A Sweet Victory: Dalmia Bharat Sugar’s Profit Doubles in Q4
In a quarter that has taken the market by surprise, Dalmia Bharat Sugar and Industries Ltd has reported a staggering 126% surge in net profit, signaling a sweet turnaround story powered not just by sugar, but by strategic ethanol expansion.
The company’s Q4 FY25 net profit soared to ₹206.3 crore, up from ₹91.3 crore in the same period last year — a leap that instantly lifted market sentiment and sent the stock price jumping over 9% in early trade on May 14.
But this isn’t just a sugar story. It’s about diversification, operational mastery, and riding the ethanol wave with precision.
What’s Driving This Impressive Turnaround?
Here’s a quick snapshot of the company’s standout performance:
| Metric | Q4 FY25 | Q4 FY24 | Growth |
| Revenue from Operations | ₹1,018 crore | ₹750 crore | +35.7% |
| EBITDA | ₹195 crore | ₹118 crore | +65.3% |
| EBITDA Margin | 19.2% | 15.7% | +350 bps |
| Net Profit | ₹206.3 crore | ₹91.3 crore | +126% |
This sharp growth wasn’t just luck. It was strategic execution across three key areas:
1. Higher Sales Realisations
- Sugar prices remained firm, averaging ₹38.9/kg — up 5% YoY
- Domestic and export volumes were healthy, totaling 1.5 LMT in Q4
- Exports alone contributed 9% of total sugar sales
2. Ethanol Fuelled the Fire
- Cane distillery output: 3.4 crore litres, up 31% YoY
- Diversion via B-heavy molasses and juice routes enhanced volumes
- Ethanol revenue is becoming a key growth engine
3. Cost Discipline and Margin Expansion
- Better operating leverage and capacity utilization
- Focus on efficiency and deleveraging reflected in margin gains
Full-Year FY25 Snapshot: A Year of Records
If Q4 was impressive, FY25 as a whole was even more robust:
| Metric | FY25 | FY24 | Growth |
| Total Revenue | ₹3,746 crore | ₹2,904 crore | +29% |
| Sugar Sales Volume | 5.9 LMT | — | Record High |
| Ethanol (Grain Distillery) | 6.2 crore litres | 3.6 crore litres | +72% |
| EBITDA | ₹544 crore | — | — |
| PAT | ₹387 crore | — | — |
| Sugar Inventory | 3.8 LMT | 4.3 LMT | -11.6% |
Clearly, ethanol production isn’t just a side business anymore — it’s central to the company’s revenue diversification strategy. The company’s capacity expansion in grain distilleries has already begun to pay off.
Expert Take: Why This Matters for Investors
Dalmia Bharat Sugar is positioning itself for a dual-engine future — where both sugar and ethanol contribute meaningfully to earnings.
Why this is bullish:
- Ethanol blending push by the Indian government = Long-term demand visibility
- Deleveraged balance sheet = Better interest coverage, more cash for expansion
- Robust export strategy = Hedge against domestic market fluctuations
For long-term investors, this is a classic case of a legacy company reinventing itself with agility and vision.
Stock Price Action: Market Reacts Instantly
The stock opened at ₹451.80 on Wednesday, marking a 9.07% jump — a direct reflection of investor confidence in the turnaround story.
If results remain consistent, Dalmia Bharat Sugar could emerge as a key ethanol play in India’s evolving energy and agri landscape.
Final Thoughts: Sweetness Beyond Sugar
What sets Dalmia Bharat Sugar apart in FY25 is its strategic shift from being a commodity-dependent business to a diversified, value-driven enterprise.
In the words of an analyst:
“This isn’t just about selling more sugar; it’s about creating a future-ready energy company hidden inside a sugar mill.”