Indian Sucrose Ltd Management Discussions

GLOBAL SUGAR MARKET

The global sugar market is transitioning into a supply deficit for the 2026/27 marketing year, with the United States Department of Agriculture (USDA) projecting worldwide production to drop to 184.85 million metric tons (MMT). This contraction is primarily driven by an intensive El Ni?o weather cycle disrupting crop yields in major production hubs, combined with a 3% year-over-year operational decline in Brazil—the worlds largest producer and exporter. While Brazil and India continue to command over 40% of the aggregate output, regional supply volatilities have caused New York raw sugar futures to rally to multi-month highs. On the demand side, consumption remains highly fragmented; expanding populations and rapid urbanization in the Asia-Pacific and African regions anchor industrial manufacturing demand, whereas health-conscious policy initiatives and the rising adoption of GLP-1 weight-loss drugs are structurally flattening consumption in North American and European markets. Consequently, commercial focus has shifted toward dual-allocation models, heavily linking sugar price dynamics to crude oil price parity due to the alternative diversion of sugarcane for bioethanol processing.

GLOBAL ECONOMY

As per global agricultural analytics and the USDAs market assessments, the risks to the global sugar economy are balanced with a structural market rebalancing as a major production surplus peaks at a record 186.1 to 186.7 million metric tons (MMT) in the 2025-26 season. This represents a significant upward revision from previous updates, driven by excellent weather recovery, higher sugarcane yields, and government policy expansions across several prominent producers like China, Thailand, and the European Union.

The outlook for the 2025-26 season is, however, challenged by cooling macros, including persistently flat global human consumption growth estimated near 178.5 to 180 MMT. This stagnation is weighed down by changing consumer purchasing behaviors, a rising global awareness of dietary health, and the growing adoption of GLP-1 weight-loss medications. Global sugar trade and export availability remain highly vulnerable to volatile crude oil prices—which continuously shift Brazilian mill capacities away from sugar and toward ethanol parity—as well as stringent domestic market export caps.

In the regional landscapes, the market is entering an oversupply phase, building a massive projected production surplus of 2.9 to 8.3 million metric tons that has pushed immediate international raw sugar prices toward multi-year lows. India, a foundational pillar of the global sugar supply, is projected to remain exceptionally strong with a robust production upgrade reaching 32 to 32.8 million metric tons for the 2025-26 season. This domestic supply resilience has positioning India to log its first major sugar surplus in two years, keeping it insulated from subsequent export deficits emerging in other parts of the world.

INDIAN SUGAR MARKET

The Indian sugar industry is experiencing a significant rebound in production during the 2025-26 season, with total output strongly recovering to an estimated 34.9 to 36 million tonnes. This robust growth is largely attributed to highly favorable monsoon weather conditions and an expansive increase in sugarcane acreage across major agricultural belts. While the previous 2024-25 season was plagued by lower-than-expected yields, the ongoing 2025-26 outlook remains highly optimistic due to better crop maturity, improved field-level recoveries, and an early initiation of crushing operations. According to data tracking from the National Federation of Cooperative Sugar Factories Ltd (NFCSF) and market trackers, national sugar production surged rapidly, closing with an approximate 15% to 22% year-on-year expansion.

Regionally, major sugar-producing states have reported a sharp turnaround in output quantities. Uttar Pradesh, Indias largest sugar-producing state, successfully reversed its previous downturn to stabilize its production capacity. More dramatically, Maharashtra and Karnataka—the second and third largest producers respectively—have driven the bulk of the national recovery. Production in Maharashtra bounded back past 9 million tonnes, while Karnatakas output similarly recovered, providing a firm cushion to national domestic supplies.

This impressive turnaround in production is primarily attributed to a combination of enhanced sugarcane availability, excellent distribution of seasonal rainfall, and superior agronomic recovery rates. Furthermore, a strategic downward revision of sugarcane diversion for ethanol production—recalculated to around 3.4 million metric tonnes—allowed an increased volume of sucrose to be retained directly for commercial sugar manufacturing, safely insulating the domestic retail market from any supply shortages or unexpected crop disease

STATE-WISE SUGAR PRODUCTION AND CRUSHING

A. MAHARASHTRA

Maharashtra is driving the national output turnaround for the 2025-26 season. Gross sugar production is projected to surge to 13.00 million tonnes, representing a massive recovery from the 9.35 million tonnes produced during the drought-impacted 2024-25 season.

