Kesar Enterprises board accepted a one-time settlement for outstanding cogeneration loan dues sanctioned by the Sugar Development Fund. The move resolves legacy liabilities under the statutory scheme.

The Board of Directors approved the settlement on August 25, 2026. The decision follows administrative approval received from the Sugar Development Fund through IFCI Limited on August 18, 2026.

Settlement Details

The company opted for the one-time settlement to conclusively settle dues under the cogeneration loan. This action aligns with the Sugar Development Fund Act, 1982, and the Sugar Development Fund Rules, 1983.

The company must pay the settlement amount within six months from the date of administrative approval. The disclosure was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Kesar Enterprises reported a narrowed net loss of ₹48.41 crore for the fiscal year ended March 31, 2026, compared to a loss of ₹72.62 crore in FY25. The company held its 91st Annual General Meeting on August 20, 2026, where shareholders approved the audited financial statements and other key resolutions. Chairman & Managing Director Harsh R Kilachand chaired the meeting, which was conducted via video conferencing.

Financial Performance

Revenue from operations stood at ₹304.50 crore, down from ₹333.97 crore in the previous year. This decline was primarily attributed to a drop in sugar sale volumes to 6.23 lakh quintals from 7.53 lakh quintals in FY25. Despite the revenue contraction, the company’s operational efficiency improved, with EBITDA moving from a negative ₹38.92 crore in FY25 to a negative ₹11.00 crore in FY26.

The narrowing of the net loss was supported by tighter cost discipline and benefits from one-off items. These included interest written back on the Sugar Development Fund OTS settlement, an insurance claim received, and proceeds from the sale of leasehold land rights.

Operational Updates

Crushing operations for the 2025-26 season began later than planned and closed earlier, processing 55.31 lakh quintals of cane over 98 days. This is lower than the 59.46 lakh quintals processed over 108 days in the preceding season. The reduction in command area, which fell from 27,012 hectares to 18,636 hectares, was due to farmers diverting cane centers to neighboring mills amid delays in clearing prior season cane price dues.

However, sugar recovery improved to 10.23% from 9.55%, reflecting agronomic efforts despite the shrinking cane base. The Power Division benefited from the Uttar Pradesh Electricity Regulatory Commission’s revised multi-year tariff of ₹4.43 per unit for FY26, supporting better revenue visibility. The Spirits Division remained shut throughout the year due to commercially unviable distillery operations, with a restart decision expected by September–October 2026.

Key Resolutions Passed

Shareholders approved four ordinary resolutions during the AGM:

• Adoption of the audited Balance Sheet (as at March 31, 2026) and Statement of Profit & Loss.
• Reappointment of Shri Devendra J Shah as Director.
• Ratification of remuneration to Cost Auditor Shri Rishi Mohan Bansal for FY27.
• Approval of Material Related Party Transactions with Kesar Terminals & Infrastructure Limited.

Governance and Outlook

The Statutory Auditors’ Report for FY26 did not carry any qualification or adverse remark. However, the Secretarial Audit Report contained certain observations, which were explained in the Directors’ Report. All directors and representatives of statutory and secretarial auditors attended the meeting.

Looking ahead, the company expects sugar prices to remain steady in FY27, aided by lower opening stocks and export restrictions. Management intends to prioritize improving the cane payment cycle to protect its command area, especially with a new mill coming up nearby. The Board views the near and medium-term industry outlook as cautiously positive.