Magadh Sugar & Energy Faces Financial Challenges Amid Declining Profit and Rising Debt Costs

Magadh Sugar & Energy has recently undergone an evaluation adjustment, reflecting notable shifts in its financial metrics and market position. The company's financial performance for the quarter ending June 2025 has shown a decline, with the score experiencing a significant drop. Key indicators reveal that while operating cash flow reached a high of Rs 139.32 crore, the profit after tax for the latest six months stood at Rs 71.73 crore, marking a growth of 23.01%. However, the interest expense has surged to Rs 25 crore, reflecting a substantial increase of 98.89%.
In terms of quarterly performance, the profit after tax has fallen sharply to Rs 0.22 crore, indicating a significant contraction. Additionally, net sales for the quarter were reported at Rs 333.04 crore, which has shown a decline of 7.33%. The company's ability to service its debt is under scrutiny, as evidenced by a high debt-to-EBITDA ratio of 4.28 times.

Despite these challenges, Magadh Sugar's long-term growth metrics indicate a modest annual growth rate in net sales of 6.90% over the past five years. The stock's performance has lagged behind the broader market, with a one-year return of -30.88%, contrasting sharply with the BSE500's negative return of -1.85%.

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