Dhampur Sugar Mills Limited unveiled its financial performance for the December quarter today, after the closure of market hours, revealing a substantial improvement in profitability. The company posted a consolidated net profit of ₹26.49 crore for the third quarter of the fiscal year 2025-26, marking a significant recovery and growth trajectory.
Quarterly Financial Highlights
This profit figure represents a robust 75% increase compared to the same period in the previous fiscal year, when the company had reported a net profit of ₹15.12 crore. Notably, this performance comes after a challenging September quarter, where Dhampur Sugar Mills recorded a net loss of ₹7.82 crore, indicating a strong turnaround in operations.
Revenue and Segment-Wise Performance
On the revenue front, the company's consolidated revenue from operations during the quarter under review stood at ₹667.44 crore. This reflects a healthy growth of 14% from ₹587 crore reported in the corresponding quarter of the previous year, underscoring improved business volumes and market conditions.
Breaking down the revenue by segments:
- Sugar Segment: As the largest contributor, revenue from sugar operations rose by 23% year-on-year to ₹377 crore, driven by favorable pricing and demand dynamics.
- Power Segment: Generated revenue of ₹90 crore, supporting the company's diversified energy portfolio.
- Ethanol Segment: Contributed ₹110 crore, benefiting from government initiatives promoting ethanol blending.
- Chemicals Segment: Posted revenue of ₹18.3 crore, adding to the product mix.
- Potable Spirits Segment: Recorded revenue of ₹242 crore, highlighting strength in this ancillary business.
Operating Metrics and Margins
The company reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of ₹56 crore for the quarter. This represents a substantial 35% jump from ₹41.6 crore in the year-ago period, indicating enhanced operational efficiency and cost management.
In terms of profitability margins, the EBITDA margin improved by 140 basis points year-on-year to 8.4%. This margin expansion reflects better control over expenses and optimized production processes, contributing to the overall financial health of the company.
Stock Performance and Investor Impact
Despite the positive quarterly results, Dhampur Sugar Mills' shares have been under severe selling pressure over the past year, eroding significant value for investors. The stock hit an all-time high of ₹326 in September 2023 but has since entered a downward spiral, closing each subsequent month lower.
In January, the shares reached their lowest level since April 2021, with the current trading price at ₹115.53. This represents a steep decline of 64.5% from the record high, highlighting the disconnect between operational performance and market sentiment.
Annual and Year-to-Date Trends
In terms of yearly performance, the stock closed the calendar year 2025 with a drop of 24%, extending its annual losing streak to the second consecutive year. So far in the current year, the stock has tanked by another 7%, indicating persistent bearish trends in the equity market.
This sustained crash has significantly impacted retail portfolio investors, who held a 47.6% stake at the end of the December quarter, according to data from Trendlyne. The decline has raised concerns among small investors and analysts about the stock's valuation and future prospects.
Investors are advised to consult with certified financial experts before making any investment decisions, as market conditions can be volatile and require careful analysis.
