Sugar · Founded 1990 · www.muksug.in · BSE 500319 · NSE INDIAN SUCRO · ISIN INE557C01017
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Business
Indian Sucrose Ltd. is primarily engaged in the manufacturing and selling of sugar. Its core business model involves crushing sugarcane to produce crystal sugar. The company also operates an integrated complex, utilizing by-products from sugar manufacturing to diversify its revenue streams. This includes the production of rectified spirit and ethanol from molasses (a sugar by-product) through its distillery unit, and co-generation of power using bagasse (another sugar by-product). The company makes money through the sale of sugar, ethanol, rectified spirit, and surplus electricity.
Revenue Mix
While specific revenue contribution percentages may vary year-on-year and are not readily available without detailed financial statements, the company's major business segments include:
Sugar: Production and sale of crystal sugar.
Distillery: Manufacturing and sale of rectified spirit and ethanol.
Co-generation: Generation and sale of power using bagasse.
Industry
The Indian sugar industry is highly cyclical, commodity-driven, and significantly influenced by monsoon patterns, sugarcane availability, and government policies (e.g., Fair and Remunerative Price/State Advised Price for cane, ethanol blending targets, export subsidies/restrictions). It is a fragmented industry with numerous regional players. Indian Sucrose Ltd. appears to be a mid-sized player within the Indian sugar industry, likely with a regional focus in the areas where its manufacturing units are located, primarily Punjab. Its positioning is influenced by local cane procurement strength and operational efficiencies.
MOAT
Indian Sucrose's competitive advantages are typical for well-managed sugar companies in India:
Integrated Operations: The ability to produce sugar, ethanol, and power from a single raw material (sugarcane) allows for better utilization of by-products, improved cost efficiencies, and diversification of revenue streams, which helps mitigate the cyclicality of sugar prices.
Location & Procurement: Proximity to sugarcane growing areas is crucial for efficient procurement and reduced transportation costs of the perishable raw material.
Scale of Operations (Regional): For its regional market, operating a sizable mill can offer some economies of scale in processing and distribution.
Regulatory Support for Ethanol: Participation in the government's ethanol blending program provides a somewhat stable demand and pricing environment for its distillery products.
Growth Drivers
Ethanol Blending Program (EBP): The Indian government's aggressive targets for ethanol blending with petrol (E20 by 2025) provide a significant and sustained demand for ethanol, benefiting the company's distillery segment.
Increasing Sugar Consumption: Growing population and improving disposable incomes in India lead to a steady increase in domestic sugar consumption.
Government Support: Policies like minimum selling price for sugar and export subsidies during surplus production years can provide a floor to sugar realizations.
Operational Efficiencies: Continuous efforts to modernize plants, improve cane crushing capacity, and enhance by-product utilization can drive profitability.
Risks
Sugarcane Availability & Pricing: Highly dependent on monsoon and agricultural yields. Fluctuations in cane production and government-mandated cane prices (FRP/SAP) directly impact raw material costs and profitability.
Sugar Price Volatility: Sugar is a commodity, and its prices are subject to global supply-demand dynamics, domestic production, and government intervention, leading to revenue and profit fluctuations.
Regulatory Risks: Changes in government policies related to sugar pricing, export/import duties, ethanol blending targets, and environmental norms can significantly affect the business.
Weather Dependency: The entire sugar value chain is heavily reliant on favorable weather conditions, particularly monsoon, for cane cultivation.
High Working Capital Needs: Sugar production is seasonal, requiring substantial working capital for cane procurement and inventory management.
Management & Ownership
Indian Sucrose Ltd. is part of the Oswal group. The management structure typically involves key promoter family members in leadership roles, supported by professional management. The ownership is predominantly held by the promoter group, which is common among Indian companies, ensuring long-term strategic direction. The quality of management is generally assessed by their ability to navigate the cyclical nature of the sugar industry, manage cane procurement efficiently, and capitalize on opportunities like the ethanol blending program.
Outlook
Indian Sucrose operates in a critical agricultural sector with significant government oversight. The outlook is a mix of opportunities and challenges. The aggressive push for ethanol blending presents a strong tailwind for the company's distillery segment, offering a more stable and growing revenue stream compared to the volatile sugar business. This diversification helps de-risk the core sugar operations. However, the company remains exposed to the inherent cyclicality of sugar production, which is influenced by weather patterns, cane availability, and government policies on pricing and trade. Efficient management of raw material costs, operational leverage from integrated facilities, and sustained demand from the ethanol program will be key determinants of its future performance. The ability to manage debt levels, given the working capital intensity of the business, will also be crucial.
| #(Fig in Cr.) | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 261 | 125 | 57 | 52 | 312 | 84 | 39 | 80 | 308 | 51 |
| Other Income | 4 | 2 | 4 | 5 | 4 | 2 | 4 | 5 | 6 | 7 |
| Total Income | 265 | 127 | 61 | 56 | 316 | 86 | 43 | 84 | 314 | 57 |
| Total Expenditure | 212 | 113 | 57 | 45 | 258 | 75 | 38 | 69 | 250 | 49 |
| Operating Profit | 53 | 14 | 4 | 12 | 59 | 11 | 5 | 16 | 64 | 9 |
| Interest | 7 | 7 | 6 | 6 | 6 | 6 | 6 | 5 | 6 | 5 |
| Depreciation | 3 | 3 | 2 | 3 | 3 | 2 | 3 | 3 | 4 | 3 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17 | 0 |
| Profit Before Tax | 43 | 4 | -4 | 4 | 49 | 3 | -3 | 7 | 37 | 1 |
| Provision for Tax | 11 | 1 | -1 | 1 | 13 | 1 | 1 | 1 | 10 | 0 |
| Profit After Tax | 32 | 3 | -3 | 3 | 36 | 2 | -4 | 7 | 26 | 0 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 32 | 3 | -3 | 3 | 36 | 2 | -4 | 7 | 26 | 0 |
| Adjusted Earnings Per Share | 18.5 | 1.6 | -1.9 | 1.6 | 20.7 | 1.1 | -2.1 | 3.9 | 15 | 0.2 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 212 | 283 | 386 | 419 | 363 | 532 | 431 | 443 | 452 | 529 | 546 | 478 |
| Other Income | 1 | 1 | 6 | 6 | 11 | 2 | 4 | 7 | 11 | 14 | 15 | 22 |
| Total Income | 213 | 284 | 392 | 425 | 373 | 534 | 434 | 450 | 463 | 542 | 561 | 498 |
| Total Expenditure | 198 | 249 | 321 | 383 | 336 | 481 | 378 | 384 | 387 | 460 | 472 | 406 |
| Operating Profit | 15 | 34 | 71 | 42 | 37 | 52 | 56 | 66 | 76 | 83 | 88 | 94 |
| Interest | 16 | 18 | 19 | 14 | 21 | 25 | 18 | 19 | 25 | 27 | 25 | 22 |
| Depreciation | 8 | 8 | 7 | 7 | 8 | 8 | 8 | 7 | 8 | 11 | 11 | 13 |
| Exceptional Income / Expenses | 0 | 0 | 0 | -8 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17 |
| Profit Before Tax | -9 | 8 | 45 | 13 | 8 | 19 | 31 | 40 | 42 | 44 | 53 | 42 |
| Provision for Tax | -0 | 2 | 15 | 5 | 4 | 7 | 8 | 3 | 12 | 12 | 14 | 12 |
| Profit After Tax | -9 | 6 | 30 | 8 | 4 | 12 | 22 | 37 | 30 | 33 | 38 | 29 |
| Adjustments | 0 | 0 | 0 | 0 | -2 | -1 | -1 | -0 | -0 | 0 | 0 | 0 |
