Dalmia Bharat Sugar & Industries Limited (DBSIL) has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, along with the completion of a significant corporate restructuring.

Demerger of Non-Core Businesses

The company has successfully completed the demerger of its non-core refractory and travel agency businesses into Dalmia Bharat Refractories Limited. The National Company Law Tribunal approved the scheme on September 12, 2025, with an appointed date of July 1, 2023. This strategic move is expected to allow DBSIL to focus more on its core sugar and distillery operations.

Financial Impact of Demerger

As a result of the demerger:

• Revenue from operations decreased by ₹1.99 crores for the quarter ended June 30, 2025
• Assets decreased by ₹189.03 crores
• Liabilities decreased by ₹35.16 crores as of the appointed date

Financial Highlights

While specific revenue and profit figures for Q2 2025 were not provided, the company's financial position includes:

• Inventories of ₹444.60 crores
• Cash and cash equivalents of ₹214.41 crores

Corporate Governance

The board meeting for approving these results was held on November 4, 2025. The financial results were approved after recommendation by the audit committee, demonstrating the company's commitment to proper corporate governance practices.

Outlook

The demerger of non-core businesses may allow Dalmia Bharat Sugar & Industries to streamline its operations and focus on its primary sugar and distillery segments. Investors and analysts will be keenly watching how this restructuring impacts the company's performance in the coming quarters.

It's important to note that without specific comparative figures for the current quarter, it's challenging to assess the company's year-over-year performance or provide detailed analysis of revenue growth and profitability changes.

Stakeholders should look forward to more detailed disclosures and management commentary to better understand the company's strategic direction and financial health post-demerger.

Dalmia Bharat Sugar & Industries has provided comprehensive guidance to shareholders regarding the apportionment of cost of acquisition following the completion of its demerger scheme with Dalmia Bharat Refractories Limited (DBRL). The company issued detailed instructions on December 18 for calculating post-demerger shareholding costs.

Demerger Scheme Details

The demerger scheme between the company and DBRL became effective on October 9, following approval from the National Company Law Tribunal, Chennai Bench on September 12. The scheme involves the transfer of Dalmia Magnesite Corporation and Govan Travels as demerged undertakings to DBRL.

Cost Apportionment Framework

The company has provided specific guidance on how shareholders should apportion their pre-demerger cost of acquisition between the two entities, in accordance with Income Tax Act provisions.

Practical Calculation Example

The company provided a detailed example to illustrate the cost apportionment mechanism for shareholders:

Regulatory Compliance

The cost apportionment follows Section 49(2C) and 49(2D) of the Income Tax Act, 1961, which govern the treatment of shares in demerger transactions. The allocation is based on the net book value of assets transferred relative to the company's net worth as of June 30, 2023.

Important Shareholder Notice

The company emphasized that this information should be preserved carefully as it will be relevant for calculating taxable capital gains on future share transfers. However, the company clarified that this communication serves as general guidance and should not substitute independent professional advice.

Shareholders eligible for the demerger benefits were determined based on the record date of October 31, with names appearing in the register of members or beneficial owners maintained by registrar and transfer agents.