Simbhaoli Sugars Limited reported a widened consolidated net loss of ₹2,534.53 lakh for the quarter ended June 30, 2026, compared to ₹2,243.24 lakh in the same period last year. The company’s independent auditors issued an adverse conclusion on the financial results, citing pervasive accounting irregularities and significant uncertainties regarding its ability to continue as a going concern.

The results were taken on record by Interim Resolution Professional (IRP) Anurag Goel on August 26, 2026, following the resumption of the Corporate Insolvency Resolution Process (CIRP) after the National Company Law Appellate Tribunal (NCLAT) dismissed promoter appeals on July 13, 2026. The financials were certified by Chief Financial Officer Dayal Chand Popli and published in Business Standard on August 27, 2026.

Financial Performance

Consolidated revenue from operations declined 37.1% year-on-year to ₹14,611.07 lakh, down from ₹23,247.21 lakh in Q1FY26. The drop was driven by lower availability of sugarcane and underutilization of plant capacity during the 2025-26 crushing season.

Segment-wise, sugar revenue fell to ₹11,190.15 lakh from ₹16,841.36 lakh, while distillery revenue dropped to ₹3,401.63 lakh from ₹8,023.56 lakh. Power segment revenue was negligible at ₹76.85 lakh. All three core segments—Sugar, Distillery, and Power—reported operating losses for the quarter.

Auditor’s Adverse Conclusion

B.K. Kapur & Co highlighted multiple material misstatements in their limited review report:

• Unprovided Interest Liabilities: The company did not provide for interest expenses on bank borrowings amounting to ₹9,350.66 lakh for the quarter. Cumulative unprovided interest up to June 30, 2026, stands at ₹2,19,371.02 lakh.
• Subsidiary Disputes: Statutory auditors of subsidiary Integrated Casetech Consultants Pvt Ltd issued an adverse opinion due to unrecognized provisions for disputed unbilled revenue (₹492.42 lakh) and overdue receivables (₹282.65 lakh).
• Power Subsidiary Issues: Simbhaoli Power Private Ltd received a disclaimer of conclusion due to non-operational plants, bagasse pricing disputes with the holding company, and going concern doubts.
• Going Concern Doubts: The holding company has negative net worth and negative working capital. The Punjab National Bank had declared the account as fraud, though this was later set aside by high courts.

What the Numbers Show

The divergence between reported net loss and actual economic burden is stark. While the P&L shows a net loss of ₹2,534.53 lakh, the auditor notes that net loss is understated by at least ₹9,350.66 lakh due to non-provisioning of bank interest. This indicates that the operational losses are significantly masked by accounting treatments permitted during the CIRP period, where interest accruals are often deferred pending resolution plan approval.

Regulatory and Operational Updates

• CIRP Progress: The first Committee of Creditors (CoC) meeting was held on July 23, 2026. The second meeting concluded on August 13, 2026.
• Management Appointment: Yogendra Pal Arya was appointed as Corporate Head – Human Resource.
• Legal Challenges: The Supreme Court dismissed the suspended board’s appeal against the CIRP on August 7, 2026. Enforcement Directorate attachment orders on assets worth ₹109.80 crore remain under appeal in the Allahabad High Court.
• Environmental Compliance: Central Pollution Control Board directions to stop distillery operations have been conditionally revoked, allowing resumption pending compliance.

The Supreme Court of India dismissed appeals challenging the National Company Law Appellate Tribunal's (NCLAT) judgment concerning the Corporate Insolvency Resolution Process (CIRP) of Simbhaoli Sugars Limited . In an order dated August 07, 2026, the apex court found no grounds to interfere with the NCLAT's decision dated July 13, 2026, effectively upholding the tribunal's directions. This development marks a significant procedural milestone in the insolvency case that began when the National Company Law Tribunal initiated the CIRP on July 11, 2024, suspending the powers of the Board of Directors.

The appeals were filed by two distinct groups following the NCLAT's earlier ruling. Ms. Gursimran Kaur Mann, a promoter representing the Suspended Board of Directors, and Surender Pal Singh Mangat, representing farmers, had approached the Supreme Court to challenge the tribunal's disposal of their respective matters. The NCLAT had previously dismissed the appeal filed by Ms. Mann and disposed of the farmer's appeal with specific directions. The Supreme Court's dismissal confirms that the legal challenges at the appellate level have been exhausted, reinforcing the continuity of the insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

Key Details of the Supreme Court Order

The court addressed the distinct nature of claims filed by farmers, who are statutorily mandated to supply sugar to linked sugar companies. Justice K.V. Viswanathan and Justice Arun Palli noted that these claims stand on a different footing. Consequently, the court granted liberty to the appellants to agitate this specific issue in appropriate proceedings they may choose to initiate before the adjudicating authority. The judges emphasized that any such future proceedings would be decided in accordance with law, uninfluenced by observations in the impugned NCLAT order or the current Supreme Court order.

Regarding the promoter's appeal, the court acknowledged submissions from learned senior counsel Mr. Dhruv Mehta that the promoters intend to submit a proposal. The bench stated that promoters may exercise such rights as are available to them under the law. As and when these rights are exercised, the resulting proceedings will be decided in accordance with law. All pending applications associated with these civil appeals were also disposed of alongside the main orders.

Implications for Insolvency Process

Simbhaoli Sugars Limited remains under the Corporate Insolvency Resolution Process pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016. Since the initiation of the CIRP on July 11, 2024, the powers of the Board of Directors have been suspended. Mr. Anurag Goel (IBBI/IPA-001/IP-P-00876/2017-18/11460) serves as the Interim Resolution Professional (IRP), managing the company's assets and carrying out functions mandated under the code. The Supreme Court's order does not alter the operational control held by the IRP but clarifies the legal pathway for stakeholders to pursue specific claims related to statutory obligations and resolution proposals. The company continues to operate as an FSSC 22000, ISO 9001:2015, and ISO 14001:2015 certified entity during this period.