Rana sugars Limited has strengthened its leadership team by appointing Mr. Gaurav Garg, the company's Chief Financial Officer, as an Additional Director in the category of Whole-time Director. The appointment marks a significant step in the company's governance structure and reflects confidence in Mr. Garg's capabilities and contributions to the organization.

Board Approval and Appointment Details

The Board of Directors approved Mr. Garg's appointment during their meeting held on February 26, 2026, following the recommendation of the Nomination and Remuneration Committee. The appointment complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Professional Background and Qualifications

Mr. Gaurav Garg brings substantial expertise to his new role as Whole-time Director. Born on July 29, 1980, he is a qualified Chartered Accountant with a Bachelor of Commerce degree. His professional experience spans over 15 years in finance, taxation, and corporate laws.

Key Professional Highlights:

• Current Role: Chief Financial Officer since February 9, 2021
• Experience: Over 15 years in finance, taxation, and corporate laws
• Previous Employment: Self-employed before joining Rana Sugars Limited
• Shareholding: Holds no shares in the company
• Residence: Flat No. 659-B, JTPL City, Sector 115, Mohali-140307

Regulatory Compliance and Independence

The company has confirmed that Mr. Garg meets all regulatory requirements for the appointment. He is not debarred from holding the office of Director by virtue of any SEBI order or any other authority, as confirmed in accordance with BSE Circular No. LIST/COMP/14/2018-19 dated June 20, 2018.

Additionally, Mr. Garg maintains independence in his relationships, as he is not related to any of the existing Directors on the Board. This ensures proper governance structure and maintains the integrity of the Board's decision-making process.

Regulatory Framework and Next Steps

The appointment has been made pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided all required details under Regulation 30(6) and relevant SEBI circulars, including SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

The appointment is subject to retirement by rotation and requires approval from shareholders as per the provisions of the Companies Act, 2013, SEBI LODR, and other applicable rules and regulations. This appointment reflects the company's commitment to strengthening its leadership team with experienced professionals who can contribute to its strategic objectives and operational excellence.

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.