Below is a structured extraction and summary of the relevant and actionable financial information from the filing of Dalmia Bharat Sugar and Industries Limited for the quarter and half year ended September 30, 2025.
1. Auditor’s Note
- The auditor, NSBP & Co., issued a Limited Review Report on the unaudited financial results for Q2 FY26 (quarter ended September 30, 2025) and half year ended September 30, 2025.
- No qualifications or adverse remarks were made.
- Emphasis of Matter: The auditor highlighted the impact of the demerger of the refractory and travel units into Dalmia Bharat Refractories Limited effective July 1, 2023, sanctioned by NCLT on September 12, 2025.
- Comparative figures have been restated accordingly.
- Impact on financials due to demerger:
- Revenue from operations decreased by Rs. 1.99 Cr (Q1 FY26), Rs. 6.08 Cr (Q2 FY25), Rs. 20.84 Cr (FY25).
- Profit before tax increased by Rs. 1.19 Cr (Q1 FY26), decreased by Rs. 1.83 Cr (Q2 FY25), decreased by Rs. 4.47 Cr (FY25).
- Assets decreased by Rs. 189.03 Cr and liabilities by Rs. 35.16 Cr as of appointed date.
- Auditor’s conclusion unmodified with respect to these matters.
2. Financial Performance
| Particulars | Q2 FY26 (Sep 30, 2025) | Q1 FY26 (Jun 30, 2025) | Q2 FY25 (Sep 30, 2024) | H1 FY26 (Apr-Sep 2025) | H1 FY25 (Apr-Sep 2024) | FY25 (Apr 24-Mar 25) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 988.72 | 940.88 | 920.31 | 1,929.60 | 1,871.74 | 3,724.94 |
| Other Income | 19.72 | 10.94 | 12.68 | 30.66 | 26.05 | 61.22 |
| Total Income | 1,008.44 | 951.82 | 932.99 | 1,960.26 | 1,897.80 | 3,786.16 |
| Total Expenses | 977.18 | 899.16 | 896.92 | 1,876.34 | 1,787.62 | 3,440.92 |
| Profit before Exceptional Items & Tax | 31.26 | 52.66 | 36.07 | 83.92 | 110.18 | 345.24 |
| Exceptional Items | - | - | - | 83.92 | - | - |
| Profit before Tax | 31.26 | 52.66 | 36.07 | 83.92 | 110.18 | 345.24 |
| Tax Expense (Current + Deferred) | 7.94 | 13.40 | (17.30) | 21.34 | 2.75 | (20.26) |
| Net Profit after Tax | 23.32 | 39.26 | 53.37 | 62.58 | 107.42 | 365.48 |
| Other Comprehensive Income (OCI) | 4.34 | 106.72 | 28.56 | 111.06 | (7.65) | 37.85 |
| Total Comprehensive Income | 27.66 | 145.98 | 81.93 | 173.64 | 99.77 | 327.63 |
| Earnings Per Share (Rs. per share, FV Rs. 2) | 2.88 | 4.85 | 6.59 | 7.73 | 13.27 | 45.15 |
Margins & Observations:
-
Net profit margin (Net Profit / Revenue from Operations):
- Q2 FY26: 23.32 / 988.72 = ~2.36%
- Q1 FY26: 39.26 / 940.88 = ~4.17%
- Q2 FY25: 53.37 / 920.31 = ~5.80%
- H1 FY26: 62.58 / 1929.60 = ~3.24%
- H1 FY25: 107.42 / 1871.74 = ~5.74%
- FY25: 365.48 / 3724.94 = ~9.81%
-
Profit before tax and net profit have declined in Q2 FY26 compared to Q2 FY25 and Q1 FY26.
-
Exceptional items of Rs. 83.92 Cr recognized in H1 FY26 (no details provided).
-
EPS has declined significantly compared to previous year periods.
3. Detailed Notes / Management Commentary
- Demerger:
- The refractory and travel units were demerged into Dalmia Bharat Refractories Limited effective July 1, 2023.
- Comparative figures restated for demerger impact.
- Revenue and profit impacts quantified (see Auditor’s Note).
- Seasonality:
- The company notes the seasonal nature of the sugar industry; quarterly results may not reflect annual profitability.
- Accounting Standards:
- Results prepared as per Ind AS 34 (Interim Financial Reporting).
- Exceptional Items:
- Rs. 83.92 Cr exceptional income recognized in H1 FY26; no further explanation provided.
- Restatement:
- Previous periods’ figures regrouped/reclassified for comparability.
- Other:
- Segment assets and liabilities include unallocable corporate investments and tax assets/liabilities.
4. Segment Information
| Segment | Q2 FY26 Revenue | Q1 FY26 Revenue | Q2 FY25 Revenue | H1 FY26 Revenue | H1 FY25 Revenue | FY25 Revenue |
|---|---|---|---|---|---|---|
| Sugar | 793.16 | 716.88 | 697.64 | 1,510.04 | 1,446.51 | 3,038.29 |
| Distillery | 251.71 | 326.39 | 253.34 | 578.10 | 534.48 | 1,201.73 |
| Others | 2.72 (partial) | (incomplete) | (incomplete) | (incomplete) | (incomplete) | (incomplete) |
- Sugar segment remains the largest contributor (~80% of revenue).
- Distillery segment revenue decreased in Q2 FY26 vs Q1 FY26 but increased vs Q2 FY25.
