Key Metrics of Ponni Sugars (Erode) Limited
About Ponni Sugars (Erode) Limited
Sectors
Company details
- Registered office
- Esvin House,no.13, Old Mahabalipuram Road, Seevaram Village,perungudi, Chennai - 96., Chennai, In-tn, 600096
- Listed
- NSE: PONNIERODE · ₹340.50
Operational Areas of Ponni Sugars (Erode) Limited
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
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Vendor checks & payment capacity
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Credit ratings
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 08 Jul 2026 | CARE | Reaffirmed | A- | A2+ | Stable | ₹16.0 Cr | View |
| 02 Jul 2025 | CARE | Reaffirmed | A- | A2+ | Stable | ₹16.0 Cr | View |
| 27 Jun 2024 | CARE | Revised (from BBB+) | A- | A2+ | Stable | ₹16.0 Cr | View |
| 04 Jul 2023 | CARE | Reaffirmed | BBB+ | A2 | Stable | ₹31.0 Cr | View |
| 07 Jul 2022 | CARE | Reaffirmed | BBB+ | A2 | Stable | ₹62.0 Cr | View |
| 19 Jul 2021 | CARE | Other | — | — | — | — | View |
| 02 Jul 2020 | CARE | Other | — | — | — | — | View |
| 03 Oct 2019 | CARE | Reaffirmed | BBB | A3+ | Negative | ₹60.6 Cr | View |
Credit strengths (CARE, Jul 2026)
+ Strong parentage with longstanding experience in sugar manufacturing
PSEL is part of Seshasayee Paper and Boards Limited - Esvin Group (SPB-Esvin group), which has over six decades of experience in pulp & paper manufacturing, sugar manufacturing, engineering consultancy and battery manufacturing. PSEL has over three decades of experience in sugar manufacturing and has over time, acquired significant experience in managing the seasonal nature and other challenges in the sugar industry. The company has qualified Teir II management personnel having experience in the
+ Geographical advantage of the plant leading to higher crushing period
PSEL undertakes cane crushing twice a year owing to geographical advantage. PSEL’s command area is near Cauvery riverbanks, which provide a reliable water source for sugarcane cultivation and sugar mill operations. The two-sugarcane crushing seasons comprises normal one from November to March with additional season being July to October. Higher availability of the sugarcane enables company to undertake higher sugarcane crushing in the year.
+ Partially integrated operations and revenue generation from sale of by-products
PSEL is partially integrated with a 19 megawatt (MW) co-generation plant. Of the total production in FY26, ~25% was used for auxiliary and self-consumption and the balance is sold to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) on the basis of a long-term power purchase agreement (PPA) per rate fixed by Tamil Nadu Electricity Regulatory Commission (TNERC) periodically. Of the total gross sales in FY26, ₹271.97 crore (~54%) was derived from sugar, ₹44.61 crore (~09%) through sale
Credit challenges
− Moderate scale of operations and profit margins
Overall scale of operations remained moderate, and fluctuating marked by TOI stood in the range of ₹288.35 crore to ₹435.43 crore from FY22 to FY26. However, TOI increased to ₹414.99 crore in FY26, compared to ₹359.46 crore in FY25, owing to increase in sugar sales led by higher crushing rate and increased revenue from power segment. Average crushing rate has increased to 2,822 tonne per day (TCD) in FY26 against 2,470 TCD in FY25 considering higher sugarcane availability in the year. The gross
− Regulated and seasonal nature of sugar industry
The sugar industry is regulated and susceptible to government policies owing to importance of sugar in the wholesale price index (WPI) calculation and it being an essential commodity. To regulate supply and price of sugar, the government resorts to regulations such fixing of Fair & Remunerative Prices (FRP) of sugarcane, regulating quantities of sugar export, and allocating minimum sale quota to sugar mills among others. All these factors impact cultivation patterns of sugarcane in the country a
Could lead to an upgrade
• Significant increase in total operating income (TOI) over ₹700 crore and improvement in profit before interest, lease rentals, depreciation and taxation (PBILDT) margin at 14% supported by increasing volumes crushed and improvement of recovery rates.
