1. At a Glance
Sir Shadi Lal Enterprises Ltd is that one sugar stock which reminds you that history does not guarantee profitability. Founded in 1933, this is a pre-independence vintage company now surviving in a post-ethanol, post-UP sugar reform world… barely.
As of 29 January, the company sits at a market cap of ₹122 crore, trading around ₹232 per share, closer to its 52-week low than the high. The last quarter (Q3 FY26) delivered ₹78 crore revenue, but profits decided to take another leave application — PAT loss of ~₹17 crore, with EPS at -₹32.36.
Debt stands tall at ₹361 crore, while book value is deeply negative (-₹434) — yes, negative, not a typo. ROCE is a horror-movie level -154%, interest coverage is practically non-existent, and yet… the stock is still alive, kicking, and occasionally spiking.
Why? Because sugar stocks are emotional stocks. Ethanol dreams, NCLT schemes, promoter reshuffles, and one good crushing season can make investors forget 10 bad years. But should they? Let’s open the mill gates and check.
2. Introduction – A 1933 Legacy Stuck in 2026 Reality
Sir Shadi Lal Enterprises was incorporated when India didn’t even have a stock market for retail investors. Back then, sugar mills were royalty businesses — cane came cheap, sugar sold high, and balance sheets smiled.
Fast-forward to FY26, and this company is fighting recurring losses, eroded net worth, and survival via restructuring. Over the last decade, revenues have shrunk, margins have evaporated, and interest costs have eaten whatever operating profit occasionally shows up.
The company operates in Uttar Pradesh, one of the most regulated sugar states in India. Cane prices are politically sensitive, sugar prices are cyclical, and ethanol policies keep changing speed like a Delhi auto-rickshaw.
Add to this a distillery expansion, heavy borrowings, and now a composite scheme with Triveni Engineering, and you
have a company that’s less about quarterly profits and more about corporate surgery.
So the real question:
👉 Is this a dying sugar mill… or a turnaround patient under anesthesia?
3. Business Model – WTF Do They Even Do?
At its core, Sir Shadi Lal runs a classic integrated sugar + distillery model.
🍬 Sugar Division
- Operates Upper Doab Sugar Mills at Shamli
- Cane crushing capacity: 7,500 TCD (planned expansion to 10,000 TCD earlier)
- Crushing season lasts 180–210 days
In FY23, the mill crushed 99.83 lakh quintals of cane, producing 10.13 lakh quintals of sugar at a 10.15% recovery. Sugar realization stood at ₹3,428 per quintal — decent, but not margin-saving.
🍺 Distillery Division
- Located at Shamli
- Installed capacity: 100 KLPD
- Produces Rectified Spirit, Denatured Spirit, Ethanol, ENA
In FY23, distillery produced 205.6 lakh bulk litres, with strong fermentation and distillation efficiencies. On paper, this is the “future-ready” segment. In reality, debt says hello.
Revenue Mix (FY22)
- Sugar: ~77%
- Distillery products: ~21%
- Others: ~2%
So yes, ethanol is present, but sugar still runs the show — and sugar margins are moody.
4. Financials Overview – Numbers Don’t Lie, They Just Cry
📊 Quarterly Comparison (Q3 FY26 – Figures in ₹ Crore)
| Metric | Latest Qtr (Dec 25) | YoY Qtr (Dec 24) | Prev Qtr (Sep 25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 78 | 57 | 95 | +37.6% | -17.9% |
| EBITDA | -15 | -16 | -6 | — | — |
| PAT | -17 | -15 | -12 | -7.3% | -41% |
| EPS (₹) | -32.36 | -27.68 | -23.31 | — | — |
