Comprehensive Overview

Bajaj Hindusthan Sugar Limited has successfully implemented a major debt restructuring plan approved by its lender consortium, resulting in a dramatic financial turnaround for FY 2025-26. The company reported a net profit of ₹137.96 crore (standalone) and ₹126.14 crore (consolidated), reversing from losses of ₹751.14 crore and ₹780.30 crore respectively in the previous year.

Debt Restructuring Implementation

The Resolution Plan involved comprehensive restructuring of ₹6,640.88 crore total exposure with cut-off date April 1, 2025:

  • OCD Restructuring: ₹3,215.31 crore outstanding restructured with 15-year tenor, 6-year moratorium, and reduced coupon of 0.20%
  • YTM Settlement: ₹3,584.95 crore settled through ₹645.09 crore cash payment, ₹570.01 crore converted to 111.33 crore equity shares at ₹5.12 per share, and ₹2,369.85 crore converted to CCPS
  • RoR Settlement: ₹485.60 crore converted to 485.60 crore CCPS
  • Promoter Contribution: ₹1,000 crore infused through LPGCL buyback (₹630.80 crore) and ICD (₹369.21 crore)

Capital Structure Changes

The restructuring significantly altered the company's capital structure:

  • Equity Capital: Increased from 127.74 crore shares to 239.07 crore shares through allotment to lenders
  • CCPS Issuance: 2,810.88 crore CCPS of face value ₹1 each issued to lenders
  • Authorized Capital: Increased from ₹500 crore to ₹13,000 crore to accommodate restructuring
  • Promoter Holding: Reduced from 24.95% to 13.43%

Financial Performance Improvement

The debt restructuring dramatically improved financial metrics:

  • Finance Costs: Reduced from ₹851.46 crore (FY25) to ₹25.80 crore (FY26)
  • EBITDA: Improved to ₹388.39 crore from ₹311.02 crore previous year
  • Debt-to-Equity: Improved from 22.25 to 0.93
  • Cash Position: ₹84.23 crore cash and cash equivalents

Operational Performance

The company operates 14 sugar plants, 6 distilleries, and 14 co-generation plants across Uttar Pradesh:

  • Sugar Production: 10,60,320 MT (Previous: 11,90,281 MT)
  • Alcohol/Ethanol Production: 1,04,923 KL (Previous: 1,07,757 KL)
  • Power Generation: 569.54 Million Units (Previous: 621.99 Million Units)
  • Workforce: 7,146 employees including 1,798 permanent staff

Corporate Governance & AGM

The company has convened its 94th AGM on August 27, 2026 with agenda including:

  • Adoption of financial statements for FY 2025-26
  • Re-appointment of Managing Director Ajay Kumar Sharma
  • Appointment of three new directors including 76-year old independent director Nand Lal Kalra
  • Ratification of cost auditor remuneration of ₹6 lakh

Audit & Compliance Matters

Auditors identified "Accounting Treatment of Yield to Maturity and Right of Recompense" as a Key Audit Matter due to material amounts involved (₹4,070.55 crore total) and significant management judgment in evaluating prior period errors. The financial statements include retrospective restatement reducing opening retained earnings by ₹3,315.03 crore as of April 1, 2024.

ESG & Sustainability Initiatives

The company's Business Responsibility Report identified material ESG risks including climate change, water management, and workforce health & safety. Initiatives include zero liquid discharge systems, 95% renewable electricity generation from bagasse, and ISO 45001 certification for occupational health and safety.

Going Concern Assessment

Management believes the company will continue as a going concern based on successful restructuring implementation, improved operational performance, positive EBITDA generation, and ongoing claim of ₹1,961 crore under Sugar Industry Promotion Policy, 2004 which is sub judice.