Gayatri Sugars shareholders have approved the appointment of Mrs. Sarita Danda as an independent director through a postal ballot process conducted in July and August 2026.

The resolution, proposed by the Board of Directors, received significant backing from equity holders. Voting was conducted exclusively through remote e-voting facilitated by Central Depository Services (India) Limited (CDSL), in compliance with Section 110 of the Companies Act, 2013 and SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.

Voting Results

The scrutinizer’s report, filed by Practicing Company Secretary Y. Koteswara Rao, details the outcome of the single resolution placed before shareholders. The cut-off date for determining eligible voters was July 10, 2026.

A total of 126 members participated in the e-voting process. Of these, 117 members voted in favour of the resolution, representing 87.75% of the total valid votes cast. Nine members voted against the proposal, accounting for 12.25% of the votes. No invalid votes were recorded.

Procedural Compliance

The postal ballot notice was dispatched to all equity shareholders appearing on the Register of Members or List of Beneficial Owners as on the cut-off date. An advertisement regarding the ballot was published on July 21, 2026, pursuant to Rule 22(3) of the Companies (Management and Administration) Rules, 2014.

E-voting commenced on July 21, 2026, at 9:00 am and concluded on August 19, 2026, at 5:00 pm. The scrutinizer monitored the electronic voting process through a secured link provided by CDSL and reconciled the final data with the company’s records after the voting window closed.

Gayatri Sugars Limited reported a widened net loss of ₹1,909.09 lakh for the first quarter of FY26 (Q1FY26), compared to a loss of ₹1,859.65 lakh in the corresponding period of the previous year. The deterioration in profitability was driven by a decline in revenue from operations and sustained high finance costs, which weighed heavily on the bottom line despite a marginal decrease in total expenses. Investors should note that the company’s auditors issued a modified conclusion on the financial statements due to an unresolved litigation matter regarding electricity duty, creating uncertainty around potential contingent liabilities.

The Board of Directors approved the unaudited financial results on August 11, 2026, pursuant to Regulation 30 read with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. MOS & Associates LLP, the statutory auditors, submitted a limited review report. The management also approved the Directors' Report and the notice convening the 31st Annual General Meeting. No funds were raised during the quarter, making Regulation 32(1) disclosures regarding deviation in application of proceeds not applicable.

Financial Performance

Revenue from operations fell to ₹2,449.67 lakh in Q1FY26, down from ₹2,784.92 lakh in Q1FY25. Other income contributed a modest ₹6.59 lakh, bringing total income to ₹2,456.26 lakh. Total expenses stood at ₹4,365.35 lakh, slightly lower than the ₹4,646.92 lakh incurred in the prior year quarter. However, the cost structure remains challenging, with finance costs accounting for a significant portion of expenditures at ₹667.30 lakh, compared to ₹804.69 lakh in Q1FY25.

The basic earnings per share (EPS) recorded a loss of ₹2.57, worsening from a loss of ₹2.50 in the previous year. Diluted EPS also showed a loss of ₹2.57. The company’s paid-up equity share capital remained unchanged at ₹7,430.05 lakh.

Segment Analysis

The sugar segment continued to be the primary drag on performance, reporting a segment result of (₹1,227.47 lakh), compared to a loss of ₹1,176.66 lakh in Q1FY25. Sugar revenue declined to ₹2,029.04 lakh from ₹2,591.66 lakh YoY. Conversely, the distillery segment reported a smaller loss of ₹20.91 lakh, a significant improvement from the profit of ₹119.35 lakh in the prior year, though distillery revenue rose slightly to ₹1,022.30 lakh from ₹980.90 lakh. Inter-segment revenue was ₹601.67 lakh.

What the Numbers Show

A critical observation is the persistent pressure on the balance sheet from high leverage. The company disclosed total financial indebtedness of ₹134.09 crore, with outstanding loans and revolving facilities amounting to ₹24.25 crore. Despite a reduction in absolute finance costs YoY, the interest burden remains substantial relative to the shrinking operational revenue. Furthermore, the sugar segment’s asset base surged to ₹42,768.80 lakh, more than tripling from ₹14,624.67 lakh in Q1FY25, suggesting significant capital deployment or revaluation that has not yet translated into proportional revenue generation in this off-season quarter.

Litigation and Contingent Liabilities

The auditors highlighted a material matter concerning a writ petition dismissed by the High Court of Judicature at Hyderabad and subsequently by the Supreme Court regarding the levy of electricity duty @ 25 paisa per unit on captive generating units. The case before the Board for Industrial and Financial Reconstruction (BIFR) stands abated. The company has treated an estimated duty amount of ₹283.99 lakhs as a contingent liability without making a provision. Management estimates the potential impact at ₹170 lakhs based on interim orders, but the auditors could not comment on the ultimate outcome or its consequential impact on the financial results.