Tamil Nadu-based Kothari Sugars and Chemicals Limited recorded a net profit of Rs 661.09 lakh for the financial year ended March 31, 2026, even as the company slipped into an operating loss, with revenue falling sharply due to a significant shortfall in sugarcane availability caused by deficit rainfall and pest attack, according to the company's audited financial results filed with the National Stock Exchange of India Limited (NSE) on May 4, 2026.

Revenue from operations for FY2026 declined to Rs 24,678.07 lakh from Rs 31,001.58 lakh in the previous year, a fall of approximately 20 per cent. The loss before exceptional items and tax widened to Rs 2,396.83 lakh, reversing from a profit of Rs 1,042.69 lakh in FY2025. The net profit was salvaged by an exceptional income of Rs 2,133.61 lakh, arising from the reversal of liabilities pertaining to sugarcane and electricity-related matters, which brought the loss before tax to Rs 263.22 lakh and allowed a tax credit to convert the position into a profit.

The company attributed the performance directly to inadequate cane supply in its command area. The filing stated that lower crushing, resulting from the combination of below-normal rainfall and pest damage, left sugarcane availability insufficient to run both its manufacturing units - Kattur in Trichy district and Sathamangalam in Ariyalur district - at the optimum level. As a result, only the Kattur unit was operated during the 2025-26 sugar season.

The impact was most sharply reflected in the sugar segment, which saw revenue fall to Rs 10,380.28 lakh from Rs 18,493.16 lakh in FY2025, widening its segment loss to Rs 2,016.34 lakh from Rs 1,811.18 lakh. The distillery segment, however, provided a partial offset, with revenue rising to Rs 12,370.63 lakh from Rs 10,640.76 lakh, though segment profit moderated to Rs 2,548.31 lakh from Rs 4,303.43 lakh in the prior year. The power segment recorded improved segment profit of Rs 366.53 lakh, against Rs 217.11 lakh previously.