- Segment results, assets, and liabilities details are partially provided but incomplete in the excerpt.
5. Capex, Projects, and Corporate Activity
- Capital Expenditure:
- Capital Work-in-Progress increased from Rs. 185.94 Cr (Mar 31, 2025) to Rs. 211.54 Cr (Sep 30, 2025).
- Purchase of Property, Plant & Equipment during H1 FY26: Rs. 37.89 Cr (down from Rs. 77.58 Cr in H1 FY25).
- Investments:
- Non-current investments increased from Rs. 582.79 Cr to Rs. 711.49 Cr.
- Current investments Rs. 328.45 Cr as of Sep 30, 2025 (not present as of Mar 31, 2025).
- Borrowings:
- Non-current borrowings decreased slightly from Rs. 513.71 Cr to Rs. 477.25 Cr.
- Current borrowings sharply decreased from Rs. 530.37 Cr to Rs. 70.00 Cr.
- Demerger:
- Significant asset and liability reduction due to demerger (Rs. 189.03 Cr assets and Rs. 35.16 Cr liabilities).
- Cash Flow Highlights (H1 FY26 vs H1 FY25):
| Particulars | H1 FY26 (Rs. Cr) | H1 FY25 (Rs. Cr) |
|---|---|---|
| Net Cash from Operating Activities | 806.43 | 781.85 |
| Net Cash used in Investing Activities | (350.11) | (92.46) |
| Net Cash used in Financing Activities | (528.84) | (1,114.53) |
| Net Change in Cash & Cash Equivalents | (72.52) | (425.14) |
| Cash & Cash Equivalents at Period End | 214.41 | 44.10 |
- The company generated strong operating cash flows but invested heavily in investments and reduced borrowings significantly.
- Financing cash outflows reduced compared to previous year, mainly due to lower repayment of borrowings.
6. Standalone vs Consolidated
- The filing provides Standalone financial results only.
- No consolidated results are provided or mentioned.
7. Statement of Assets & Liabilities (Standalone)
| Particulars | Sep 30, 2025 (Unaudited) | Mar 31, 2025 (Audited) |
|---|---|---|
| Assets | ||
| Non-current assets | 2,597.70 | 2,489.15 |
| - Property, plant & equipment | 1,580.03 | 1,637.23 |
| - Capital work-in-progress | 211.54 | 185.94 |
| - Investments | 711.49 | 582.79 |
| Current assets | 1,636.40 | 2,159.30 |
| - Inventories | 444.60 | 1,646.73 |
| - Investments (current) | 328.45 | - |
| - Cash & cash equivalents | 214.41 | 286.93 |
| Total Assets | 4,234.10 | 4,648.45 |
| Equity & Liabilities | ||
| Equity | 3,224.71 | 3,063.21 |
| Non-current liabilities | 749.29 | 746.83 |
| Current liabilities | 260.10 | 838.41 |
| Total Equity & Liabilities | 4,234.10 | 4,648.45 |
Key observations:
- Inventories decreased sharply from Rs. 1,646.73 Cr to Rs. 444.60 Cr, likely seasonal and due to demerger.
- Current liabilities decreased significantly from Rs. 838.41 Cr to Rs. 260.10 Cr, mainly due to reduction in borrowings and trade payables.
- Equity increased due to retained earnings and OCI.
- Property, plant & equipment decreased slightly, possibly due to depreciation and asset transfer on demerger.
Summary for Investment Analysis Team
| Aspect | Key Points / Actionable Insights |
|---|---|
| Auditor’s Note | Clean limited review report; no qualifications. Demerger impact restated and disclosed. |
| Financial Performance | Q2 FY26 revenue Rs. 988.72 Cr (+7.4% YoY), but net profit down 56% YoY to Rs. 23.32 Cr. EPS down to Rs. 2.88. |
| H1 FY26 net profit Rs. 62.58 Cr vs Rs. 107.42 Cr in H1 FY25; exceptional income Rs. 83.92 Cr recognized in H1 FY26. | |
| Margins compressed; seasonal impact noted. | |
| Management Commentary | Demerger effective July 1, 2023; comparative figures restated. Seasonal nature of business emphasized. |
| Segment Performance | Sugar segment dominant (~80% revenue). Distillery segment stable. |
| Capex & Corporate Activity | Moderate capex Rs. 37.89 Cr in H1 FY26. Significant reduction in borrowings, especially short-term. |
| Large reduction in inventories and current liabilities due to seasonality and demerger. | |
| Investments increased significantly. | |
| Cash Flows | Strong operating cash flow Rs. 806 Cr in H1 FY26. Heavy investing outflows due to investments. |
| Financing outflows reduced due to lower borrowings repayment. | |
| Balance Sheet | Total assets down due to demerger and inventory reduction. Equity base strengthened. |
| Current liabilities sharply reduced, improving liquidity position. | |
| Standalone Results Only | No consolidated financials provided. |
Recommendations for further analysis:
- Review details of the exceptional income of Rs. 83.92 Cr in H1 FY26.
- Monitor impact of demerger on future revenue and profitability trends.
- Assess working capital cycle changes due to sharp inventory and current liability reductions.
- Evaluate segment-wise profitability once full data available.
- Consider seasonality impact when projecting full year performance.
This concludes the extraction and summary of the financial results filing for Dalmia Bharat Sugar and Industries Limited for Q2 and H1 FY26.