Key Quantitative Figures and Orders

  • The Cane Commissioner, Uttar Pradesh, issued a Cane Reservation Order dated October 19, 2026.
  • The order allocated a "very meagre" quantum of sugarcane to the Company's Units at Simbhaoli and Brijnathpur.
  • NIL allocation was made to the Unit at Chilwaria.
  • A "substantial number" of cane purchase centres attached to the Company's Units were diverted to other sugar mills.

Legal Proceedings and Dates

  • The Reservation Order was challenged before the Hon'ble Allahabad High Court. The Court directed the Company to file a statutory appeal before the competent authority within 24 hours and for the appeal to be decided expeditiously.
  • Appeals were filed before the Additional Chief Secretary, Sugar Industry and Cane Development, Government of UP, Lucknow (Appellate Authority under the UP Sugarcane (Regulation of Supply & Purchase) Act 1953) on October 31, 2026, for all three units.
  • Hearings were held on November 5, 2026.
  • The appeals were dismissed by the appellate authority vide Order dated November 12, 2026.
  • The Company is in the process of challenging this decision before a higher judicial forum.

Financial and Operational Impact

  • The rejection of the appeal is expected to have a significant adverse impact on the Company's cane availability, crushing volume, capacity utilization, and sugar production.
  • Consequently, a significant adverse impact on revenue and profitability during Sugar Season 2026-27 is expected.
  • The financial impact cannot be reliably quantified at this stage.

Status of Commencement of Crushing Operations (Unit-wise)

  • Unit Simbhaoli (Complex), U.P.: Crushing operations have not commenced due to insufficient cane allocation. Workers are on strike, demanding adequate cane allocation to commence operations.
  • Unit Brijnathpur (Complex), U.P.: Crushing operations commenced on November 14, 2026.
  • Unit Chilwaria (Complex), U.P.: Crushing operations have not commenced due to non-allocation of sugarcane for the season.

Company Stance and Future Communication

The Company is closely monitoring the situation and evaluating its operational and financial implications. Any further material developments will be communicated to the Stock Exchanges in accordance with SEBI (LODR) Regulations, 2015.