- Crushing Volume & Ratios: Total cane crushed by mills across the state is bouncing back above 1,100 lakh tonnes, moving past the low 781.82 lakh tonnes crushed during the previous crop window.

- Recovery Turnaround: Average field extraction recovery rates have recovered past 10.20%, correcting the poor 9.32% recovery level seen during the prior years moisture stress crisis.

B. UTTAR PRADESH

Uttar Pradesh continues to anchor domestic market stability, with 2025-26 season production hitting a stable 10.32 million tonnes (up from 10.10 million tonnes in 2024-25).

- Industrial Efficiency: Industrial processing recovery efficiencies have stabilized above 10.40%, reversing the alarming dip down to 9.70% seen in the previous crushing cycle.

- Bioenergy Leadership: The state remains the primary pillar of the National Ethanol Blending Programme (EBP). Following the successful achievement of the 20% national ethanol blending target, mills across Uttar Pradesh are optimizing feedstock allocations by delivering a major share of the countrys multi-billion-litre green fuel supply mandate using B-Heavy molasses and direct cane juice.

C. TAMIL NADU

The sugarcane processing framework in Tamil Nadu is undergoing capital restructuring throughout 2025 and 2026.

- FRP Implementations: The Central Government raised the Fair and Remunerative Price (FRP) to Rs355 per quintal for the 2025-26 season, helping stabilize agricultural crop conversion economics.

- Industrial Revamp Programs: Key mill operations are rolling out localized facility modernization blueprints. This includes deploying a Rs160-crore mechanical revamp to swap out legacy 1955 milling machinery with modern, automated 2,500 tonnes per day (TPD) crushing assemblies. This modernization aims to reclaim the regions top-tier 11.00% sugar recovery potential and eliminate long-distance transport costs for local farmers

D. PUNJAB

Punjabs sugar cultivation envelope continues its steady upward path.

- Acreage Gains: Total land dedicated to sugarcane farming expanded by another 5%, reaching 1.05 lakh hectares for the current season.

- Milling Outlook: Operating through its network of cooperative and private mills, the states crushing infrastructure is on track to handle 740 lakh quintals of sugarcane, yielding an estimated domestic production of 65 lakh quintals of refined white sugar

SUGAR PRODUCTION ESTIMATE

The Indian Sugar and Bio-energy Manufacturers Association (ISMA) has released the first estimates of sugar production for the 2025–26 season.

In ISMAs meeting on 31st July 2025, attended by representatives from sugar-producing states across the country, Indias gross sugar production (before diversion) is estimated to increase by 18%, reaching around 349 lakh tonnes, compared to 295 lakh tonnes produced in 2024–25.

Based on the satellite images procured in the latter part of June 2025, the total acreage under sugarcane in the country is estimated to be around 57.24 lakh hectares in 2025-26 SS against 57.11 lakh hectares in 2024-25 SS i.e. marginally higher than last year. The images of the cane area, field reports regarding expected yield, sugar recovery,drawal percentage, impact of previous and current years rainfall, water availability in reservoirs, expected rainfall during SW monsoon 2025 and other related aspects were discussed in detail, ISMA said.

According to the sugar body, In Maharashtra, the cane area has increased to 14.93 lakh hectare for 2025-26 SS, against last year area of 13.82 lakh hectares i.e. up by approximately 8%. The overall crop quality this year is significantly better than last year. A higher proportion of plant cane and adequate water availability have contributed to this improvement. The abundant rainfall received in May was particularly beneficial, enhancing soil moisture and supporting early crop growth. Additionally, southwest monsoon rainfall between June 1 and July 31 has remained within the normal range, further supporting crop development. The forecast for the remainder of the 2025 southwest monsoon is also positive, reinforcing expectations of a healthy and promising crop. Additionally, reservoir levels in cane growing regions have better availability of water as compared to last year i.e. higher 30 – 40%.

