Sakthi Sugars reported a standalone net loss of ₹18.3 crore for the first quarter of FY26 (ended June 30, 2026), widening slightly from a net loss of ₹11.0 crore in the corresponding period of FY25. Total income stood at ₹381.4 crore, while total expenses were ₹383.8 crore. The company’s revenue from operations grew 24.6% year-on-year to ₹376.9 crore, up from ₹302.4 crore in Q1FY25.

Financial Performance

The quarterly result was influenced by divergent performance across segments. The power segment contributed significantly to profitability with a pre-tax profit of ₹220.5 crore, while the core sugar business recorded a pre-tax loss of ₹29.5 crore. Industrial alcohol operations generated a pre-tax profit of ₹13.8 crore.

Finance costs remained relatively stable at ₹24.2 crore, compared to ₹25.4 crore in the previous year. The company recognized ₹66.0 lakh under other income as carrying costs related to tariff revisions for its co-generation units, following a judgment by the Appellate Tribunal for Electricity dated December 22, 2025.

What the Numbers Show

A significant divergence exists between top-line growth and bottom-line performance. While revenue expanded by nearly 25%, the company returned to a net loss position after posting a full-year net profit of ₹28.1 crore in FY25. This shift is largely attributable to the seasonal nature of the sugar industry, where the crushing season typically drives costs and inventory changes that impact quarterly profitability. The power segment’s robust contribution of ₹220.5 crore in pre-tax profit helped cushion the overall impact of the sugar segment’s losses.

Board Approvals and Corporate Actions

During its meeting on August 13, 2026, the Board of Directors approved several key appointments and re-appointments:

• Additional Director: S. Chandrasekhar was appointed as Additional Non-Executive Non-Independent Director until the next Annual General Meeting (AGM).
• Managing Directors: M. Balasubramaniam and M. Srinivaasan were re-appointed as Managing Director and Joint Managing Director, respectively, for a five-year term starting August 27, 2026. Both will serve without remuneration, subject to shareholder approval.
• Internal Audit: Smt. R. Jeysree, Manager – Costing, was appointed to head the Internal Audit Department following the retirement of Sri P. Sankararaja Pandian.
• Cost Auditors: STR & Associates was appointed as Cost Auditors for FY27.

The 64th Annual General Meeting is scheduled for September 25, 2026, to be conducted via Video Conferencing or Other Audio-Visual Means. The statutory auditors, M/s P.N. Raghavendra Rao & Co., issued a limited review report on the unaudited financial results.

Sakthi Sugars Limited reported a 24.6% year-on-year increase in revenue from operations to ₹376.9 crore for the quarter ended June 30, 2026. While the top-line growth was driven by stronger sales across its sugar and power segments, the company posted a net loss of ₹18.3 lakh, compared to a net loss of ₹11 lakh in the corresponding quarter of FY25.

The board of directors approved the unaudited standalone financial results and segment-wise performance during a meeting held on August 13, 2026. The results were reviewed by statutory auditors P.N. Raghavendra Rao & Co.

Financial Performance

Revenue from operations rose significantly from ₹302.4 crore in Q1FY25 to ₹376.9 crore in Q1FY26. This growth was offset by an increase in total expenses, which climbed to ₹383.8 crore from ₹307.9 crore in the prior year period. Consequently, the profit before tax turned negative at ₹24.1 lakh, down from a ₹19 lakh loss in Q1FY25.

Other income stood at ₹44.7 lakh, a decline from ₹80.3 lakh recorded in the final quarter of FY26. Finance costs increased slightly to ₹24.2 crore from ₹23.4 crore in Q4FY26, while employee benefit expenses rose to ₹16.6 crore.

Segment-wise Results

The sugar segment contributed ₹342.8 crore to revenue, up from ₹247.3 crore in Q1FY25. However, this segment reported a pre-tax loss of ₹29.5 lakh, contrasting with a profit of ₹30.2 lakh in the previous year. The industrial alcohol segment generated ₹50.9 crore in revenue, yielding a segment result of ₹13.8 lakh profit.

The power segment remained the primary profit driver, reporting revenue of ₹92.9 crore and a segment result of ₹220.5 lakh profit. This compares to ₹77.3 crore in revenue and ₹116.2 lakh profit in Q1FY25.

What the Numbers Show

A key divergence in the data is the impact of inventory changes on profitability. In Q1FY27, changes in inventories added ₹42.0 crore to costs, whereas in Q4FY26, inventory changes had reduced costs by ₹73.4 crore. This shift, combined with higher material consumption costs (₹215.5 crore vs ₹222.3 crore in Q4FY26 but significantly higher than the ₹165.7 crore in Q1FY25), highlights the pressure on margins despite revenue growth.

Board Appointments and Governance

The board approved several key appointments and re-appointments:

• Additional Director: S. Chandrasekhar was appointed as Additional Non-Executive Non-Independent Director until the next Annual General Meeting.
• Managing Director: M. Balasubramaniam was re-appointed as Managing Director for five years, effective August 27, 2026, without remuneration.
• Joint Managing Director: M. Srinivaasan was re-appointed as Joint Managing Director for five years, effective August 27, 2026, without remuneration.
• Internal Audit Head: R. Jeysree, Manager – Costing, was appointed to head the Internal Audit Department following the retirement of Sr. Vice President P. Sankararaja Pandian.

The company also convened its 64th Annual General Meeting for September 25, 2026, via video conferencing. STR & Associates was appointed as Cost Auditors for FY27.