Kesar Enterprises Limited held its 91st Annual General Meeting on 20th August 2026 through Video Conference / Other Audio-Visual Means. The Chairman's speech provided a comprehensive review of FY 2025-26 performance and outlook.

Financial Performance Overview

Revenue from operations stood at ₹304.50 crore for FY 2025-26, compared to ₹333.97 crore in the previous year. This decline primarily reflected a reduction in sugar sale volumes to 6.23 lakh quintals from 7.53 lakh quintals a year earlier.

The Company's net loss narrowed significantly to ₹48.41 crore from ₹72.62 crore in FY 2024-25. EBITDA improved from negative ₹38.92 crore to negative ₹11.00 crore. This improvement was attributed to tighter cost discipline and the benefit of one-off items including interest written back on the Sugar Development Fund OTS settlement, an insurance claim received, and proceeds from the sale of leasehold land rights.

Operational Performance

Crushing operations for Season 2025-26 began later than planned and closed earlier. The plant processed 55.31 lakh quintals of cane over 98 days, lower than 59.46 lakh quintals over 108 days in the preceding season.

The principal reason for reduced operations was diversion of cane centres by farmers' groups to neighbouring mills due to delays in clearing cane price dues from the prior season. This reduced the Company's command area from 27,012 hectares to 18,636 hectares.

Sugar recovery improved to 10.23% from 9.55%, reflecting continued agronomic effort within a shrinking cane base and also due to a later startup.

Segment Performance

Power Division: Continued to benefit from the Uttar Pradesh Electricity Regulatory Commission's revised multi-year tariff, which moved to ₹4.43 per unit for FY 2025-26. This supported better revenue visibility even as generation volumes were constrained by lower cane and bagasse availability.

Spirits Division: Remained shut through the year as prevailing molasses costs and RS/SDS/ethanol realisations continued to render distillery operations commercially unviable. A decision on restarting operations will be taken around September–October 2026 based on market conditions at that time.

Industry Environment and Outlook

The Company highlighted structural challenges facing the Uttar Pradesh sugar industry, including:

  • State Advised Price regime that runs meaningfully ahead of the Fair and Remunerative Price
  • Minimum Selling Price (MSP) for sugar that has remained unchanged at ₹31 per kilogram for over six years
  • Production costs that remain the highest among major sugar-producing states

The Company, together with industry bodies, continues to press for a rational, recovery-linked cane pricing formula and timely revision of the MSP.

For FY 2026-27, the Company expects sugar prices to remain steady, aided by lower opening stocks and the Government's continuing restriction on exports. The Company intends to prioritize improving its cane payment cycle to protect its command area, particularly with a new sugar mill coming up within 15 kilometres of its zone.

The Board views the near and medium-term industry outlook as cautiously positive.

Governance and Appreciation

The Board remains committed to prudent financial management, sound internal controls, and high standards of governance and compliance. The Chairman expressed appreciation for fellow Directors, employees, workforce, farmers, bankers, and regulatory authorities.

Cautionary Statement

The document contains forward-looking statements within the meaning of applicable laws and regulations. The Company's actual results, performance, or achievements could differ materially from those projected in any such forward-looking statements.