Kothari Sugars Reports ₹6.6 Cr PAT for FY26; Exceptional Gains Offset Revenue Dip

Synopsis: Kothari Sugars and Chemicals Limited reported its audited financial results for the year ended March 31, 2026, today, May 4, 2026. The company saw a 20% decline in annual revenue due to a significant sugarcane shortage caused by erratic rainfall. Despite these operational headwinds, the stock traded 2.12% higher today as the market digested a massive one-time exceptional gain that helped the company stay in the green.

Kothari Sugars and Chemicals Limited faced a challenging financial year, with annual consolidated revenue from operations falling to Rs. 246.78 crore in FY26, compared to Rs. 310.02 crore in FY25. 

Management attributed this sharp decrease in revenue and profits to lower sugarcane crushing volumes. The raw material shortage was driven by a combination of deficit rainfall and pest attacks in the company’s command area.

In response to the inadequate sugarcane supply, Kothari Sugars and Chemicals Limited operated only its Kattur unit during the 2025–26 season, while keeping the Sathamangalam unit idle to optimize resources. 

For FY26, the company reported a net profit (PAT) of Rs. 6.61 crore, down from Rs. 10.43 crore in FY25. The results were supported by an exceptional income of Rs. 21.34 crore, mainly from the reversal of liabilities related to sugarcane and electricity matters. Earnings per share (EPS) stood at Rs. 0.80, compared with Rs. 1.26 in the previous year.

The market reaction remained cautiously positive, supported by the unmodified audit opinion and the resolution of legacy liabilities. As of 1:10 PM IST on May 4, 2026, the stock was trading at Rs. 28.50, up 2.48% from its previous close.

During the session, the stock touched an intraday high of Rs. 28.70. At current levels, the company’s market capitalization stands at Rs. 235.40 crore. Trading activity remained moderate, with about 0.67 lakh shares exchanged by midday and a delivery percentage above 71%, indicating long-term investor participation despite seasonal volatility. The stock remains in a recovery phase, trading well above its 52-week low of Rs. 22.50 recorded in March 2026, though still below its yearly high of Rs. 41.44.

Company Overview

Kothari Sugars and Chemicals Limited, a part of the H.C. Kothari Group, is a diversified manufacturer with a primary focus on sugar, distillery products, and co-generation of power. The company operates two sugar units in Tamil Nadu located at Kattur and Sathamangalam. As an essential service provider in the agriculture-allied sector, the company is highly dependent on monsoon patterns and regional sugarcane crop health.

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