Rajshree Sugars & Chemicals Limited , a key player in the Indian sugar industry, has reported a significant downturn in its financial performance for the quarter ended September 30, 2025. The company's latest financial results reveal a net loss of ₹747.73 lakhs, marking a stark contrast to the profit of ₹1,072.75 lakhs recorded in the same period last year.

Revenue Decline

The company experienced a notable decline in its revenue from operations, which fell to ₹11,982.84 lakhs from ₹14,597.29 lakhs year-over-year, representing a decrease of about 17.9%. This reduction in turnover has been attributed to lower availability of sugarcane due to adverse climatic conditions, as stated by the company management.

Segment-wise Performance

Rajshree Sugars & Chemicals operates in three primary business segments:

1. Sugar
2. Cogeneration
3. Distillery

The segment-wise results for the quarter paint a mixed picture:

The Sugar segment bore the brunt of the challenging conditions, reporting a significant loss. However, the Cogeneration and Distillery segments managed to remain profitable, albeit not enough to offset the losses from the Sugar segment.

Half-Year Results

The company's performance for the half-year period ending September 30, 2025, also reflected the challenging environment:

• Net loss: ₹2,131.92 lakhs (compared to a profit of ₹1,666.76 lakhs in the previous year)
• Revenue from operations: ₹25,775.71 lakhs (down from ₹38,609.16 lakhs)

Financial Position

As of September 30, 2025, Rajshree Sugars & Chemicals reported:

• Total assets: ₹65,062.06 lakhs
• Total liabilities: ₹40,779.68 lakhs
• Total equity: ₹24,282.38 lakhs

Management Commentary

The company's management has cited adverse climatic conditions affecting sugarcane availability as a key factor in the reduced turnover. This suggests that external environmental factors have played a significant role in the company's performance this quarter.

Conclusion

While the current results indicate a challenging period for Rajshree Sugars & Chemicals, the company's diversified business model, with operations in sugar, cogeneration, and distillery segments, may provide some resilience. The performance of the Cogeneration and Distillery segments, which remained profitable, could be areas of focus for the company moving forward.

Rajshree Sugars & Chemicals Limited has reported a significant turnaround in its financial performance for Q1, posting a net profit of ₹5.94 crore compared to a loss of ₹14.14 crore in the same quarter last year. This positive shift comes despite a substantial decline in revenue, highlighting the company's improved operational efficiency.

Financial Highlights

• Revenue: The company's total income from operations dropped by 41.31% to ₹140.93 crore from ₹240.12 crore year-on-year.
• Profitability: Net profit stood at ₹5.94 crore, a marked improvement from the ₹14.14 crore loss in Q1 of the previous year.
• Earnings Per Share (EPS): EPS improved to ₹1.79 from negative ₹4.27 in the previous year.
• Equity and Reserves: The company maintains a paid-up equity share capital of ₹33.14 crore, with negative reserves of ₹6.59 crore, indicating accumulated losses on its balance sheet.

Segment Performance

The company's financial results, as disclosed in its LODR filing, reveal a mixed performance across its three main business segments:

Operational Challenges

The company noted in its filing that the turnover for the quarter under review was lower compared to the corresponding period last year due to lower availability of sugarcane under adverse climatic conditions. This explains the significant drop in revenue despite the improved bottom line.

Management Commentary

R. Varadarajan, Wholetime Director of Rajshree Sugars & Chemicals Limited, signed off on the financial results. The company's management and board of directors reviewed and approved these results in their 215th board meeting held on August 14.

Auditor's Review

S. Krishnamoorthy & Co., Chartered Accountants, conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

While Rajshree Sugars & Chemicals Limited has shown resilience by turning profitable amidst revenue challenges, the negative reserves on its balance sheet indicate that the company still faces financial hurdles. The strong performance of its distillery segment appears to be a bright spot, potentially offsetting losses in other areas of operation.

Investors and stakeholders will likely be watching closely to see if the company can maintain this positive momentum and address its accumulated losses in the coming quarters.