Synopsis: KM Sugar Mills drew investor attention after its stock surged 11% following the release of its strong Q1FY26 results, showcasing robust year-on-year and sequential growth across key financial metrics.
KM Sugar Mills posted impressive Q1FY26 results with significant YoY growth in sales, EBITDA, and net profit. The ethanol-focused company’s performance boosted investor sentiment, driving an 11% rally in its stock price amid rising interest in ethanol-related plays.
With a market capitalization of Rs. 265 the shares of KM Sugar Mills Ltd are currently trading at Rs. 28 per share, rallied more than 11% in today’s market session with previous closing of Rs. 26.14 per share.
Q1FY26 Results
KM Sugar Mills reported a strong performance in the Q1FY26, both year-on-year (YoY) and quarter-on-quarter (QoQ). YoY, sales rose by 23% to Rs. 208 crore compared to Rs. 170 crore in Q1FY25. EBITDA grew 37% to Rs. 26 crore from Rs. 19.1 crore, while net profit surged 87% to Rs. 13.1 crore versus Rs. 7.01 crore a year ago. Earnings per share (EPS) also jumped 88% to Rs. 1.43 from Rs. 0.76.
QoQ, the company saw continued growth, with revenue up from Rs. 153 crore in Q4FY25 to Rs. 208 crore in Q1FY26. EBITDA increased from Rs. 23.6 crore to Rs. 26 crore, and net profit improved from Rs. 11.1 crore to Rs. 13.1 crore. EPS also rose from Rs. 1.20 to Rs. 1.43. This performance highlights KM Sugar Mills’ consistent growth momentum and improving profitability.
About the company
KM Sugar Mills Ltd is an integrated sugar company engaged in the production and sale of sugar, ethanol, and related by-products. The company manufactures various grades of sugar for both industrial and consumer use. It also operates distillery units for ethanol production, supporting the government’s ethanol blending program.
Additionally, KM Sugar Mills runs co-generation power plants that utilize bagasse, a sugarcane by-product, to generate electricity, part of which is supplied to the power grid. Through its diversified operations, the company plays a significant role in India’s sugar and ethanol value chain.
Return on Capital Employed (ROCE) of 11.0% and a Return on Equity (ROE) of 11.1%, indicating moderate efficiency in capital utilization and shareholder returns. The stock is currently trading at 0.71 times its book value, suggesting it may be undervalued relative to its net assets.
Written by Manideep Appana
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