Ravalgaon Sugar Farm Reports ₹50.79 Crore Loss, Appoints New Auditors

2 min read Updated on 13 Aug 2025, 05:44 PM

Reviewed by

Ashish TScanX News Team

Overview

Ravalgaon Sugar Farm Limited reported a net loss of ₹50.79 crore for Q1 FY2025-26, with revenue dropping to ₹0.04 crore. The company's inactivity follows the sale of its confectionery business to Reliance Consumer Products Limited. Despite losses, management believes the company has resources to continue operations. New appointments include a Secretarial Auditor and Statutory Auditors. A legal matter involving former seasonal workers' gratuity is under appeal.

*this image is generated using AI for illustrative purposes only.

The Ravalgaon Sugar Farm Limited, a company known for its confectionery business, has reported a net loss of ₹50.79 crore for the quarter ended June 30, 2025. This loss comes in the wake of the company's recent sale of its confectionery business trademarks, recipes, and intellectual property to Reliance Consumer Products Limited in the previous financial year.

Financial Performance

The company's financial results, approved by the Board of Directors on August 13, 2025, reveal a significant increase in losses compared to the previous quarter. In the quarter ended March 31, 2025, Ravalgaon Sugar Farm had reported a loss of ₹9.16 crore.

Particulars (in ₹ Crore)	Q1 FY2025-26	Q4 FY2024-25	Q1 FY2024-25
Revenue from Operations	0.04	75.40	2.32
Total Income	0.04	75.40	118.14
Total Expenses	50.83	84.57	170.40
Net Profit/(Loss)	(50.79)	(9.16)	(52.63)

The company's revenue from operations has drastically reduced to ₹0.04 crore in the current quarter, down from ₹75.40 crore in the previous quarter. This significant drop in revenue is attributed to the company's inactivity following the sale of its confectionery business.

Operational Status

Ravalgaon Sugar Farm Limited has been operationally inactive during the quarter ended June 30, 2025. The company sold its trademarks, recipes, and intellectual property related to its confectionery business to Reliance Consumer Products Limited in the financial year 2023-2024. As a result, no segment information has been disclosed in the financial results for the current quarter.

Going Concern Status

Despite the substantial loss, the management believes that the company has sufficient resources to continue operations. This confidence is based on the fact that Ravalgaon Sugar Farm continues to own the operating assets of the confectionery business and other assets that can be utilized for future activities. The company is actively assessing and monitoring its circumstances to maintain its going concern status.

Corporate Updates

The Board of Directors has approved several key appointments:

Secretarial Auditor: M/s. S. R. Padhye & Co., Practicing Company Secretary, has been re-appointed as the Secretarial Auditor for the Financial Year 2025-26.
Statutory Auditors: M/s. Patkar and Pendse, Chartered Accountants, have been appointed as the new Statutory Auditors for a term of five consecutive financial years, from the 90th AGM to the 95th AGM (to be held in 2030). This appointment is subject to shareholder approval at the upcoming Annual General Meeting.

Legal Matter

In May 2025, the Second Labour Court, Nashik, ruled in favor of 21 former seasonal workers, awarding them gratuity of ₹28.22 lakh and interest of ₹33.87 lakh. Ravalgaon Sugar Farm has contested the applicability of the Payment of Gratuity Act, 1972, to these seasonal workers and has filed an appeal before the Industrial Court, Nashik. As of now, no provision has been made in the company's accounts for this potential liability.

The company's future trajectory remains uncertain as it navigates the aftermath of selling its core confectionery business. Stakeholders will be keenly watching Ravalgaon Sugar Farm's next moves as it seeks to utilize its remaining assets and chart a new course for growth.

Historical Stock Returns for The Ravalgaon Sugar Farm