Rana Sugars Limited has received a credit rating reaffirmation from Infomerics Valuation and Rating Private Limited, with the rating agency maintaining its watch status amid ongoing regulatory investigations. The company disclosed the credit rating review dated December 10, 2025, in compliance with SEBI listing regulations.

Credit Rating Details

Infomerics has continued the rating watch with developing implications for Rana Sugars' credit facilities. The rating action covers the company's total facilities worth ₹165.80 crore across different instruments.

Ongoing Regulatory Investigations

The rating agency has placed Rana Sugars under watch due to search and seizure operations conducted by multiple regulatory bodies over the past 15 months ending November 2025. The investigations involve:

• SEBI Investigation: Following an order dated August 27, 2024, SEBI investigated the company's financials from FY15 to FY21, alleging fund diversion to promoter group companies. Rana Sugars has filed an appeal with the Securities Appellate Tribunal (SAT) with the next hearing scheduled for January 2026.

• Income Tax Department: Conducted search and seizure operations in February 2025 on all premises of Rana Sugars, its group companies, and directors. The outcome and impact remain unascertained.

• Enforcement Directorate: Seized immovable properties worth ₹22.02 crore under FEMA provisions for alleged foreign exchange violations. The matter is sub-judice with hearings due by end of December 2025.

Financial Performance Analysis

Despite regulatory challenges, Rana Sugars demonstrated mixed financial performance in FY25. The company's total operating income increased by 7.55% to ₹1,712.79 crore in FY25 from ₹1,592.62 crore in FY24, primarily driven by higher distillery segment turnover.

The company maintained a stable gross cash accrual of ₹67.96 crore in FY25 compared to ₹66.63 crore in FY24. However, H1 FY26 performance showed revenue growth of 3% but EBITDA declined by 121% due to falling sugar prices in Q2 FY26.

Rating Strengths and Concerns

Key Strengths:

• Integrated operations across sugar, ethanol, and power generation providing operational synergies
• Experienced promoter management with extensive sugar industry track record
• Long-term Power Purchase Agreements (PPAs) for 102 MW co-generation capacity providing revenue visibility
• Healthy financial risk profile with comfortable gearing ratios

Rating Constraints:

• Ongoing litigation risks from multiple government agencies
• Working capital-intensive operations with inventory holding period of 129 days
• Exposure to sugarcane crop vagaries and cyclical nature of sugar business
• Vulnerability to government regulations affecting pricing and trade policies

Liquidity and Future Outlook

Infomerics assessed Rana Sugars' liquidity position as adequate, with projected debt repayments of ₹20-32 crore against envisaged gross cash accruals of ₹75-96 crore during FY26-FY28. The company plans capital expenditure of ₹45 crore during this period, primarily funded through internal accruals.

The rating agency expects performance improvement in H2 FY26 and beyond, supported by the company's integrated business model and established market position. However, the final rating outcome will depend significantly on the resolution of ongoing regulatory investigations and their impact on the company's operational and financial performance.

Rana Sugars Limited , a prominent player in the sugar industry, has reported its financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company's performance shows a mixed picture, with revenue growth accompanied by a continued net loss.

Key Financial Highlights

• Revenue Growth: Rana Sugars reported a significant increase in revenue from operations, rising to Rs 53,090.41 lakhs in Q2 FY26, up from Rs 38,556.80 lakhs in the same quarter last year.
• Net Loss: Despite the revenue growth, the company posted a net loss of Rs 412.95 lakhs for Q2 FY26. However, this represents an improvement compared to the loss of Rs 1,478.05 lakhs in Q2 FY25.
• Segment Performance: The company's performance varied across its three main segments - Sugar, Power, and Distillery.

Segment-wise Performance

The Distillery segment emerged as the top revenue generator and the only profitable segment for the quarter.

Financial Position

As of September 30, 2025, Rana Sugars Limited reported:

• Total Assets: Rs 1,12,228.17 lakhs
• Total Equity: Rs 55,860.81 lakhs
• Current Liabilities: Rs 43,237.63 lakhs

Management Commentary

Rana Veer Partap Singh, Managing Director of Rana Sugars Limited, stated, "While we continue to face challenges, our focus on operational efficiency and revenue growth is showing results. The significant improvement in our top line and reduction in net loss compared to the same quarter last year are encouraging signs. Our distillery segment's performance has been particularly strong, offsetting some of the pressures in the sugar and power segments."

Outlook

The company's board has approved the unaudited quarterly and half-yearly financial results, indicating improved performance across its sugar, distillery, and power segments despite continuing losses. The management remains committed to further improving operational efficiencies and exploring growth opportunities in the coming quarters.

Investors and stakeholders should note that sugar being a seasonal industry, quarterly results may not be fully representative of the company's annual performance. Rana Sugars continues to navigate market challenges while working towards sustainable profitability.