The Andhra Sugars Limited (ANDHRSUGAR)

Chemicals · Chemicals & Petrochemicals · NSE · Updated 15 July 2026

₹86.3 ↑ 2.91% (1Y)

🎯 Key Takeaways

The Andhra Sugars Limited is navigating a structural transition from traditional sugar production toward higher-margin power generation and chlor-alkali operations, as evidenced by its strategic suspension of sugar crushing at two loss-making units. Despite reporting consolidated profit growth and robust cash reserves, the company remains heavily reliant on non-sugar segments for profitability, with sugar operations contributing negatively to earnings.
Revenue grew 1% QoQ to ₹637 in Q4FY26.
⚠️ Overreliance on non-sugar segments for profitability, with sugar operations continuing to generate losses despite scale.

Market Cap

₹1,229

P/E Ratio

14.6

P/B Ratio

0.77

ROE

5.3%

ROCE

8.0%

Debt/Equity

0.01

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

The Andhra Sugars Limited is navigating a structural transition from traditional sugar production toward higher-margin power generation and chlor-alkali operations, as evidenced by its strategic suspension of sugar crushing at two loss-making units. Despite reporting consolidated profit growth and robust cash reserves, the company remains heavily reliant on non-sugar segments for profitability, with sugar operations contributing negatively to earnings. Management is prioritizing capital efficiency and shareholder returns amid constrained cane availability and sectoral headwinds.

📰 What's Happening

In its May 30, 2026 board meeting, Andhra Sugars approved the audited FY26 financial results and recommended a final dividend of ₹1.20 per share (60% of face value), comprising a normal dividend of ₹1.00 and a special dividend of ₹0.20, pending AGM approval on 24 September 2026. The company disclosed ₹1623 lakhs in revenue from power generation and highlighted ₹29,984.17 lakhs of operating cash flow, supporting strong liquidity. Concurrently, the board suspended crushing operations at the Taduvai and Bhimadole sugar units for the 2026-27 season due to insufficient cane supply, acknowledging their historical contribution of 11.12% and 1.75% to prior-year profits respectively. No sale agreements are in place, signaling a strategic exit from unviable sugar production rather than a temporary pause.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26	Q4FY26
Revenue	480	528	511	500	600	597	631	637
Operating Profit	33	28	27	39	58	65	56	31
OPM %	2.3%	4.1%	4.2%	10.3%	9.1%	9.2%	8.1%	7.5%
Net Profit	16	5	-0	6	25	34	23	6
EPS	₹1.09	₹0.33	₹0.06	₹0.43	₹1.73	₹2.41	₹1.65	₹0.35

Revenue and profitability show mixed trends, with consolidated income rising to ₹152,970.07 lakhs in FY26 from ₹146,272.89 lakhs in FY25, driven by growth in chlor-alkali and power segments. However, quarterly operational performance reveals volatility: OPM declined from 10.3% in Q4FY25 to 7.5% in Q4FY26, while net profit dipped to ₹6 lakhs from ₹34 lakhs in the same period, despite stable revenue. This margin compression aligns with management’s disclosure of sugar segment losses (₹1,855.71 lakhs) and the shutdown of two units, suggesting ongoing structural headwinds. EPS also declined to ₹0.35 in Q4FY26 from ₹2.41 in Q2FY26, reflecting both operational pressures and a shrinking equity base.

🔮 Management Outlook & What's Next

Management expressed confidence in cash flow resilience and segment diversification, emphasizing the profitability of power generation (₹1623 lakhs revenue) and chlor-alkali operations as offsetting growth drivers. The board’s approval of a special dividend underscores a shareholder-friendly stance, with payout contingent on AGM approval in September 2026. Management did not provide forward earnings guidance but highlighted compliance with SEBI LODR and Indian Accounting Standards, and reaffirmed the unmodified auditor’s opinion as a validation of governance and reporting integrity. No new capital projects or revenue targets were disclosed beyond existing segment performance.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2024-2025	2025-2026	2025-2026	2025-2026	2025-2026
Equity Capital	27	27	27	27	27
Reserves	1,565	—	1,610	—	1,644
Borrowings	13	—	7	—	1
Total Liabilities	420	418	401	424	403
Fixed Assets	952	—	951	—	930
Investments	322	—	413	—	529
Total Assets	2,108	2,131	2,135	2,180	2,174

The balance sheet reflects a highly conservative capital structure with negligible net debt (Total Borrowings of ₹1 crore against ₹27 lakhs equity and ₹1,644 lakhs reserves as of FY26). Total assets of ₹2,174 lakhs are supported primarily by strong cash reserves of ₹1,669.91 crores, indicating minimal reinvestment needs and a focus on capital preservation. This liquidity buffer enables dividend sustainability and provides flexibility for future strategic moves, including potential asset divestments or acquisitions, without leverage concerns.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021	2020-2021
Operating	+195	+253
Investing	-140	-141
Financing	-75	-132
Net Cash Flow	—	—

⚖️ Peer Comparison — Chemicals & Petrochemicals

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Solar Industries India Limited	1.57 L Cr	132.3	—	—	—
Pidilite Industries Limited	1.49 L Cr	75.7	—	—	—
SRF Limited	79,723	69.5	—	—	—
Linde India Limited	62,701	141.9	—	—	—
Gujarat Fluorochemicals Limited	40,793	89.6	—	—	—
Navin Fluorine International Limited	35,894	131.5	—	—	—
Himadri Speciality Chemical Limited	30,071	56.6	—	—	—
Deepak Nitrite Limited	24,911	33.3	—	—	—
Atul Limited	20,904	48.8	—	—	—
Tata Chemicals Limited	19,079	-47.1	—	—	—

🔗 Peer Stock Analyses

SOLARINDS PIDILITIND SRF LINDEINDIA FLUOROCHEM

⚠️ Risk Factors

1. Overreliance on non-sugar segments for profitability, with sugar operations continuing to generate losses despite scale. 2. Structural vulnerability to cane availability, as evidenced by the suspension of two units, which may recur due to climate or agricultural supply risks. 3. Margin compression in core operations, as seen in declining OPM and stagnant net profit growth despite revenue increases. 4. Governance risk tied to dividend dependency on AGM approval, introducing procedural delays and potential political sensitivity given the company’s public sector linkages.

📋 Recent Filings

🧠 Analyst's Read

Andhra Sugars is transitioning from a traditional sugar producer to a diversified industrial player with a focus on power and chlor-alkali, supported by strong cash flows and a generous dividend policy. Investors should monitor the pace of sugar unit consolidation and the contribution margin of power generation, as near-term profitability hinges on the success of this strategic pivot. The sustainability of dividends will depend on continued operational resilience in non-sugar segments amid ongoing agricultural volatility.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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