Suraj Industries Limited , a player in the liquor industry, has reported a significant increase in net loss for the second quarter of fiscal year 2026, according to the company's latest financial results.

Financial Performance

The company posted a net loss of Rs 77.45 lakhs for the quarter ended September 30, 2025, a substantial increase from the Rs 27.17 lakhs loss reported in the same quarter of the previous year. This represents a year-on-year increase in losses of approximately 185%.

Revenue from operations saw a slight improvement, rising to Rs 549.61 lakhs from Rs 533.00 lakhs in the corresponding quarter last year, marking a modest increase of about 3.1%.

Half-Year Results

The company's financial struggles appear to be more pronounced when looking at the half-year performance:

All figures in Rs lakhs

The half-yearly results show a significant deterioration in the company's financial health, with losses expanding by over 2000% and revenue declining by 18.2% compared to the same period in the previous fiscal year.

Segment Performance

Suraj Industries operates primarily in the liquor segment. For the quarter ended September 30, 2025:

• The liquor operations segment reported revenue of Rs 530.66 lakhs.
• The segment result (before finance costs and unallocable expenses) showed a loss of Rs 82.11 lakhs.

Balance Sheet Highlights

As of September 30, 2025, the company's balance sheet shows:

• Total assets of Rs 10,036.29 lakhs
• Shareholders' funds of Rs 8,183.43 lakhs
• Current liabilities of Rs 1,808.52 lakhs

Recent Corporate Action

In a separate development, Suraj Industries Limited has reported a change in its shareholding in M/s Shri Gang Industries and Allied Products Limited. Following an allotment of sweat equity shares by Shri Gang, Suraj Industries' stake in the company has been revised to 19.31% of the increased paid-up equity share capital.

Conclusion

Suraj Industries Limited's Q2 FY2026 results reflect a challenging period for the company, with widening losses and declining revenues. The company's performance in the coming quarters will be crucial in determining its ability to address these financial challenges and improve its overall financial health.

Suraj Industries Limited has successfully completed the allotment process for its rights issue, raising approximately ₹119.70 crore. The company issued 2,99,25,394 partly paid-up equity shares at a price of ₹40 per share, including a premium of ₹30 per share.

Rights Issue Details

The rights issue was conducted in the ratio of 21 rights equity shares for every 13 fully paid-up equity shares held by eligible shareholders. The record date for the issue was set as October 13, and the subscription period ran from October 23 to November 7.

Allotment Statistics

The company received a total of 1,203 applications for 3,39,85,113 rights equity shares, representing an oversubscription of 113.56% of the issue size. After technical rejections, the final tally of valid applications stood at 799, applying for 3,36,83,665 shares.

Allotment Process

The basis of allotment was finalized on November 10, in consultation with BSE Limited, the designated stock exchange for the issue. All valid applications were considered for allotment, with shares distributed as follows:

• 1,97,01,317 shares allotted against rights entitlements
• 1,02,24,077 shares allotted against additional applications

Post-Issue Steps

• Allotment advice and refund intimations will be dispatched by November 11.
• The company has applied for listing approval from BSE, expected by November 11.
• Credit of shares to allottees' demat accounts is scheduled for November 11.
• Trading of the newly allotted shares is expected to commence on November 12, under the ISIN for partly paid equity shares (IN9170U01027).

Impact on Share Capital

Following the rights issue, Suraj Industries' equity share capital has increased significantly:

• Pre-issue: ₹15,84,32,710
• Post-issue: ₹48,45,06,380

The new share capital consists of 1,85,25,244 fully paid-up equity shares and 2,99,25,394 partly paid-up equity shares, each with a face value of ₹10.

Promoter Acquisitions

As part of the rights issue allotment, key promoters of the company acquired additional shares:

• Sarita Jain received 41,68,000 equity shares, representing an 8.60% stake. Following the acquisition, she now holds 42,91,626 shares, accounting for 8.86% of the company.
• Arun Jain received 14,000 equity shares, representing a 0.03% stake. His total holding remains at 14,000 shares, maintaining a 0.03% stake in the company.

The allotment to the promoters was completed on November 11.

Management Commentary

Suraj Prakash Gupta, a key promoter of the company, commented on the successful completion of the rights issue: "We are pleased with the strong response from our shareholders, which demonstrates their confidence in Suraj Industries' growth prospects. The funds raised will strengthen our financial position and support our expansion plans."

Investors should note that the rights equity shares can only be traded on the stock exchange in dematerialized form. The company advises shareholders to ensure their holdings are in demat accounts to facilitate smooth trading.

This rights issue marks a significant milestone for Suraj Industries Limited, providing the company with additional capital to fuel its growth strategies and enhance shareholder value.