Mawana Sugars Limited has published its unaudited financial results for the quarter and nine months period ended December 31, 2025, in newspapers on February 16, 2026. The company fulfilled its regulatory obligations under SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, specifically Regulation 47.

Regulatory Compliance and Publication

The company published its Q3 FY26 financial results in "Business Standard" Hindi (Delhi Edition) and "Business Standard" English (all editions) on February 16, 2026. This publication was communicated to BSE Limited and National Stock Exchange of India Limited through a formal letter signed by Company Secretary Ashok Kumar Shukla.

Financial Performance Overview

The company's standalone financial performance for Q3 FY26 showed mixed results compared to the previous year. While revenue from operations increased, profitability declined significantly during the quarter.

Nine Months Performance

For the nine months period ended December 31, 2025, the company reported challenging financial results with a net loss on standalone basis.

Segment-wise Performance

The company operates across three main business segments: sugar, power, and distillery. The segment-wise revenue breakdown for Q3 FY26 shows sugar as the dominant contributor.

After adjusting for inter-segment revenue of ₹168.45 crore, the net revenue from operations stood at ₹365.35 crore for the quarter.

Exceptional Items and Special Provisions

The company recorded exceptional items of ₹14.75 crore during Q3 FY26, primarily related to the implementation of new Labour Codes. The Government of India consolidated 29 existing labour legislations into four unified Labour Codes, which became effective from November 21, 2025. This resulted in an incremental impact that the company disclosed as an exceptional item due to its materiality and non-recurring nature.

Consolidated Results

On a consolidated basis, which includes subsidiary Mawana Foods Private Limited, the company reported net profit of ₹3.93 crore for Q3 FY26. The subsidiary contributed revenue of ₹11.16 crore and net profit of ₹0.14 crore during the quarter.

Key Financial Metrics

The company's earnings per share (EPS) for Q3 FY26 stood at ₹0.96 compared to ₹8.33 in Q3 FY25. The paid-up equity share capital remained unchanged at ₹39.12 crore with a face value of ₹10 per share. Other equity as per balance sheet was reported at ₹452.94 crore.

The financial results reflect the seasonal nature of the company's sugar and power business segments, and the management noted that quarterly performance may not be representative of annual performance.

Mawana Sugars Limited has achieved a significant victory in its tax litigation matter, with the Income Tax Department dropping a substantial demand of ₹9.54 crores. The company informed stock exchanges on January 23, 2025, about this favorable development under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Background of the Tax Demand

The original tax controversy began when the Office of the Assistant Commissioner of Income Tax ACIT (OSD), Delhi issued a demand notice of ₹9,54,53,137 under Section 156 of the Income Tax Act, 1961. This demand was initially communicated to the exchanges on August 29, 2025, as part of the company's regulatory disclosure obligations.

Company's Strategic Response

Mawana Sugars adopted a proactive approach to challenge the tax demand by filing an application for rectification under Section 154 of the Income Tax Act, 1961. This provision allows taxpayers to seek correction of apparent errors in tax assessments or demand notices.

Favorable Outcome

The Income Tax Department's response to the rectification application proved highly favorable for the company. Upon examination of Mawana Sugars' contentions, the department accepted the company's position and observed that the error was apparent from the record. This acknowledgment led to the rectification of the error under Section 154 provisions and the complete withdrawal of the ₹9.54 crore demand.

Regulatory Compliance

The company has maintained transparency throughout this process by keeping stakeholders informed about developments in the litigation. The latest update confirms that the proceedings have been resolved in the company's favor, with no financial impact on its operations. The company specifically noted that the matter did not involve any key management personnel, promoters, or ultimate persons in control, and no settlement terms or penalties were involved since the demand was entirely dropped.

Conclusion

This resolution represents a positive development for Mawana Sugars Limited, eliminating a potential financial liability of ₹9.54 crores. The successful challenge of the tax demand through proper legal channels demonstrates the company's commitment to protecting shareholder interests while maintaining compliance with regulatory requirements.