Could lead to a downgrade
• Debt funded capex / increase in the utilisation of working capital limits resulting in overall gearing over 0.50xon a sustained basis. • Declining scale of operations to less than ₹350 crore and significant reduction in PBILDT margin on a sustained basis. • Inordinate delay in realisation of power dues impacting cashflows and
Agency-reported financials (CARE, 08 Jul 2026)
| Metric | March 31, 2025 | March 31, 2026 |
|---|---|---|
| Total operating income | ₹359 Cr | ₹415 Cr |
| PBILDT | ₹26.22 Cr | ₹36.50 Cr |
| Profit after tax (PAT) | ₹19.28 Cr | ₹48.56 Cr |
| Overall gearing (x) | 0.00× | 0.00× |
| Interest coverage (x) | 524.40× | 521.43× |
| Revenue growth (YoY) | — | 15.4% |
| EBITDA margin | 7.3% | 8.8% |
| Implied interest cost (EBITDA ÷ coverage) | ₹0.05 Cr | ₹0.07 Cr |
| PAT margin | 5.4% | 11.7% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term bank facilities | Working capital & bank lines | — | ₹15.0 Cr | — | A- (Stable) | Reaffirmed | CARE |
| Short-term bank facilities | Working capital & bank lines | — | ₹1.00 Cr | — | A2+ | Reaffirmed | CARE |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | ₹1.00 Cr | CARE A2+ |
| Cash Credit | ₹15.0 Cr | CARE A-; Stable |
| Term Loan | — | Withdrawn |
Lenders
| Fund-based - LT | Cash Credit | Canara Bank |
| Fund-based - LT | Cash Credit | HDFC Bank Ltd. |
| Fund-based - LT | Cash Credit | IDBI Bank Ltd. |
| Non-fund-based - ST | BG/LC | Canara Bank |
| Non-fund-based - ST | BG/LC | IDBI Bank Ltd. |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 82% |
| Information on file | 78% · missing: Capex / investment plans, Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 76% chance the next rating action is stable or better
- Current rating A- (investment grade)
- Interest coverage 521.43×
- Working-capital limits 3.22% utilised on average
Rated limits by facility
Timeline
From the report
Liquidity: Strong The liquidity position remained strong marked by no long-term debt and free cash and bank balance of ₹47.17 crore as on March 31, 2026, compared to ₹26.03 crore as on March 31, 2025.
From the report
Liquidity: Strong The liquidity position remained strong marked by no long-term debt and free cash and bank balance of ₹47.17 crore as on March 31, 2026, compared to ₹26.03 crore as on March 31, 2025.
From the report
Utilisation of its working capital facilities stood comfortable marked by average maximum and average utilisation of fund-based limits at 3.22% and 0.14% respectively for 12-months ended April 2026. utilisation of non-fund-based limits remain nil for 12-months ended June 2025.
From the report
Cash flow from operations stood negative at ₹43.74 crore in FY26 (against positive ₹7.83 crore in FY25) owing to increase in other receivables pertaining to TNPDCL.
From the report
The company sparsely uses its sanctioned fund-based limits of ₹15 crore, which provides an additional liquidity backup.
From the report
As on March 31, 2025, PSEL had free cash and bank balance of ₹26.03 crore (current account and cash in hand: ₹5.24 crore; deposits with maturity less than 12 months: ₹20.79 crore).
From the report
The company sparsely uses its sanctioned working capital limits of ₹15 crore, which provides significant backup.
From the report
As on March 31, 2024, PSEL had free cash and bank balance of ₹40.58 crore (current account and cash in hand: ₹6.4 crore; deposits with maturity less than 12 months: ₹39.94 crore).
From the report
The ratings continue to derive strength from the experience of promoters in sugar industry, its partially integrated operations with Cogen unit, comfortable capital structure with no long-term debt and low reliance on working capital limits and various measures undertaken by government to support the sugar industry.
From the report
As on March 31, 2023, PSEL has free cash balanceof Rs. 31.45 crore.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Ponni Sugars (Erode) Limited
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
| Rana Sugars Limited | Discovered Companies · Other Industries | — | — | Chandigarh, India |
 Shree Renuka Sugars |
Discovered Companies · Other Industries | renukasugars.com | 1998 | Belagavi, India |
| Bajaj Hindusthan Sugar Limited | Discovered Companies · Other Industries | — | — | Golagokaranath, Uttar Pradesh, India |
| Dhampur Sugar Mills Limited | Discovered Companies · Other Industries | — | — | Dhampur, Uttar Pradesh, India |
| Dalmia Bharat Sugar And Industries Limited | Discovered Companies · Other Industries | — | — | Tiruchirappalli, Tamil Nadu, India |
| Avadh Sugar & Energy Limited | · Manufacturing (Food stuffs) | — | — | Sitapur, Uttar Pradesh, India |
| Bannari Amman Sugars Limited | Discovered Companies · Other Industries | — | — | Coimbatore, Tamil Nadu, India |
| The Andhra Sugars Limited | Discovered Companies · Other Industries | — | — | Tanuku, Andhra Pradesh, India |
| Uttam Sugar Mills Limited | Discovered Companies · Other Industries | — | — | Roorkee, Uttarakhand, India |
| Dwarikesh Sugar Industries Limited | Discovered Companies · Other Industries | — | — | Bijnore, Uttar Pradesh, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Principal business activities and related-party transactions are read from MGT-7 and AOC-4 filings.
Filings
No filings on record yet.