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Quarterly ResultsCreated 10 August 20262 min read

Dhampur Sugar Posts Stellar Profit Growth Despite Sequential Dip

Dhampur Sugar Mills' Q1 profit jumped over fivefold year-on-year, though it fell sharply from the previous quarter's high.

By Vinayak Gandhi, CFA

Dhampur Sugar Mills reported a 569% surge in year-on-year profit for Q1 FY27, driven by a modest revenue increase and a significant margin expansion. However, profit declined sharply from the prior quarter.

Dhampur Sugar Mills has delivered a powerful year-on-year profit recovery in the first quarter of FY27, though the result marks a significant step down from the strong performance of the preceding quarter. Profit after tax surged 569% from a low base in the same quarter last year, reaching ₹6.09 crore, even as revenue grew a more modest 6.1% to ₹786.17 crore.

This profit explosion was supported by a sharp improvement in net profit margin, which expanded by 70 basis points year-on-year to 0.8%. The quarterly trajectory, however, tells a more nuanced story. While revenue rose 14.4% sequentially from Q4 FY26, profit fell 86.7% from the ₹45.7 crore earned in the March quarter, reflecting a substantial compression in profitability from the 6.6% margin achieved then.

A look at the last five quarters shows the volatile nature of earnings in the sugar business.

Revenue (₹ Cr)

Profit (₹ Cr)

Net Profit Margin (%)

MetricCurrentQ1 FY27PreviousQ4 FY26Same quarter LYQ1 FY26
Revenue (₹ Cr)
786.17YoY +6.1%
687.35
740.68
Profit (₹ Cr)
6.09YoY +569%
45.70
0.91
Net Profit Margin (%)
0.8YoY +700%
6.6
0.1

The trailing-twelve-month (TTM) profit stands at ₹70.51 crore on revenue of ₹2,853.06 crore, yielding a TTM net profit margin of 2.5%. This provides a more stable view of the company's recent earnings power.

On the stock front, shares have gained 5.8% over the past year, closing at ₹149.3 on the results date. The stock trades at a price-to-earnings (P/E) ratio of 14.0, which is at a 26% discount to the industry average P/E of 19.0. The coming quarters will be crucial to see if the company can sustain profitability closer to its TTM average and recapture the momentum seen in the last fiscal year.

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· DHAMPURSUG

(BSE)

ISIN: INE041A01016

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