Simbhaoli Sugars Ltd (SIMBHALS) AI Stock Analysis

• Market Cap: ₹300.92M
• Dividend Yield: N/A
• Average Volume (3M): 4.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 1,387
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -1.10
• Shares Outstanding: 41,279,020
• 10 Day Avg. Volume: 4,242
• 30 Day Avg. Volume: 4,766
• PEG Ratio: -0.36
• Price to Book (P/B): -0.43
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 2.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ₹7.50 ▼(-43.27% Downside)
• Action: N/A Date: 03/17/26
• Date: Action: N/A 03/17/26

The score is primarily constrained by weak financial health—especially negative equity and heavy debt—along with fragile profitability and declining revenue. Technicals also show clear bearish momentum (below key moving averages with negative MACD). Valuation remains unattractive/unclear due to negative earnings and no stated dividend support.

Positive Factors

Diversified integrated product mix

Operating an integrated sugar complex with sugar, molasses, ethanol and bagasse-based power creates multiple cash sources and natural hedges. Over the medium term this diversification can stabilize margins versus single-product peers, enable cross-subsidies and improve utilization-driven operating leverage.

Positive free cash flow in FY2024–FY2025

Recent positive free cash flow demonstrates the business can generate internal liquidity despite cyclical headwinds. Sustained cash generation supports working capital, servicing debt and selective reinvestment; if maintained, it is a durable enabler of balance-sheet repair and operational continuity.

Return to small profit in FY2025

Recovering to profitability signals operational stabilization and reduced existential earnings risk. While margins remain thin, consistent positive earnings would improve access to credit, reduce reliance on external support and allow management to focus on productivity and deleveraging over the medium term.

Negative Factors

Highly leveraged, negative equity

Negative equity and very high gross debt materially constrain financial flexibility and raise refinancing and covenant risks. This structural leverage increases interest burden, limits capex/options, and means sustained improvement or external capital will be required to materially reduce insolvency risk over coming quarters.

Declining revenue and compressed margins

Falling top-line and sharply compressed margins indicate weak pricing power and poor operating leverage in a cyclical market. Persistent revenue contraction limits cash flow scaling and makes deleveraging harder; without durable revenue recovery, margin pressure will keep earnings fragile over several quarters.

High exposure to agricultural and policy risk

Dependence on cane procurement, crop yields and government-regulated pricing/blending policies creates structural volatility. Input availability and policy shifts (cane pricing, ethanol tenders, power tariffs) can materially swing margins and volumes, making medium-term cash flows and planning inherently uncertain.

Simbhaoli Sugars Ltd Business Overview & Revenue Model

Company Description

Simbhaoli Sugars Limited primarily manufactures and sells sugar in India and internationally. The company operates through Sugar and Alcohol segments. It offers double refined white crystal, white, icing, and diamond shaped crystal sugar, as well as sugar sachets and cubes under the TRUST brand name; brown mineral, coffee, jaggery, and jaggery powder under the Sunehra brand name; and lower glycemic index sugar under the G-Low brand. The company also provides instant fruit drink mixes and coconut water under the SIPP brand; hand sanitizers and multi surface disinfectants under the TRUST brand; and organic bio-manures, bio-compost, plant nutrients, plant growth regulators, and herbicides under the SOM brand name. In addition, it offers logistics and transport services; agriculture advisory services; and technology and engineering consulting services, as well as produces ethanol. Further, the company is involved in the biomass-based co-generation with a generation capacity of approximately 108 MWH. Simbhaoli Sugars Limited was founded in 1933 and is based in Noida, India.

How the Company Makes Money

The company primarily earns revenue by processing sugarcane into saleable products and monetizing multiple output streams from an integrated sugar mill complex. Key revenue streams include: (1) Sugar sales: Selling finished sugar into domestic wholesale/industrial channels is typically the largest revenue driver, with realizations influenced by market prices and government/regulatory policies applicable to the sugar sector. (2) By-products from sugar processing: The company sells molasses (generated during sugar production) and other by-products; these are sold to downstream users and can be meaningful contributors to turnover depending on volumes and pricing. (3) Ethanol/alcohol: Where operated, molasses and/or sugarcane derivatives can be used as feedstock to produce ethanol/industrial alcohol, which is sold to customers such as oil marketing companies or industrial buyers; the economics depend on government blending programs, administered prices/tenders, and capacity utilization. (4) Power/co-generation: Bagasse (fibrous residue from crushed cane) can be used to generate electricity/steam; revenue is earned from using power internally (cost offset) and, where export is permitted and contracted, selling surplus electricity to the grid or third parties under applicable power purchase arrangements. Overall profitability and cash generation are affected by sugarcane availability and procurement costs, recovery rates, plant utilization, commodity price cycles, and the regulatory framework governing sugar, cane pricing, ethanol, and power sales.

