Suraj Industries has scheduled its 34th Annual General Meeting for September 30, 2026, to seek shareholder approval for material related party transactions. The proposals involve expanding financial support and trade limits with its material subsidiary Carya Chemicals & Fertilizers Private Limited and associate company VRV Foods Limited.

The Board of Directors approved these transactions in its meeting on August 31, 2026, recommending them for shareholder ratification under Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Related Party Transaction Details

The proposed arrangements cover loans, guarantees, investments, and trade activities between Suraj Industries and Carya Chemicals. The aggregate value is capped at ₹100 crore annually for financial support and ₹20 crore annually for trade activities involving Extra Neutral Alcohol (ENA) and supply of goods for FY27 and FY28.

Expanded VRV Foods Facilities

Additionally, the Board approved broader borrowing and trade facilities between Carya Chemicals and VRV Foods Limited. While the existing article noted a ₹15 crore borrowing limit for FY27, the new data confirms this limit extends to FY28 and introduces significant new trade limits for ENA purchases by VRV from Carya.

AGM and Annual Report

The 34th Annual General Meeting will be held on Wednesday, September 30, 2026, at 3:30 pm through Video Conferencing or Other Audio-Visual Means. The notice for the AGM and the Annual Report for FY26 will be sent electronically to members with registered email addresses.

What the Numbers Show

The expansion of trade limits with VRV Foods signals deeper operational integration within the group. With VRV now permitted to purchase up to ₹30 crore of ENA from Carya in FY28, alongside existing borrowing facilities, the subsidiary’s distillery operations are positioned to become a significant internal supplier for the group’s bottling units, reducing external procurement dependency.

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.