ANDHRSUGARThe Andhra Sugars Ltd.
The Andhra Sugars to close Bhimadole sugar unit and Kovvur acid unit
- Guidance
- Chemicals - Inorganic
Reviewed byKeshav SehgalBlacklitt Research
The Andhra Sugars (NSE: ANDHRSUGAR) said in a filing on 07 Nov 2026 that its board approved the closure of its sugar unit at Bhimadole and its sulphuric acid unit at Kovvur, both with effect from 1 Oct 2026. The company's latest quarter had total income of ₹637.80 crore and net profit of ₹46.63 crore.
Key highlights
- Bhimadole sugar unit pre-tax loss: ₹7.31 crore in 2025-26
- Kovvur sulphuric acid unit pre-tax profit: ₹4.02 crore in 2025-26
- Closure effective date: 01 Oct 2026 for both units
- Bhimadole share of company profit before tax: (6.44%)
- Kovvur share of company profit before tax: 3.54%
The closures in numbers
| Item | Detail |
|---|---|
| Units closed | Sugar Unit at Bhimadole; Sulphuric Acid Unit at Kovvur |
| Board approval | 07 Nov 2026 |
| Effective date | 01 Oct 2026, for both units |
| Bhimadole pre-tax result, 2025-26 | Loss of ₹7.31 crore |
| Bhimadole share of company profit before tax | (6.44%) |
| Kovvur pre-tax result, 2025-26 | Profit of ₹4.02 crore |
| Kovvur share of company profit before tax | 3.54% |
| Binding sale agreement | None for either unit |
Reasons given for each closure
The company states that the Bhimadole sugar unit is being closed because the plant is more than 60 years old and a similar facility is being expanded at another location. The filing does not name that location.
The company states that the Kovvur sulphuric acid unit is being closed because cane has not been available over the past few seasons. The Board reviewed the unit before deciding on the closure.
Size of the two units against the company
The Bhimadole unit recorded a pre-tax loss of ₹7.31 crore in 2025-26, which the company puts at (6.44%) of its total profit before tax. The Kovvur unit recorded a pre-tax profit of ₹4.02 crore, or 3.54% of the company total. The two shares are reported separately in the filing and are not combined into a single figure here.
Against the latest quarter's total income of ₹637.80 crore, the company's most recent reported results show the scale of the wider business in which the two units operate.
What the closures mean for The Andhra Sugars' shareholders
The closures end two operating units of the company from 1 Oct 2026. The filing gives the pre-tax results of both units for 2025-26 but does not say what effect the closures will have on future revenue or profit, how many employees are affected, whether the assets will be sold, reused or written down, or what costs or provisions are linked to the closures.
The filing sets no further dated step beyond the effective date of 1 Oct 2026.
Filed with NSE on . Reference: Original filing (PDF)
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