These factors are likely to enhance cane productivity and improve sugar recovery from the standing crop, thereby positively impacting overall sugar output. The combination of better yields and increased cane area is expected to boost gross sugar production (before diversion) to 132.68 lakh tonnes against 93.34 lakh tonnes last year i.e. up by approximately 42%.

In Karnataka sugarcane area has increased by about 6% to 6.76 lakh hectares against 6.4 lakh hectares last year. Similar to Maharashtra, favorable rainfall and adequate water availability in reservoirs have improved standing crop quality significantly and therefore sugarcane yield and sugar recovery are expected to increase. Accordingly, gross sugar production (before diversion) is expected to increase by 23% to 66.19 lakh tonnes against 53.68 lakh tonnes produced in 2024-25 SS.

In Uttar Pradesh, cane area has declined by approximately 3% to 22.57 lakh hectares against 23.30 lakh hectares last season. However, the overall condition of the standing crop is much better than last year. Moreover, due to cane development initiatives at the mill level, including timely corrective measures and varietal replacements, the incidence of red rot and other disease infestations is expected to remain minimal in the 2025-26 sugar season and therefore cane yield and recovery are likely to recover. Accordingly, it is estimated that gross sugar production (before diversion) in the state would be 102.53 lakh tonnes against last year production of 100.74 lakh tonnes.

SUGAR CONSUMPTION

In a release, ISMA stated that, on the consumption side, it is noted that the domestic sales quota for the first four months of this year is 7 lakh tonnes lower compared to the same period last year. Additionally, during the previous year, a higher sales quota was released due to increased demand during the general elections (April – June, 2024). Consequently, ISMA estimates that, with an average domestic consumption of approximately 23.5 lakh tonnes over the remaining eight months, the total domestic consumption for the sugar season 2024-25 is projected to be lower, at around 280 lakh tonnes.

As crushing progresses at normal pace, sugar production till 31st December, 2024 in the current 2024-25 Sugar Season reached 95.40 lakh tonnes, against 113.01 lakh tonnes produced last year on the corresponding date. Number of operating factories were 493 this year, against 512 factories which operated last year on the corresponding date, according to ISMA.

SUGARCANE FAIR & REMUNERATIVE PRICE

The government set the Fair and Remunerative Price (FRP) of sugarcane at Rs 365 per quintal for the 2026–27 sugar season, reflecting a Rs 10 increase from the previous year. According to reports on ChiniMandi, this policy creates financial friction between rising farmer payouts and stagnant minimum selling prices (MSP) for sugar. Factors considered include the cost of production, returns from other crops, market prices of agricultural commodities and sugar, sugar recovery, by-product sales, and reasonable margins for farmer. The FRP protects farmers by guaranteeing a minimum price, encouraging improved cane quality, and helping ensure timely payments. The sugar sector is a vital industry, providing livelihoods to many farmers and workers. Stakeholders are pressing for a raise in the sugar MSP to at least Rs 4,100 per quintal, higher ethanol procurement prices, and a revenue-sharing or dual-pricing model to balance grower and mill viability

ISMA PRELIMINARY ESTIMATES OF SUGAR PRODUCTION FOR 2026 SEASON

According to the Indian Sugar and Bio-energy Manufacturers Association (ISMA), Indias sugar production is estimated to rise by 18% to 34.9 million tonnes in the 2025-26 season, according to ISMA. This increase is attributed to higher sugarcane acreage in states like Maharashtra and Karnataka. ISMA also anticipates that a significant portion of this increased production, around 5 million tonnes, will be diverted for ethanol production, with the potential for 2 million tonnes to be exported.

According to the sugar body, In Maharashtra, the cane area has increased to 14.93 lakh hectare for 2025-26, against last year area of 13.82 lakh hectares i.e. up by approximately 8%. The overall crop quality this year is significantly better than last year. A higher proportion of plant cane and adequate water availability have contributed to this improvement. The abundant rainfall received in May was particularly beneficial, enhancing soil moisture and supporting early crop growth. Additionally, southwest monsoon rainfall between June 1 and July 31 has remained within the normal range, further supporting crop development. The forecast for the remainder of the 2025 southwest monsoon is also positive, reinforcing expectations of a healthy and promising crop. Additionally, reservoir levels in cane growing regions have better availability of water as compared to last year i.e. higher 30 – 40%.

