Ponni Sugars FY26 profit rises to ₹48.03 crore

Ponni Sugars (Erode) Limited reported a net profit of ₹48.03 crore for the financial year ended March 31, 2026, a substantial increase from ₹19.28 crore in the previous year. The company’s total income rose to ₹429.46 crore from ₹371.41 crore in FY25, driven by improved operational performance and exceptional income from favourable legal rulings. Profit before tax for the year stood at ₹90.25 crore, compared to ₹28.04 crore in the prior year.

The Board of Directors has recommended a dividend of ₹5.00 per equity share of ₹10 each for FY26, subject to shareholder approval at the Annual General Meeting (AGM). The record date for determining eligibility is June 5, 2026. The company has scheduled its 30th AGM for Wednesday, June 24, 2026, at 11:00 AM via video conference. The meeting will be conducted in compliance with the Companies Act, 2013, and relevant SEBI regulations.

Financial and Operational Performance

The company’s operational metrics improved, with cane crushed increasing to 7,05,576 tonnes and sugar recovery rising to 9.79% from 9.17% in the previous season. Power production reached 118.9 lakh units. The financial results were bolstered by exceptional income of ₹51.64 crore, primarily arising from a favourable Appellate Tribunal for Electricity (APTEL) order regarding tariff determination and the derecognition of parallel operation charges.

Financial Metric	FY26 (₹ in Lakhs)	FY25 (₹ in Lakhs)
Total Income	42,946	37,141
Profit Before Tax	9,025	2,804
Net Profit	4,803	1,928
Earnings Per Share (₹)	55.85	22.42

Key AGM and Dividend Details

Event	Date/Time
Record Date for Dividend	June 5, 2026
Cut-off Date for e-Voting	June 17, 2026
Remote e-Voting Start	June 20, 2026 (10:30 AM)
Remote e-Voting End	June 23, 2026 (5:00 PM)
30th AGM	June 24, 2026 (11:00 AM)

Shareholders holding shares in demat mode must ensure their bank account details, email addresses, and mobile numbers are registered with their Depository Participants or the Registrar and Transfer Agent to receive the dividend payout and AGM communications. The facility for remote e-voting will be available as per the schedule listed above. The Annual Report for FY 2025-26 is available on the company's website and the stock exchange platforms.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE838E01017/b08e11aa716246a8.pdf

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.02%	-1.36%	+3.85%	+13.26%	-6.29%	+42.75%

Ponni Sugars (Erode) Limited has received an interim order from the Hon'ble High Court of Madras concerning its tax litigation for Assessment Year 2021-22. The court admitted the Writ Petition filed by the company and directed the Transfer Pricing Officer (TPO) to pass appropriate orders pursuant to an earlier directive from the Commissioner of Income Tax (Transfer Pricing). The operation of the TPO's order remains subject to the final outcome of the Writ Petition.

The dispute relates to the determination of the Arm's Length Price (ALP) for the inter-unit transfer of bagasse from the sugar unit to the eligible co-generation unit. On March 27, 2026, the CIT-TP had set aside the TPO's earlier order dated October 26, 2023, and directed a revision. The company subsequently filed the Writ Petition to quash the CIT-TP order and seek an interim stay.

In its order dated April 27, 2026, the Hon'ble High Court of Madras instructed the TPO to issue orders following the CIT-TP's directive. However, the court clarified that the effect and operation of the TPO's order would remain subject to the final outcome of the Writ Petition and without prejudice to the company's rights and contentions.

The company received a copy of the interim order from its legal counsel on May 26, 2026. The disclosure was made to the exchanges under Regulation 30 of the SEBI (LODR) Regulations, 2015.

Litigation Details

The following table outlines the key particulars of the litigation and the court's order:

Particulars	Details
Opposing Parties	1) Commissioner of Income Tax (Transfer Pricing) (CIT-TP), Chennai; 2) Deputy Commissioner of Income Tax (Transfer Pricing), Chennai (TPO); 3) Deputy Commissioner of Income Tax, Large Taxpayer Unit, Chennai; 4) The Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi.
Court/Authority	Hon'ble High Court of Madras
Development	The Hon'ble High Court of Madras admitted the Writ Petition and directed the TPO to pass appropriate orders pursuant to the CIT-TP order dated March 27, 2026. The operation of the TPO's order is subject to the final outcome of the Writ Petition.
Date of Order	April 27, 2026
Date of Receipt	May 26, 2026
Financial Impact	The company stated that there would be multiple consequential impacts for several years, but precise quantification is not possible at this juncture.