Operating Leverage Inflection
Expected: FY26HIGH confidence
What: Sugar Production Growth: 18%
“The growth was driven by an 8% increase in sugarcane crushing following capacity enhancement at the Hargaon unit.”
Avadh Sugar & Energy Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +50.0%Average6w Streak
In , Avadh Sugar & Energy Ltd (Sugar) is outperforming Nifty 500 with +50.0% relative strength. Fundamentals: Average. On a 6-week streak.
Avadh Sugar & Energy Ltd Key Facts
- PE Ratio
- 13.6x
- Market Cap
- ₹1,020 Cr
- PAT Growth YoY
- +143%
- Revenue Growth YoY
- +3%
- OPM
- 9.0%
- RS vs Nifty 500
- +50.0%
PE: Mid ExpansionEmerging Opportunity
What's Happening
⏳Steady earner with flat PE — waiting for re-rate catalyst
💪Debt reduced 57% YoY — balance sheet strengthening
🌐FII stake decreased 2.7% this quarter
💰Trading 55% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Operating Leverage Inflection
FY26HIGH
2. Value Added Product Mix Shift
Q3 FY26MEDIUM
3. Mandatory Industry Norms
By ESY 25-26MEDIUM
Key Risks
1. Increase in State Advisory Price (SAP) of sugarcane in UP by ₹30 per quintal to
HIGH2. Rising sugarcane prices and higher production costs are squeezing margins
MEDIUM3. Exports remained subdued due to softening global sugar prices
LOWSector-Specific Signals
Sugar Realisation₹4,039 per quintal+7%
Ethanol Sales Volume202.61 Lac Ltrs+17%
Sugar Production16.93 Lac Qtls+18.5%
Average Recovery %9.43%+83 bps
Key Numbers
PAT Growth YoY
+143%
Stable
Revenue YoY
+3%
Stable
Operating Margin
9.0%
+300 bps YoY
PE Ratio
13.6
Current Price
₹509
Dividend Yield
1.96%
Fundamental Score
51/100
Average
3Y PAT CAGR
-11%
Market Cap
1.0K 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 Avadh Sugar & Energy Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Value Added Product Mix Shift
Expected: Q3 FY26MEDIUM confidence
What: Ethanol Sales Growth: 17%
“Further, higher volumes of ethanol sales contributed positively to overall revenue growth.”
Mandatory Industry Norms
Expected: By ESY 25-26MEDIUM confidence
What: Ethanol Blending Target: 20%
“Ethanol blending has reached 20% as on 31 December 2025, on course to achieve target of 20%.”
PAT growth of 143% YoY
HIGH confidence
What: PAT growth of 143% YoY
“EBITDA and PAT for the quarter increased by 47% and 143%, respectively, driven by higher realization from sugar sales and increased volume of ethanol sales.”
What Are the Key Risks for Avadh Sugar & Energy Ltd?
Earnings deceleration risks from management commentary
Increase in State Advisory Price (SAP) of sugarcane in UP by ₹30 per quintal to
HIGHTrigger: Government decision to increase farmer remuneration.
Management view: Partially mitigated by higher sugar realization and higher recovery rates.
Monitor: regulatory
Rising sugarcane prices and higher production costs are squeezing margins
MEDIUMTrigger: Increased input costs without a simultaneous revision in the Minimum Selling Price (MSP) of sugar.
Management view: Industry is requesting a revision of MSP based on FRP of sugarcane.
Monitor: commodity
Exports remained subdued due to softening global sugar prices
LOWTrigger: Global price trends making exports less attractive.
Management view: Focus on domestic sales and ethanol diversion.
Monitor: geopolitical
What Is Avadh Sugar & Energy Ltd's Management Saying?
Key quotes from recent conference calls
“Sugar Realisation (Rs / Qtls) 3985 ... Q2FY26 [Previous Sugar Realisation guidance]”
“The implementation of the increase in sugarcane crushing capacity from 10,000 TCD to 13,000 TCD ... has been completed and is operational. [Initiative: Hargaon Capacity Expansion]”
“For 2025–26 crushing season, the State Advisory Price (SAP) of sugarcane in Uttar Pradesh has been increased by Rs. 30 per quintal, raising the price to Rs. 400. [Risk (regulatory): HIGH]”
“Cost pressures to persist: Rising sugarcane prices and higher production costs are squeezing margins, increasing the industry’s dependence on Sugar MSP Revision. [Risk (commodity): MEDIUM]”
What Did Avadh Sugar & Energy Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹639.16 Cr
YoY +3.3%QoQ -4.3%
Why: Revenue increased primarily due to higher realization from sugar sales despite lower domestic quota allocation and higher ethanol sales volumes.
Higher realizations offset volume declines in the sugar segment.
EBITDA
₹56.39 Cr
YoY +49.7%Margin 8.8%
Why: Profitability was driven by higher realization from sugar sales and increased volume of ethanol sales.
