Avadh Sugar & Energy Reports Q2 Net Loss Amid Revenue Growth

Avadh Sugar & Energy Ltd , a prominent player in the Indian sugar industry, has reported its financial results for the second quarter. The company's performance reflects the challenges faced by the sugar sector, with a mix of revenue growth and profitability pressures.

Financial Highlights

Particulars (in crore rupees)	Q2 FY2026	Q2 FY2025	Change (%)
Revenue from Operations	668.15	632.02	+5.72%
EBITDA	17.90	33.60	-46.73%
EBITDA Margin	2.68%	5.32%	-264 bps
Net Profit / (Loss)	(6.60)	8.30	-179.52%

Avadh Sugar & Energy reported a 5.72% year-over-year increase in revenue from operations, reaching 668.15 crore rupees. However, the company's profitability metrics showed a significant decline:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 46.73% to 17.90 crore rupees.
EBITDA margin contracted sharply from 5.32% to 2.68%.
The company reported a net loss of 6.60 crore rupees, compared to a profit of 8.30 crore rupees in the same quarter last year.

Segment Performance

The company's performance varied across its business segments:

Sugar Segment: Reported a loss of 7.49 crore rupees, down from a profit of 6.62 crore rupees in Q2 FY2025.
Distillery Segment: Remained profitable with earnings of 11.94 crore rupees, although lower than the 20.40 crore rupees reported in the previous year's quarter.
Co-generation Segment: Showed improvement with a profit of 2.84 crore rupees, compared to a loss of 4.67 crore rupees in Q2 FY2025.

Balance Sheet and Cash Flow

As of September 30, 2025, Avadh Sugar & Energy's balance sheet showed:

Total assets of 1,815.41 crore rupees
Total equity of 1,059.94 crore rupees
Current borrowings reduced to 278.70 crore rupees from 1,073.43 crore rupees at the end of the previous fiscal year

The company's cash flow statement for the six months ended September 30, 2025, indicated:

Net cash generated from operating activities: 915.77 crore rupees
Net cash used in investing activities: 74.60 crore rupees
Net cash used in financing activities: 842.62 crore rupees

Regulatory Update

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has revised the power tariff upwards with effect from April 1, 2024. As a result, Avadh Sugar & Energy recognized a differential revenue of 9.89 crore rupees for the period from April 1, 2024, to June 30, 2025, in the current quarter.

The sugar industry often experiences seasonal variations, with crushing typically occurring between November and May, while sales are distributed throughout the year. Investors and analysts will be watching closely to see how Avadh Sugar & Energy navigates the challenges in the sugar industry and works towards improving its profitability in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.28%	-0.72%	-10.70%	-33.12%	-31.38%	+101.89%

Avadh Sugar & Energy Limited has announced a significant change in its leadership structure, following a recent shareholder vote. The company's shareholders have decisively approved the appointment of Mr. Chandra Shekhar Nopany as the new Managing Director and Co-Chairperson through a postal ballot process.

Voting Results

The special resolution for Mr. Nopany's appointment received overwhelming support, with 97.71% of votes cast in favor. Out of 208 participating members, 175 supported the proposal, while 33 opposed it. The total number of votes cast was 12,760,463, with 12,468,123 in favor and 292,340 against.

Appointment Details

Mr. Nopany's tenure as Managing Director is set to commence on September 1, 2025, and will run for a five-year term until August 31, 2030. This appointment marks a significant milestone for Avadh Sugar & Energy Limited, potentially bringing new leadership and strategic direction to the company.

Voting Process

The e-voting process for this resolution was conducted from August 14 to September 12, 2025. Notably, only 208 members participated in the voting out of a total shareholder base of 25,806, representing a participation rate of approximately 0.81%.

Scrutinizer's Report

Mr. Mohan Ram Goenka, a Practicing Company Secretary, served as the scrutinizer for the voting process. His report, submitted on September 12, 2025, confirmed the validity of the voting process and the passage of the resolution with the required majority.

Shareholder Category Breakdown

The voting results revealed interesting patterns across different shareholder categories:

Category	Votes Polled	In Favor (%)	Against (%)
Promoter and Promoter Group	11,400,242	100.00%	0.00%
Public Institutions	523,554	44.25%	55.75%
Public Non-Institutions	836,667	99.95%	0.05%

This breakdown shows unanimous support from the promoter group, mixed reactions from public institutions, and strong support from public non-institutional shareholders.

Compliance and Disclosure

In compliance with regulatory requirements, Avadh Sugar & Energy Limited has made the voting results and the Scrutinizer's Report available on the company's website and the National Securities Depository Limited's e-voting platform. The company has also informed the National Stock Exchange of India Limited and BSE Ltd. about the results, maintaining transparency in its corporate governance processes.

The appointment of Mr. Chandra Shekhar Nopany as Managing Director and Co-Chairperson represents a significant development for Avadh Sugar & Energy Limited. Shareholders and market observers will likely be watching closely to see how this change in leadership might influence the company's future strategies and performance in the sugar and energy sectors.