1. At a Glance
Welcome to the rollercoaster factory of Uttam Sugar Mills Ltd (BSE: 532729 | NSE: UTTAMSUGAR) — where every tonne of sugar crushed seems to also crush investor optimism. The company, currently trading at ₹228 per share (as of 24th Nov 2025), boasts a market cap of ₹869 crore, a P/E of 7.72x, and a Book Value of ₹208. It’s cheap — like Diwali sweets after Bhai Dooj — but sweetness alone can’t fix profitability.
In Q2FY26, the company reported revenue of ₹581.5 crore (down 7.5% QoQ) and a PAT of just ₹0.99 crore (down 93% QoQ, and YoY growth of 107% — only because the base was hilariously low last year). The Operating Profit Margin collapsed to 3.94%, reminding investors that in sugar, margins can melt faster than ice in Meerut summer.
Still, Uttam Sugar’s numbers are anything but boring. With ROCE at 11.2%, ROE at 11.9%, and a Debt-to-Equity ratio of 0.35, it’s trying to stay lean after a ₹116 crore capex binge and a new distillery acquisition spree. The Dividend yield of 1.09% feels like a consolation sweet from the accountant. But hey — at least promoters hold a sugary 74.4% stake, and none of it is pledged. That’s one less cavity to worry about.
2. Introduction
If India’s sugar sector were a Bollywood movie, Uttam Sugar would be the veteran supporting actor — reliable, underrated, and somehow always covered in sticky syrup. Incorporated in 1993, the company now straddles three verticals: Sugar, Distillery (Ethanol), and Power Generation.
Over the last few years, Uttam Sugar has tried to evolve from a traditional sugar roller mill into a multi-product agro-energy enterprise. But the problem with transformation stories in the sugar industry is that they usually end in one of two ways: either ethanol prices get capped by the government, or sugar prices crash due to monsoon drama. Either way, producers end up saying — “Yeh sab system ka fault hai.”
The company has been on a capex trip — increasing its crushing capacity to 26,200 TCD, distillery to 300 KLPD, and power capacity to 122 MW. Meanwhile, it’s also swallowing smaller entities like Uttam Distilleries Ltd, which will soon churn out more grain-based ethanol than some states consume.
In FY25, the company clocked ₹2,202 crore in revenue and ₹110 crore in PAT, translating into an EPS of ₹29.53. Yet, the last six months have been a bit bitter — the stock fell -26.3% in 6 months and -17.5% in 1 year, showing that even in a sugar boom, investor patience can sour.
3. Business Model – WTF Do They Even Do?
At its core, Uttam Sugar is a sugar manufacturer — it crushes sugarcane and produces everything from refined white sugar to liquid, brown, sulfur-free, icing, and pharma-grade sugars. Basically, if it’s sweet and crystalline, Uttam probably makes it.
The company has four major plants — Libberheri, Barkatpur, Shermau, and Khaikheri — spread across Uttar Pradesh, the heartland of sugar politics. Together, these plants crush 26,200 tonnes of cane per day. That’s like squeezing an
entire district’s sugarcane output before lunch.
But here’s where it gets interesting: Uttam Sugar isn’t just about sweetness anymore. Its distillery segment (now 300 KLPD) produces ethanol that’s sold to oil marketing companies (OMCs) under India’s ethanol blending programme. With the government pushing for 20% ethanol blending, this vertical has become the darling of the balance sheet — contributing ~15% of FY23 revenue.
The power segment, though smaller (~3% of revenue), uses bagasse (sugarcane waste) to generate electricity — partly for captive use and partly sold to the grid. It’s like recycling sugarcane twice — once for sweetness and once for sustainability.
In short, Uttam Sugar sells sweetness to your tea, ethanol to your car, and power to your state. The real question is: which one gives the best margin? Spoiler — not sugar.
4. Financials Overview
| Metric (₹ Cr) | Q2FY26 (Sep 2025) | Q2FY25 (Sep 2024) | Q1FY26 (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 581.54 | 400.75 | 628.77 | 45.1% | -7.5% |
| EBITDA | 22.93 | 3.10 | 50.44 | 639% | -54.5% |
| PAT | 0.99 | -14.14 | 14.53 | 107% | -93.2% |
| EPS (₹) | 0.26 | -3.81 | 3.82 | 106.8% | -93.2% |
The story here is textbook sugar volatility: one quarter you’re drowning in cash, the next you’re drowning in molasses. The company’s EBITDA margin has fallen to a dismal 3.9%, down from a healthy 8% in Q1FY26, primarily due to low sugar realization and higher input costs. PAT has almost evaporated, leaving behind traces of sweet nostalgia.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s do the math, purely for educational fun.
- Current EPS (TTM) = ₹29.53
- Industry P/E = 13.2
- Company P/E = 7.72
If we apply a conservative P/E band:
- Lower Range (7x) = ₹206
- Upper Range (11x) = ₹325
EV/EBITDA method:
- EV = ₹1,126 crore
- EBITDA (TTM) = ₹248 crore
→ EV/EBITDA = 4.53x
If sector average EV/EBITDA is ~6x, the implied valuation range is ₹240–₹310 per share.
DCF sanity check: Assuming free cash flow growth of 6% and cost of capital ~10%, the fair range lands roughly between ₹230–₹300.
✅ Fair Value Range (Educational): ₹230 – ₹310 per share
⚠️ This is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Oh, there’s