| Profit After Adjustments | -9 | 6 | 30 | 8 | 2 | 12 | 22 | 37 | 30 | 33 | 38 | 29 |
| Adjusted Earnings Per Share | -5.7 | 3.9 | 19.4 | 5.4 | 2.8 | 8 | 14.5 | 21.9 | 17.3 | 18.8 | 22.1 | 17 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 3% | 7% | 1% | 10% |
| Operating Profit CAGR | 6% | 10% | 11% | 19% |
| PAT CAGR | 15% | 1% | 26% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -15% | -4% | 9% | 13% |
| ROE Average | 16% | 17% | 20% | 15% |
| ROCE Average | 17% | 18% | 18% | 14% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 51 | 57 | 87 | 91 | 86 | 89 | 111 | 152 | 182 | 214 | 258 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 27 | 47 | 28 | 31 | 32 | 60 | 61 | 53 | 42 | 31 | 21 |
| Other Non-Current Liabilities | 10 | 9 | 17 | 19 | 20 | 21 | 21 | 10 | 13 | 20 | 26 |
| Total Current Liabilities | 223 | 219 | 255 | 280 | 342 | 283 | 298 | 292 | 344 | 325 | 351 |
| Total Liabilities | 311 | 331 | 387 | 421 | 479 | 454 | 491 | 507 | 581 | 590 | 656 |
| Fixed Assets | 83 | 77 | 74 | 107 | 108 | 106 | 102 | 100 | 204 | 203 | 198 |
| Other Non-Current Assets | 9 | 3 | 9 | 33 | 32 | 57 | 90 | 103 | 9 | 8 | 10 |
| Total Current Assets | 220 | 251 | 304 | 281 | 338 | 291 | 299 | 304 | 368 | 378 | 448 |
| Total Assets | 311 | 331 | 387 | 421 | 479 | 454 | 491 | 507 | 581 | 590 | 656 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 20 | 22 | 39 | 16 | 8 | 8 | 7 | 3 | 15 | 26 | 11 |
| Cash Flow from Operating Activities | 8 | 29 | -33 | 87 | 35 | 155 | -53 | 87 | 47 | 56 | 68 |
| Cash Flow from Investing Activities | -3 | -2 | -9 | -70 | -10 | -35 | -40 | -36 | -54 | -29 | 81 |
| Cash Flow from Financing Activities | -3 | 1 | 18 | -24 | -24 | -121 | 88 | -39 | 18 | -41 | -22 |
| Net Cash Inflow / Outflow | 1 | 28 | -23 | -7 | 0 | -1 | -4 | 12 | 11 | -15 | 127 |
| Closing Cash & Cash Equivalent | 22 | 49 | 16 | 8 | 8 | 7 | 3 | 15 | 26 | 11 | 138 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -5.68 | 3.87 | 19.37 | 5.42 | 2.83 | 7.97 | 14.51 | 21.86 | 17.27 | 18.84 | 22.09 |
| CEPS(Rs) | -0.35 | 9.08 | 24.13 | 9.82 | 7.87 | 13.21 | 19.42 | 25.93 | 22.12 | 25.37 | 28.16 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 28.73 | 32.6 | 56.13 | 58.72 | 55.63 | 57.77 | 71.87 | 88.87 | 104.57 | 123.43 | 148.28 |
| Core EBITDA Margin(%) | 6.43 | 11.32 | 15.82 | 8.38 | 7.33 | 9.5 | 12.22 | 13.33 | 14.34 | 13.04 | 13.42 |
| EBIT Margin(%) | 3.3 | 8.8 | 15.58 | 6.42 | 8.11 | 8.29 | 11.31 | 13.41 | 14.85 | 13.47 | 14.21 |
| Pre Tax Margin(%) | -4.08 | 2.58 | 10.94 | 3.13 | 2.21 | 3.6 | 7.1 | 9.11 | 9.34 | 8.38 | 9.64 |
| PAT Margin (%) | -3.98 | 2.01 | 7.3 | 1.96 | 1.2 | 2.31 | 5.2 | 8.42 | 6.64 | 6.19 | 7.03 |
| Cash Profit Margin (%) | -0.24 | 4.72 | 9.09 | 3.56 | 3.35 | 3.83 | 6.96 | 9.99 | 8.51 | 8.34 | 8.97 |
| ROA(%) | -2.7 | 1.86 | 8.31 | 2.07 | 0.97 | 2.63 | 4.74 | 7.47 | 5.52 | 5.59 | 6.16 |
| ROE(%) | -18.85 | 12.62 | 43.66 | 9.44 | 4.95 | 14.05 | 22.38 | 28.41 | 18.01 | 16.53 | 16.26 |
