Avadh Sugar posts Q1 loss on weaker margins; seeks ethanol price reform, sugar MSP hike
Kolkata: Avadh Sugar & Energy Ltd (ASEL) slipped into the red in the June quarter, as lower margins dragged down profitability despite slightly higher revenue.
The company reported a net loss of ₹8 crore for Q1 FY26, compared with a profit of ₹9 crore in the year-ago period. Total income edged up to ₹717 crore from ₹708 crore last year, but EBITDA dropped sharply to ₹29 crore from ₹57 crore.
Co-Chairperson C.S. Nopany credited recent Uttar Pradesh government reforms for transforming sugarcane farming and processing, citing timely payments, ethanol promotion, and mill upgrades as key drivers of long-term growth.
“The five-year roadmap by the current government reflects not just policy intent but also practical execution. We believe the sugarcane sector in UP is well on its way to becoming a national benchmark for innovation and inclusive growth,” Nopany said.
He added that Avadh remains committed to sustainable, inclusive growth while urging policymakers to raise the minimum sale price of sugar and adopt a dynamic, market-linked ethanol pricing model.
ASEL operates four sugar mills in Uttar Pradesh with a combined crushing capacity of 31,800 tonnes of cane per day, two distilleries with a total ethanol capacity of 325 KLPD (B Heavy), and a co-generation facility capable of producing 74 MW of power.
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