1. Unaudited Financial Results for the Q/E 30.06.2025 along with Limited Review by the Statutory Auditors. 2. Appointment of Independnt Director.
Awaiting price reaction for this filing.
Dharani Sugars reported Q1 FY26 revenue of just Rs 23.10 lakhs, down sharply from Rs 71.52 lakhs a year ago, as the company continues to face operational stress. Net loss for the quarter widened to Rs 2,058.36 lakhs versus Rs 1,342.59 lakhs in Q1 FY25, and the full-year FY25 loss stood at Rs 9,299.53 lakhs. The company has negative net worth, and results have been prepared on a going-concern basis pending a revival plan. The statutory auditor (Srivatsan & Associates) issued a modified review report flagging nine concerns, including non-provision of interest on related-party loans (Rs 18,119.32 lakhs outstanding), unpaid Sugar Development Fund OTS of Rs 5,745.60 lakhs, overdue loan of Rs 2,470 lakhs from iHeart Properties, unpaid statutory dues, and Rs 33,465 lakhs in unsustainable debt sitting as a contingent liability. Additionally, Mr P Sakthivel, a retired United India Insurance Deputy Manager, was appointed as Independent Director for 5 years from 14 August 2025, subject to shareholder approval.
The deepening losses, near-zero revenues, negative net worth, and the auditor's heavily qualified review point to severe financial distress, with significant contingent liabilities that could pressure the stock. The new Independent Director adds board oversight but does not address the underlying operational and liquidity challenges, leaving near-term equity risk elevated for shareholders.