These factors are likely to enhance cane productivity and improve sugar recovery from the standing crop, thereby positively impacting overall sugar output. The combination of better yields and increased cane area is expected to boost gross sugar production (before diversion) to 132.68 lakh tonnes against 93.34 lakh tonnes last year i.e. up by approximately 42%.

In Karnataka sugarcane area has increased by about 6% to 6.76 lakh hectares against 6.4 lakh hectares last year. Similar to Maharashtra, favorable rainfall and adequate water availability in reservoirs have improved standing crop quality significantly and therefore sugarcane yield and sugar recovery are expected to increase. Accordingly, gross sugar production (before diversion) is expected to increase by 23% to 66.19 lakh tonnes against 53.68 lakh tonnes produced in 2024-25.

In Uttar Pradesh, cane area has declined by approximately 3% to 22.57 lakh hectares against 23.30 lakh hectares last season. However, the overall condition of the standing crop is much better than last year. Moreover, due to cane development initiatives at the mill level, including timely corrective measures and varietal replacements, the incidence of red rot and other disease infestations is expected to remain minimal in the 2025-26 sugar season and therefore cane yield and recovery are likely to recover. Accordingly, it is estimated that gross sugar production (before diversion) in the state would be 102.53 lakh tonnes against last year production of 100.74 lakh tonnes.

ETHANOL OVERVIEW

The India ethanol market size is estimated to be valued at approximately USD 3.43 Billion to USD 3.69 Billion in 2026, continuing its robust upward trajectory toward a projected market size of over USD 11 Billion by 2034. This growth is backed by a steady compound annual growth rate (CAGR) of roughly 13.9% to 14.7% over the current forecast period.

India ethanol market is segmented into by source, end-user, grade, blending, application method, and region. By source, the market is segmented into molasses, sugar cane juice, grains, and others. The molasses segment accounted for the largest share of the market in 2025. Molasses is readily available in India as a by-product of sugar production. The government focus on using sugarcane juice directly to produce ethanol is expected to drive the sugar cane juice segment at the highest CAGR during 2025-2032.

India Ethanol Market- Drivers.

- The E20 Landmark Milestone: Effective April 1, 2026, the Ministry of Petroleum and Natural Gas officially mandated the sale of E20 fuel (20% ethanol-blended petrol) across all states and Union Territories. This transitioned E20 from a phased voluntary target to a nationwide regulatory mandate.

- Capacity and Oversupply Dynamics: Indias national ethanol production capacity has surged to approximately 20 billion litres. This leaves the industry dealing with short-term overcapacity since the current annual requirement to satisfy the E20 mandate stands at roughly 11 billion litres.

- Price Benchmarks: For the 2025·2026 Ethanol Supply Year (ESY), the weighted average ex-mill price of ethanol is regulated at Rs66.61 per litre. The total procurement cost for Oil Marketing Companies (OMCs) averages over Rs71 per litre when factoring in GST and transportation

- Growing Automotive Sector - India is one of the fastest growing automotive markets globally. Vehicle sales have been rising steadily due to rising incomes, increasing urbanization, and infrastructure development and expanding middle class. This expanding automotive sector boosts demand for fuels. Ethanol blending helps to address this fuel demand in a more sustainable manner while reducing oil imports. The government aims to achieve its ethanol blending targets by leveraging this vast growth potential of Indias automotive sector.

India Ethanol Market- Opportunities

- Cellulosic Ethanol Production - Cellulosic ethanol made from agricultural residues, grasses or wood waste has immense potential in India. The country generates millions of tons of agri-waste annually which could be used to produce cellulosic ethanol. This 2G ethanol does not affect food security like 1G ethanol from grains/sugarcane. Government policy also encourages cellulosic projects. Companies are investing in 2G ethanol production technologies suitable for Indian biomass. Tapping the abundance of agri-residues can drive the market growth.

