Shree Renuka Sugars Limited reported a challenging financial year for FY2025-26, with revenue from operations declining by approximately 17% to ₹85,220 million compared to the previous year. The company also incurred a net loss of ₹6,989 million, a significant increase from the prior year’s loss of ₹2,558 million. This performance was attributed to subdued global sugar prices impacting the refining business and lower domestic sugar sales, increased input costs, and weak power realisations affecting the integrated milling business.
Financial Performance Declines in FY2025-26
Shree Renuka Sugars Limited announced its financial results for the fiscal year ended March 31, 2026, revealing a substantial decline in revenue and a widening net loss. The company’s revenue from operations stood at ₹85,220 million, marking a 17% decrease from the ₹102,794 million reported in the previous year. This downturn was primarily driven by lower sales realisations and subdued operating conditions.
Increased Net Loss
The company reported a net loss of ₹6,989 million for the fiscal year 2025-26, a significant increase compared to the net loss of ₹2,558 million in FY2024-25. The loss before tax also escalated to ₹7,801.57 million from ₹3,036.11 million in the prior year. The management attributed these results to several factors, including subdued global sugar prices impacting the refining business, which traditionally contributes the largest share to earnings, and mark-to-market losses due to commodity price volatility.
Operational Challenges Impact Milling and Refining
Despite an increase in sugarcane crushed by approximately 9%, the integrated milling business was affected by a sharp dip in domestic sugar sales due to lower quota allocation, higher input costs, and weak power realisations. Similarly, the refining business experienced pressure on margins due to subdued global sugar prices and mark-to-market losses. However, the ethanol business showed resilience with production growing by 6% and EBITDA by 8%, driven by cane juice ethanol.
Strategic Collaboration for Brand Growth
In a move to bolster its branded sugar segment, Shree Renuka Sugars has entered into a strategic collaboration with AWL Agri Business Limited. This partnership aims to leverage AWL’s extensive pan-India distribution network to enhance the marketing, sales, and distribution of the company’s flagship brand, ‘Madhur Sugar’ across India.
Source: BSE
