Stock Report

Ponni Sugars (Erode) Reports Q1 FY27 Results: Operational Turnaround Reduces Net Losses to ₹1.23 Crore as Revenue Surges 52% YoY

Posted On : 2026-07-24 15:22:30( TIMEZONE : IST )

Integrated sugar and power producer Ponni Sugars (Erode) Limited (BSE: 532422, NSE: PONNIERODE) announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). Driven by strong volume off-take in its core sugar division, the company delivered a 52.18% year-on-year (YoY) expansion in operational revenue, significantly narrowing its bottom-line losses compared to the corresponding period of the previous fiscal year.

Executive Summary & Financial Highlights

Revenue from Operations: Reached ₹91.87 crore (₹9,187 lakh) in Q1 FY27, marking a robust 52.18% YoY increase from ₹60.37 crore (₹6,037 lakh) reported in Q1 FY26. Sequentially, revenue grew 2.60% against ₹89.54 crore recorded in Q4 FY26.

Total Income: Stood at ₹95.00 crore (₹9,500 lakh) for the quarter, including an other income contribution of ₹3.13 crore, compared to ₹63.72 crore in Q1 FY26.

Loss Before Tax (PBT): Reduced substantially to ₹1.53 crore (₹153 lakh) in Q1 FY27, down from an operational loss before tax of ₹8.05 crore in Q1 FY26 (and a net loss before tax of ₹3.14 crore after incorporating exceptional gains in Q1 FY26).

Net Loss After Tax (PAT): Narrowed by 54.10% YoY to ₹1.23 crore (₹123 lakh), compared to a net loss of ₹2.68 crore (₹268 lakh) in Q1 FY26. Sequentially, the bottom line moved from a net profit of ₹26.68 crore in Q4 FY26, which had been aided by significant one-off exceptional items.

Earnings Per Share (EPS): Basic and diluted loss per share stood at ₹(1.43) per equity share (face value ₹10/- each), improving from a loss of ₹(3.12) per share in Q1 FY26.

Segmental Performance

1. Sugar Division

Segment Revenue: Rose 57.48% YoY to ₹83.89 crore (₹8,389 lakh), compared to ₹53.27 crore in Q1 FY26 and ₹71.48 crore in Q4 FY26.

Segment Result: Posted a reduced loss before interest and tax of ₹4.94 crore (₹494 lakh), compared to a loss of ₹5.69 crore in Q1 FY26.

2. Co-generation (Power) Division

Segment Revenue: Surged 135.70% YoY to ₹20.60 crore (₹2,060 lakh), compared to ₹8.74 crore in Q1 FY26. Sequentially, power revenues tapered off from ₹45.90 crore in Q4 FY26 in line with seasonal crushing cycles.

Segment Result: Recorded a segment profit before interest and tax of ₹2.48 crore (₹248 lakh), up 75.89% YoY from ₹1.41 crore in Q1 FY26.

After deducting inter-segmental revenues of ₹12.62 crore (₹1,262 lakh) and unallocable net income of ₹0.93 crore, the total loss before tax settled at ₹1.53 crore.

Cost Structure & Expenses

Total expenses for Q1 FY27 stood at ₹96.53 crore (₹9,653 lakh), compared to ₹71.77 crore in Q1 FY26 and ₹75.15 crore in Q4 FY26. Key cost parameters included:

Cost of Raw Materials Consumed: Stood at ₹42.11 crore, compared to ₹4.79 crore in Q1 FY26, reflecting scaled-up processing activities.

Inventory Adjustments: Changes in inventories of finished goods and work-in-progress accounted for an addition of ₹28.08 crore (versus an inventory build-up credit of ₹14.17 crore in Q1 FY26).

Power & Fuel: Stood at ₹9.45 crore, compared to ₹9.21 crore in Q1 FY26.

Employee Benefits Expense: Reached ₹7.54 crore, up from ₹6.36 crore in Q1 FY26.

Depreciation & Amortization: Recorded at ₹2.88 crore.

Finance Costs: Remained minimal at ₹0.00 crore, highlighting low leverage compared to ₹0.05 crore in Q1 FY26.

Other Expenses: Totaled ₹6.47 crore, compared to ₹4.80 crore in Q1 FY26.

Balance Sheet Position & Comprehensive Income

Total Tax Expense for the quarter reflected a deferred tax credit of ₹0.30 crore (₹30 lakh).

Other Comprehensive Income (OCI) reflected a loss of ₹11.64 crore (₹1,164 lakh) after accounting for a ₹11.16 crore negative effect on measuring fair value of investments and tax impacts. Consequently, Total Comprehensive Income for Q1 FY27 stood at ₹(12.87) crore.

As of June 30, 2026, Ponni Sugars reported total segment assets of ₹622.25 crore (₹62,225 lakh) against total liabilities of ₹71.29 crore (₹7,129 lakh). The company's paid-up equity share capital remained steady at ₹8.60 crore (86,00,000 equity shares of face value ₹10/- each), with other equity (excluding revaluation reserve) standing at ₹559.53 crore as per the latest audited balance sheet.

Shares of Ponni Sugars (Erode) Limited was last trading in BSE at Rs. 329.45 as compared to the previous close of Rs. 315.70. The total number of shares traded during the day was 436 in over 28 trades.

The stock hit an intraday high of Rs. 331.05 and intraday low of 314.90. The net turnover during the day was Rs. 141349.00.