Demerger Spin Off Value Unlock
Expected: FY26MEDIUM confidence
What: Merger approval: In-principle approval
Andhra Sugars Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +36.6%Weak8w Streak
In , Andhra Sugars Ltd (Sugar) is outperforming Nifty 500 with +36.6% relative strength. Fundamentals: Weak. On a 8-week streak.
Andhra Sugars Ltd Key Facts
- PE Ratio
- 13.4x
- Market Cap
- ₹1,356 Cr
- Revenue Growth YoY
- +24%
- OPM
- 8.0%
- RS vs Nifty 500
- +36.6%
PE: Mid ContractionStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 46% YoY — balance sheet strengthening
👔Promoter buying — stake up 3.0% this quarter
💰Trading 53% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Demerger Spin Off Value Unlock
FY26MEDIUM
2. Value Added Product Mix Shift
FY27LOW
Key Risks
1. FPPCA charges demand of ₹22
HIGH2. Cyclicality in Caustic Soda and Sugar prices affecting top-line stability
MEDIUM3. Non-availability of sufficient sugarcane leading to suspension of crushing opera
MEDIUMSector-Specific Signals
Sugar Division Revenue₹36.45 CrNot Given
Caustic Soda Capacity600 TPD0
Sulphuric Acid Expansion500 TPDNew Capacity
Power Cost % of Revenue18.5%20 bps
Key Numbers
Revenue YoY
+24%
Stable
Operating Margin
8.0%
+500 bps YoY
PE Ratio
13.4
Current Price
₹100
Dividend Yield
0.80%
Fundamental Score
40/100
Weak
3Y PAT CAGR
-50%
Market Cap
1.4K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Andhra Sugars Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Value Added Product Mix Shift
Expected: FY27LOW confidence
What: Bio Gas Investment: New Plant
What Are the Key Risks for Andhra Sugars Ltd?
Earnings deceleration risks from management commentary
FPPCA charges demand of ₹22
HIGHTrigger: FPPCA charges demand of ₹22.85 Cr raised by DISCOMS impacting margins.
Impact: PAT impact: ₹22.85 Cr
Management view: Provisioned in FY25; awaiting reversal or final order.
Monitor: regulatory
Cyclicality in Caustic Soda and Sugar prices affecting top-line stability
MEDIUMTrigger: Cyclicality in Caustic Soda and Sugar prices affecting top-line stability.
Management view: Closure of unviable sugar units to focus on chemicals.
Monitor: commodity
Non-availability of sufficient sugarcane leading to suspension of crushing opera
MEDIUMTrigger: Non-availability of sufficient sugarcane leading to suspension of crushing operations.
Management view: Suspended operations at Taduvai and Bhimadole for 2025-26.
Monitor: climate
What Did Andhra Sugars Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹636.27 Cr
YoY +23.1%QoQ +5.3%
Revenue growth was primarily driven by increased realizations in the Chlor-Alkali and Industrial Chemicals segments.
EBITDA
₹57.12 Cr
YoY +140.19%Margin 8.98%
EBITDA margins improved significantly from 4.2% in the year-ago period due to higher selling prices of chemicals.
PAT
₹23.11 Cr
YoY +5602.4%QoQ -31.1%
The massive YoY jump is due to a low base in Q3FY25 where the company reported a loss of ₹0.42 Cr.
Other Highlights
• Exceptional charge of ₹1.32 Cr for VRS and FPPCA adjustments.
• Promoter holding increased by 2.66% during the quarter.
• Permanent closure of Tanuku sugar and co-generation units.
What Sector Metrics Matter for Andhra Sugars Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Sugar Division Revenue
₹36.45 Cr
YoY Not GivenQoQ Not Given
Why: Impacted by the permanent closure of the Tanuku unit and suspension of other units due to cane shortage.
Caustic Soda Capacity
600 TPD
YoY 0QoQ 0
Why: Capacity maintained at the integrated chemical complex at Saggonda.
Sulphuric Acid Expansion
500 TPD
YoY New CapacityQoQ 0
Why: Commissioned to capitalize on industrial chemical demand.
