Ponni Sugars (Erode) Limited received a disclosure on August 17, 2026 from promoter entity Seshasayee Paper and Boards Limited, reporting the acquisition of 2,90,000 equity shares through open market purchases on the NSE. The shares, each carrying a face value of Rs. 10, were purchased at Rs. 350 per share. The disclosure was filed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Acquisition details

The transaction increased Seshasayee Paper and Boards' shareholding in Ponni Sugars (Erode) from 32.347% to 35.720%, as detailed in the table below.

Shareholding before and after acquisition

The following table captures the change in Seshasayee Paper and Boards' holding in Ponni Sugars (Erode) as a result of this transaction.

Target company capital structure

The equity share capital of Ponni Sugars (Erode) remained unchanged at Rs. 85984180, comprising 85,98,418 shares of face value Rs. 10 each, both before and after the acquisition. The acquirer confirmed that no shares were held under encumbrance, pledge, lien, or non-disposal undertaking, and no warrants or convertible securities were involved in the transaction.

Seshasayee Paper and Boards belongs to the promoter and promoter group of Ponni Sugars (Erode). The disclosure was signed by S. Srinivas, Director (Finance) and Secretary of Seshasayee Paper and Boards, and filed from Erode on August 17, 2026.

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 approved the unaudited financial results on July 24, 2026, 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. Newspaper advertisements containing the results were published in Business Standard and Makkal Kural on July 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.