Sakthi Sugars Limited has released its financial results for the quarter ended September 30, 2025, revealing a mixed performance with significant revenue growth but continued losses.

Financial Highlights

The sugar manufacturer reported a substantial increase in total income from operations, which rose to ₹168.27 crores in Q2 2025 from ₹73.38 crores in the same quarter last year, marking a significant year-over-year growth of 129.3%.

Despite the revenue surge, Sakthi Sugars continued to face challenges in profitability. The company reported a net loss of ₹23.06 crores for the quarter, although this represents an improvement from the ₹28.98 crores loss recorded in the corresponding quarter of the previous year.

Half-Yearly Performance

For the six-month period, Sakthi Sugars posted a net loss of ₹24.16 crores. This contrasts with a net profit of ₹28.92 crores reported in the previous year's corresponding period, indicating a notable shift in the company's financial performance.

Capital Structure

As of the latest report, Sakthi Sugars maintains an equity share capital of ₹118.85 crores, with reserves standing at ₹79.80 crores.

Corporate Actions

In a recent development, the company's Board of Directors approved a draft agreement on October 30, 2025, proposing the assignment of a claim amounting to ₹252.20 crores (₹25,219.69 lakhs), which was previously a matter pending before arbitration proceedings. Consequently, the Board has also approved the withdrawal of these arbitration proceedings.

This strategic move suggests that Sakthi Sugars is taking steps to resolve outstanding financial matters, which could potentially impact its future financial position and operational strategy.

The sugar industry continues to face challenges, including fluctuating sugar prices, regulatory changes, and climatic conditions affecting crop yields. Sakthi Sugars' significant revenue growth amidst these challenges is noteworthy, though the persistent losses indicate ongoing pressures on profitability.

Investors and stakeholders will be keenly watching how the company's recent corporate actions and operational strategies unfold in the coming quarters, particularly in light of the substantial revenue increase and efforts to address pending financial claims.

Sakthi Sugars Limited , a prominent player in the sugar industry, has entered into a significant assignment agreement with S3G Debt Management for Rs 25,219.69 lakhs (Rs 252.20 crore). The company disclosed this development under Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Assignment Agreement Details

The company has provided comprehensive details of the assignment agreement in its regulatory filing:

Transaction Structure

The primary purpose of this agreement is to assign the amount receivable from Sakthi Auto Component Limited, which aggregates to Rs 25,219.69 lakhs. The company has clarified that S3G Debt Management holds no shareholding in Sakthi Sugars Limited, and no special rights such as director appointment rights or share subscription preferences have been granted under this agreement.

Regulatory Compliance

Sakthi Sugars has confirmed that the transaction parties are not related to the promoter, promoter group, or group companies in any manner. The agreement does not fall within the purview of related party transactions, ensuring compliance with regulatory requirements. Additionally, no shares are proposed to be issued to the counterparty as part of this arrangement.

Recent Financial Performance Context

This assignment agreement comes at a time when the company has been facing financial challenges. In the second quarter, Sakthi Sugars reported a net loss of Rs 23.06 crore, compared to a net loss of Rs 1.10 crore in the previous quarter. Revenue from operations declined significantly to Rs 73.38 crore from Rs 470.69 crore in the same quarter last year.

Business Segments Overview

The company operates across multiple segments with the following revenue distribution:

For the half-year period, the company posted a net loss of Rs 24.16 crore, contrasting sharply with the profit of Rs 28.92 crore in the corresponding period last year. The assignment agreement represents a strategic move to manage receivables and improve cash flow position amid these challenging financial conditions.