ZUARI INDUSTRIES LIMITED

Zuari Industries Limited reported Q1 FY27 results on 17 August 2026, highlighting growth in sugar sales (up 29% YoY to 4.7 lakh quintal) and ethanol production (up 1% to 10,138 KL). Sugar realizations improved to INR4,116 per quintal, but margins were pressured by higher sugarcane prices (SAP) and lower ethanol recovery. The real estate subsidiary, Zuari Infraworld, completed the St. Regis Residences, Dubai, with profit repatriation already underway. The company’s consolidated total income rose 22% YoY to INR327.5 crores, though EBITDA declined to INR29.8 crores. Strategic investments in Chambal Fertilisers and others increased in value by 15% QoQ. Management emphasized deleveraging, with external debt down INR21 crores YoY. Profit repatriation from Dubai is expected to reach INR900 crores in FY27, with INR142.58 crores received in Q1. The company awaits government policy clarity on ethanol blending and is preparing for upcoming tenders. The real estate segment aims to expand its development management model, targeting a gross development value of INR10,000 crores. The ethanol business faces margin pressure due to static prices but remains optimistic about future government support. The company also discussed plans to consolidate investments in the main holding company and address legal uncertainties around ethanol export fees in Uttar Pradesh.

The document presents both positive developments, such as increased sales and project completions, alongside challenges like margin pressures and legal uncertainties.