Ugar Sugar Works Ltd (UGARSUGAR)

Fast Moving Consumer Goods · Sugar · NSE · Updated 16 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹53.29 ↑ 19.46% (1Y)

🎯 Key Takeaways

Ugar Sugar Works Ltd is transitioning from a distressed sugar producer to a more resilient integrated player with improving profitability and credit metrics, supported by strategic leadership continuity and dividend signaling. The company has stabilized operations post-turnaround, with recent financial performance showing recovery in margins and cash generation, while maintaining a conservative capital structure.
Revenue grew 24.5% QoQ to ₹234 in Q2FY24.
⚠️ 1) Seasonal volatility in sugar demand and pricing continues to impact top-line stability, as evidenced by sharp revenue swings across quarters. 2) Pe

Market Cap

₹600

P/E Ratio

8.8

P/B Ratio

2.71

ROE

31.0%

ROCE

26.7%

Debt/Equity

1.57

Div Yield

0.94%

Promoter

44.5%

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📖 The Story

Ugar Sugar Works Ltd is transitioning from a distressed sugar producer to a more resilient integrated player with improving profitability and credit metrics, supported by strategic leadership continuity and dividend signaling. The company has stabilized operations post-turnaround, with recent financial performance showing recovery in margins and cash generation, while maintaining a conservative capital structure. Management is focused on operational efficiency and stakeholder confidence, reflected in credit rating upgrades and consistent shareholder returns.

📰 What's Happening

In August 2026, the company announced the retirement of Independent Director Hari Athawale and the resignation of Non-Executive Director Prafulla Shirgaokar, who was appointed Chairman Emeritus effective August 12, 2026, with board committees reconstituted. This leadership transition occurred ahead of the 86th AGM on August 5, 2026, where shareholders approved the audited FY26 financials and declared a 10% dividend, underscoring confidence in cash flow sustainability. Director Shishir Shirgaokar and Shilpa Kumar were reappointed, ensuring governance stability. The credit rating was upgraded by CARE Edge on August 13, 2026, from BB+; Negative to BBB-; Stable, with the fixed deposit rating withdrawn, citing improved profitability, higher sales volume, and expanded PBILDT margins despite ongoing debt repayments.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Dec 2022	Mar 2023	Jun 2023	Sep 2023
Revenue	594	608	188	234
Operating Profit	70	99	-1	-27
OPM %	11.9%	16.3%	-0.4%	-11.6%
Net Profit	46	65	-9	-33
EPS	₹4.05	₹5.80	₹-0.81	₹-2.95

The company's quarterly performance reveals a sharp recovery from losses in Q3 and Q4 2023 to profitability in Q1 2023 (Mar), with revenue declining seasonally but profitability improving significantly due to higher sugar realizations and cost management. Despite a net loss of ₹33 crore in September 2023, the full-year FY26 results show strong operational turnaround, supported by robust cash flows and margin expansion. The shift from negative operating performance in Q3-Q4 2023 to operating profit of ₹99 crore in March 2023 indicates stabilization in core operations, likely driven by better realizations and inventory management.

🔮 Management Outlook & What's Next

Management expressed a Stable outlook following the credit rating upgrade, citing improved liquidity, sustained performance in sugar and ethanol segments, and expectations of continued margin expansion. The withdrawal of the fixed deposit rating and upgrade to BBB- reflect enhanced confidence in the company’s financial resilience and debt servicing capacity, with no explicit forward guidance provided beyond the Stable rating rationale.

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

🏦 Balance Sheet (₹ Cr)

Item	Mar 2022	Mar 2023	Mar 2023	Mar 2024
Equity Capital	11	11	11	11
Reserves	111	101	210	161
Borrowings	640	465	347	225
Total Liabilities	1,164	721	916	630
Fixed Assets	119	148	224	250
Investments	4	4	4	4
Total Assets	1,164	721	916	630

The balance sheet shows a deliberate reduction in borrowings from ₹465 crore in March 2023 to ₹225 crore in March 2024, while equity and reserves remain stable at ₹11 crore and ₹161 crore respectively, indicating active deleveraging. Total assets declined from ₹916 crore to ₹630 crore over the same period, reflecting asset rationalization and reduced liabilities. This suggests management is prioritizing debt reduction over aggressive expansion, improving financial flexibility and reducing interest burden.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2023
Operating	+394
Investing	-48
Financing	-346
Net Cash Flow	-0

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	47.0%	46.8%	44.5%	44.5%
FII	0.2%	0.2%	0.2%	0.1%
DII	0.0%	0.0%	0.0%	0.0%
Public	47.5%	48.0%	50.2%	49.8%
# Shareholders	63,874	72,337	72,687	72,174

Promoter holding has gradually declined from 47.03% in Q2FY26 to 44.54% in Q1FY27, while public shareholding has increased slightly, and the number of shareholders has grown from 63,874 to 72,174, indicating rising retail interest. FII holding remains minimal at 0.09% in Q1FY27, up slightly from 0.09% to 0.19% over the past year, but still negligible. No significant institutional accumulation is evident, but the broadening shareholder base and stable promoter stake suggest improving market confidence without major speculative activity.

⚖️ Peer Comparison — Sugar

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
BALRAMCHIN	14,310	36.9	9.7%	9.8%	0.69
EIDPARRY	12,530	26.9	20.4%	13.9%	0.32
TRIVENI	5,432	19.8	8.4%	8.7%	0.63
RENUKA	5,006	—	-2.9%	46.6%	-3.50
BAJAJHIND	4,700	14.5	1.4%	12.2%	3.74
BANARISUG	4,282	35.2	7.3%	6.8%	0.08
DALMIASUG	3,227	15.9	7.0%	6.3%	0.55
AVADHSUGAR	1,466	22.2	6.8%	5.9%	1.25
GODAVARIB	1,162	7570.0	3.8%	0.0%	0.63
DHAMPURSUG	1,004	14.3	6.8%	5.9%	0.73

🔗 Peer Stock Analyses

BALRAMCHIN EIDPARRY TRIVENI RENUKA BAJAJHIND

⚠️ Risk Factors

1) Seasonal volatility in sugar demand and pricing continues to impact top-line stability, as evidenced by sharp revenue swings across quarters. 2) Persistent net losses in Q3 and Q4 2023 raise concerns about operational resilience during off-seasons, despite full-year recovery. 3) High debt levels of ₹225 crore, though reduced, remain a concern relative to equity, especially if margin expansion stalls. 4) Limited institutional interest and low float could lead to price volatility if promoter selling accelerates.

📋 Recent Filings

🧠 Analyst's Read

Ugar Sugar Works is demonstrating signs of operational and financial stabilization, supported by credit rating upgrades, dividend declarations, and governance continuity, but underlying risks remain tied to sector cyclicity and margin sustainability. Investors should monitor upcoming ethanol segment performance and management’s ability to maintain profitability amid seasonal and commodity-driven headwinds.

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 2026-09-16.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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