Ugar Sugar swings to Rs 33.37 cr loss as margins turn negative
Revenue fell 27.14% QoQ, while expenses declined 20.58%, pushing operating margin down 8.50 percentage points.
Filed 27 Oct 2026, 16:19 IST · after market close · Ugar Sugar Works Ltd (UGARSUGAR)
Key takeaways
- Standalone net profit fell from Rs 1.49 cr in Q1FY27 to a loss of Rs 33.37 cr in Q2FY27.
- Revenue declined 27.14% sequentially while expenses fell only 20.58%, pushing operating margin down 8.50 percentage points to -2.91%.
- Ugar Sugar's operating margin was 16.75 percentage points below the 13-peer sector median of 13.84%.
Price around the results
Q2FY27 reversed the Q1 profit
Ugar Sugar Works reported standalone results, with revenue down 27.14% sequentially to Rs 348.2 cr. Expenses declined 20.58%, so they fell less than revenue and operating profit moved from Rs 26.72 cr in Q1FY27 to a loss of Rs 10.13 cr. The operating margin consequently narrowed by 8.50 percentage points to -2.91%.
Lower interest costs did not offset the operating loss
Interest expense declined 11.69% sequentially, while depreciation was broadly unchanged, rising 0.22%. The company still reported a pre-tax loss of Rs 32.5 cr, and other income accounted for -9.78% of pre-tax profit, indicating it did not offset the loss. The tax rate moved up 41.22 percentage points from -43.91% to -2.69%.
Margin was lowest among 13 reported peers
Ugar Sugar's -2.91% operating margin was 16.75 percentage points below the Fast Moving Consumer Goods sector median of 13.84%, ranking it lowest among the 13 peers that had reported. The available quarter-on-quarter comparison shows a sharp reversal from Q1FY27's 5.59% margin, rather than a multi-quarter direction. The results were filed after market close on 27 October 2026.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹348 cr | ₹478 cr | -27.14% |
| Other income | ₹3 cr | ₹2 cr | +59.00% |
| Expenses | ₹358 cr | ₹451 cr | -20.58% |
| Operating profit | ₹-10 cr | ₹27 cr | — |
| Operating margin (%) | -2.91% | 5.59% | — |
| Interest | ₹16 cr | ₹18 cr | -11.69% |
| Depreciation | ₹9 cr | ₹9 cr | +0.22% |
| Profit before tax | ₹-33 cr | ₹1 cr | — |
| Tax | ₹1 cr | ₹-0 cr | — |
| Net profit | ₹-33 cr | ₹1 cr | — |
| EPS (₹) | ₹-2.97 | ₹0.13 | — |
Operating margin of -2.91% compares with a Fast Moving Consumer Goods sector median of 13.84% across 13 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 348.2 cr in Q2FY27.
- Whether operating margin moves back above the Q1FY27 level of 5.59%.
- Whether interest expense remains below Rs 16.31 cr.