Suraj Industries Ltd approved material related party transactions worth up to ₹100 crore annually with its unlisted subsidiary Carya Chemicals & Fertilizers Private Limited. The Board also fixed the date for the company’s 34th Annual General Meeting.

The Board of Directors met on August 31, 2026, at its registered office in New Delhi. The meeting focused on approving financial arrangements and operational transactions between Suraj Industries and Carya, as well as between Carya and associate company VRV Foods Limited.

Related Party Transaction Details

The Board approved proposals recommended by the Audit Committee under Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These transactions require shareholder approval at the upcoming AGM.

Transactions between Suraj Industries and Carya include loans, guarantees, investments, and trade in Extra Neutral Alcohol (ENA). The aggregate value is capped at ₹100 crore per year for FY27 and FY28 for financial support, and ₹20 crore per year for trade activities.

Additionally, the Board approved borrowing facilities for Carya from VRV Foods Limited. Carya can accept loans and other financial assistance from VRV, an associate company, up to ₹15 crore for FY27.

AGM and Annual Report

The Board convened the 34th Annual General Meeting for Wednesday, September 30, 2026, at 3:30 pm. The meeting will be held through Video Conferencing or Other Audio-Visual Means, in compliance with MCA and SEBI circulars.

The notice for the AGM and the Annual Report for FY26 will be sent electronically to members with registered email addresses. These documents will also be available on the company’s website and the stock exchange portal.

What the Numbers Show

The proposed transaction structure highlights a significant capital dependency of the subsidiary on the parent group. With potential outflows of ₹100 crore in loans/guarantees plus ₹20 crore in trade receivables/payables annually, Carya represents a major concentration of risk and liquidity exposure for Suraj Industries. The additional ₹15 crore borrowing limit from associate VRV Foods further underscores the reliance on intra-group financing to support Carya’s operations.

Suraj Industries Ltd reported a consolidated net profit of ₹4.3 crore for the quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from the net loss of ₹1.3 crore recorded in Q1FY26. The company’s standalone net profit was ₹17.4 crore (₹1,737.85 lakh), compared to a standalone loss of ₹0.3 crore (₹31.68 lakh) in the prior year quarter. This positive shift highlights a recovery in profitability, driven by operational scale-up in contract manufacturing and exceptional items related to investment accounting.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on August 06, 2026. The unaudited standalone and consolidated financial results were filed with the stock exchanges pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The figures have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended.

Key Financial Metrics

Note: Standalone figures converted to crores for consistency with consolidated data where applicable; original standalone figures in lakhs were ₹955.38 lakh, ₹1,019.76 lakh, ₹1,769.20 lakh, (₹42.16 lakh), ₹1,737.85 lakh, and (₹31.68 lakh).

Operational Drivers and Segment Performance

The primary driver behind the consolidated profit surge was the ramp-up across key business segments. Consolidated revenue from operations increased to ₹30 crore in Q1FY27 from ₹8 crore in Q1FY26. EBITDA improved to ₹6.6 crore with an EBITDA margin of 22%, compared to an EBITDA loss of ₹0.5 crore (-6% margin) in Q1FY26.

The growth was supported by:

• RSGSM Contract Manufacturing: Suraj Industries undertakes contract manufacturing and bottling operations for Rajasthan State Ganganagar Sugar Mills (RSGSM), which commands ~30-35% market share in Rajasthan’s country liquor market. Operations include aseptic pack bottling in Ajmer and PET bottle liquor bottling in Jodhpur.
• Allied Blenders & Distillers (ABD) Tie-Up: The company started manufacturing and bottling IMFL brands for Allied Blenders & Distillers Ltd in June 2025. Premium brands include Officer’s Choice, IconiQ White, and 8 PM Special Rare Whiskey.
• Radico Khaitan Partnership: A manufacturing arrangement with Radico Khaitan Ltd commenced in Q1FY27 after receiving requisite approvals from the Excise Department. In the quarter, the company sold 13,000 cases, generating ₹1.3 crore in net sales.

What the Numbers Show

The divergence between standalone and consolidated results highlights the impact of both operational scale and accounting adjustments. While standalone revenue declined slightly to ₹9.6 crore from ₹10.2 crore in Q1FY26, consolidated revenue nearly quadrupled to ₹30 crore.

A significant portion of the standalone profit surge was attributed to an exceptional item. M/s Shri Gang Industries & Allied Products Ltd ceased to be an associate of Suraj Industries on June 06, 2026, due to an increase in the equity share capital of the associate company. Consequently, the investment was reclassified as a financial asset measured at fair value under Ind AS 109. This reclassification resulted in an unrealized remeasurement gain of ₹16.3 crore (net of tax) for the standalone accounts. In the consolidated accounts, the resulting unrealized remeasurement gain was ₹0.8 crore (net of tax). Additionally, subsequent unrealized fair value gains of ₹1.4 crore were recognized in Other Comprehensive Income pursuant to the irrevocable FVOCI election under Ind AS 109.

Operationally, the company is evolving from a bottler to a fully integrated alco-bev player. It holds licenses for a 125 KLPD ethanol distillery at Baran, Rajasthan, expected to be commissioned by H1FY27. This in-house capacity aims to save ₹7/litre on imports from other states, addressing a structural supply deficit in Rajasthan where ~50% of ENA demand is currently met through imports. Carya Chemicals & Fertilizers Ltd, a subsidiary, also holds licenses to set up a 12 lakh hectolitre brewery.

The company operates within a single primary business segment, Liquor (Alcohol & Alcoholic Beverages), as its trading operations have been discontinued. Therefore, segment-wise disclosures as per Ind AS 108 are not applicable.