1. At a Glance
Andhra Sugars Ltd — a company that started by sweetening your tea in 1947 — now also helps launch rockets into space. With₹355 crorein quarterly revenue and a₹31 crorenet profit in Q2FY26, it just delivered a426% YoY profit explosion, while keeping debt at an almost invisible₹1.94 crore. Yes, you read that right —debt-free and drama-free, a rare combo in the Indian midcap universe.
The stock trades at₹76.8, giving it amarket cap of ₹1,041 crore, a humbleP/E of 11.1x, and anEV/EBITDA of 4.95x. ItsROCE is 4.63%andROE 3.4%, modest but improving — like a student who finally stopped bunking chemistry class. Over the last 6 months, the stock is up 11%, and promoters haveincreased holding to 49.94%, a subtle “we’re still here” message.
If sugar, aspirin, sulphuric acid, and rocket propellants sound like a random chemistry lab list, that’s because Andhra Sugars has quietly become India’ssweetest multi-segment industrial cocktail— part FMCG, part defense, part renewable, and entirely confusing to the average investor.
2. Introduction – A Sweet Old Giant in a Bitter Market
If you told your grandparents in 1947 that their sugar supplier would one day makerocket propellants for ISRO, they’d have laughed and stirred another spoon of Andhra Sugar in their chai. Yet, here we are —78 years later, this once-humble sugar company is making industrial chemicals, propellants, caustic soda, aspirin, and even electricity. Talk about diversification on steroids.
Andhra Sugars is not your typical midcap drama stock. There’s no flash, no “AI for chemicals” narrative, no “green hydrogen” buzzwords — just quiet expansion andold-school cash flows. It’s like that uncle who never brags but shows up at family functions in a new Fortuner every year.
The stock has had a rough few years — down26.9% YoY,18.8% in 3 years, and barely up over 5 years. Yet, theTTM profit growth of 180%says the old dog still bites. The firm’squarterly revenue grew 16.8%, profit ballooned 426%, and margins are back to double digits. From sugar fields in Tanuku to supplying chemicals to ISRO — this is India’s very own small-town-to-space story.
But can this chemical cocktail actually sustain? Or is it a sugar high waiting to crash? Let’s investigate.
3. Business Model – WTF Do They Even Do?
Good question. Andhra Sugars is basically aconglomerate disguised as a sugar company. Here’s the breakup of its chemical buffet:
- Chlor-Alkali Division (37% of FY24 revenue)– This is the caustic soda and potash business, which literally cleans up everything from PVC to paper. Revenue here fell 6% since FY22 due to weaker soda prices. Even the chemicals felt inflation, apparently.
- Industrial Chemicals (36%)– Includes sulphuric acid, hydrochloric acid, industrial alcohol, and rocket propellants supplied toISRO. Yes, the same company that sweetens halwa also fuels rockets. A true make-in-India legend.
- Soap Division (13%)– Through its subsidiaryJocil Ltd, it produces oleochemicals, fatty acids, and glycerine. Basically, it keeps your skin smooth while your rockets launch.
- Power & Others (6%)– A mix of wind, solar, and thermal power used for captive needs. Plus, a side hustle in fertilizers, edible oils, and bulk drugs — the company doesn’t like to be bored.
- Sugar (8%)– The original business. Produces sugar, molasses, bagasse, and ethanol. Crushed3.12 lakh MTof cane in FY24 and improved sugar production to29,440 MT. A sweet comeback story.
In short — it’s an industrial thali. One bite of sugar, a spoon of acid, a gulp of alcohol, and a sprinkle of rocket fuel.
4. Financials Overview
| Metric | Latest Qtr (Sep FY26) | YoY Qtr (Sep FY25) | Prev Qtr (Jun FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 355 | 304 | 336 | 16.8% | 5.7% |
| EBITDA (₹ Cr) | 51 | 19 | 50 | 168.4% | 2.0% |
| PAT (₹ Cr) | 31 | 5 | 25 | 426.0% | 24.0% |
| EPS (₹) | 2.29 | 0.40 | 1.85 | 472.5% | 23.8% |
Annualized EPS = 2.29 × 4 = ₹9.16P/E (TTM basis) = 76.8 / 9.16 =8.4x
Commentary:From ₹5 crore to ₹31 crore profit in a year — that’s not a turnaround, that’s a resurrection. Even the company’s OPM improved to14%, proving that maybe the sugar-acid-rocket combo works.
And let’s be honest — when your YoY profit is up426%, even your auditor smiles more while signing the report.
5. Valuation Discussion – Fair Value Range (Educational Only)
Method 1: P/E-Based ValuationAverage industry P/E = 23.4xCompany P/E = 11.1x
If we apply 15–18x (moderate industry discount for slow ROE):
- Fair Value = ₹9.16 × (15–18) = ₹137 to ₹165
Method 2: EV/EBITDA ApproachEV = ₹1,015 Cr; EBITDA (TTM) = ₹176 CrEV/EBITDA = 5.8xIndustry average = 8–10xIf re-rated to 8x → EV = ₹1,408 Cr → Equity value ≈ ₹1,434 Cr → FV ≈ ₹105/share
Method 3: Simplified DCF (Educational)Assume FCFE ~₹20 Cr avg for next 5 yrs at 6% growth, 12% discount rate → ₹120–₹135 range.
📘Fair Value Range (Educational Purpose Only): ₹105 – ₹165 per share
Disclaimer:This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
The Q2FY26 board meeting dropped three bombshells:
- The companyclosed operations at a few sugar unitsdue to cane shortage.
- Itcommissioned its 500 TPD sulphuric acid plantat Saggonda (₹118 Cr, fully internal funds).
- It’s still fighting inHigh Courtafter APIIC canceled itsSodium Hypochlorite plant sitein Vizag. Imagine losing 42 acres because of bureaucratic drama — only in India!
Then comes the comeback story — itsAspirin export revival. After years of GSK and Haleon reshuffles abroad, Andhra Sugars is gettingnew US approvalsfor Aspirin Starch Granules (expected demand:
