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ZUARI Other 10 Feb 2026

Zuari Industries Ltd — Q3 FY26

Zuari Industries reported a modest 2% YoY revenue growth to ₹254.7 crore in Q3 FY26, driven by record sugar cane crushing of 67.28 lakh quintals (up 10.8% YoY) and improved sugar realizations (+6% YoY).

neutral medium
Revenue ₹344 Cr +2%
EBITDA ₹36 Cr -3.7%
PAT ₹40 Cr
EBITDA Margin 3% -80bps
Duration 47 min
Read Time 1 min read

✓ Verified against BSE filing

2-Min Summary

✦ AI-Generated from Full Transcript

Zuari Industries reported a modest 2% YoY revenue growth to ₹254.7 crore in Q3 FY26, driven by record sugar cane crushing of 67.28 lakh quintals (up 10.8% YoY) and improved sugar realizations (+6% YoY). EBITDA remained flat at ₹36.3 crore, with margin contracting ~80bps due to stagnant ethanol prices and higher cane costs. The sugar division achieved >100% capacity utilization, a rare feat in the industry. Ethanol sales grew 17.7% YoY, but profitability is constrained by government price stagnation. The Dubai project is 93.4% complete, with expected inflows of ₹800-900 crore in Q1 FY27, aiding deleveraging. The DM real estate model is gaining traction with a new Bangalore mandate, targeting ₹10,000 crore GDV. Key risk: ethanol price stagnation and industry overcapacity could pressure margins if government does not revise procurement prices.

Key Numbers

Sugar cane crushed (Q3) 67.28 lakh quintals
+10.8% YoY

Highest ever quarterly crush; capacity utilization exceeded 100%.

Ethanol sales growth 17.7%
+17.7% YoY

Driven by higher production and captive molasses availability.

Gross external debt (excl. WC) ₹1,848 crore
-0.8% QoQ

Marginal reduction; deleveraging expected from Dubai project inflows.

DM project GDV achieved ₹3,100 crore
N/A

Asset-light model; target of ₹10,000 crore GDV for FY26.

Management Guidance

G

Dubai project completion by March 2026

Project is 93.4% complete; formal handovers to start from April 2026, with expected inflows of ₹800-900 crore.

Management guidance expansion
G

Distillery to run 300+ days in FY27

Target to operate ethanol plant for at least 300 days, supplemented by external molasses purchases.

Management guidance growth
G

DM mandate target of ₹10,000 crore GDV

Internal target to achieve ₹10,000 crore gross development value in DM projects for FY26; currently at ₹3,100 crore.

Management guidance growth
G

Deleveraging via asset inflows in FY27

Expected inflows of ₹800-900 crore from Dubai and ₹273 crore from Zuari Agrochem to reduce external debt.

Management guidance other

Key Risks

R

Ethanol price stagnation

Government has not increased ethanol procurement prices despite rising cane costs, pressuring margins.

high · management_commentary
R

Ethanol industry overcapacity

Significant overcapacity in ethanol industry may lead to lower realizations and utilization.

medium · management_commentary
R

Regulatory challenges in Goa land monetization

New law restricting land use change hampers monetization of 260 acres in Goa, delaying deleveraging plans.

medium · analyst_question
R

Simon India's slow ramp-up

EPC subsidiary still in early stages; small loss reported and meaningful revenue contribution may take time.

low · data_observation

Notable Quotes

We achieved capacity utilization of more than 100%. It is quite unusual in sugar industry.
Atar Sahab · Managing Director
It is a high time that the government should reconsider and provide an increase in the ethanol procurement prices which is very important for everyone.
Atar Sahab · Managing Director
Our first focus is on completing our Dubai project and repatriating the funds we have already invested.
Atar Sahab · Managing Director

Frequently Asked Questions

What was Zuari Industries's revenue in Q3 FY26?

Zuari Industries reported revenue of ₹344 Cr in Q3 FY26, representing a +2% change compared to the same quarter last year.

What guidance did Zuari Industries management give for FY27?

Dubai project completion by March 2026: Project is 93.4% complete; formal handovers to start from April 2026, with expected inflows of ₹800-900 crore. Distillery to run 300+ days in FY27: Target to operate ethanol plant for at least 300 days, supplemented by external molasses purchases. DM mandate target of ₹10,000 crore GDV: Internal target to achieve ₹10,000 crore gross development value in DM projects for FY26; currently at ₹3,100 crore. Deleveraging via asset inflows in FY27: Expected inflows of ₹800-900 crore from Dubai and ₹273 crore from Zuari Agrochem to reduce external debt.

What are the key risks for Zuari Industries in FY27?

Key risks include Ethanol price stagnation — Government has not increased ethanol procurement prices despite rising cane costs, pressuring margins.; Ethanol industry overcapacity — Significant overcapacity in ethanol industry may lead to lower realizations and utilization.; Regulatory challenges in Goa land monetization — New law restricting land use change hampers monetization of 260 acres in Goa, delaying deleveraging plans.; Simon India's slow ramp-up — EPC subsidiary still in early stages; small loss reported and meaningful revenue contribution may take time..

Did Zuari Industries meet its previous quarter's guidance?

Scorecard data is being built as historical quarters are processed.

Where can I read the full Zuari Industries Q3 FY26 concall transcript?

The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.