Zuari Industries Ltd

Key highlights

• Consolidated revenue from operations: 1,04,482.40 lakh.
• Consolidated EBITDA: 24,264.86 lakh.
• Consolidated PAT: 10,578.21 lakh.
• Consolidated EPS: 36.25 INR.
• Final dividend proposed: Rs 1 per equity share (AGM approval required).
• Standalone revenue from operations: 87,428.09 lakh.
• Standalone EBITDA: 191.5 crore.
• Borrowings: 258,129.00 lakh.
• Gearing: 41.03%.
• SEBI settlement order approved: 5 March 2026.

Financial Performance

• Standalone total income INR283.9 crores in Q1 FY27, up 26% YoY.
• Standalone EBITDA INR31.3 crores; PBT before exceptional items: loss INR4.4 crores.
• Standalone PAT: loss INR9.5 crores; prior-year loss INR3.9 crores.
• Avg cost of borrowing 9.73% in Q1 FY27, down from 10.29%.
• Consolidated total income INR327.5 crores, up 22% YoY.
• Consolidated EBITDA INR29.8 crores; PBT before exceptional items: loss INR5.4 crores.
• Consolidated PAT: marginal profit INR0.05 crores.
• Finance cost INR61.5 crores vs INR63 crores YoY.
• Aggregate external debt INR1,888 crores vs INR1,909 crores end-Q4.
• Listed strategic investments valued at INR4,223 crores as on 30 June, up 15% QoQ.

Subsidiaries & Investments

• Zuari Infra World India Limited: total income INR33.9 crores; EBITDA INR24.6 crores; PBT loss INR0.7 crores.
• Simon India Limited: total income INR11.7 crores.
• Zuari Finserv Limited: total income INR4.1 crores.
• Zuari Insurance Broker Limited: gross return premium INR20.8 crores; brokerage INR3.0 crores; EBITDA INR2.2 crores.

Debt & Liquidity

• St Regis Dubai repatriation: INR142 crores received this quarter; balance around INR758 crores due this year.
• Dubai profits repatriation guidance: total INR900 crores in current financial year; on track.
• Outstanding INR258 crores debt from Zuari Agro to be repaid this quarter.

Projects & Capex

• St Regis Dubai: 100% completion; handovers to commence; profit repatriation started.
• Bangalore DM: 14.8-acre plotted development; RERA approvals in place.
• Gangothri Tribhuja project: 2.8 million sq ft saleable area; marketing in full swing.
• Simon India: total income INR11.7 crores; ~INR70 crores of orders under execution.
• Zuari Infra World: order book around INR6,000 crores; Hyderabad & Bengaluru DM projects in pipeline.

Guidance & Outlook

• Real estate assets monetization: majority realized in 1-2 quarters; cash realization this financial year.
• Land monetization in Goa: on hold; focus on deleveraging via Dubai repatriation and associate-loan repayments.
• Ethanol capacity expansion paused due to overcapacity; expansion considered if demand increases.

Q&A Highlights

• Next ethanol tenders expected October 2026; company will participate.
• Sugar pricing outlook: high sugar prices support realizations; margins driven by cane costs.
• Debt-repayment visibility: management expects full repayment of Dubai-related debt in current quarter.
• Consolidation of investments into the holding company: enabling resolution exists; no completed transactions yet.
• Ethanol policy changes uncertain; management does not comment on rumors.

Dividend record date

• Record date 14 September 2026 for equity shares' dividend eligibility on FY2025-26, subject to AGM declaration.

Meeting Details

• Date: 17 August 2026; Time not disclosed.
• Type and mode: earnings conference call; mode not specified.
• Event/organiser: Zuari Industries earnings call.
• Key company participant: Company Secretary.
• Purpose: discuss unaudited results for quarter ended 30 June 2026.
• Recording: audio recording available on the company website.

Business overview

• Zuari Industries operates in sugar, ethanol, real estate, and engineering services.
• Emphasizes asset-light growth and AI-enabled project execution.

Operational highlights

• Standalone Q1 FY27 revenue 266.52 Cr; sugar quota allocated 4.7 LQ.
• Sugar realization Rs 4,116/Q; ethanol sales 10,248 KL.
• Power export 62.8 LU; UP SAP margin up ₹30/Q.
• St. Regis Dubai: handovers underway; repatriation of profits commenced.
• Zuari Envien Bio-Energy: plant stabilized; OMC tender delayed; booked till October.
• Strategic investments value up 15% to Rs 4,223 Cr.

Financial performance

• Consolidated revenue from operations 311.93 Cr; total income 327.52 Cr.
• PAT (Consolidated) 0.05 Cr; EPS 0.20 Rs.
• Standalone PAT -9.48 Cr; total comprehensive income 264.11 Cr.
• Consolidated segment revenue: Sugar 236.78 Cr; Ethanol 63.98 Cr; Real estate 15.18 Cr.

Capital structure & liquidity

• Standalone finance cost 29.03 Cr; Consolidated 61.54 Cr.
• Strategic investments valued at Rs 4,223 Cr as of 30-Jun-2026; up from Rs 3,681 Cr.

Strategic priorities & outlook

• Pursuing strategic growth via digital technologies; strengthening balance sheet; nurturing subsidiaries and strategic value.
• Outlook: expand order book; AI-led initiatives across project execution.

Risks & governance

• Geopolitical uncertainties in West Asia dampen EPC activity; capex remains cautious.
• Leadership: MD Athar Shahab; Chairman Saroj K. Poddar.

Rating action

• Agency: CARE Ratings Limited; rating reaffirmed for all bank facilities.
• Long-term facilities: ₹661.64 crore rated CARE BBB-; Positive; outlook revised from Stable.
• Short-term facilities: ₹5.85 crore rated CARE A3; reaffirmed.
• Material change: long-term outlook revised from Stable to Positive; short-term rating unchanged.

Code revision

• Board-approved revised Code for fair disclosure of UPSI.
• Ensure timely, fair, universal UPSI disclosure and prevent selective disclosure.
• Applies to directors, officers, employees, and others handling UPSI.
• Supersedes the earlier Code on this subject.
• CFO and Company Secretary serve as Chief Investor Relations Officers (CIROs).
• Prompt disclosure to stock exchanges and the company website when UPSI impacts price discovery.
• Prompt action to disseminate inadvertent or selective UPSI disclosures.
• Transcripts of investor meetings to be posted on the website; no UPSI sharing.
• Legitimate purpose allows UPSI sharing with collaborators, lenders, customers under safeguards.
• Board may amend the Code to reflect SEBI PIT Regulations changes; overrides inconsistent provisions.