Bannari Amman Group FY26 net profit surges 41%
Bannari Amman Group reported strong FY26 earnings growth driven by improved sugar segment profitability, lower tax expenses, and ongoing investments in sugar and ethanol expansion.
INDIA – Bannari Amman Group, one of South India’s largest conglomerates, reported a sharp increase in net profit for the financial year ended March 31, 2026, supported by stronger profitability in its sugar business and reduced tax expenses following the adoption of a new tax regime.
The company’s board of directors approved the audited financial results for the quarter and full year ended March 31, 2026, during a meeting held on May 27, 2026.
Revenue from operations for the full year increased to Rs 1,916.67 crore (US$199.4M) compared to Rs 1,792.97 crore (US$186.56M) in the previous financial year, reflecting year-on-year growth of around 7%.
Net profit rose significantly to Rs 147.92 crore (US$ from Rs 104.67 crore recorded in 2024-25, representing an increase of approximately 41%.
The company’s basic and diluted earnings per share for the year stood at Rs 117.96, compared to Rs 83.47 in the prior year.
Bannari Amman Group said the improvement in earnings was largely driven by the strong performance of its sugar segment.
The sugar business posted a pre-tax and pre-finance cost segment result of Rs 95.72 crore (US$9.96M) during FY26, more than double the Rs 43.61 crore (US$4.54M) reported in the previous year.
However, the company noted that the power and distillery businesses reported lower year-on-year results, while the granite products segment recorded a loss during the reporting period.
The company also highlighted changes in its tax structure during the financial year. Bannari Amman Group said it had adopted the new tax regime under Section 115BAA of the Income Tax Act, 1961.
According to the filing, tax rates applicable under the previous regime had been used through the third quarter before being reversed in the fourth quarter to align with the new structure. As a result, total tax expenses for FY26 declined sharply to Rs 29.55 crore (US$3.07M) from Rs 57.59 crore (US$5.99M) in the previous financial year.
The board recommended a dividend of Rs 12.50 per equity share of Rs 10 each, equivalent to 125%, for the financial year 2025-26. The proposed dividend remains subject to shareholder approval during the company’s 42nd Annual General Meeting scheduled for September 23, 2026. The record date for the dividend has been fixed as September 16, 2026.
On the expansion front, the company said it is increasing the crushing capacity of its sugar unit located at Alaganchi Village in Karnataka’s Mysore District from 7,500 tonnes crushed per day to 10,000 tonnes crushed per day.
The company also stated that it is evaluating ethanol production opportunities at its existing distillery units as part of its broader expansion strategy.
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