Ponni Sugars (Erode) Limited has filed its Secretarial Compliance Report for the financial year ended March 31, 2026, with the stock exchanges. The report, issued by V Suresh Associates, Practising Company Secretaries, confirms that the listed entity has complied with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Compliance Status

The audit examined the company's adherence to various SEBI regulations, including those related to insider trading, buybacks, and share-based employee benefits. The report states there were no events during the audit period concerning capital issuance, substantial acquisition of shares, or buybacks of securities. Consequently, the company reported no deviations or non-compliances.

Key Findings

The report highlights the company's adherence to secretarial standards and the maintenance of its functional website. It confirms that all applicable policies under SEBI Regulations were adopted by the board of directors and updated timely. Additionally, the company has conducted performance evaluations of the Board and its committees as prescribed.

The report further notes that no action has been taken against the listed entity, its promoters, or directors by SEBI or the stock exchanges. It also confirms compliance with regulations regarding the preservation of documents and the disclosure of events or information under Regulation 30.

Auditor Certification

V Suresh Associates certified the report based on an examination of documents, records, and filings made by the company. The firm clarified that the report is neither an audit nor an expression of opinion on the financial records. It is intended solely for the purpose of compliance with Regulation 24A of the SEBI (LODR) Regulations, 2015.

Ponni Sugars (Erode) Limited reported its audited financial results for the quarter and year ended 31st March 2026, as approved by the Board of Directors at its meeting held on 11th May 2026. The company delivered a notably stronger performance in FY26, driven by higher revenue from operations and a significant exceptional gain arising from a favourable electricity tariff tribunal ruling. The auditors, M/s S. Viswanathan LLP, issued an unmodified opinion on the annual financial results. The company published these audited financial results in newspapers on 12th May 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company's total income rose to ₹42,946 lakhs in FY26 from ₹37,141 lakhs in FY25, reflecting growth across both its Sugar and Co-generation segments. Revenue from operations for the full year stood at ₹41,499 lakhs, compared to ₹35,946 lakhs in the prior year. Net profit for the year after tax and exceptional items came in at ₹4,803 lakhs, significantly higher than ₹1,928 lakhs recorded in FY25. The following table summarises the key financial metrics:

Exceptional Items and Regulatory Developments

A significant contributor to FY26 profitability was an exceptional gain of ₹5,164 lakhs for the full year, of which ₹4,523 lakhs was recognised in the fourth quarter. This arose from a judgement delivered by the Appellate Tribunal for Electricity (APTEL) in September 2025, which covered tariff revision for the period from 2012 in favour of the company. The Tamil Nadu Electricity Regulatory Commission (TNERC) has since initiated proceedings on remand to revise the tariff in accordance with the APTEL judgement. The company, following the accrual basis of accounting, recognised the effect of the APTEL judgement in the current quarter based on a reasonable and reliable estimate in line with Ind AS-115. The additional revenue recognised is detailed below:

The auditors have drawn attention to this matter as an emphasis of matter, noting that the actual amounts recoverable will be determined upon TNERC passing its consequential order, and any difference will be adjusted as a change in accounting estimate in that period. The auditors' opinion is not modified in respect of this matter.

Tax Reassessment and Prudential Provisions

During the year, the Income Tax Department initiated proceedings under transfer pricing provisions for certain years, with the potential to nullify the tax exemption availed under Section 80-IA of the Income Tax Act, 1961 in respect of profits from the Co-generation business. While the company remains confident of its position and has contested the matter before the appropriate legal forum, it opted on a prudent basis to reassess its tax liability for past periods. Accordingly, the company reversed ₹2,053 lakhs of MAT credit receivable and made additional tax provisions of ₹634 lakhs for earlier years and ₹483 lakhs for the current year. Total tax expenses for FY26 stood at ₹4,222 lakhs, compared to ₹876 lakhs in FY25, with tax relating to earlier years amounting to ₹2,687 lakhs in the current year.

Segment-wise Performance

The company operates across two segments — Sugar and Co-generation. The Co-generation segment's results benefited substantially from the recognition of the APTEL tariff revision gain. Segment revenue and results for FY26 are presented below:

Total segment assets as at 31st March 2026 stood at ₹65,190 lakhs, compared to ₹57,994 lakhs as at 31st March 2025.

Balance Sheet Highlights

As at 31st March 2026, total assets stood at ₹65,190 lakhs against ₹57,994 lakhs in the prior year. The statement of assets and liabilities is summarised below:

Other equity (excluding revaluation reserve) as at 31st March 2026 stood at ₹55,953 lakhs, compared to ₹52,353 lakhs as at 31st March 2025, reflecting the improvement in the company's net worth over the year.

Cash Flow Summary

For FY26, net cash from operating activities stood at ₹3,080 lakhs, compared to ₹963 lakhs in FY25. Net cash used in investing activities was ₹3,136 lakhs, while net cash used in financing activities was ₹295 lakhs. Cash and cash equivalents at the end of the year stood at ₹173 lakhs, compared to ₹524 lakhs at the beginning of the year.

Dividend, AGM, and Corporate Calendar

The Board of Directors has recommended a dividend of ₹5.00 (Rupees Five only) per equity share of ₹10 each for FY 2025-26, subject to approval by shareholders at the Annual General Meeting. Key dates on the corporate calendar are as follows:

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at the meeting held on 11th May 2026. The company has confirmed that it does not have any subsidiary, associate, or joint venture entity as on 31st March 2026.