- Export Potential - Indias expanding ethanol production and favorable trade policies have opened up exports opportunities for domestic players. Ethanol exports help to deal with excess supplies as well as generate foreign exchange earnings. The government has allowed exports of surplus ethanol from molasses and non-food feedstock. It has also removed restrictions on export quantity and destinations. Several companies have commenced ethanol exports targeting fuel, potable liquor and industrial demand in overseas markets. Export demand would further propel production of ethanol.

- Emergence of Domestic Market - Historically ethanol production in India has largely depended on ethanol supply obligations for Oil Marketing Companies (OMCs) to meet EBP blending targets. However, new private sector opportunities are now emerging beyond OMC demand with growing usage in non-fuel sectors and specialty chemicals. Beyond the usual OMC demand, rising private consumption would give ethanol producers additional long-term demand certainty.

- Investments in Production Capacity - To meet rising domestic ethanol demand as well as tap export potential, public and private players are investing significantly to enhance production capacities. From molasses-based distilleries to grain/2G ethanol plants, capacity addition plans have been announced. The market has over 150 ethanol producers and additional players are also entering the market. Availability of feedstock, technologies and favorable policies continue to attract large scale investments.

India Ethanol Market- Restraints

- High Feedstock Costs - Feedstock can account for up to 70% of ethanol production costs. Fluctuating availability and elevated prices of feedstocks like corn, broken rice, sugarcane, and others can affect project viability. Excess sugarcane diversion towards ethanol also impacts sugar production. Managing feedstock costs through long-term contracts, using molasses efficiently during surplus sugar seasons is vital.

- Lack of Adequate Storage & Handling Infrastructure - Unlike fossil fuels, ethanol requires Given its propensity for absorbing water, it requires specialized infrastructure for storage and transportation. Lack of adequate tankage facilities at depots, rail tank cars to transport ethanol from production units to OMC depots hampers smooth supply logistics. Developing suitable storage and handling solutions is critical.

- Constraints in Supply Chain Mechanism - Complex sugarcane pricing policies, delays in announcing ethanol procurement tenders and prices affect industry planning. Release of government subsidies/incentives also often gets deferred. Resolving regulatory and procedural hurdles can help to streamline the supply ecosystem.

https://www.coherentmi.com/industry-reports/india-ethanol-market

CO-GEN OVERVIEW

The Indian Government has been actively promoting co-generation as a means to increase energy efficiency and reduce emissions. Policies such as the National Mission on Sustainable Agriculture aim to boost the adoption of biomass-based co-generation technologies. The sector has seen advancements in co-generation technologies, including improvements in efficiency and reliability. Integration of advanced control systems and automation has enhanced the performance of co-generation plants, making them more competitive in the market. Since bagasse is a by-product of sugarcane, the quantity of bagasse production in the country is in proportion to the quantity of sugarcane produced. The power produced through co-generation substitutes the conventional thermal alternative and reduces greenhouse gas emissions. In India, interest in high-efficiency bagasse-based co-generation started in the 1980s when electricity supply started falling short of demand. High-efficiency bagasse co-generation was perceived as an attractive technology both in terms of its potential to produce carbon-neutral electricity as well as its economic benefits to the sugar sector. Recognizing the significant potential and role of biomass energy within the Indian context, the Ministry of New and Renewable Energy (MNRE) has launched numerous initiatives to promote efficient technologies across various sectors, aiming to maximize benefits derived from biomass utilization. India is also creating a viable market for bio products like biomass pellets and briquettes. The country hosts approximately 230 biomass pellet manufacturers and around 1,030 briquette manufacturers across various states. These products are supplied to power plants and industries. Additionally, the government has established a national mission on the use of biomass in Thermal Power Plants (TPPs) under the Ministry of Power. This initiative aims to address air pollution caused by farm stubble burning and reduce the carbon footprint of thermal power generation.

