Audited Finance Results for the Quarter and year ended 31st March 2025
Awaiting price reaction for this filing.
Dharani Sugars reported a net loss of Rs 9,299.53 lakhs for FY25 versus a Rs 12,132.39 lakh profit in FY24 (which included a one-time exceptional gain of Rs 15,890.05 lakhs). Revenue from operations was just Rs 71.52 lakhs against Rs 77.52 lakhs last year, as the company essentially remained shut post-CIRP exit. The company has a negative net worth of Rs 16,328.14 lakhs and accumulated losses, prompting a going concern qualification from auditors. Statutory auditor Srivatsan & Associates issued a qualified opinion highlighting 5 issues, including the going concern risk, valuation of investment in Appu Hotels, missing balance confirmations, Rs 33,465 lakhs unsustainable debt parked as contingent liability, and interest not being provided on related-party loans of Rs 16,586.91 lakhs. Cash flow from operations was positive at Rs 7,143.57 lakhs driven mainly by working capital adjustments. The board also approved the 38th AGM in late September 2025 and various auditor appointments.
This is a deeply distressed company with negligible operations, negative net worth, and repeated audit qualifications — equity shareholders remain at high risk with the stock effectively speculative until cane-crushing resumes by November 2025. The pending dematerialisation of 83 lakh shares issued to NARCL and the Rs 33,465 lakh contingent liability overhang mean further dilution and uncertainty cannot be ruled out.