Mawana Sugars Stock Falls After Reporting Weak FY26 Profit Growth

Synopsis:- As sugar segment profitability halved and large exceptional gains from the prior year dropped out of the base, Mawana Sugars reported consolidated FY26 PAT of Rs. 37.09 crore against Rs. 109.42 crore in FY25  though core profitability also declined, with the power and distillery segments only partly offsetting the compression in the primary business.

A UP-based integrated sugar company came under investor attention on May 23, 2026, after its board approved audited FY26 results alongside plans to hold the 62nd AGM. The board deferred the dividend decision to a subsequent meeting, leaving FY26 payouts unconfirmed.

With a market capitalisation of Rs. 391.17 crore, the shares of Mawana Sugars Limited were last quoted at Rs. 100 per share, down 2.17 percent from its previous close of Rs.102.22. The stock is trading at a reported P/E of 10.78.

Consolidated revenue from operations for FY26 came in at Rs. 1,570.94 crore, up 8.6 percent from Rs. 1,446.49 crore in FY25 implying volume realizations. The trouble is on the profitability line. Consolidated PAT fell to Rs. 37.09 crore from Rs. 109.42 crore in FY25, a 66 percent decline. A straightforward year-on-year comparison, though, overstates the deterioration: FY25 included exceptional income of Rs. 61.28 crore from the sale of Siel Industrial Estate Limited and Siel Infrastructure and Estate Developers Private Limited. Excluding that, FY25’s underlying PAT was closer to Rs. 57 crore, still meaningfully higher than FY26’s Rs. 37.09 crore, but the gap narrows.

Standalone numbers tell a similar story. Revenue from operations grew 8.2 percent to Rs. 1,564.16 crore. Standalone PAT fell from Rs. 71.40 crore to Rs. 36.72 crore, with the FY25 base inflated by the same exceptional gains (Rs. 21.39 crore on standalone). Profit before exceptional items and tax on a standalone basis declined from Rs. 69.95 crore to Rs. 54.64 crore, a 21.9 percent drop that reflects genuine operating pressure. EPS for FY26 came in at Rs. 9.39 per share (standalone) and Rs. 9.48 per share (consolidated), against Rs. 18.25 and Rs. 27.97 respectively in FY25.

Segment Breakdown

The segment data makes the dynamic clearer. On a standalone basis, the sugar segment reported profit (before tax, finance costs, and exceptional items) of Rs. 44.56 crore for FY26, against Rs. 89.71 crore in FY25, a 50 percent fall. Higher sugarcane procurement costs, driven by UP’s State Advised Price mechanism, compressed margins in a year when refined sugar prices did not move proportionately. This is the core operating challenge.

Against that, the power segment delivered Rs. 41.36 crore in segment profit, more than double the Rs. 19.05 crore recorded in FY25. This improvement includes Rs. 5.05 crore in differential revenue recognized in the current year for the period April 2024 to September 2025, following the notification of revised Captive and Renewable Energy Regulations by the UPERC in October 2025 with retrospective effect. The distillery segment also posted modest improvement, with segment profit of Rs. 9.69 crore versus Rs. 6.08 crore in FY25, benefiting from better ethanol blending demand.

The net effect: total segment profit before finance costs and exceptionals fell from Rs. 114.84 crore to Rs. 95.61 crore, a decline of 16.7 percent. Power and distillery absorbed part of the sugar shortfall, but not all of it.

Mawana Foods Merger: Structural Progress

The proposed amalgamation of Mawana Foods Private Limited (a wholly owned subsidiary) with Mawana Sugars continued to advance through regulatory channels. Shareholders approved the merger with 99.99 percent votes in favour. The NCLT’s New Delhi Bench approved the First Motion Application in December 2025 and directed the holding of requisite meetings, which have since been completed.

The FY26 financial results do not reflect the merger’s accounting effect, which will only be incorporated once the process is complete. Mawana Foods reported FY26 revenues of Rs. 43.23 crore and net profit of Rs. 0.35 crore.

Business Overview

Mawana Sugars Limited, incorporated in 1989 and listed on both BSE (523371) and NSE (MAWANASUG), manufactures sugar, ethanol, and co-generates power from its mills in Uttar Pradesh.

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