SBEC Sugar Reports Widening Losses and Company Secretary Resignation
SBEC Sugar Limited announced financial results for Q2 2025, reporting a net loss of Rs 2,553.72 lacs, up 9.2% from the previous quarter. Total income was Rs 14,675.01 lacs against expenses of Rs 17,228.73 lacs. Half-year losses increased to Rs 4,892.07 lacs. The company has not provisioned for Rs 2,080.45 lacs in late cane payment interest. Mr. Ankit Bisht, Company Secretary and Compliance Officer, has resigned effective November 15, 2025. Auditors raised concerns about Rs 14,685.98 lacs exposure to Modi Industries Limited debt.
*this image is generated using AI for illustrative purposes only.
SBEC Sugar Limited , a prominent player in the sugar industry, has announced its financial results for the quarter ended September 30, 2025, revealing a significant increase in net losses. The company also disclosed the resignation of its Company Secretary and Compliance Officer.
Financial Performance
For the quarter ended September 30, 2025, SBEC Sugar reported a net loss of Rs 2,553.72 lacs, compared to a loss of Rs 2,338.35 lacs in the previous quarter. This represents an increase in losses of approximately 9.2% quarter-over-quarter. The company's performance for the half-year period was equally challenging, with losses mounting to Rs 4,892.07 lacs, a substantial rise from Rs 3,583.03 lacs in the corresponding period last year.
Despite the widening losses, the company managed to report a total income of Rs 14,675.01 lacs for the quarter. However, this was offset by total expenses of Rs 17,228.73 lacs, leading to the reported loss.
Key Financial Metrics
| Particulars (in Rs. Lacs) | Q2 2025 (30-09-2025) | Q1 2025 (30-06-2025) | Q2 2024 (30-09-2024) |
|---|---|---|---|
| Revenue from Operations | 14,671.60 | 11,938.19 | 13,711.69 |
| Total Income | 14,675.01 | 11,940.20 | 13,713.15 |
| Total Expenses | 17,228.73 | 14,278.54 | 16,320.65 |
| Net Loss | (2,553.72) | (2,338.35) | (2,607.50) |
Operational Challenges
The company's financial performance appears to be impacted by several factors, including:
- Increased cost of materials consumed
- Higher finance costs
- Depreciation and amortization expenses
It's worth noting that the company has not made provisions for interest on late payment of cane dues amounting to Rs 2,080.45 lacs for the sugar season 2024-25. This decision could potentially impact future financial statements if provisions are required later.
Management Changes
In a separate announcement, SBEC Sugar Limited informed that Mr. Ankit Bisht has resigned from his position as Company Secretary and Compliance Officer. His resignation will be effective from the close of business hours on November 15, 2025. The company has not yet announced a replacement for this key position.
Auditor's Observations
The company's auditors have highlighted concerns regarding a net exposure of Rs 14,685.98 lacs related to Modi Industries Limited (MIL) debt. The auditors noted that no interest has been provided on this amount due to uncertainty of collection, as MIL's net worth has been completely eroded.
Looking Ahead
As SBEC Sugar Limited navigates through these challenging times, investors and stakeholders will be closely watching how the company addresses its mounting losses and operational issues. The appointment of a new Company Secretary and Compliance Officer will be a key development to monitor in the coming weeks.
The sugar industry continues to face headwinds, and SBEC Sugar's performance reflects these broader market challenges. The company's ability to manage its costs and improve operational efficiency will be crucial for its future financial health.
Historical Stock Returns for SBEC Sugar
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.25% | -7.18% | -1.89% | -28.31% | -45.78% | +409.32% |
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