Zuari Industries Ltd Q4 FY26 Earnings Analysis

- The company is **not making forward-looking statements** about future growth in sales, revenue, or volumes during the call. (Page 14) - Focus is on providing detailed quarterly performance data for comparison with previous quarters and years. (Page 14) - Plans are in place for **deleveraging** and financial strengthening which may support future growth. (Page 14) - In real estate, the company aims to secure **Development Management (DM) mandates worth INR10,000 crores**, showing growth potential in that segment over 2-3 years. (Page 13) - Sugar business volumes showed improvement in Q3 with operational efficiencies and cane availability initiatives. (Pages 6 and 9) - Ethanol segment expects to run plants for **300+ days/year** with production growth tied to government blending policies; stable margins expected if ethanol prices remain remunerative. (Pages 6-7) - No IPO plans currently for Zuari Infraworld; focus remains on core business and debt reduction. (Page 13)

- Management refrained from making any forward-looking statements on future growth, earnings, profits, or EPS during the call. - Emphasis was on providing detailed quarterly performance data and updates on deleveraging efforts. - No specific guidance was given on top-line or bottom-line growth or EPS forecasts. - Investors were encouraged to stay connected through company disclosures and quarterly calls for ongoing updates. - Focus remains on operational execution, deleveraging, and growth through real estate DM mandates and core businesses like sugar and ethanol. - Profitability challenges in some subsidiaries acknowledged, but overall operational performance, especially in sugar and ethanol, is stable. - Ethanol profitability impacted by stagnant prices; government price revision expected but not yet implemented. - Deleveraging through Dubai project inflows expected to improve financial position in coming quarters.

- Simon India is continuing to build deep technical capability in fertilizer segment projects (ammonia, urea, DAP, phosphoric acid, sulfuric acid) by doing initial and detailed engineering and EPC work. - The company is embedding artificial intelligence in its operations to enhance efficiency and value. - Zuari Envien Bioenergy (ethanol JV) has commissioned its plant and is securing offtake agreements to contribute to revenues. - Zuari Industries is working on securing Development Management (DM) mandates in real estate, targeting INR10,000 crores in gross development value. - No current IPO plans for Zuari Infraworld; focus is on repatriating funds from Dubai real estate project with expected inflows of INR800-900 crores next financial year. - Exploring acquisition opportunities in the sugar sector. - Digitalization and implementation of AI/digital solutions across business verticals is ongoing as part of strategic investment.

- No indication of any current or planned IPO for Zuari Infraworld; management clarified there is no such proposal on the table. - The company is focusing on deleveraging its existing debt through expected inflows: - INR 800-900 crores expected from completion and handover of the Dubai real estate project by Q1 of the next financial year. - INR 273 crores expected from associate company Zuari Agro Chemicals. - No specific mention of new debt fundraising plans; focus is on repaying and reducing existing external debt (currently around INR 1,848 crores excluding working capital). - No explicit mention of any fresh equity fundraising in the call. - The company is exploring strategic collaboration and business expansion but primarily emphasizing debt reduction rather than raising new funds.

- Simon India, Zuari Industries' EPC arm, had a contract value of around INR 55.5 crores for the recently commissioned fifth evaporator project for PPL in Q3 FY26. - Simon India is currently executing orders worth approximately INR 100 crores for various clients. - The company is building deep technical capability, including collaborations with domain experts and global licensors, aiming for growth in EPC business. - Zuari Infraworld has been securing Development Management (DM) mandates ranging between INR 750 crores to INR 2,000 crores per project. - Zuari Infraworld has reached around INR 3,000 crores of Gross Development Value (GDV) in DM mandates, targeting INR 10,000 crores in GDV. - The company continues active business development in DM projects especially in Bangalore, Kolkata, and Hyderabad, expecting DM to become a significant growth area.