Power Cost % of Revenue
18.5%
YoY 20 bpsQoQ Not Given
Why: High cost of power remains a concern, accounting for a large portion of revenue in chemical operations.
Promoter Holding
49.9%
YoY Not GivenQoQ 2.66%
Why: Promoters increased stake during the quarter, signaling confidence despite operational restructuring.
Exceptional Items
₹1.32 Cr
YoY Not GivenQoQ Not Given
Why: Net of VRS payments for closed units and FPPCA regulatory adjustments.
What Is Andhra Sugars Ltd's Management Guidance?
Forward-looking targets from management for Medium Term
Revenue Growth Target
9%
OPM Guidance
17%
Capex Plan
₹95 Cr
Revenue Outlook
0.09
Margin Outlook
Expected gradual moderation in power expenses to 17% of sales.
Capex Plan
₹95 Cr
Ongoing capital expenditure and maintenance
Management Tone: CAUTIOUS
How Fast Is Andhra Sugars Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +24% | +1% | Stable |
| OPM | 8.0% | +500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Andhra Sugars Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Andhra Sugars Ltd's latest quarterly results?
Andhra Sugars Ltd's latest quarterly results (Dec 2025) show
- Revenue Growth YoY: +23.5%
- Operating Margin: 8.0% (volatile)
Is Andhra Sugars Ltd's profit growing or declining?
Andhra Sugars Ltd's profit is declining with an turning around (inflection up) trend.
- PAT Growth QoQ: -32.4% (sequential)
- 3-Year PAT CAGR: -50.0%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Andhra Sugars Ltd's revenue growth trend?
Andhra Sugars Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +23.5%
- Revenue Growth QoQ: +5.7% (sequential)
- 3-Year Revenue CAGR: +1.0%
How is Andhra Sugars Ltd's operating margin trending?
Andhra Sugars Ltd's operating margin is volatile.
- Current OPM: 8.0%
- OPM Change YoY: +5.0% basis points
- OPM Change QoQ: -1.0% basis points
What is Andhra Sugars Ltd's 3-year profit and revenue CAGR?
Andhra Sugars Ltd's long-term compounding rates
- 3-Year Profit CAGR: -50.0%
- 3-Year Revenue CAGR: +1.0%
Is Andhra Sugars Ltd's growth accelerating or decelerating?
Andhra Sugars Ltd's earnings growth is turning around (inflection up) with weakening on a sequential basis.
- Sequential Acceleration: -68.4% bps
What is Andhra Sugars Ltd's trailing twelve month (TTM) performance?
Andhra Sugars Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹88 Cr
- TTM PAT Growth: +87.2% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +19.3% YoY
- TTM Operating Margin: 8.7%
Is Andhra Sugars Ltd overvalued or undervalued?
Andhra Sugars Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 13.4x
- Price-to-Book: 0.8x
What is Andhra Sugars Ltd's current PE ratio?
Andhra Sugars Ltd's current PE ratio is 13.4x.
- Current PE: 13.4x
- Market Cap: 1.4K Cr
- Dividend Yield: 0.80%
How does Andhra Sugars Ltd's valuation compare to its history?
Andhra Sugars Ltd's current PE is 13.4x.
- Current PE: 13.4x
- Valuation Assessment: Significantly Overvalued
What is Andhra Sugars Ltd's price-to-book ratio?
Andhra Sugars Ltd's price-to-book ratio is 0.8x.
- Price-to-Book (P/B): 0.8x
- Book Value per Share: ₹121
- Current Price: ₹100
Is Andhra Sugars Ltd a fundamentally strong company?
Andhra Sugars Ltd is rated Weak with a fundamental score of 39.58/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +23.5% (10% weight)
- PAT Growth QoQ: -32.4% (10% weight)
- Margins stable (10% weight)
Is Andhra Sugars Ltd debt free?
Andhra Sugars Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹7 Cr
What is Andhra Sugars Ltd's return on equity (ROE) and ROCE?
Andhra Sugars Ltd's return ratios over recent years
- FY2023: ROCE 16.0%
- FY2024: ROCE 5.0%
- FY2025: ROCE 4.0%
Is Andhra Sugars Ltd's cash flow positive?