Simbhaoli Sugars Ltd Financial Statement Overview

Summary

Despite some stabilization (small profit in FY2025 and positive free cash flow in FY2024–FY2025), overall fundamentals are weak: revenue declined (~16% in FY2025), operating profit turned slightly negative, and margins are near breakeven. The balance sheet is highly stressed with negative equity and very high debt (₹10–11B), which materially elevates financial risk and limits flexibility.

Income Statement

Profitability has improved but remains fragile. Revenue fell in FY2025 (down ~16%), and operating profit turned slightly negative, indicating weak operating leverage. Net income swung to a small profit in FY2025 after losses in prior years, but margins are very thin (near breakeven), and gross margin has compressed sharply versus FY2024—suggesting pressure from input costs and/or pricing.

Balance Sheet

Balance sheet risk is elevated. Equity is negative across the period, which limits financial flexibility and implies accumulated losses and/or balance-sheet stress. Debt remains very high (roughly ₹10–11B) with a negative debt-to-equity profile due to negative equity, making leverage look structurally stretched despite relatively stable total assets.

Cash Flow

Cash generation is a relative bright spot but inconsistent. Operating cash flow and free cash flow were positive in FY2024–FY2025, with FY2025 free cash flow meaningfully positive; however, cash flow was much weaker in FY2023 (including negative free cash flow). Cash flow compared with the debt load appears modest, implying limited capacity to deleverage quickly without sustained improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.13B	9.97B	11.80B	12.33B	11.48B	12.40B
Gross Profit	1.60B	951.80M	1.87B	327.09M	2.05B	1.87B
EBITDA	557.71M	317.75M	468.37M	267.65M	427.04M	685.10M
Net Income	93.49M	13.24M	-121.26M	-308.69M	-398.51M	-219.13M
Balance Sheet
Total Assets	0.00	20.33B	21.10B	20.89B	21.18B	22.68B
Cash, Cash Equivalents and Short-Term Investments	972.62M	977.02M	361.79M	297.34M	426.00M	551.68M
Total Debt	0.00	10.11B	10.28B	10.30B	10.35B	10.71B
Total Liabilities	522.45M	21.31B	21.38B	21.04B	21.01B	22.10B
Stockholders Equity	-522.45M	-1.25B	-1.31B	-1.19B	-866.58M	-479.42M
Cash Flow
Free Cash Flow	0.00	189.45M	126.60M	-29.02M	638.52M	631.56M
Operating Cash Flow	0.00	273.60M	254.64M	69.30M	723.07M	684.89M
Investing Cash Flow	0.00	-309.85M	-19.76M	-45.88M	-113.39M	68.61M
Financing Cash Flow	0.00	176.19M	-176.58M	-150.80M	-815.00M	-648.46M

Simbhaoli Sugars Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANDHRSUGAR	68 Neutral	₹9.48B	11.48	―	1.06%	16.68%	15.13%
DALMIASUG	68 Neutral	₹23.80B	8.71	―	2.00%	17.71%	18.17%
RANASUG	67 Neutral	₹1.74B	3.78	―	―	8.83%	160.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BAJAJHIND	46 Neutral	₹20.13B	39.15	―	―	-11.72%	-439.12%
DHARSUGAR	46 Neutral	₹286.52M	-0.44	―	―	―	―
SIMBHALS	40 Underperform	₹300.92M	-2.42	―	―	―	―

Simbhaoli Sugars Ltd Corporate Events

Simbhaoli Sugars Discloses Loan Payment Defaults Under SEBI Norms

Simbhaoli Sugars Limited, currently under Corporate Insolvency Resolution Process (CIRP), has disclosed to the National Stock Exchange of India and Bombay Stock Exchange its defaults on payment of interest and repayment of principal on loans from banks and financial institutions as of December 31, 2025, in line with SEBI disclosure requirements. The filing underscores the company’s ongoing financial distress and regulatory compliance obligations, signaling continued stress in its capital structure and heightened risk considerations for lenders, investors and other stakeholders monitoring its insolvency proceedings.