Bajaj Hindusthan Sugar Limited's Board of Directors has approved a comprehensive debt restructuring plan aimed at resolving the company's stressed assets under the Reserve Bank of India's Prudential Framework. The board meeting, held on February 12, 2026, from 11:45 A.M. to 01:20 P.M., marked a significant step in the company's financial restructuring journey.

Major Board Approvals

The Board approved several key resolutions that will reshape the company's capital structure:

Debt Restructuring Details

The restructuring plan addresses multiple components of the company's outstanding debt obligations. The existing OCDs worth Rs. 3,215.31 crores will continue as debt with significantly modified terms to provide relief to the company.

OCD Restructuring Terms

Promoter and Company Infusion

As part of the resolution plan, the company and promoters are required to infuse Rs. 1,000 crores during financial year 2025-26. The infusion strategy demonstrates the promoters' commitment to the restructuring process.

Conversion of Outstanding Amounts

The most significant aspect of the restructuring involves converting substantial outstanding amounts into equity instruments. The outstanding YTM of Rs. 2,939.97 crores and right of recompense of Rs. 485.60 crores under the 2014 restructuring agreement will be converted into equity shares and CCPS.

Conversion Structure

• Equity Shares: Up to Rs. 570.03 crores, ensuring consortium lenders' shareholding does not exceed 50% initially
• CCPS: Balance amount of Rs. 2,369.94 crores from YTM conversion
• Additional CCPS: Rs. 485.60 crores from right of recompense conversion

CCPS Terms and Conditions

Lender Consortium

The restructuring involves a consortium of 12 major Indian banks that will receive equity shares and CCPS as part of the debt conversion:

• State Bank of India
• Punjab National Bank
• Indian Bank
• Central Bank of India
• Bank of Maharashtra
• IDBI Bank Limited
• Canara Bank
• Union Bank of India
• UCO Bank
• Bank of Baroda
• Indian Overseas Bank
• Bank of India

Securities Issuance Framework

The company will issue securities through preferential allotment to the lender consortium. The equity shares worth Rs. 570.03 crores represent approximately 111,33,39,844 equity shares of face value Re. 1 each. The conversion prices for both equity and CCPS will be calculated as per SEBI regulations and RBI Framework guidelines, computed by a registered valuer.

Regulatory Compliance and Next Steps

The Board has approved the draft notice for an extraordinary general meeting to seek necessary shareholder approvals for the proposed restructuring. The company will provide detailed outcomes of subscription and allotment prices after the securities are issued to the lender consortium. This comprehensive restructuring plan represents a significant milestone in the company's efforts to resolve its stressed assets while maintaining operational continuity.

Bajaj Hindusthan Sugar Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, demonstrating a return to quarterly profitability after facing losses in previous quarters. The Board of Directors approved these unaudited standalone and consolidated financial results on February 12, 2026, following review by the Audit Committee.

Financial Performance Overview

The company's Q3FY26 performance showed mixed results across different timeframes:

Segment-wise Performance

The company operates across four main business segments with varying performance levels:

Revenue Distribution (Q3FY26)

The Power segment emerged as the strongest performer with positive results of ₹27.43 crore, while the Sugar segment, despite being the largest revenue contributor, reported losses of ₹6.35 crore for the quarter.

Key Financial Highlights

Earnings Per Share Performance:

• Q3FY26 Basic EPS: ₹0.12 per share
• Q2FY26 Basic EPS: (₹0.79) per share
• 9M FY26 Basic EPS: (₹2.01) per share

Operational Metrics:

• Total comprehensive income for Q3FY26: ₹25.61 crore (standalone)
• Finance costs reduced significantly to ₹5.34 crore in Q3FY26 from ₹22.31 crore in Q3FY25
• Paid-up equity share capital: ₹127.74 crore (face value Re.1/- per share)

Debt Resolution and Going Concern

The company continues to work on resolving its debt restructuring under the Scheme for Sustainable Structuring of Stressed Assets (S4A). Key aspects include:

• Optionally Convertible Debentures (OCDs) aggregating ₹3,483.25 crore issued to Joint Lenders' Forum
• Unrecognized YTM liability of ₹4,131.57 crore as of December 31, 2025
• Resolution plan under discussion with lenders
• Company entitled to receive ₹1,944 crore under Sugar Industry Promotion Policy, 2004 (matter sub-judice)

Auditor Observations

The statutory auditors issued qualified opinions highlighting:

• Non-recognition of YTM and coupon interest liabilities pending debt resolution finalization
• Material uncertainty regarding going concern due to past losses and outstanding cane dues
• Company's aggregate exposure of ₹2,568.69 crore in subsidiaries requiring recovery measures

Operational Capacity

Bajaj Hindusthan Sugar maintains significant operational infrastructure:

• Sugar crushing capacity: 1,36,000 TCD
• Distillery capacity: 800 KLD
• Co-generation capacity: 449 MW

The company's management expressed confidence in meeting financial and operational obligations, citing improved liquidity position, debt reduction measures, and favorable market dynamics in the sugar industry. The financial results have been prepared on a going concern basis, reflecting management's optimism about the company's long-term viability despite current challenges.