Dharani Sugars & Chemicals Limited has submitted to the Exchange, the financial results for the period ended December 31, 2025.
Awaiting price reaction for this filing.
Dharani Sugars & Chemicals reported deeply negative results for Q3 FY26, with total operating revenue of just Rs 17.25 lakhs (down from Rs 22.47 lakhs in Q3 FY25), suggesting near-complete operational shutdown. Net loss for the quarter widened to Rs 2,028.19 lakhs versus Rs 1,883.54 lakhs loss in Q3 FY25, while the nine-month loss stood at Rs 6,051.81 lakhs (9M FY25 loss: Rs 5,821.38 lakhs). The auditor (Srivatsan & Associates) issued a qualified opinion, highlighting that the company has accumulated losses and negative net worth, raising going concern doubts. All three segments — Sugar, Distillery, and Power — reported losses. The company disclosed Rs 33,465 lakhs as unsustainable debt under contingent liabilities under a Master Restructuring Agreement, and Rs 21,202.13 lakhs as outstanding loans from directors and related parties, with interest not being accrued. Several loans are overdue, statutory dues remain unpaid, and 83.14 lakh equity shares issued to NARCL under debt resolution are still not dematerialized or listed.
Very negative for shareholders. The company is in severe financial distress with operations almost halted, negative net worth, qualified auditor opinion, and material going concern uncertainty. The large contingent liabilities and related-party borrowings, combined with unpaid statutory dues and overdue loans, pose significant solvency risks. Shareholders face high dilution and recovery risk given the negative capital employed in the Sugar segment.