Simbhaoli Sugars Limited announced its unaudited standalone financial results for the quarter ended December 31, 2025, operating under the Corporate Insolvency Resolution Process (CIRP) that commenced on July 11, 2024. The company reported a net loss of ₹453.49 lakhs for the quarter, compared to a loss of ₹265.90 lakhs in the corresponding quarter of the previous year.

Financial Performance Overview

The company's revenue from operations declined significantly during the quarter, reflecting the challenging operational environment under CIRP proceedings.

For the nine months ended December 31, 2025, the company recorded a net loss of ₹3,684.50 lakhs on revenue of ₹66,782.67 lakhs, compared to a net loss of ₹2,353.85 lakhs on revenue of ₹78,696.08 lakhs in the corresponding period of the previous year.

Segment-wise Performance

The company operates through two primary business segments - Sugar and Distillery operations.

Both segments reported losses during the quarter, with the Sugar segment recording a loss of ₹377.43 lakhs and the Distillery segment posting a loss of ₹420.58 lakhs.

Corporate Insolvency Resolution Process Status

The Hon'ble National Company Law Tribunal (NCLT), Allahabad Bench, admitted the insolvency petition filed by Punjab National Bank on July 11, 2024, appointing Mr. Anurag Goel as the Interim Resolution Professional (IRP). Subsequently, the National Company Law Appellate Tribunal (NCLAT) issued an interim order on July 24, 2024, directing that no further steps be taken pursuant to the NCLT order while permitting the IRP to continue managing operations. The next hearing is scheduled for March 24, 2026.

Operational Challenges

The company faces several operational hurdles that have impacted its performance:

• Raw Material Availability: The Cane Area Reservation order issued on October 18, 2025, diverted 28 cane centres from Simbhaoli and 11 from Brijnathpur, with Chilwariya receiving zero allotment • Environmental Compliance: Central Pollution Control Board issued directions to stop manufacturing operations at Simbhaoli Distillery and Brijnathpur Distillery units • Equipment Issues: Turbine breakdown at Brijnathpur unit affected mill operations

Auditor Qualifications

The independent auditor's limited review report contained several qualifications, including:

• No provision for interest expenses on bank borrowings amounting to ₹8,941.03 lakhs for the quarter • Accumulated unprovided interest expenses totaling ₹2,01,022.71 lakhs as of December 31, 2025 • Non-provision of interest on delayed sugarcane payments to farmers amounting to ₹12,163.25 lakhs • Absence of impairment assessment for investments in subsidiary companies

Financial Position

As of December 31, 2025, the company's total assets stood at ₹1,76,706.77 lakhs, while total liabilities amounted to ₹1,85,066.42 lakhs. The company's net worth remains fully eroded, with current liabilities exceeding current assets, indicating continued financial distress despite ongoing resolution efforts under the IRP's management.

Simbhaoli Sugars Limited has announced the temporary closure of its Simbhaoli Distillery unit located in Hapur, with the updated closure date now set for February 9th, 2026 at 7:45 AM. The closure follows compliance directions received from the Central Pollution Control Board (CPCB) under Section 5 of the Environment (Protection) Act, 1986.

Revised Closure Timeline

The company has updated its closure schedule following the CPCB environmental compliance directive. The distillery unit will cease operations on the specified date and time as part of regulatory compliance measures.

Updated Financial Impact Assessment

The company has provided revised financial details regarding the distillery unit's contribution to overall business operations. The updated figures show a different contribution percentage compared to earlier estimates.

Regulatory Compliance Framework

The closure directive falls under the regulatory framework of environmental protection laws. The company is required to comply with CPCB directions to ensure adherence to environmental norms and standards. The unit will remain closed until further directions are received from CPCB for revocation of the current closure order.

Business Operations Impact

Simbhaoli Sugars Limited operates across multiple business segments including specialty sugars, potable alcohol, ethanol, and power generation. The temporary closure of the Hapur distillery unit represents a portion of the company's diversified operations portfolio, with the distillery contributing approximately 4.94% to the total group net turnover.