Ponni Sugars (Erode) Ltd reported a narrowed standalone net loss of ₹1.23 crore for the quarter ended June 30, 2026, compared to a loss of ₹2.68 crore in Q1FY26. The improvement was driven by a 52% year-on-year surge in revenue from operations to ₹91.87 crore, alongside a profitable performance in its co-generation segment which helped offset operational losses in the core sugar business.

The Board of Directors, meeting on July 24, 2026, approved the unaudited financial results pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, S Viswanathan LLP, in accordance with Standard on Review Engagements (SRE) 2410. The company declared a dividend of ₹5.00 per equity share at its 30th Annual General Meeting held on June 24, 2026, which was paid on June 25, 2026.

Financial Performance

Total income for the quarter stood at ₹95.00 crore, up from ₹63.72 crore in Q1FY26. Revenue from operations increased to ₹91.87 crore from ₹60.37 crore in the corresponding period last year. Other income declined to ₹3.13 crore from ₹3.35 crore. Total expenses rose to ₹96.53 crore from ₹71.77 crore, primarily due to higher cost of materials consumed at ₹42.11 crore compared to ₹4.79 crore previously, and changes in inventories amounting to ₹28.08 crore.

The company incurred a pre-tax loss of ₹1.53 crore, improving from a loss of ₹3.14 crore in Q1FY26. Tax expenses were a credit of ₹0.30 crore, including deferred tax benefits. Earnings per share improved to a loss of ₹1.43 from a loss of ₹3.12 in the previous year’s quarter.

Segment Analysis

The co-generation segment emerged as the primary profit driver, reporting a profit before tax and interest of ₹24.8 lakh, compared to ₹14.1 lakh in Q1FY26. This segment contributed ₹20.60 crore to revenue, up sharply from ₹8.74 crore. In contrast, the sugar segment recorded a loss before tax and interest of ₹49.4 lakh, slightly worsening from a loss of ₹56.9 lakh in Q1FY26, despite revenue rising to ₹83.89 crore from ₹53.27 crore.

Intersegmental revenue was ₹12.62 crore. Segment assets totalled ₹622.25 crore, with sugar assets at ₹202.26 crore and co-generation assets at ₹125.85 crore. Total segment liabilities stood at ₹71.29 crore.

What the Numbers Show

The divergence between the sugar and co-generation segments highlights the company’s dual-engine model. While the sugar segment remains loss-making due to high material costs and inventory adjustments, the co-generation unit is scaling rapidly, nearly tripling its revenue contribution year-on-year. The recognition of additional tariff and interest income aggregating ₹10.5 lakh, based on an Appellate Tribunal for Electricity judgment dated September 3, 2025, also provided a modest boost to the bottom line. However, the overall profitability remains constrained by the seasonal nature of sugar production and significant working capital movements reflected in inventory changes.

Ponni Sugars (Erode) Limited declared a dividend of ₹5 per equity share for the financial year 2025-26 at its 30th Annual General Meeting held on June 24, 2026. The company reported a record profit after tax of ₹48 crore for the year, a significant increase driven by exceptional income of ₹51.50 crore from the resolution of a long-standing electricity tariff dispute. Shareholders approved the adoption of the audited financial statements for the year ended March 31, 2026, alongside the reappointment of Mr N Gopala Ratnam as Director.

The meeting, conducted via video conference, was attended by 61 shareholders representing 47.56% of the total equity shares. The Chairman, Mr N Gopala Ratnam, highlighted that the company achieved a stellar turnaround in operational performance, with sugar recovery reaching 9.79% and power exports hitting a summit. The financial results received a substantial boost from the Appellate Tribunal for Electricity (APTEL) judgment regarding tariff arrears.

Financial Performance

The company’s total revenue for FY26 rose to ₹429 crore from ₹371 crore in the previous year, marking a 15.63% growth. Profit before tax surged to ₹90 crore, while profit after tax stood at ₹48 crore. The sugar segment reported a total revenue of ₹31,928 lakh, while the cogeneration segment contributed ₹9,571 lakh.

Resolutions Passed

Shareholders passed five resolutions with the requisite majority. In addition to the financial statements and dividend, the meeting approved the reappointment of Mr N Gopala Ratnam as Director by a special resolution. An ordinary resolution was passed to pay commission to non-executive directors, not exceeding 1% of net profits annually for three years from April 1, 2026. The remuneration for the cost auditor, M/s S Mahadevan & Co, for FY 2026-27 was fixed at ₹2,00,000 plus GST and expenses.

Operational Highlights

Operational metrics showed strong improvement during the year. The company crushed 7,05,576 tonnes of cane, achieving a sugar recovery rate of 9.79%. The average sugar price realized was ₹4,051 per quintal, while the average cane cost was ₹3,916 per tonne. Exceptional items for the year totaled ₹51.50 crore, primarily comprising tariff income and related adjustments.