Integrated sugar mills in the country are expected to record moderate revenue growth of 5–8 per cent in the financial year 2025-26, helped by better availability of sugarcane and steady sugar prices, according to a report released on Friday, PTI reported.
The report by ICRA Limited said the profit margins of sugar mills are likely to remain largely steady. This is because sugarcane prices have gone up, while ethanol prices have remained mostly unchanged.
For the 2025-26 sugar season, the government has raised the Fair and Remunerative Price (FRP) of sugarcane by Rs 15 to Rs 355 per quintal for a basic recovery rate of 10.25 per cent.
ICRA expects operating margins of integrated sugar mills to stay around 10 to 10.5 per cent in FY26, compared with about 9.6 per cent in the previous year.
The rating agency said revenue growth will remain moderate at 5–8 per cent in FY26, mainly due to higher cane availability and stable sugar prices.
Borrowings of sugar companies are also expected to decline during the year. According to ICRA, improved profits and repayment of loans taken for distillery projects are likely to reduce debt levels and strengthen the financial position of these mills.
