Dhampur Sugar Mills: FY26 Profit Jumps 24.6%, Declares 20% Interim Dividend

Dhampur Sugar Mills' net profit for the fiscal year ended March 31, 2026, rose by 24.6% to ₹65.33 crore, up from ₹52.42 crore in the previous year. The company reported an unmodified audit opinion.

Revenue from operations for FY26 increased to ₹2,807.57 crore from ₹2,656.38 crore in FY25.

Reader Takeaway: Strong annual profit growth and dividend payout, but ongoing tax proceedings are a key watch point.

What just happened

Dhampur Sugar Mills announced its audited financial results for the fiscal year 2025-26. The company posted a consolidated net profit of ₹65.33 crore, marking a significant increase from ₹52.42 crore in FY25. Annual revenue also grew to ₹2,807.57 crore compared to ₹2,656.38 crore in the prior year.

Additionally, the Board of Directors declared an interim dividend of 20%, equivalent to ₹2 per equity share of ₹10 face value, for FY26. This dividend is proposed to be confirmed as the final dividend by shareholders.

Why this matters

The improved financial performance, with both profit and revenue showing year-on-year growth, is a positive sign for shareholders. The declaration of an interim dividend offers direct returns to investors. The company also reported a buy-back of 10,81,081 equity shares for ₹20 crore during the fiscal year, further enhancing shareholder value.

Re-appointments of key directors, Mr. Anuj Khanna and Mr. Subhash Pandey, suggest continuity in leadership and governance.

The backstory

Dhampur Sugar Mills is a significant player in the Indian sugar industry. The company's performance is influenced by factors like sugar production, government policies, and commodity prices. The filing indicates a solid operational year for FY26.

What changes now

Shareholders can expect to receive the declared interim dividend, subject to confirmation. The re-appointment of directors ensures stability in the company's board and management structure. The buy-back activity during FY26 has reduced the number of outstanding shares.

Risks to watch

A notable concern highlighted is the ongoing Income Tax Department proceedings. The department conducted a search under Section 132 from October 29, 2025, to November 3, 2025. The outcome of these proceedings is still pending and represents a potential risk that investors should monitor.

Peer comparison

While specific peer performance for FY26 is not detailed in this filing, the sugar industry typically faces cyclicality. Dhampur Sugar's reported revenue and profit growth need to be viewed against the broader industry trends and the performance of other sugar manufacturers in India.

Context metrics (time-bound)

• FY26 Revenue: ₹2,807.57 crore
• FY25 Revenue: ₹2,656.38 crore
• FY26 Net Profit: ₹65.33 crore
• FY25 Net Profit: ₹52.42 crore
• Interim Dividend: 20% (₹2 per share)
• Share Buyback: 10,81,081 shares for ₹20 crore in FY26

What to track next

Investors should closely track the developments regarding the Income Tax Department proceedings. Additionally, future quarterly results will indicate if the company can sustain its growth momentum and maintain profitability amidst market conditions.