Avadh Sugar & Energy reports Q2, H1 FY26 financial results, faces rising costs

Avadh Sugar & Energy Limited announced its unaudited financial results for Q2 and H1 FY26. For Q2 FY26, total income reached ₹670 cr, up from ₹634 cr in Q2 FY25. However, EBITDA declined to ₹20 cr from ₹36 cr in Q2 FY25, and PAT recorded a loss of ₹(7) cr, compared to a profit of ₹1 cr in Q2 FY25. For the first half of FY26, total income increased to ₹1,387 cr from ₹1,343 cr in H1 FY25, but EBITDA fell to ₹49 cr from ₹94 cr, and PAT registered a loss of ₹(15) cr against a profit of ₹10 cr in H1 FY25.

C.S. Nopany, co-chairperson and managing director, highlighted the challenge posed by a ₹30 per quintal increase in the state advisory price (SAP) of sugarcane. This is expected to strain financial viability without corresponding increases in sugar and ethanol prices. The company's Hargaon Unit has enhanced its sugarcane crushing capacity from 10,000 TCD to 13,000 TCD, with operations commencing for Sugar Season 2025-26.

Avadh Sugar & Energy, part of the K.K. Birla Group, operates four sugar mills and two distilleries, with a combined crushing capacity of 34,800 TCD and a total ethanol capacity of 325 KLPD (B Heavy). It also has a cogeneration facility capable of generating 74 MW of power.