INDUSTRY OVERVIEW

The success of the sugar business depends on the sugarcane availability and sugarcane quality. During the year, the sugarcane availability in Punjab units was better compared to the previous year. The thrust on cane development activities initiated by your Company, including encouraging the farmers in various ways in all command areas, helped to increase the sugarcane availability. The average recovery recorded was at 9.93% as against 10.38% in the previous year. The lower recovery was due to the climate change, which led to late rainfall. In addition to the above, high temperature was witnessed both during day and night, which was prevalent across the state.

Your companys mission revolves around more than just profit margins; it is deeply rooted in the well-being of the farmers who form the backbone of our operations. For decades, we have worked tirelessly to uplift and empower them, recognizing their invaluable contributions to our success. Our commitment to their prosperity is unwavering, and every decision we make as a company is guided by this principle. Financial support is another crucial aspect of our farmer-centric approach. We understand that access to credit and capital is essential for agricultural development, especially in rural areas where traditional banking services may be limited. We offer all kind of assistance to the farmers in order to help them with the cultivation of sugarcane. The Company continued to pursue its strategies to optimize efficiencies, reduce costs, eliminate wastage, and achieve stretch targets for growth. Even as our Company continues to focus on capacity and efficiency enhancement, it aims to ramp up the diversification of the sugar portfolio.

The Company is engaged in two segments, namely sugar and cogeneration of power(Cogen). The segment wise performance for the year is as under:

Particulars	Year Ended 31.03.2026	Year Ended 31.03.2025
Sugar
Installed Capacity (TCD)	9000	9000
Sugarcane Crushed (Quintals)	8494023	10428636
Recovery %	9.51	9.95
Sugar produced (Quintals)	807510	1037770
Power
Installed Capacity
Co-gen Power (MW)	59.5 M.W	59.5 M.W
Wind Mills (MW)	N.A.	N.A.
Units Generated (MWH)	100029	109062

Financial Performance

(Rs in Lakhs)

Particulars	Year Ended 31.03.2026	Year Ended 31.03.2025
Revenue from operations
Sugar	42535.82	44277.92
Molasses	3957.67	5700.70
Bagasses & Others	12.25	16.30
Power	2461.57	3199.53
Total Expenses (Excluding interest)	48988.09	48298.87
Profit Before Interest and Tax (PBIT)	6626.59	7754.17
Profit After Tax (PAT)	3109.66	3837.66
Earnings per Share
Basic	17.90	22.09
Diluted	17.90	22.09

Details of Adequacy of Internal Financial Controls

The Companys internal control system is aimed at proper utilization and safeguarding of the Companys resources and promoting operational efficiency. The internal audit process reviews the in-system checks, covering significant operational areas regularly.

The Companys Audit Committee is responsible for reviewing the Report submitted by the Internal Auditors. Suggestions for improvements are considered and the Audit Committee follows up on the implementation of corrective actions. The Audit Committee also invites the Statutory and Internal Auditors for regular meetings to ascertain their views on the adequacy of internal control systems and keeps the Board of Directors informed of its observations from time to time.

Human Resources and Industrial Relations

Your Companys approach to talent development is founded on the belief that learning initiatives must remain synergistic and aligned to business outcomes, emphasize experiential learning, provide an enabling and supportive environment and promote learning ability. Deep functional expertise is fostered through immersion in solving complex customer problems by the application of domain expertise early in managerial careers. Key talent is provided critical experiences in high impact roles and mentored by senior managers. Managers are assessed on your Companys behavioral competency framework and provided with learning and development support to address any areas identified for improvement. As part of your Companys managerial development and capability building strategy, various programmes have been designed and customized to your Companys requirements under these platforms. Your Company has further strengthened its performance management system and its culture of accountability through renewed emphasis on Management by objectives which includes clearly defined goals and outcomes based assessment.

SWOT ANALYSIS

STRENGTHS

India firmly maintains its position as the largest consumer and second-largest producer of sugar globally, giving the domestic industry vast scale and continuous home-market demand.

The industry remains an economic backbone, directly sustaining over 5 crore sugarcane farmers and providing significant rural employment through local cooperative and private mills.

Industrial and household demand for sugar in India has hit consistent historic highs, ensuring stable off-take channels inside the country despite global export restrictions.

A highly institutionalised mix of private giants, massive state cooperatives, and organized independent mills enables the sector to pool political capital and deploy infrastructure flexibility.

