The Ravalgaon Sugar Farm Reports Widened Net Loss in Q2, Faces Multiple Legal Challenges

The Ravalgaon Sugar Farm Limited has reported a widened net loss for the second quarter, amid ongoing operational challenges and legal disputes. The company's financial results, released on November 13, reveal a complex financial situation compounded by various legal and regulatory issues.

Financial Performance

For the quarter ended September 30, The Ravalgaon Sugar Farm reported:

Metric	Q2	Q2 Previous Year	Change
Net Loss	Rs 115.55 lakhs	Rs 114.26 lakhs	+1.13%
Revenue from Operations	Rs 15.81 lakhs	Not provided	N/A
Basic EPS (Loss)	Rs 33.98	Rs 33.61	+1.10%

The company's performance for the half-year period ending September 30 showed:

Metric	H1	H1 Previous Year	Change
Net Loss	Rs 215.55 lakhs	Rs 166.89 lakhs	+29.16%

Balance Sheet Overview

As of September 30, The Ravalgaon Sugar Farm's financial position included:

Metric	Amount
Total Assets	Rs 1,915.43 lakhs
Total Equity	Rs 1,393.54 lakhs
Current Liabilities	Rs 521.89 lakhs

The company's total assets decreased from Rs 1,882.59 lakhs as reported on March 31.

Legal and Regulatory Challenges

The Ravalgaon Sugar Farm is currently facing several legal disputes:

Gratuity Payments: The Second Labour Court, Nashik, has ruled that the company owes gratuity payments of Rs 28.23 lakhs, plus interest of Rs 33.87 lakhs, to 21 former seasonal workers. The company has appealed this decision, arguing that the workers did not meet the service criteria for gratuity payments.
Water Usage Charges: The Maharashtra Irrigation Department has claimed Rs 19.93 lakhs for industrial use and Rs 3.14 lakhs for domestic use, stemming from non-usage penalties during COVID-19 shutdowns. The company has requested a waiver and made partial payments.
Property Tax Dispute: The Gram Panchayat Office, Ravalgaon, has demanded outstanding tax payments of Rs 231.91 lakhs (gross) for various years. The company has disputed this calculation and appealed to the Minister for Rural Development & Panchayat Raj.

Management Actions and Outlook

The company's management has taken several steps to address these challenges:

Appealed the gratuity payment ruling to the Industrial Court, Nashik, and deposited Rs 63.14 lakhs as security.
Submitted representations for waiver of water usage penalties and made partial payments.
Made ad-hoc payments totaling Rs 65 lakhs towards the disputed property tax demand over the past three financial years.

The Ravalgaon Sugar Farm's board of directors approved these unaudited financial results in a meeting held on November 13. The company operates in a single segment of manufacturing confectionery.

While the company faces significant challenges, it continues to operate and seek resolutions to its ongoing disputes. Investors and stakeholders should closely monitor the outcomes of these legal issues and their potential impact on the company's future financial performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.83%	-4.53%	+1.32%	-3.92%	-39.33%	+217.92%

The Ravalgaon Sugar Farm Limited, a company known for its confectionery business, has reported a net loss of ₹50.79 crore for the quarter ended June 30, 2025. This loss comes in the wake of the company's recent sale of its confectionery business trademarks, recipes, and intellectual property to Reliance Consumer Products Limited in the previous financial year.

Financial Performance

The company's financial results, approved by the Board of Directors on August 13, 2025, reveal a significant increase in losses compared to the previous quarter. In the quarter ended March 31, 2025, Ravalgaon Sugar Farm had reported a loss of ₹9.16 crore.

Particulars (in ₹ Crore)	Q1 FY2025-26	Q4 FY2024-25	Q1 FY2024-25
Revenue from Operations	0.04	75.40	2.32
Total Income	0.04	75.40	118.14
Total Expenses	50.83	84.57	170.40
Net Profit/(Loss)	(50.79)	(9.16)	(52.63)

The company's revenue from operations has drastically reduced to ₹0.04 crore in the current quarter, down from ₹75.40 crore in the previous quarter. This significant drop in revenue is attributed to the company's inactivity following the sale of its confectionery business.

Operational Status

Ravalgaon Sugar Farm Limited has been operationally inactive during the quarter ended June 30, 2025. The company sold its trademarks, recipes, and intellectual property related to its confectionery business to Reliance Consumer Products Limited in the financial year 2023-2024. As a result, no segment information has been disclosed in the financial results for the current quarter.

Going Concern Status

Despite the substantial loss, the management believes that the company has sufficient resources to continue operations. This confidence is based on the fact that Ravalgaon Sugar Farm continues to own the operating assets of the confectionery business and other assets that can be utilized for future activities. The company is actively assessing and monitoring its circumstances to maintain its going concern status.

Corporate Updates

The Board of Directors has approved several key appointments:

Secretarial Auditor: M/s. S. R. Padhye & Co., Practicing Company Secretary, has been re-appointed as the Secretarial Auditor for the Financial Year 2025-26.
Statutory Auditors: M/s. Patkar and Pendse, Chartered Accountants, have been appointed as the new Statutory Auditors for a term of five consecutive financial years, from the 90th AGM to the 95th AGM (to be held in 2030). This appointment is subject to shareholder approval at the upcoming Annual General Meeting.

Legal Matter

In May 2025, the Second Labour Court, Nashik, ruled in favor of 21 former seasonal workers, awarding them gratuity of ₹28.22 lakh and interest of ₹33.87 lakh. Ravalgaon Sugar Farm has contested the applicability of the Payment of Gratuity Act, 1972, to these seasonal workers and has filed an appeal before the Industrial Court, Nashik. As of now, no provision has been made in the company's accounts for this potential liability.

The company's future trajectory remains uncertain as it navigates the aftermath of selling its core confectionery business. Stakeholders will be keenly watching Ravalgaon Sugar Farm's next moves as it seeks to utilize its remaining assets and chart a new course for growth.