Dalmia Bharat Sugar and Industries Ltd

Dalmia Bharat Sugar and Industries Ltd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.49, indicating moderate leverage. However, the company's liquidity position is assessed as medium, with a current ratio of 1.55, suggesting it can cover its short-term obligations but with limited surplus. The company's operating cash flow is negative at -2.39 billion INR, and capital expenditures are substantial at -3.66 billion INR, indicating ongoing investment in infrastructure or expansion.

Profitability metrics show a return on equity (ROE) of 3.11% and a return on assets (ROA) of 1.77%, both below the typical thresholds for high-performing firms in the food processing industry. The company's net income of 913.1 million INR is supported by a gross profit of 2.79 billion INR, but the operating margin of 11.37% (calculated as operating income of 853.1 million INR divided by revenue of 7.5 billion INR) suggests that operational efficiency is a key area for improvement.

The company's revenue is concentrated in a single primary segment, sugar production and sales, with no disclosed geographic diversification. This concentration increases exposure to regional demand fluctuations and supply chain disruptions. The company's operations are primarily based in India, and its revenue is not disclosed to be diversified across international markets.

Looking ahead, the company's growth trajectory is uncertain, with no specific revenue growth projections provided in the available data. The company's capital expenditures suggest a focus on maintaining or expanding production capacity, but the negative operating cash flow indicates that this investment is not yet generating positive cash returns. Analysts have provided a mean price target of 435.00 INR, with a single "buy" recommendation and no "strong buy" or "hold" ratings, suggesting limited near-term optimism.

The company's risk profile includes medium liquidity risk and low dilution risk. The negative net cash position, after subtracting total debt, raises concerns about short-term financial flexibility. However, the low dilution risk suggests that the company is not currently issuing shares at a rate that would significantly dilute existing shareholders. No specific dilution sources are disclosed in the available data.

Recent events and disclosures do not include any material changes in operations, management, or strategic direction. The company's financial performance and risk profile remain consistent with the latest available data, with no significant new developments reported in the filings or transcripts.

Revenue grew 29.2% year-over-year to INR 37.5 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 41.9% to INR 3.9 billion in FY2026, significantly outpacing revenue growth rates.

Free cash flow rebounded sharply by 6,266.5% to INR 3.3 billion, reversing the previous year's negative position.

Analysts project 27.2% upside to a consensus price target of INR 435, suggesting undervaluation relative to current prices.

Long-term debt increased significantly to INR 14.3 billion in FY2025, raising concerns about leverage and credit risk.

The company faces high credit risk flags, potentially impacting borrowing costs and financial stability in the near term.

Cash conversion metrics rank in the bottom quartile of the cohort, highlighting weaknesses in working capital management.

Capex to revenue ratio sits in the bottom quartile, suggesting potentially excessive capital expenditure relative to sales.

Revenue INR 6.98B, −17,1% YoY; Operating income +22,6% YoY.

• ▍Revenue INR 6.98B, −17,1% YoY
• ▍Operating income +22,6% YoY
• ▍Net income +16,9% YoY
• ▍Net margin 10.0%

Revenue INR 9.89B, +7,4% YoY; Operating income −37,9% YoY.

• ▍Revenue INR 9.89B, +7,4% YoY
• ▍Operating income −37,9% YoY
• ▍Net income −56,3% YoY
• ▍Net margin 2.4%

Revenue INR 9.43B, −1,8% YoY; Operating income −37,3% YoY.

• ▍Revenue INR 9.43B, −1,8% YoY
• ▍Operating income −37,3% YoY
• ▍Net income −29,9% YoY
• ▍Net margin 4.1%

Revenue INR 8.41B; Operating income INR 623.6M.

• ▍Revenue INR 8.41B
• ▍Operating income INR 623.6M
• ▍Net margin 7.1%

Revenue INR 9.20B; Operating income INR 350.3M.

• ▍Revenue INR 9.20B
• ▍Operating income INR 350.3M
• ▍Net margin 5.8%

Revenue INR 9.60B; Operating income INR 853.9M.

• ▍Revenue INR 9.60B
• ▍Operating income INR 853.9M
• ▍Net margin 5.7%

Revenue INR 7.50B; Operating income INR 853.1M.

• ▍Revenue INR 7.50B
• ▍Operating income INR 853.1M
• ▍Net margin 12.2%

Revenue INR 37.46B, +29,2% YoY; Operating income +18,7% YoY.

• ▍Revenue INR 37.46B, +29,2% YoY
• ▍Operating income +18,7% YoY
• ▍Net income +41,9% YoY
• ▍Free cash flow +6 266,5% YoY
• ▍Net margin 10.3%

Revenue INR 28.99B, −10,8% YoY; Operating income −10,9% YoY.

• ▍Revenue INR 28.99B, −10,8% YoY
• ▍Operating income −10,9% YoY
• ▍Net income +9,0% YoY
• ▍Free cash flow −104,5% YoY
• ▍Net margin 9.4%

Revenue INR 32.52B, +8,2% YoY; Operating income −13,5% YoY.

• ▍Revenue INR 32.52B, +8,2% YoY
• ▍Operating income −13,5% YoY
• ▍Net income −15,3% YoY
• ▍Free cash flow +479,2% YoY
• ▍Net margin 7.7%

Revenue INR 30.07B, +12,0% YoY; Operating income −3,8% YoY.

• ▍Revenue INR 30.07B, +12,0% YoY
• ▍Operating income −3,8% YoY
• ▍Net income +9,3% YoY
• ▍Free cash flow −93,0% YoY
• ▍Net margin 9.8%

Revenue INR 26.86B; Operating income INR 3.87B.

• ▍Revenue INR 26.86B
• ▍Operating income INR 3.87B
• ▍Net margin 10.1%