Home » Zuari Industries Q2 FY26 Results: Strong Ethanol Growth and Subsidiary Performance

Zuari Industries Q2 FY26 Results: Strong Ethanol Growth and Subsidiary Performance

Zuari Investor Presentation

Zuari Industries Limited (ZIL) has released its Q2 FY26 Investor Presentation, detailing significant progress across its sugar, power, ethanol, real estate, bioenergy, and investment divisions. The presentation was filed with NSE and BSE on 13 November 2025.

Ethanol and Power Lead Operational Performance

ZIL reported strong gains in its ethanol production, which jumped 43.9% year-on-year to 86.8 lakh litres in Q2. For H1 FY26, ethanol output grew 24.8%. Power production also increased, contributing to improved revenue visibility across the Sugar, Power & Ethanol (SPE) division.

However, sugar production and cane crushing remained halted in Q1 and Q2 due to seasonal factors. Despite this, the company achieved a 5.7% rise in sugar realization rates, showing better market pricing.

Financial Performance Shows Gradual Stability

Zuari Industries recorded total standalone income of ₹248.1 crore in Q2 FY26, a slight increase from Q1. EBITDA rose to ₹52.5 crore, reflecting better operational efficiency. Finance costs continued to fall, supported by a lower cost of borrowing (10.26%) and strengthened governance. The company retained its BBB- rating.

At a consolidated level, ZIL posted a significant turnaround due to strong performance from associate companies and joint ventures.

Subsidiaries and JVs Drive Expansion

Subsidiaries such as Zuari Infraworld, Zuari International, Simon India, ZMSL, Zuari Finserv, and Zuari Insurance reported stable income and improving EBITDA.
Zuari Infraworld’s Dubai project, The Residences at St. Regis, is 95% complete, with handovers expected in March 2026. Indian real estate projects also saw healthy sales momentum.

The ethanol-focused JV Zuari Envien Bioenergy Pvt Ltd (ZEBPL) reached 95.1% project completion at its Aira, Uttar Pradesh grain-based distillery. Commissioning is scheduled for 30 November 2025, with a long-term plan to scale ethanol capacity to 1,000 KLPD.

Strategic Investments Maintain Value

ZIL continues to hold large strategic investments in Chambal Fertilisers, Zuari Agro Chemicals, Mangalore Chemicals & Fertilizers, Texmaco Rail, and Texmaco Infrastructure. The value of these quoted investments stood at ₹4,680 crore at the end of Q2 FY26.

Future Roadmap

Zuari Industries aims to:

  • Scale its biofuel and ethanol portfolio

  • Strengthen its balance sheet

  • Leverage digital tools across procurement and operations

  • Expand subsidiary businesses

  • Explore new strategic opportunities

The company expects strong growth ahead, driven by ethanol demand, real estate monetization, and improved operational efficiencies.

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