Dharani Sugars and Chemicals Posts Loss of 7,996.77 Lakhs in Q2 FY26 Amid Operational Challenges

Dharani Sugars and Chemicals Posts Loss of 7,996.77 Lakhs in Q2 FY26 Amid Operational Challenges​

Dharani Sugars and Chemicals Limited announced its unaudited financial results for the quarter ended June 30, 2026. The company reported a net loss of (7,996.77) Lakhs across all operations during the period. The results were presented following a Board meeting held on August 10, 2026, and included segment-wise reports.

The company's total income from operations stood at 49.76 Lakhs for the quarter ending June 30, 2026. This figure contrasts with 24.29 Lakhs reported in March 2026 and 23.10 Lakhs in June 2025.

The unaudited statement of standalone financial results highlights operational difficulties across the company's segments, as summarized below:

Segment Performance and Financial Position​

The company's operations are segmented into Sugar, Distillery, and Power, with Unallocated representing a significant portion of the revenue. For the quarter ending June 30, 2026:

• Unallocated segment reported a revenue of 49.76 Lakhs.
• Sugar segment recorded a loss of (632.58) Lakhs.
• Distillery segment reported a loss of (207.96) Lakhs.
• Power segment reported a loss of (151.73) Lakhs.

The consolidated financial statements showed that the total capital employed stood at 27,587.19 Lakhs for the quarter ending June 30, 2026, which remained stable compared to the prior period's reported capital employed of 32,079.26 Lakhs.

Critical Financial and Operational Updates​

The unaudited financial statements accompanying the results detailed several critical operational and financial statuses:

Restructuring and Debt Matters:

• The Master Restructuring Agreement (MRA) dated May 24, 2024, entered into with India Debt Resolution Company Limited (IDRCL), acting as a trustee for National Asset Reconstruction Company Limited (NARCL), stands cancelled. Consequently, the original outstanding dues, including unsustainable debt amounting to INR 33,465 Lakhs, are now payable by the company.
• The Sugar Development Fund (SDF) Loan, which was covered under a One Time Settlement (OTS) sanctioned for an amount of INR 6,111 Lakhs, is also in default following a missed repayment deadline extended up to April 06, 2026. The SDF Authority subsequently cancelled the OTS arrangement, making the original liability and applicable interest payable by the company.
• The company has not reclassified any of the creditidible borrowings as current liabilities due to continuous discussions and negotiations regarding restructuring and repayment obligations with lenders.

Liabilities and Investments:

• Total outstanding loans from Directors and related parties stood at INR 21,633.56 Lakhs as of June 30, 2026. The company had also obtained unsecured loans totaling INR 223.03 Lakhs during the quarter.
• A loan availed from I Heart Properties Private Limited in August 2024 for a tenure of four months has remained unpaid beyond its due date. As of June 30, 2026, the outstanding amount is INR 2,996.21 Lakhs, which includes accrued interest amounting to INR 526.21 Lakhs.
• The company holds investments in Appu Hotels Limited with a carrying amount of INR 1,455.39 Lakhs as at June 30, 2026, and management is assessing the fair value of these investments in compliance with Ind AS 113.

Operational Status and Regulatory Matters:

• The company has accumulated losses resulting in a negative net worth as of June 30, 2026. Manufacturing facilities and operations have reportedly remained non-operational for a prolonged period, and the company defaulted in repayment of certain borrowings and settlement obligations during the year.
• As per financial statements, the equity shares of Dharani Sugars & Chemicals Limited had been suspended from trading on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) since July 03, 2023, following initiation of liquidation proceedings by the Hon'ble National Company Law Tribunal.

Management stated that it is actively undertaking various revival and recommencement measures, including arranging working capital and holding discussions with lenders to improve the operational and financial position in the foreseeable future.