Faran Sugar Mills Returns to Profit in FY25 With Rs254.7 Million After Tax

Faran Sugar Mills moved from a heavy loss back into profit in its 2025 financial year. The swing is the headline, taking the company from deep red a year earlier to a clear, if modest, profit, alongside a stronger balance sheet.

What the Faran Sugar Mills results showed

Faran Sugar Mills reported after-tax profit of Rs254.7 million for the year ended 30 September 2025, against a loss after tax of Rs1.53 billion in the prior year. Earnings per share recovered to about Rs7, from a loss per share of Rs56.30 the year before. Sales revenue came in at Rs11.97 billion. The board recommended no cash dividend, no bonus issue and no right issue, choosing to keep the cash inside the business as it recovers.

The balance sheet improved alongside the profit. Total equity rose to Rs2.18 billion from Rs1.41 billion. Paid-up capital increased to Rs395.11 million from Rs250.07 million, and the share premium jumped to Rs371.07 million from Rs8.47 million, which points to fresh equity raised during the year. A stronger equity base gives a sugar miller more room to carry the seasonal swings in its cash needs.

Why the result matters for sugar stocks

Sugar mills run on a tight cycle. Cane prices are set by the government, sugar selling prices are watched and at times capped, and revenue depends on the size and timing of the crushing season. After a loss year, a return to profit usually reflects some mix of better sugar prices, higher volumes, or tighter control of costs and finance charges. The early read carried into the first quarter of the new year, where Faran reported earnings per share of Rs1.87 against Rs0.31 in the same quarter a year earlier, a sign the recovery was not a one off in the annual numbers.

The decision to skip a dividend fits a company that has just climbed out of a loss and raised equity. Holding cash supports the working capital that crushing season demands and rebuilds the buffer that the prior loss ate into.

Which stocks, and why

This is a direct, company specific result for Faran Sugar Mills, and the read is positive. Moving from a Rs1.53 billion loss to a Rs254.7 million profit, with a stronger equity base and a better start to the new year, is a real turnaround, which is why the influence is high. The standing risks are regulated cane and sugar prices, the cost of debt, and whether the recovery in margins holds through another full season.

What to watch

Track the next crushing season for cane supply and sugar prices, since both set the revenue base. Watch whether the first-quarter momentum carries through the year and whether the company keeps its finance costs in check. With no dividend this year, watch how the retained cash is used and whether a payout returns once the recovery is more settled.