EBITDA growth significantly outpaced revenue growth due to better pricing.
PAT
₹16.70 Cr
YoY +147.8%
Why: The increase was driven by improved operational efficiency in ethanol and higher sugar realizations.
PAT saw a sharp recovery from the previous year's low base.
Other Highlights
• Sugar realization increased by 7% YoY to ₹4,039 per quintal.
• Ethanol sales volumes increased by 17% during the quarter.
• Sugar production increased by 18% during the current sugar season.
What Sector Metrics Matter for Avadh Sugar & Energy Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Sugar Realisation
₹4,039 per quintal
YoY +7%QoQ +1.3%
Why: Market dynamics and higher quality production.
Ethanol Sales Volume
202.61 Lac Ltrs
YoY +17%QoQ +2.8%
Why: Improved operational efficiency and higher offtake.
Sugar Production
16.93 Lac Qtls
YoY +18.5%
Why: Driven by capacity enhancement at Hargaon unit.
Average Recovery %
9.43%
YoY +83 bps
Why: Improvement in recovery based on C-heavy molasses.
Total Crushing Capacity
34,800 TCD
YoY 0%QoQ 0%
Why: Expansion at Hargaon completed.
Distillery Capacity
325 KLPD
YoY 0%QoQ 0%
Why: Stable capacity.
Sugarcane Crushing Volume
200.82 Lac Qtls
YoY +3.7%
Why: Capacity enhancement at Hargaon unit.
Ethanol Inventory
27.82 Lac Ltrs
YoY +192%
Why: Higher production levels.
What Is Avadh Sugar & Energy Ltd's Management Guidance?
Forward-looking targets from management
Volume
Sugar production expected to increase
Management Tone: BULLISH
How Fast Is Avadh Sugar & Energy Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +3% | -1% | Stable |
| PAT (Net Profit) | +143% | -11% | Stable |
| OPM | 9.0% | +300 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.
Other Top Sugar Stocks Beating Nifty 500
Frequently Asked Questions: Avadh Sugar & Energy Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Avadh Sugar & Energy Ltd's latest quarterly results?
Avadh Sugar & Energy Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +142.9% (stable)
- Revenue Growth YoY: +3.4%
- Operating Margin: 9.0% (volatile)
Is Avadh Sugar & Energy Ltd's profit growing or declining?
Avadh Sugar & Energy Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +142.9% (latest quarter)
- PAT Growth QoQ: +342.9% (sequential)
- 3-Year PAT CAGR: -10.8%
- Trend: Stable — consistent growth pattern
What is Avadh Sugar & Energy Ltd's revenue growth trend?
Avadh Sugar & Energy Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +3.4%
- Revenue Growth QoQ: -4.5% (sequential)
- 3-Year Revenue CAGR: -1.3%
How is Avadh Sugar & Energy Ltd's operating margin trending?
Avadh Sugar & Energy Ltd's operating margin is volatile.
- Current OPM: 9.0%
- OPM Change YoY: +3.0% basis points
- OPM Change QoQ: +6.0% basis points
What is Avadh Sugar & Energy Ltd's 3-year profit and revenue CAGR?
Avadh Sugar & Energy Ltd's long-term compounding rates
- 3-Year Profit CAGR: -10.8%
- 3-Year Revenue CAGR: -1.3%
Is Avadh Sugar & Energy Ltd's growth accelerating or decelerating?
Avadh Sugar & Energy Ltd's earnings growth is stable with improving on a sequential basis.
- YoY Acceleration: +180.0% bps
- Sequential Acceleration: +37.5% bps
What is Avadh Sugar & Energy Ltd's trailing twelve month (TTM) performance?
Avadh Sugar & Energy Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹74 Cr
- TTM PAT Growth: +2.8% YoY
- TTM Revenue: ₹3,000 Cr
- TTM Revenue Growth: +4.8% YoY
- TTM Operating Margin: 9.5%
Is Avadh Sugar & Energy Ltd overvalued or undervalued?
Avadh Sugar & Energy Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 13.6x
- Price-to-Book: 1.0x
What is Avadh Sugar & Energy Ltd's current PE ratio?
Avadh Sugar & Energy Ltd's current PE ratio is 13.6x.
- Current PE: 13.6x
- Market Cap: 1.0K Cr
- Dividend Yield: 1.96%
How does Avadh Sugar & Energy Ltd's valuation compare to its history?
Avadh Sugar & Energy Ltd's current PE is 13.6x.
- Current PE: 13.6x
- Valuation Assessment: Significantly Overvalued
What is Avadh Sugar & Energy Ltd's price-to-book ratio?
Avadh Sugar & Energy Ltd's price-to-book ratio is 1.0x.
- Price-to-Book (P/B): 1.0x
- Book Value per Share: ₹529
- Current Price: ₹509
Is Avadh Sugar & Energy Ltd a fundamentally strong company?
