Dharani Sugars & Chemicals Limited has informed the Exchange regarding Board meeting held on August 14, 2025.
Awaiting price reaction for this filing.
The board, at its meeting on August 14, 2025, approved the unaudited financial results for Q1 FY26 (quarter ended June 30, 2025). Revenue from operations was just Rs 23.10 lakhs, compared to Rs 4.09 lakhs in Q1 FY25 and Rs 77.27 lakhs in Q4 FY25, reflecting extremely weak operations. The company posted a net loss of Rs 2,058.36 lakhs, wider than the Rs 1,342.59 lakh loss a year ago, with finance costs of Rs 959.57 lakhs and EPS of negative Rs 4.04. All three segments — Sugar, Distillery, and Power — reported losses. The statutory auditor issued a modified review report, flagging that the company has negative net worth, going concern doubt, unpaid statutory dues (TDS, PF, ESI, etc.), a defaulted Rs 2,470 lakh loan from Iheart Properties, an unpaid Sugar Development Fund OTS of Rs 5,745.60 lakhs, and a contingent unsustainable debt of Rs 33,465 lakhs. The board also appointed Mr P Sakthivel (former United India Insurance Deputy Manager) as Independent Director for five years, subject to shareholder approval.
Deeply negative for shareholders — the company is loss-making across all segments with near-zero revenue, negative net worth, and multiple loan defaults, raising serious going concern risks. Existing investors should brace for continued stock pressure; the company is relying on debt restructuring and revival plans to stay afloat, and any failure of these could be value-destructive.