Sugar mills to report 5-8% revenue growth in FY26 on better cane supply: ICRA Report

Integrated sweetener mills are apt to spot mean gross maturation of 5-8% successful FY26, driven by improved sugarcane availability and unchangeable sweetener prices, a study said connected Friday (March 13, 2026).

However, margins are apt to stay broadly unchangeable arsenic cane prices person increased, portion ethanol prices person remained mostly stagnant, standing bureau ICRA said successful the report.

For SY2026, the Fair and Remunerative Price (FRP) for sugarcane has been accrued by ₹15 to ₹355 per quintal for a basal betterment complaint of 10.25%.

ICRA expects the operating margins of integrated sweetener mills to stay range-bound astatine astir 10-10.5% successful FY26 compared to 9.6% successful the erstwhile year.

The gross maturation for integrated sweetener mills is projected to stay mean astatine 5-8% successful FY26, supported by higher cane availability and unchangeable sweetener prices, the standing bureau said.

ICRA besides noted that borrowings of its illustration acceptable are apt to mean successful FY26, supported by nett accretion and repayment of distillery loans, which is expected to support the superior operation comfy and amended sum metrics.

The planetary sweetener prices successful Sugar Year (SY) 2026 (October to September) person remained little than the existent outgo of accumulation and prevailing home prices, chiefly owed to surplus proviso from Brazil, it added.

Global sweetener accumulation for SY2025-SY2026 is estimated astatine 189.3 cardinal metric tonnes, 5% higher than the erstwhile year, portion depletion is expected astatine 178.1 cardinal metric tonnes, astir 1% higher year-on-year.

However, the home demand-supply script remains comfortable, said the standing agency.

As per the 3rd beforehand estimates of the Indian Sugar Mills Association, gross sweetener accumulation successful SY2026 is projected to summation by 9.4% to 32.41 cardinal metric tonnes compared to 29.6 cardinal metric tonnes successful the erstwhile year.

Meanwhile, ICRA said that aft an estimated diversion of 3.1 cardinal metric tonnes towards ethanol production, nett sweetener accumulation is apt to stay astatine 29.3 cardinal metric tonnes.

India continues to advancement connected ethanol blending, achieving a blending ratio of 19.98% during the archetypal 3 months of ESY2026, with 239 crore litres blended, including 59.2 crore litres successful January 2026.

Considering home depletion of 28.3 cardinal metric tonnes and exports of 0.7 cardinal metric tonnes, the closing sweetener banal is expected to scope 5.6 cardinal metric tonnes, equivalent to astir 2 months of consumption, the study said.