 83.42 crore and a total income of INR 87.12 crore on a standalone basis. Operating performance yielded a profit before tax (PBT) of INR 0.09 crore and a net profit (PAT) of INR 0.08 crore, translating to basic and diluted earnings per share of INR 0.01.
The reported quarterly results benefit significantly from an exceptional item of income amounting to INR 7.95 crore (INR 795.02 lakhs), which arose from the reversal of excess provisions previously maintained regarding electricity matters. Without this exceptional credit, pre-tax operations would have registered a loss before exceptional items and taxes of INR 7.86 crore.
Segment reporting highlights divergent operational pressures across the company's core pillars. The sugar segment continued to face severe headwinds, generating a pre-tax segment loss of INR 10.18 crore on external revenues of INR 29.09 crore.
Conversely, the distillery and power segments provided vital balancing support. The distillery division achieved external segment revenues of INR 48.33 crore and contributed a segment result of INR 4.21 crore, while the power division recorded external revenues of INR 12.50 crore and a segment result of INR 8.39 crore.
Total expenses for the quarter aggregated to INR 94.98 crore, dominated by raw material consumption of INR 59.16 crore and inventory adjustments reflecting an inventory decrease of INR 11.72 crore. Employee benefits expense stood at INR 6.86 crore, while finance costs and depreciation charges amounted to INR 1.63 crore and INR 3.70 crore respectively. Other expenses totaled INR 11.91 crore.
Management explicitly notes that because sugar production is inherently seasonal, the performance registered in any single quarter cannot be viewed as directly representative of the full financial year's operating outcome.
Profit after tax was ₹0.08 Cr for the reported quarter. EPS was ₹0.01 for the reported quarter.
01 · Business model
What does Kothari Sugars and Chemicals do?
Kothari Sugars and Chemicals Limited operates as an integrated sugar, distillery, and co-generation power producer based in Tamil Nadu, India. The company manages manufacturing operations through two major production locations: Unit I situated in Kattur (Lalgudi Taluk, Tiruchirappalli District) and Unit II situated in Sathamangalam (Ariyalur District).
The company's operational model converts sugarcane into refined sugar while simultaneously generating allied revenue streams through industrial alcohol/distillery products and surplus power generation from bagasse-based co-generation plants.
Revenue generation depends heavily on the seasonal availability of sugarcane harvests, creating distinct inter-quarter fluctuations in output, processing volumes, and segment-wise financial contributions throughout the fiscal year.
The enterprise maintains no subsidiary, associate, or joint-venture companies, presenting a purely standalone operational profile for its manufacturing assets and financial reporting structure.
02 · Historical context
What shaped the business before this quarter
As of June 30, 2026, the company continues to operate entirely as a standalone entity without subsidiaries, associates, or joint ventures.
The company established its operational footprint across Unit I in Tiruchirappalli District and Unit II in Ariyalur District, Tamil Nadu, to anchor its integrated sugar, distillery, and power generation capabilities.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹83.42 Cr |
| Total income | ₹87.12 Cr |
| Profit before tax | ₹0.09 Cr |
| Profit after tax | ₹0.08 Cr |
| EPS | ₹0.01 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 0.1% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 0.1% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹3.70 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Distillery operations emerged as the largest top-line contributor for the quarter, generating external revenues of INR 48.33 crore out of total operating revenues of INR 83.42 crore.
The sugar segment contributed external revenue of INR 29.09 crore during the June 2026 quarter, reflecting ongoing seasonal processing cycles.
The power co-generation segment delivered external revenue of INR 12.50 crore, supported by internal energy utilization and surplus grid supply.
What drove margins
Operating margins were severely compressed by the sugar segment, which posted a pre-tax segment loss of INR 10.18 crore, offsetting positive segment results of INR 4.21 crore from the distillery division and INR 8.39 crore from the power division.
Cost of materials consumed represented the largest expense category at INR 59.16 crore, alongside inventory de-stocking effects of INR 11.72 crore.
Fixed overheads included finance costs of INR 1.63 crore and depreciation and amortisation charges of INR 3.70 crore, exerting downward pressure on net margins.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Generated segment revenue (including inter-segment sales) of INR 29.09 crore with a pre-tax and interest segment loss of INR 10.18 crore; total segment assets stood at INR 134.29 crore.
Delivered segment revenue of INR 48.33 crore and a positive segment result of INR 4.21 crore; total segment assets were reported at INR 69.96 crore.
Posted segment revenue of INR 12.50 crore and a positive segment result of INR 8.39 crore; total segment assets stood at INR 24.79 crore.
06 · Reported developments
What changed operationally
The company recorded an exceptional income item of INR 7.95 crore (INR 795.02 lakhs) resulting from the reversal of excess provisions relating to electricity matters.
Both the power co-generation and distillery divisions remained profitable at the segment level, absorbing a portion of the losses incurred by the sugar division.
07 · Pressure points & risks
What is not going smoothly
The sugar division recorded a substantial pre-tax segment loss of INR 10.18 crore during the quarter, underscoring cyclical margin pressures in primary sugar processing.
Before accounting for the exceptional electricity provision reversal, the company registered a pre-tax loss of INR 7.86 crore.
08 · Beyond the numbers
What changed beyond the numbers
Statutory Auditor Review
M/s. P. Chandrasekar LLP, Chartered Accountants, carried out a limited review of the unaudited financial results for the quarter ended June 30, 2026, and issued an unqualified review report.
Board Approval
The unaudited financial results for Q1 FY27 were reviewed and recommended by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on August 13, 2026.
09 · Key Q&A
The quarter, answered directly
What does Kothari Sugars and Chemicals do?
Kothari Sugars and Chemicals Limited operates as an integrated sugar, distillery, and co-generation power producer based in Tamil Nadu, India. The company manages manufacturing operations through two major production locations: Unit I situated in Kattur (Lalgudi Taluk, Tiruchirappalli District) and Unit II situated in Sathamangalam (Ariyalur District).
What is the clearest takeaway from Q1 FY27?
For the quarter ended June 30, 2026, Kothari Sugars and Chemicals Limited reported revenue from operations of INR 83.42 crore and a total income of INR 87.12 crore on a standalone basis. Operating performance yielded a profit before tax (PBT) of INR 0.09 crore and a net profit (PAT) of INR 0.08 crore, translating to basic and diluted earnings per share of INR 0.01.
What drove revenue or demand?
Distillery operations emerged as the largest top-line contributor for the quarter, generating external revenues of INR 48.33 crore out of total operating revenues of INR 83.42 crore.
What mattered most for margins or profitability?
Operating margins were severely compressed by the sugar segment, which posted a pre-tax segment loss of INR 10.18 crore, offsetting positive segment results of INR 4.21 crore from the distillery division and INR 8.39 crore from the power division.
What changed operationally beyond the headline numbers?
M/s. P. Chandrasekar LLP, Chartered Accountants, carried out a limited review of the unaudited financial results for the quarter ended June 30, 2026, and issued an unqualified review report.
What are the main pressure points disclosed for the quarter?
The sugar division recorded a substantial pre-tax segment loss of INR 10.18 crore during the quarter, underscoring cyclical margin pressures in primary sugar processing.
10 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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11 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Full-Year Seasonal Sugar Recovery: Monitor upcoming quarterly processing volumes to observe whether seasonal sugarcane crushing cycles improve segment profitability in subsequent quarters of FY27.
- 02
Distillery and Power Margin Sustainability: Track the ongoing earnings contribution from the distillery and power divisions to assess their capacity to offset cyclical volatility in the sugar milling business.
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