Bajaj Hindusthan Sugar Ltd (BHSL) reported a net loss of ₹102 crore for the third quarter of FY24, a sharp decline from the ₹20.8 crore profit it posted in the same period last year.

The weak performance was driven by lower revenue and deteriorating operating margins.

Revenue declined 15.2% year-on-year to ₹1,476 crore from ₹1,741 crore, reflecting pricing pressures and a drop in sugar sales.

The company also reported an EBITDA loss of ₹25 crore, a stark contrast to the ₹111 crore EBITDA profit it recorded a year ago, indicating mounting cost pressures and weaker realisations.

Following the disappointing results, shares of Bajaj Hindusthan Sugar slipped nearly 3% on the BSE, trading at ₹24.32 as of 1:36 PM.

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Bajaj Hindusthan Sugar is one of India’s largest sugar and ethanol manufacturers, operating 14 sugar plants across Uttar Pradesh.

It has a sugarcane crushing capacity of 136,000 tonnes per day and an alcohol distillation capacity of 800 kilolitres per day. The company plays a key role in India’s ethanol blending programme, producing green fuel ethanol.

The Q3 performance underscores the financial strain faced by sugar producers amid fluctuating demand and pricing pressures.