Sakthi Sugars Limited FY26 Financial Performance and AGM Notice
Financial Highlights
Sakthi Sugars reported revenue of ₹89,897.02 lakhs for FY26, down from ₹92,854.06 lakhs in the previous year. Net profit declined significantly to ₹2,813.45 lakhs from ₹7,997.12 lakhs, representing a 63.65% decrease in net profit margin. Operational performance remained stable with sugar production of 1.23 lakh MT (previous: 1.24 lakh MT), industrial alcohol production of 243.62 lakh litres, and power generation of 2032.11 lakh units.
Lease Accounting Details
The company's lease liabilities reduced to ₹35.40 lakhs from ₹60.07 lakhs in FY25. Maturity analysis shows ₹29.77 lakhs due within one year and ₹5.63 lakhs due in 1-2 years. The statement of profit and loss recorded interest on lease liability of ₹8.41 lakhs, short-term lease expenses of ₹40.60 lakhs, and depreciation on right-of-use assets of ₹21.10 lakhs.
64th Annual General Meeting
The company will hold its 64th AGM on September 25, 2026 through video conferencing. Key resolutions include reappointment of Managing Director M Balasubramaniam and Joint Managing Director M Srinivaasan for 5 years without remuneration, appointment of S Chandrasekhar as Non-Executive Director, and ratification of cost auditor remuneration of ₹4.50 lakhs for FY27.
Operational Performance Breakdown
Sugar Division: Crushed 15.55 lakh tonnes of sugarcane across three units, generating revenue of ₹61,066.16 lakhs (down from ₹64,623.47 lakhs).
Distillery Division: Produced 243.62 lakh litres of industrial alcohol with revenue increasing to ₹17,495.16 lakhs from ₹16,952.97 lakhs.
Co-generation Division: Generated 2032.11 lakh units of power, exporting 1230.27 lakh units. Revenue increased to ₹11,335.70 lakhs from ₹7,820.30 lakhs, including recognition of ₹4,410.64 lakhs as differential tariff income based on APTEL judgment.
Corporate Developments and Compliance
The company resolved previous audit qualifications by assigning interest receivable of ₹25,219.69 lakhs from Sakthi Auto Component Limited and applied for One Time Settlement with Sugar Development Fund. ABT Investments transferred shares to Dr M Manickam, reducing its holding from 55.93% to 41.75%, making the company an Associate rather than Subsidiary. The company paid fines to BSE and NSE for technical non-compliance regarding director appointments.
Financial Position and Ratios
Total assets stood at ₹1,43,798.09 lakhs with borrowings of ₹71,990.21 lakhs. Significant ratio changes include interest coverage ratio improvement to 1.77 times from 1.40 times, operating profit margin increase to 15.19% from 11.86%, and return on networth decline to 13.18% from 50.52%.
Defaults and Contingencies
The company has defaulted in repayment of Sugar Development Fund loan: Principal ₹3,614.56 lakhs (since May 2013) and Interest ₹7,563.37 lakhs (since May 2010). Contingent liabilities total ₹11,791.65 lakhs relating to various tax matters, with corporate guarantees outstanding of ₹28,469.73 lakhs for related parties.
Historical Context and Outlook
The company maintains historical performance data dating back to 1968. For FY27, management expects higher sugarcane crush subject to rainfall conditions and continues focus on ethanol blending program opportunities while monitoring risks related to sugarcane availability and weather uncertainties.