Value Added Product Mix Shift
Expected: FY26HIGH confidence
What: Distillery Capacity: 950 KLPD
Impact: EBITDA > ₹5.5 billion in FY26
Dalmia Bharat Sugar & Industries Ltd: Is It a Deep Value Opportunity?
WeakAccelerating
As of , Dalmia Bharat Sugar & Industries Ltd (Sugar) has a deep value score of 35/100 (rated Weak). Earnings are accelerating. 1Y return vs Nifty 500: -23%.
Dalmia Bharat Sugar & Industries Ltd Key Facts
- PE Ratio
- 11.7x
- Market Cap
- ₹2,769 Cr
- Value Score
- 35/100
- Margin of Safety
- -1%
- PAT Growth YoY
- -48%
- Revenue Growth YoY
- -3%
- OPM
- 17.0%
PE: Near TroughFalling Knife
What's Happening
🔻Earnings declining and PE falling — fundamentals deteriorating
📊Debt increased 51% YoY — leverage rising
💰Trading 1% above estimated fair value
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
FY26HIGH
2. Interest Cost Reduction Deleveraging
FY26MEDIUM
Key Risks
1. Government restrictions on ethanol production routes (B-heavy/cane juice) and la
HIGH2. Agro-climatic fluctuations affecting cane availability and recovery rates
MEDIUM3. Increase in cane prices not matched by output price increases could compress mar
MEDIUMSector-Specific Signals
Sugar Sales Volume0.8 LMT-34%
Distillery Volume4.9 Cr litres+2%
Sugar Net Sales Realisation₹39.3/kg+1%
Total Distillery Capacity950 KLPD
Key Numbers
PAT Growth YoY
-48%
Stable
Revenue YoY
-2%
Stable
Operating Margin
17.0%
-200 bps YoY
PE Ratio
11.7
PEG Ratio
0.00
Current Price
₹342
Dividend Yield
1.75%
3Y PAT CAGR
-2%
Market Cap
2.8K Cr
Valuation
Fairly ValuedWhy Are Dalmia Bharat Sugar & Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Interest Cost Reduction Deleveraging
Expected: FY26MEDIUM confidence
What: Net Leverage: < 1.5x
Impact: Reduction from 2.2x
What Are the Key Risks for Dalmia Bharat Sugar & Industries Ltd?
Earnings deceleration risks from management commentary
Government restrictions on ethanol production routes (B-heavy/cane juice) and la
HIGHTrigger: Government restrictions on ethanol production routes (B-heavy/cane juice) and lack of clarity on ethanol pricing for ESY25.
Management view: Calling for increases in Minimum Support Price for sugar and ethanol prices.
Monitor: regulatory
Agro-climatic fluctuations affecting cane availability and recovery rates
MEDIUMTrigger: Agro-climatic fluctuations affecting cane availability and recovery rates.
Management view: Geographically diversified plants in UP and Maharashtra to mitigate region-specific risks.
Monitor: climate
Increase in cane prices not matched by output price increases could compress mar
MEDIUMTrigger: Increase in cane prices not matched by output price increases could compress margins.
Management view: Focus on cost efficiency and steam-saving projects.
Monitor: commodity
What Did Dalmia Bharat Sugar & Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹698 Cr
YoY -17%QoQ -28%
Revenue decline was primarily driven by a sharp 34% YoY drop in sugar sales volumes to 0.8 LMT.
EBITDA
₹109 Cr
YoY +8%Margin 16%
Margins expanded by 400 bps YoY due to improved operational efficiency and a shift toward higher-margin distillery contributions.
PAT
₹70 Cr
YoY +17%QoQ +198.3%
PAT growth outpaced revenue due to margin expansion and lower operating expenses, which fell 19.6% YoY.
Other Highlights
• Interim dividend of ₹4.50 per equity share declared.
• Sugar sales volume fell 34% YoY to 0.8 LMT.
• Distillery volume increased 2% YoY to 4.9 Cr litres.
What Sector Metrics Matter for Dalmia Bharat Sugar & Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Sugar Sales Volume
0.8 LMT
YoY -34%
Why: Sharp drop in sales volume during the quarter.
Distillery Volume
4.9 Cr litres
YoY +2%
Why: Resilience in the distillery segment despite broader revenue declines.
Sugar Net Sales Realisation
₹39.3/kg
YoY +1%
Why: Marginal increase in realization despite volume drop.
Total Distillery Capacity
950 KLPD
Why: Expansion through acquisition of Baghauli Sugar and Distillery.
Cane Crushing Capacity
41,950 TCD
Why: Includes capacity from BSDL acquisition.
Net Debt to EBITDA
0.6x
Why: Strong balance sheet position maintained.
What Is Dalmia Bharat Sugar & Industries Ltd's Management Guidance?
