The Ravalgaon Sugar Farm Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing improved performance compared to the previous year despite continued losses. The Board of Directors approved these results at their meeting held on February 11, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed signs of improvement across key metrics:

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, demonstrated substantial improvement in the company's financial position:

Revenue and Expense Breakdown

The company's income structure for Q3FY26 consisted entirely of other income amounting to ₹41.63 lakhs, with no revenue from operations reported during the quarter. This pattern was consistent with the previous quarter and the corresponding quarter of the previous year.

Expense analysis revealed cost optimization across multiple categories. Employee benefits expense decreased to ₹18.49 lakhs in Q3FY26 from ₹21.65 lakhs in Q3FY25. Finance costs reduced significantly to ₹4.73 lakhs from ₹8.94 lakhs year-over-year. Other expenses remained relatively stable at ₹31.33 lakhs compared to ₹30.39 lakhs in the previous year.

Board Decisions and Appointments

The Board of Directors approved the re-appointment of M/s. Sandesh Kadam & Associates, Chartered Accountants, as Internal Auditors for Financial Year 2025-26:

CA Sandesh Narayan Kadam, leading the firm, brings over four years of professional experience specializing in accounting, auditing, tax compliance, and regulatory services.

Legal and Regulatory Matters

The company faces several ongoing legal disputes that could impact future financial performance. A significant gratuity claim from 21 former seasonal workers totals ₹28.23 lakhs plus interest of ₹33.87 lakhs, with the company having deposited ₹63.14 lakhs as security with the Industrial Court, Nashik. Additionally, disputes with Maharashtra's Irrigation Department involve pending claims of ₹19.93 lakhs for industrial use and ₹3.14 lakhs for domestic use. The Gram Panchayat, Ravalgaon, has demanded outstanding tax of ₹231.91 lakhs, against which the company has made partial payments totaling ₹65 lakhs across different financial years.

Capital Structure

The company maintained a stable capital structure with paid-up equity share capital of ₹34.00 lakhs, consisting of shares with a face value of ₹10 each. The earnings per share improved to a loss of ₹5.74 for Q3FY26 compared to a loss of ₹7.84 in Q3FY25.

The Ravalgaon Sugar Farm Limited has reported a widened net loss for the second quarter, amid ongoing operational challenges and legal disputes. The company's financial results, released on November 13, reveal a complex financial situation compounded by various legal and regulatory issues.

Financial Performance

For the quarter ended September 30, The Ravalgaon Sugar Farm reported:

The company's performance for the half-year period ending September 30 showed:

Balance Sheet Overview

As of September 30, The Ravalgaon Sugar Farm's financial position included:

The company's total assets decreased from Rs 1,882.59 lakhs as reported on March 31.

Legal and Regulatory Challenges

The Ravalgaon Sugar Farm is currently facing several legal disputes:

1. Gratuity Payments: The Second Labour Court, Nashik, has ruled that the company owes gratuity payments of Rs 28.23 lakhs, plus interest of Rs 33.87 lakhs, to 21 former seasonal workers. The company has appealed this decision, arguing that the workers did not meet the service criteria for gratuity payments.

2. Water Usage Charges: The Maharashtra Irrigation Department has claimed Rs 19.93 lakhs for industrial use and Rs 3.14 lakhs for domestic use, stemming from non-usage penalties during COVID-19 shutdowns. The company has requested a waiver and made partial payments.

3. Property Tax Dispute: The Gram Panchayat Office, Ravalgaon, has demanded outstanding tax payments of Rs 231.91 lakhs (gross) for various years. The company has disputed this calculation and appealed to the Minister for Rural Development & Panchayat Raj.

Management Actions and Outlook

The company's management has taken several steps to address these challenges:

• Appealed the gratuity payment ruling to the Industrial Court, Nashik, and deposited Rs 63.14 lakhs as security.
• Submitted representations for waiver of water usage penalties and made partial payments.
• Made ad-hoc payments totaling Rs 65 lakhs towards the disputed property tax demand over the past three financial years.

The Ravalgaon Sugar Farm's board of directors approved these unaudited financial results in a meeting held on November 13. The company operates in a single segment of manufacturing confectionery.

While the company faces significant challenges, it continues to operate and seek resolutions to its ongoing disputes. Investors and stakeholders should closely monitor the outcomes of these legal issues and their potential impact on the company's future financial performance.