Ethanol stock jumps 7% after announcing its Q3 results; Check details

SYNOPSIS: Q3 FY26 saw revenue rise 24 percent YoY with modest QoQ growth, a return to profitability after last year’s loss, and a diversified chemicals-led revenue mix, alongside in-principle approval for subsidiary merger.

Shares of a company involved in manufacturing sugar, industrial alcohol, chlor-alkali products, aspirin, sulphuric acid, liquid & solid propellants surged nearly 7 percent on Thursday, after the company turned profitable in Q3 FY26, posting a net profit of Rs. 23 crore compared with a loss in the year-ago quarter.

With a market cap of Rs. 992.6 crores, shares of Andhra Sugars Limited were trading in the green at Rs. 73.24 on NSE, up by over 2 percent, compared to its previous closing price of Rs. 71.67. So far in 2026, the stock has delivered negative returns of over 3 percent, and has fallen by nearly 4 percent in the last six months.

Financials

Andhra Sugars Limited announced the financial results for the third quarter of FY26 on Thursday during market hours, as per the latest regulatory filings with the stock exchanges.

For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 631.33 crores, reflecting a sequential growth of around 6 percent QoQ compared to Rs. 597.5 crores in Q2 FY26, along with an increase of around 24 percent YoY from Rs. 511 crores recorded in Q3 FY25.

Net profit for the quarter stood at Rs. 23 crore, indicating a decrease of around 32 percent QoQ from Rs. 33.6 crores in Q2 FY26. However, on a year-on-year basis, Andhra Sugars reported a clear turnaround from a net loss of Rs. 41 lakhs in Q3 FY25.

Additionally, the company’s Board has approved the merger of its two unlisted subsidiaries with the holding company, subject to the formulation of a formal scheme and requisite approvals from the respective Boards and regulatory authorities.

Revenue Mix

For the quarter ended December 2025, the company’s Industrial Chemicals segment emerged as the largest contributor, generating Rs. 351.3 crore, accounting for ~45 percent of total revenue, followed by Chlor-Alkali at Rs. 194.5 crore (~25 percent) and Soap at Rs. 153.8 crore (~20 percent). Power Generation contributed Rs. 10.2 crore (~1 percent), while Sugar added Rs. 36.4 crore (~5 percent).

On a YoY basis, Sugar revenue rose sharply from Rs. 29.8 crore, Industrial Chemicals increased from Rs. 288.6 crore, and Chlor-Alkali grew from Rs. 174 crore, but the Power Generation segment fell from Rs. 15.5 crores.

Andhra Sugars Limited is engaged in the manufacturing of sugar, industrial alcohol & chlor alkali products, aspirin, salicylic acid, sulphuric acid, liquid & solid propellants, along with generating power through renewable and non-renewable resources. It operates in three segments: Sugars, Pharma and Chemicals & Fertilisers.

Under its Chemicals & Fertilisers segment, the company produces ethanol catering to multiple end uses, including the drugs & pharmaceuticals industry, organic chemicals, solvents & extraction processes, fuel blending with petrol, and applications in cosmetics.

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