WEAKNESSES

The government-mandated Fair and Remunerative Price (FRP) has climbed steeply to Rs355/quintal for the 2025–26 season, and a further approved hike to Rs365/quintal for the 2026–27 season, pushing domestic sugarcane cultivation costs far above global market averages.

High fixed regulatory cane pricing combined with tight domestic sugar sale quotas strains mill cash flows, causing seasonal spikes in farmer cane price arrears.

To ease current supply anxieties, mills frequently push for early seasonal crushing, which compromises sugarcane maturity and hurts overall sucrose extraction metrics.

Margin protection is no longer driven by sugar sales alone; the sectors bottom lines are excessively vulnerable to government-dictated distillery pricing formulas.

OPPORTUNITIES

High-margin opportunities lie in upgrading traditional distilleries into dual-feedstock plants that switch smoothly between sugar byproducts and grains (like maize and broken rice) based on policy restrictions.

The nationwide mandatory rollout of E20 fuel guarantees state oil marketing companies will absorb every litre of ethanol produced via C-heavy molasses, safeguarding stable corporate income streams.

Mills are increasingly turning bagasse into higher-efficiency biomass pellets to sell electricity back to state grids or capture carbon-credit premium revenues.

Deploying micro-irrigation systems, drone-based crop management, and high-sucrose transgenic cane varieties offers a large window to boost Indias flat per-hectare cane yields.

THREATS

Fearing record-high domestic sugar prices and domestic deficits, the government has imposed severe intermittent restrictions on diverting sugarcane juice and B-heavy molasses toward biofuel production.

The government has extended bans on sugar exports to protect domestic availability, cutting off Indian mills from capitalizing on lucrative international global trade prices.

Extreme weather anomalies, flat cane planting, and unpredictable monsoons have led to early mill closures and a structural multi-year domestic sugar production deficit.

On top of high federal FRP rates, major producing states like Uttar Pradesh continue to levy steep State Advised Prices (SAP), widening the cost-to-margin mismatch for regional sugar mills

KEY FINANCIAL RATIOS:

i) Debt Equity Ratio: It decreased from 0.82 times to 0.66 times, primarily due to reduction in overall debt exposure and increase in Shareholders equity, resulting in lower financial leverage.

ii) Debt Service Coverage Ratio: It decreased from 2.94 times to 2.63 times, due to higher term - loan repayment and interest obligations during the year.

iii) Trade Receivable Turnover Ratio: It decreased from 8.77 times to 3.54 times, due to slower realisation of trade receivables.

iv) Inventory Turnover: - It increased marginally from 3.23 times to 3.49 times, indicating better utilization and turnover of inventory during the year.

v) Current ratio: - It increased from 1.28 times to 1.43 times, mainly due to changes in current assets and current liabilities during the year. The ratio continues to reflect the Companys position in meeting its short-term obligations.

vi) Net Profit Ratio: - It decreased from 7.71% to 6.51%, due to lower Companys net profitability and margin during the year.

vii) Interest Coverage Ratio: - It increased from 3.1% (previous year) to 3.65% during the year due to increase in Earnings Before Interest and Taxes(EBIT).

viii) Operating Profit Margin: - It increased from 11.49% (previous year) to 11.85% during the year due to Increase in operating profit.

ix) Return on Equity Ratio: - It decreased from 2.49 times to 1.79 times, mainly due to lower profitability in relation to shareholders equity during the year.

DETAILS OF CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE PREVIOUS FINANCIAL YEAR: - Return on net worth is 10.69% during the year under review as Compared to 14.89% in the previous year. The change is due to increase in Net Worth from Other Comprehensive Income Impact as compared to previous year.

Cautionary Statement

Statements made in this Report describing industry outlook as well as Companys plans, projections and expectations may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied.

For and on behalf of the Board

Indian Sucrose Limited

(Kunal Yadav)

Managing Director

(DIN: 01338110)

Place: Los Angeles (U.S.A)

Date: 03.09.2026

(Jaitender Kumar)

Director

(DIN: 08164429)

Place: New Delhi

Date: 03.09.2026