Zuari Industries Limited

Zuari Industries reported a robust financial performance for FY25, with revenue from operations growing by an impressive 22% year-on-year to INR 871 crores. Total income for the fiscal year reached INR 980 crores, marking a 9% annual increase. Operational EBITDA for FY25 saw a significant 42% growth, reaching INR 70 crores with a margin of 8.2%. This strong performance was primarily fueled by the sugar, power, and ethanol (SPE) division, which contributed INR 866 crores to the total revenue.

The SPE division demonstrated exceptional operational excellence, achieving its highest ever sugarcane crushing of 157 lakh quintals in FY25, an 11% increase from the previous year. Sugar sales surged by 47% year-on-year to INR 604 crores. Furthermore, the company recorded its highest ever ethanol production of 3.4 crore litres, representing a 24% increase from the prior year, with ethanol sales growing by 40% to INR 226.2 crores. These achievements are attributed to cane development programs, operational efficiencies, and digital initiatives like the Saksham app.

While the Dubai St. Regis Financial Centre Road project achieved a full sell-out and is ahead of schedule for completion by January 2026, the domestic real estate segment faced significant challenges. Revenue from real estate declined sharply to INR 5 crores in FY25, compared to INR 106 crores in FY24, primarily due to regulatory uncertainties in Goa concerning circle rates. Management indicated that land monetization efforts in Goa might be delayed until these regulatory issues are resolved, shifting the focus to an asset-light development management model for its subsidiary, Zuari Infraworld.

Zuari Industries continues to nurture its strategic investments and joint ventures. The 50-50 bioethanol joint venture with Envien International is progressing with a 180 KLPD grain-based distillery project in Lakhimpur, with an outlay of INR 300 crores, expected to be operational by Q2 FY26. The company plans to expand this capacity to 1,000 KLPD in the coming years, aligning with the government's 30% ethanol blending target by 2030. Other subsidiaries like Simon India (engineering) and financial services arms (Zuari Finserv, Zuari Insurance Brokers) also reported revenue growth.

The company's capital allocation strategy includes a focus on debt reduction, with management reporting a significant reduction in finance costs through refinancing high-cost loans. For shareholder returns, the Board approved a final dividend of INR 1 per equity share (10%). However, management explicitly stated there are no current plans for a share buyback, emphasizing continued investment in core growth areas like sugar, real estate, and bioenergy.