Sugar mills poised for moderate growth in FY26. Integrated sugar mills are expected to report revenue growth of 5-8% in the fiscal year ahead, driven by improved sugarcane availability and stable sugar prices, according to ICRA's latest analysis. However, operating margins are likely to remain stable at around 10-10.5%, compared to 9.6% in the previous year, as increased cane prices offset stagnant ethanol prices. The Fair and Remunerative Price for sugarcane has been raised by fifteen rupees to three hundred fifty-five per quintal. Global sugar production remains elevated due to Brazilian surplus, keeping international prices below domestic production costs. India's domestic sugar market shows strength with projected gross production increasing 9.4% to 32.41 million metric tonnes, while closing stocks are expected to reach comfortable levels equivalent to two months of consumption.
