Shree Hanuman Sugar & Industries Limited reported a net loss of ₹23.99 lakh for the quarter ended June 30, 2026 (Q1FY26), widening from a loss of ₹18.44 lakh in the corresponding period of FY25. The company, currently undergoing the Corporate Insolvency Resolution Process (CIRP), recorded zero revenue from operations as its sugar mill in Motihari, Bihar, remained closed. The unaudited financial results were published in Financial Express and Arthik Lipi on August 07, 2026, pursuant to Regulation 30 and 47 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Sandeep Khaitan, the Resolution Professional appointed by the National Company Law Tribunal (NCLT), Kolkata Bench, signed off on the results. The financial statements were reviewed by statutory auditor BDS & Co., which issued a qualified opinion citing material uncertainty regarding the company’s ability to continue as a going concern due to ongoing insolvency proceedings. The results were also presented to the Committee of Creditors on August 05, 2026.

Financial Performance Overview

The company incurred total expenses of ₹23.99 lakh in Q1FY26, primarily driven by other expenses, compared to ₹18.70 lakh in Q1FY25. There was no income from operations or other income recorded for the current quarter, whereas a minor other income of ₹0.26 lakh was noted in the previous year’s same period. Consequently, the loss before tax stood at ₹23.99 lakh, resulting in an equal net loss after tax. For the first half of FY26 (April–June), the cumulative loss widened to ₹89.42 lakh from ₹42.37 lakh in H1FY25.

Operational Status and Segment Reporting

Shree Hanuman Sugar & Industries operates in two segments: sugar and construction. However, segment reporting indicates that all activity is concentrated in the sugar segment, with no revenue or results attributed to construction. The notes to the accounts disclose that the Motihari sugar mill has remained non-operational due to cost ineffectiveness stemming from old plant and machinery, financial crunches, and labor unrest. As of June 30, 2026, segment assets for the sugar business stood at ₹23,917.69 lakh, while segment liabilities were ₹8,755.31 lakh.

What the Numbers Show

The widening loss trajectory underscores the cash-burn nature of the company’s current insolvency phase. With zero operational revenue and rising other expenses—up 28.8% quarter-on-quarter from ₹18.70 lakh to ₹23.99 lakh—the company is consuming reserves without generating operating cash flow. The basic earnings per share (EPS) loss deepened to ₹0.13 from ₹0.10 in the prior year, reflecting the dilution of shareholder value amid stagnant operations. The qualified audit opinion further signals that without a resolution plan or operational revival, the going concern assumption remains precarious.

Shree Hanuman Sugar & Industries reported a net loss of ₹89.42 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹42.37 lakh in the previous year. The company, which has ceased operations since FY 2012-13, is currently undergoing the Corporate Insolvency Resolution Process (CIRP) initiated by the Stressed Assets Stabilization Fund. The auditors, BDS & Co., issued a qualified opinion on the financial results, citing significant material uncertainties and non-compliances that impact the accuracy of the reported figures.

The statutory auditor's report highlights that the company has not complied with Ind AS 19 regarding gratuity and leave liabilities, nor has it provided for depreciation on fixed assets since 2014. Additionally, the company failed to deduct or deposit Tax Deducted at Source (TDS) up to March 2022 and has not provided for interest expenses on borrowings. Due to these issues, the auditors stated that the operating results are overstated or understated to the extent of these unascertained impacts.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹19.60 lakh. Total income for the year stood at ₹4.35 lakh, entirely derived from other income, while revenue from operations remained nil. Total expenses for the year increased to ₹93.77 lakh from ₹42.83 lakh in the prior year. The company reported a basic and diluted loss per share of ₹0.48 for FY26, compared to ₹0.23 in FY25.

Asset and Liability Position

The company's total assets stood at ₹23,913.76 lakh as of March 31, 2026, slightly down from ₹23,962.51 lakh in the previous year. Non-current assets, primarily comprising plant, property, and equipment, were valued at ₹23,724.19 lakh. Current liabilities totaled ₹8,727.38 lakh, including borrowings of ₹5,583.90 lakh and trade payables of ₹577.34 lakh. The net worth of the company was reported at ₹15,186.38 lakh.

Audit Qualifications and Going Concern

The auditors raised serious concerns regarding the company's ability to continue as a going concern. The plant has been inoperative since 2012-2013, and no physical verification of assets has taken place since then to assess potential impairment. The Resolution Professional has submitted a resolution plan to the Hon'ble NCLT Kolkata Bench, but the company's future depends on the approval of this plan.

Other significant qualifications include the non-confirmation of balances for borrowings, loans, and trade payables due to pending disputes and lack of reconciliation. The auditors also noted that management wrote off payables and receivables based solely on board resolutions without providing supporting documentation. Consequently, the financial statements have been prepared on a non-going concern basis.