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 reported its financial results for the second quarter. The company's performance shows a significant decline compared to the previous quarter and the same period last year.

Financial Performance

The company reported a net loss of Rs 23.06 crore for the quarter ended September 30, a substantial increase from the net loss of Rs 1.10 crore in the previous quarter. This widening of losses indicates challenging market conditions for the sugar manufacturer.

Revenue from operations saw a sharp decline, falling to Rs 73.38 crore from Rs 470.69 crore in the same quarter last year. This significant drop in revenue highlights the volatility in the sugar industry and potential market headwinds faced by the company.

Segment-wise Performance

Sakthi Sugars operates across four segments, with the following revenue breakdown:

Half-yearly Results

For the half-year period, the company posted a net loss of Rs 24.16 crore, a stark contrast to the profit of Rs 28.92 crore reported in the corresponding period last year. This reversal in fortunes underscores the challenges faced by the company in the current fiscal year.

Auditor's Qualification

The auditors have issued a qualified opinion regarding Rs 252.20 crore of interest receivable from an erstwhile associate company. No provision for expected credit loss has been made for this amount. The company's management believes that recovery is reasonably assured, despite the auditors' concerns about the lack of clear information on the outcome of pending legal actions and the timeline for realizing this receivable.

Financial Metrics

• Basic and diluted earnings per share stood at negative Rs 1.94 for the quarter, reflecting the impact of the losses on shareholder value.
• The company's total income for the quarter was Rs 169.64 crore, while total expenses amounted to Rs 201.72 crore, resulting in a loss before tax of Rs 32.08 crore.

Industry Context

The sugar industry is known for its seasonal nature, and quarterly results may not be representative of the company's annual performance. However, the significant decline in revenue and the widening losses indicate that Sakthi Sugars is facing substantial challenges in the current market environment.

The company's board of directors and management may need to address these financial pressures and explore strategies to improve performance in the coming quarters.