Forward-looking targets from management for Annual
Revenue Growth Target
3.7%
OPM Guidance
13%
Capex Plan
₹107 Cr
Revenue Outlook
3.7%
Margin Outlook
EBITDA margins expected to be at 12%-14% over the near term.
Capex Plan
₹107 Cr
Sustainability projects and steam saving equipment
Volume
Distillery volumes expected to grow to 22 crore litres by FY24 (historical reference) with continued expansion to 950 KLPD.
Management Tone: CAUTIOUS
How Fast Is Dalmia Bharat Sugar & Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -2% | +4% | Stable |
| PAT (Net Profit) | -48% | -2% | Stable |
| OPM | 17.0% | -200 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Frequently Asked Questions: Dalmia Bharat Sugar & Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Dalmia Bharat Sugar & Industries Ltd's deep value score?
Dalmia Bharat Sugar & Industries Ltd has a deep value score of 35/100 (rated Weak). This score is calculated from three components
- Earnings Score: 36/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 25/25 — operational quality (margins, revenue growth, valuation)
Is Dalmia Bharat Sugar & Industries Ltd fundamentally improving?
Dalmia Bharat Sugar & Industries Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +49%
- Previous Quarter PAT Growth (QoQ): +198%
- 2 Quarters Ago PAT Growth (QoQ): -88%
- PAT Acceleration: +68.5pp (profits are accelerating)
- 2 consecutive quarters of positive PAT growth
Why is Dalmia Bharat Sugar & Industries Ltd underperforming despite good earnings?
Dalmia Bharat Sugar & Industries Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -23%
- 6-Month Return vs Nifty 500: +13%
- 3-Month Return vs Nifty 500: +19%
- Yet average quarterly PAT growth is +53% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Dalmia Bharat Sugar & Industries Ltd?
Dalmia Bharat Sugar & Industries Ltd's earnings momentum is Accelerating — profit growth is speeding up.
- PAT QoQ progression: -88% → +198% → +49% (2Q ago → 1Q ago → latest)
- Acceleration: +68.5pp
- PAT YoY Growth: -48%
Is Dalmia Bharat Sugar & Industries Ltd undervalued?
Dalmia Bharat Sugar & Industries Ltd's valuation metrics
- Price-to-Earnings (PE): 11.7x
- Price-to-Book (PB): 0.8x
- PEG Ratio: 0.0x
- Margin of Safety: -1% (appears fairly valued)
What are the revenue and margin trends for Dalmia Bharat Sugar & Industries Ltd?
Dalmia Bharat Sugar & Industries Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +42%
- Average Quarterly Revenue Growth: +3%
- Revenue Acceleration: +22.3pp
- Latest OPM Change: +1.5pp (margins expanding)
- Average OPM Change: -0.7pp
- Revenue YoY: -2%
What is Dalmia Bharat Sugar & Industries Ltd's trailing twelve month (TTM) performance?
Dalmia Bharat Sugar & Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹236 Cr
- TTM PAT Growth: -37.7% YoY
- TTM Revenue: ₹4,000 Cr
- TTM Revenue Growth: -3.2% YoY
- TTM Operating Margin: 12.0%
What sector does Dalmia Bharat Sugar & Industries Ltd belong to?
Dalmia Bharat Sugar & Industries Ltd key facts
- Sector: Sugar
- Market Cap: ₹2.8K Cr
- Rank in Sugar: #1 by value score
- Overall rank among all deep value stocks: #4
Is Dalmia Bharat Sugar & Industries Ltd a good deep value opportunity to study?
Dalmia Bharat Sugar & Industries Ltd shows limited deep value signals currently — score is 35/100 (Weak). Monitor for improvement.
- Value Score: 35/100 (Weak)
- Earnings: Accelerating
- 1Y Underperformance: -23% vs Nifty 500
What is the bull and bear case for Dalmia Bharat Sugar & Industries Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 2 consecutive quarters of positive PAT growth
- Revenue growth also accelerating
Risk Factors (Bear Case)
- Operating margins contracting
How does the Sugar sector look for deep value?
Sugar deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 35/100
- Avg PAT acceleration: +68.5pp
- Top pick: Dalmia Bharat Sugar & Industries Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Dalmia Bharat Sugar & Industries Ltd?
Dalmia Bharat Sugar & Industries Ltd has 2 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift
- Interest Cost Reduction Deleveraging
What are the key risks in Dalmia Bharat Sugar & Industries Ltd?
Dalmia Bharat Sugar & Industries Ltd has 3 key risks worth monitoring
- Government restrictions on ethanol production routes (B-heavy/cane juice) and la
- Agro-climatic fluctuations affecting cane availability and recovery rates
- Increase in cane prices not matched by output price increases could compress mar
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.