Andhra Sugars Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹128 Cr
- Free Cash Flow (FCF): ₹35 Cr
- CFO/PAT Ratio: 474% (strong cash conversion)
What is Andhra Sugars Ltd's dividend yield?
Andhra Sugars Ltd's current dividend yield is 0.80%.
- Dividend Yield: 0.80%
- Current Price: ₹100
Who holds Andhra Sugars Ltd shares — promoters, FII, DII?
Andhra Sugars Ltd's shareholding pattern (Mar 2026)
- Promoters: 50.5%
- FII (Foreign): 2.5%
- DII (Domestic): 0.0%
- Public: 47.0%
Is promoter holding increasing or decreasing in Andhra Sugars Ltd?
Andhra Sugars Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 50.5% (Mar 2026)
- Previous Quarter: 50.5% (Dec 2025)
- Change: 0.00% (stable)
How long has Andhra Sugars Ltd been outperforming Nifty 500?
Andhra Sugars Ltd has been outperforming Nifty 500 for 8 consecutive weeks, indicating consistent outperformance.
Is Andhra Sugars Ltd a new momentum entry or an established outperformer?
Andhra Sugars Ltd is an established outperformer with 8 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Andhra Sugars Ltd?
Andhra Sugars Ltd has 2 key growth catalysts identified from recent earnings analysis
- Demerger Spin Off Value Unlock — Merger of chemical subsidiaries will streamline operations and reduce administrative overheads.
- Value Added Product Mix Shift — Diversification into green energy is long-term and currently in early stages.
What are the key risks in Andhra Sugars Ltd?
Andhra Sugars Ltd has 3 key risks worth monitoring
- [HIGH] FPPCA charges demand of ₹22 — FPPCA charges demand of ₹22.85 Cr raised by DISCOMS impacting margins.
- [MEDIUM] Cyclicality in Caustic Soda and Sugar prices affecting top-line stability — Cyclicality in Caustic Soda and Sugar prices affecting top-line stability.
- [MEDIUM] Non-availability of sufficient sugarcane leading to suspension of crushing opera — Non-availability of sufficient sugarcane leading to suspension of crushing operations.
What is Andhra Sugars Ltd's management guidance for growth?
Andhra Sugars Ltd's management has provided the following forward guidance for Medium Term
- Revenue growth target: 9%
- OPM guidance: 17%
- Capex plan: ₹95 Cr for Ongoing capital expenditure and maintenance
- Management tone: cautious
What sector-specific metrics matter most for Andhra Sugars Ltd?
Andhra Sugars Ltd's most important sub-sector-specific KPIs from the latest concall
- Sugar Division Revenue: ₹36.45 Cr (YoY Not Given) (QoQ Not Given) — Impacted by the permanent closure of the Tanuku unit and suspension of other units due to cane shortage.
- Caustic Soda Capacity: 600 TPD (YoY 0) (QoQ 0) — Capacity maintained at the integrated chemical complex at Saggonda.
- Sulphuric Acid Expansion: 500 TPD (YoY New Capacity) (QoQ 0) — Commissioned to capitalize on industrial chemical demand.
- Power Cost % of Revenue: 18.5% (YoY 20 bps) (QoQ Not Given) — High cost of power remains a concern, accounting for a large portion of revenue in chemical operations.
- Promoter Holding: 49.9% (YoY Not Given) (QoQ 2.66%) — Promoters increased stake during the quarter, signaling confidence despite operational restructuring.
- Exceptional Items: ₹1.32 Cr (YoY Not Given) (QoQ Not Given) — Net of VRS payments for closed units and FPPCA regulatory adjustments.
Is Andhra Sugars Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Andhra Sugars Ltd may be worth studying
- Cash flow is positive — CFO ₹128 Cr
What is the investment thesis for Andhra Sugars Ltd?
Andhra Sugars Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +23.5% YoY
- Growth catalyst: Demerger Spin Off Value Unlock
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: FPPCA charges demand of ₹22
What is the future outlook for Andhra Sugars Ltd?
Andhra Sugars Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Demerger Spin Off Value Unlock
- Key Risk: FPPCA charges demand of ₹22
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.