SBEC Sugar Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing continued operational challenges with widened losses despite revenue generation. The company's Board of Directors approved the results at their meeting held on February 10, 2026, along with several key corporate decisions including a significant debt settlement agreement.

Financial Performance Overview

The company's financial performance for Q3FY26 showed mixed results with revenue decline but improved loss margins compared to the previous year.

For the nine-month period ended December 31, 2025, SBEC Sugar reported revenue from operations of ₹38,164.78 crore compared to ₹41,763.43 crore in the corresponding period of the previous year, representing a decline of 8.62%. The net loss for the nine-month period stood at ₹6,951.33 crore compared to ₹5,726.25 crore in the previous year.

Major Debt Settlement Agreement

The Board ratified and approved a significant One-Time Settlement (OTS) agreement with Modi Industries Limited for the settlement of outstanding debt assignment dues.

The settlement agreement includes an interest rate of 8% per annum on a reducing balance basis, effective from January 1, 2026, until full payment. The settlement loss of ₹508.59 crore has been included in "Other Expenses" for the current quarter.

Key Appointments and Corporate Changes

The Board approved the appointment of Mr. Anil Kumar Goel as Company Secretary and Compliance Officer, effective February 10, 2026. Mr. Goel, who also serves as the Chief Financial Officer, is a fellow member of the Institute of Company Secretaries of India since 1978 and brings over 50 years of experience in secretarial, legal, and finance functions.

Operational Challenges and Regulatory Matters

The company continues to face challenges related to cane dues interest provisions. During the nine-month period ended December 31, 2025, SBEC Sugar did not make provisions for interest on late payment of cane dues amounting to ₹2,704.89 crore for sugar seasons through 2025-26. The auditors noted that had these provisions been made, the loss would have been higher by ₹2,704.89 crore.

The company remains engaged in legal proceedings regarding interest waivers for cane dues from 2012-13 to 2014-15, following Supreme Court and High Court orders. The matter remains sub-judice, and the company has applied to the Cane Commissioner for interest waiver under applicable regulations.

Consolidated Results

On a consolidated basis, which includes subsidiaries SBEC-Bio Energy Limited and SBEC Stock Holding & Investment Limited, the company reported a net loss of ₹1,729.83 crore for Q3FY26 compared to ₹2,231.03 crore in Q3FY25. Consolidated revenue from operations stood at ₹12,297.14 crore for the quarter.

SBEC Sugar Limited has announced the complete repayment of a Rs. 5 crore loan to Pristine Industries Limited, marking the closure of a borrowing arrangement that was established in May 2025. The company made this disclosure on February 03, 2026, in compliance with regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Loan Repayment Details

The sugar company has fully repaid the loan amount of Rs. 5,00,00,000 (Rupees Five Crores only) that was originally obtained from Pristine Industries Limited. The repayment was completed on 02nd February, 2026, effectively closing the loan arrangement in accordance with the agreed terms.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, in its compliance framework. Chief Financial Officer Anil Kumar Goel signed the disclosure document, ensuring proper authorization and documentation.

Financial Impact

SBEC Sugar Limited has indicated that the loan repayment will have no material impact on the company's financial position or operations. The loan was unsecured, meaning no collateral was pledged against the borrowing. The successful repayment demonstrates the company's ability to meet its financial obligations within the agreed timeframe.

Corporate Transparency

This disclosure reflects SBEC Sugar Limited's commitment to maintaining transparency with stakeholders and regulatory compliance. The company has fulfilled its obligation to inform the stock exchange and investors about significant financial transactions, ensuring proper corporate governance standards are maintained throughout the loan lifecycle.