Piccadily Sugar & Allied Inds Ltd Management Discussions

Sugar season 2025-2026

Indias sugar production for the 2025-2026 season is projected to be around 264.00 lac tonnes, a decrease of 19% compared to the previous years 310.00 MT. This decline is primarily attributed to factors like increased sugarcane diversion for ethanol production and reduced cane availability.

Sugar season 2025-26 started with the opening stock of 78 lac tons and after adding a current years production total stock is estimated is around 342 lac tones against anticipated consumption of 280.00 lac tons and exports of 8.00 lac tones. As a result the closing stock of sugar as on September 30, 2025 is estimated to be around 54 Lac tones which is sufficient for 2 months consumption. [Source: Indian Sugar & Bioenergy Manufacturers Association (ISMA)].

Ethanol

As of July 2026, India has officially achieved its 20% ethanol blending target (E20) nationwide, hitting this milestone a full five years ahead of its original 2030 schedule. Since April 2026, E20 fuel has become the mandatory baseline for all petrol sold across the country.

Production explosion: Total domestic ethanol production capacity has crossed 2,000 crore (20 billion) litres per annum, up from just 421 crore litres in 2014.

Macroeconomic relief: The Ethanol Blended Petrol (EBP) Programme has saved over 1.91 lakh crore in foreign exchange by substituting 310 lakh metric tonnes of crude imports

Rural capital infusion: Oil Marketing Companies (OMCs) have transferred 1.62 lakh crore in cumulative payments directly to farmers for feedstock procurement.

Opportunities & threats

1) Sugar consumed in moderation is a part of a healthy, balanced lifestyle. While this is a fact, there is a lot of misinformation floating all around making ‘sugar the villain and blaming it solely for some lifestyle diseases. This negative perception of sugar is unfortunately spreading like wildfire amongst the gullible and misinformed masses in our country. There is absolutely no scientific evidence or any research paper which concludes or establishes that consumption of sugar in itself leads to any particular disease, be it diabetes, obesity or dental caries.

2) Government guidelines regarding drinking is injurious to health was effect the revenue of the company.

Out Look / Projection:

Company is expecting to operate its new Ethanol Plant in the current financial year. This will enable the company significantly to boost the revenues of the company.

Risk and Concern

The steep escalation in the prices of sugarcane & raw materials will adversely affect profitability of sugar mill & other products of the company.

Competition from the other distilleries in the state of Haryana may affect the sale of Liquor.

Internal Control System & their Adequacy

The auditor have felt that the company has a reasonable system of authorization at proper levels with necessary controls on the purchase of sugar cane, issue of materials and components & other related system of Internal control is commensurate with the size of the company. They also felt that the company has a reasonable system of recording receipts of raw materials and components and the company is recording the sales and purchase through the software. The Software engineers regularly check software programme.

Material Development in HRD/IR

The company has appointed 26 people regular staff in various departments along with contractual & seasonal staff for the efficient working of all the units of the company.

Other Key Indicators

Sr. no.	Particulars	2025-26	2024-25	% Increase/ Decrease	Explanation For Change
1	Debtors Turnover Ratio	0.54	1.39	(61.17%)	Decrease in Trade Receivables Turnover Ratio because of decrease in revenue from operations.
2	Inventory Turnover Ratio	-0.02	1.23	(101.41%)	Decrease in Inventory Turnover Ratio due to decrease in manufacturing expenses.
3	Interest Coverage Ratio	0	0.00	0	-
4	Current Ratio	0.36	0.23	58.53%	Increase in current ratio is due to increase in current assets.
5	Debt Equity Ratio	2	2.05	-2.25%	Increase in debt equity ratio due to increase in Debt.
6	Operating Profit Ratio (%)	30.83	(0.21)	37%	-
7	Net Profit Ratio (%)	20.17	-21.25%	194.90%	Increase in Net profit Ratio is due to reduction in loss.
8	Change in Net Worth Ratio (%)	25.57	(0.08)	26%	-