| ROCE(%) | 2.94 | 10.01 | 21.06 | 8.53 | 10.08 | 17.34 | 17.48 | 18.36 | 18.23 | 17.21 | 17.38 |
| Receivable days | 20.19 | 12.82 | 13.2 | 16.06 | 29.93 | 29.92 | 52.31 | 60.56 | 51.55 | 42.21 | 63.26 |
| Inventory Days | 249.87 | 195.63 | 159.63 | 157.33 | 208.4 | 156.16 | 171.91 | 156.96 | 163.35 | 141.48 | 118.57 |
| Payable days | 91.35 | 59.57 | 21.79 | 43.89 | 171.45 | 159.18 | 162.47 | 147.42 | 147.18 | 113.12 | 111.22 |
| PER(x) | 0 | 2.12 | 1.96 | 4.04 | 6.04 | 2 | 1.56 | 3.36 | 3.28 | 4.08 | 4.15 |
| Price/Book(x) | 0.38 | 0.25 | 0.68 | 0.37 | 0.31 | 0.28 | 0.32 | 0.83 | 0.54 | 0.62 | 0.62 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.9 | 0.69 | 0.71 | 0.59 | 0.53 | 0.3 | 0.49 | 0.64 | 0.64 | 0.61 | 0.41 |
| EV/Core EBITDA(x) | 12.33 | 5.69 | 3.87 | 5.85 | 5.19 | 3.07 | 3.78 | 4.3 | 3.83 | 3.91 | 2.56 |
| Net Sales Growth(%) | 90.29 | 33.54 | 36.37 | 8.55 | -13.42 | 46.64 | -19.07 | 2.83 | 2.03 | 17.01 | 3.23 |
| EBIT Growth(%) | -21.56 | 259.35 | 143.95 | -57.11 | 7.58 | 49.91 | 10.45 | 21.92 | 13.05 | 6.07 | 8.94 |
| PAT Growth(%) | -2807.54 | 168.14 | 400.54 | -72.02 | -47.78 | 181.43 | 82.16 | 66.61 | -19.49 | 9.11 | 17.2 |
| EPS Growth(%) | -2807.48 | 168.14 | 400.54 | -72.02 | -47.79 | 181.43 | 82.13 | 50.68 | -20.99 | 9.11 | 17.2 |
| Debt/Equity(x) | 3.69 | 3.91 | 2.74 | 2.5 | 2.11 | 1.72 | 1.84 | 1.19 | 1.23 | 0.97 | 0.82 |
| Current Ratio(x) | 0.99 | 1.15 | 1.19 | 1 | 0.99 | 1.03 | 1 | 1.04 | 1.07 | 1.16 | 1.28 |
| Quick Ratio(x) | 0.3 | 0.39 | 0.43 | 0.38 | 0.29 | 0.27 | 0.36 | 0.39 | 0.45 | 0.56 | 0.82 |
| Interest Cover(x) | 0.45 | 1.41 | 3.36 | 1.95 | 1.38 | 1.77 | 2.69 | 3.12 | 2.7 | 2.65 | 3.11 |
| Total Debt/Mcap(x) | 11.34 | 17.64 | 4.04 | 6.68 | 6.83 | 6.22 | 5.83 | 1.44 | 2.26 | 1.56 | 1.33 |
| # | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | Sep 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.06 | 0.05 | 0.05 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Public | 35.46 | 35.46 | 35.46 | 35.48 | 35.48 | 35.48 | 35.48 | 35.48 | 35.48 | 35.48 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | Sep 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +3% | +7% | +1% | +10% |
| Operating Profit CAGR | +6% | +10% | +11% | +19% |
| PAT CAGR | +15% | +1% | +26% | — |
| Share Price CAGR | -15% | -4% | +9% | +13% |
| ROE Average | +16% | +17% | +20% | +15% |
| ROCE Average | +17% | +18% | +18% | +14% |
| # | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | Sep 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 | 64.49 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.06 | 0.05 | 0.05 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Public | 35.46 | 35.46 | 35.46 | 35.48 | 35.48 | 35.48 | 35.48 | 35.48 | 35.48 | 35.48 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | Sep 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 |
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