Avadh Sugar & Energy Ltd is rated Average with a fundamental score of 51.41/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +3.4% (10% weight)
- PAT Growth YoY: +142.9% (10% weight)
- PAT Growth QoQ: +342.9% (10% weight)
- Margins stable (10% weight)
Is Avadh Sugar & Energy Ltd debt free?
Avadh Sugar & Energy Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1,000 Cr
What is Avadh Sugar & Energy Ltd's return on equity (ROE) and ROCE?
Avadh Sugar & Energy Ltd's return ratios over recent years
- FY2023: ROCE 10.0%
- FY2024: ROCE 13.0%
- FY2025: ROCE 9.0%
Is Avadh Sugar & Energy Ltd's cash flow positive?
Avadh Sugar & Energy Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹154 Cr
- Free Cash Flow (FCF): ₹55 Cr
- CFO/PAT Ratio: 175% (strong cash conversion)
What is Avadh Sugar & Energy Ltd's dividend yield?
Avadh Sugar & Energy Ltd's current dividend yield is 1.96%.
- Dividend Yield: 1.96%
- Current Price: ₹509
Who holds Avadh Sugar & Energy Ltd shares — promoters, FII, DII?
Avadh Sugar & Energy Ltd's shareholding pattern (Mar 2026)
- Promoters: 60.4%
- FII (Foreign): 1.8%
- DII (Domestic): 0.3%
- Public: 37.6%
Is promoter holding increasing or decreasing in Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 60.4% (Mar 2026)
- Previous Quarter: 60.4% (Dec 2025)
- Change: 0.00% (stable)
How long has Avadh Sugar & Energy Ltd been outperforming Nifty 500?
Avadh Sugar & Energy Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Is Avadh Sugar & Energy Ltd a new momentum entry or an established outperformer?
Avadh Sugar & Energy Ltd is an established outperformer with 6 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd has 4 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Capacity enhancement at Hargaon is now fully operational and driving volume growth.
- Value Added Product Mix Shift — Higher volumes of ethanol sales contributed positively to overall revenue growth.
- Mandatory Industry Norms — Government policy continues to drive industry direction through blending targets.
- PAT growth of 143% YoY — Driven by higher realization from sugar sales and increased volume of ethanol sales.
What are the key risks in Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd has 3 key risks worth monitoring
- [HIGH] Increase in State Advisory Price (SAP) of sugarcane in UP by ₹30 per quintal to — Government decision to increase farmer remuneration.
- [MEDIUM] Rising sugarcane prices and higher production costs are squeezing margins — Increased input costs without a simultaneous revision in the Minimum Selling Price (MSP) of sugar.
- [LOW] Exports remained subdued due to softening global sugar prices — Global price trends making exports less attractive.
What did Avadh Sugar & Energy Ltd's management say in the latest earnings call?
In Q3 FY26, Avadh Sugar & Energy Ltd's management highlighted
- "Sugar Realisation (Rs / Qtls) 3985 ... Q2FY26 [Previous Sugar Realisation guidance]"
- "The implementation of the increase in sugarcane crushing capacity from 10,000 TCD to 13,000 TCD ... has been completed and is operational. [Initiativ..."
- "For 2025–26 crushing season, the State Advisory Price (SAP) of sugarcane in Uttar Pradesh has been increased by Rs. 30 per quintal, raising the price ..."
What is Avadh Sugar & Energy Ltd's management guidance for growth?
Avadh Sugar & Energy Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: Not Given for Not Given
- Management tone: bullish
What sector-specific metrics matter most for Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd's most important sub-sector-specific KPIs from the latest concall
- Sugar Realisation: ₹4,039 per quintal (YoY +7%) (QoQ +1.3%) — Market dynamics and higher quality production.
- Ethanol Sales Volume: 202.61 Lac Ltrs (YoY +17%) (QoQ +2.8%) — Improved operational efficiency and higher offtake.
- Sugar Production: 16.93 Lac Qtls (YoY +18.5%) — Driven by capacity enhancement at Hargaon unit.
- Average Recovery %: 9.43% (YoY +83 bps) — Improvement in recovery based on C-heavy molasses.
- Total Crushing Capacity: 34,800 TCD (YoY 0%) (QoQ 0%) — Expansion at Hargaon completed.
- Distillery Capacity: 325 KLPD (YoY 0%) (QoQ 0%) — Stable capacity.
Is Avadh Sugar & Energy Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Avadh Sugar & Energy Ltd may be worth studying
- Earnings growing at +142.9% YoY
- Cash flow is positive — CFO ₹154 Cr
What is the investment thesis for Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Increase in State Advisory Price (SAP) of sugarcane in UP by ₹30 per quintal to
What is the future outlook for Avadh Sugar & Energy Ltd?
Avadh Sugar & Energy Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Increase in State Advisory Price (SAP) of sugarcane in UP by ₹30 per quintal to
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.