SBEC Sugar Ltd has secured financial assistance worth ₹100 Cr from Longwell Investment Private Limited to support its funding requirements. The unsecured loan agreement, executed on June 19, 2026, stipulates an interest rate of 15% per annum. This borrowing is significant as it involves a promoter group entity and is structured as a related party transaction conducted on an arm's length basis.

Longwell Investment Private Limited is identified as belonging to the promoter group of SBEC Sugar Ltd. The company confirmed that no security has been provided for this loan. The repayment schedule will determine the loan period, with the closing date set according to the agreed terms.

Key Terms of the Agreement

The agreement outlines the specific financial terms and the relationship between the entities involved. The transaction does not grant the lender any special rights, such as the appointment of directors or restrictions on capital structure changes.

The company disclosed that there are no other material terms or potential conflicts of interest associated with this agreement beyond the standard loan covenants. The transaction was finalized without the issuance of shares or the provision of collateral.

SBEC Sugar Limited has published its audited financial results for the quarter and year ended March 31, 2026, in newspapers. The company reported a consolidated net profit of ₹1865.54 lacs for the financial year, while its standalone financial results reflected a net loss of ₹6280.89 lacs. The statutory auditors, Doogar & Associates, issued a qualified opinion on the financial statements, citing the company's failure to make provisions for interest on late payment of cane dues amounting to ₹3543.78 lacs for the year.

Financial Performance

For the quarter ended March 31, 2026, the standalone net profit was ₹670.44 lacs, a decline from ₹4547.65 lacs in the corresponding period of the previous year. Total income for the quarter stood at ₹15552.56 lacs. On a consolidated basis, the company reported a net profit of ₹9058.52 lacs for the quarter, driven significantly by a share of profit from joint ventures amounting to ₹8334.25 lacs. Total consolidated income for the year reached ₹55253.71 lacs.

Audit Qualifications

The statutory auditors highlighted that the company did not provide for interest on late payment of cane dues for the sugar seasons 2024-25 and 2025-26. Had these provisions been made, the loss for the standalone year would have been higher by ₹3543.78 lacs, and the consolidated profit would have been reduced by a similar amount. The auditors also drew attention to a settlement loss of ₹508.59 lacs arising from the settlement of debt assignment recoverables with Modi Industries Limited.

Board Decisions

The Board of Directors, meeting on May 29, 2026, approved the audited financial results for the quarter and year ended March 31, 2026. Additionally, the Board re-appointed M/s Thakur Vaidyanath Aiyar & CO., Chartered Accountants, as internal auditors for the financial year 2026-27. The meeting also noted the resignation of Mr. Anil Kumar Goel and the subsequent appointment of Mr. Madhur Agarwal as Company Secretary and Compliance Officer.

Key Financial Metrics

The following table summarizes the standalone financial performance for the year ended March 31, 2026:

The company stated that the matter regarding the interest waiver is sub-judice, pending a final decision from the Cane Commissioner (U.P.).