Dharani Sugars and Chemicals Limited shareholders approved a related party transaction limit of ₹300 crore for borrowings from Dharani Developers Private Limited during the company's 39th Annual General Meeting held on September 25, 2026. The meeting, conducted via video conferencing, also ratified a separate borrowing cap of ₹25 crore involving Executive Chairman Dr Palani G Periasamy.

The resolutions were passed as part of the special business agenda, alongside the adoption of audited financial statements for FY26 and the re-appointment of Director Visalakshi Periasamy. The meeting was chaired by Dr Palani G Periasamy, with a quorum present comprising 48 members representing 46.75% of the equity shares.

Governance and board changes

Visalakshi Periasamy was re-appointed via a special resolution after crossing the age of 80 and retiring by rotation. The board also ratified the appointment of M/s SRR Associates as cost auditors for FY27. Voting results were to be announced following the scrutinizer’s report, in compliance with SEBI listing regulations.

Sector context and operational status

In his address, the Chairman highlighted that India’s sugar production for the current season is estimated at 306 lakh MT, down from an initial forecast of 343 lakh MT due to disease outbreaks and waterlogging. Domestic sugar prices rose to ₹55.70 per kg on August 20, 2026, reflecting a 15.6% increase from July levels.

The company remains in a recovery phase following the withdrawal of its Corporate Insolvency Resolution Process (CIRP) in May 2024. Post-restoration of the Board, Dharani Sugars has recalled employees and commenced overhaul work to restart crushing operations. The management stated it is arranging necessary funding to settle loans and resume full-scale production.

What the numbers show

The approval of a ₹300 crore borrowing limit from a single related entity (Dharani Developers) significantly exceeds the ₹25 crore limit approved for the Chairman personally. This disparity indicates that the company’s near-term liquidity strategy relies heavily on intra-group financing rather than direct promoter funding or external debt markets, which aligns with the disclosed need to arrange funding post-CIRP exit.

Dharani Sugars and Chemicals Limited (NSE: DHARSUGAR) has closed its trading window for all directors and designated persons effective October 1, 2026. This closure remains in force until 48 hours after the company declares its unaudited financial results for the quarter ended September 30, 2026.

The restriction applies to all connected persons and their immediate relatives, prohibiting them from dealing in the company's securities during this period. The move complies with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company's internal code of conduct regarding insider trading.

Regulatory compliance details

The company informed both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of the closure in a filing dated September 24, 2026. The notification cites the requirement to prevent the misuse of unpublished price-sensitive information ahead of the board meeting to approve the quarterly results.

Board meeting schedule

The date of the board meeting to approve the unaudited financial results for the second quarter of fiscal year 2027 will be announced in due course. Until that announcement is made and the subsequent 48-hour cooling-off period elapses, all designated persons must refrain from trading in the company's shares on either exchange.