Sayaji Industries Limited has completed the conversion of its subsidiary Sayaji Seeds LLP into a private limited company, marking a significant corporate restructuring move. The conversion was completed on January 9, 2026, with the newly formed entity receiving Corporate Identification Number U01111GJ2026PTC171909.

Corporate Structure and Capital Details

The converted entity, now operating as Sayaji Seeds Private Limited, has been established with substantial capital backing. The company's financial structure demonstrates the parent company's commitment to its agricultural ventures.

Shareholding Pattern and Investment

Sayaji Industries Limited has maintained its existing shareholding structure in the converted entity. The parent company's investment and control remain unchanged from the previous LLP structure.

The promoters of Sayaji Seeds Private Limited include Sayaji Industries Limited, Mr. Priyam Bipinbhai Mehta, Mr. Varun Priyambhai Mehta, and Mr. Vishal Priyambhai Mehta. Several directors from Sayaji Industries Limited, including Mr. Priyam Bipinbhai Mehta, Mr. Varun Priyam Mehta, Mr. Vishal Priyam Mehta, and Mrs. Sujata Priyam Mehta, also serve as directors of the subsidiary company.

Business Operations and Objectives

Sayaji Seeds Private Limited operates in the agriculture and allied activities sector, with a specific focus on wheat-related business operations. The company's business model encompasses the complete wheat value chain from cultivation to market distribution.

The entity's primary business objectives include:

• Cultivation, growing, producing, and harvesting of wheat
• Undertaking comprehensive agricultural operations for wheat farming
• Land preparation, sowing, irrigation, and fertilization activities
• Crop protection, harvesting, and post-harvest operations
• Cleaning, grading, packing, storing, and transporting wheat products
• Marketing and selling wheat and wheat-based produce in raw or processed form

Regulatory Compliance

The conversion was completed pursuant to Regulation 30 of SEBI Listing Regulations and SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015. The company has fulfilled all regulatory requirements under the Companies Act, 2013, and the entity is registered with the Registrar of Companies, Ahmedabad, Gujarat.

The conversion represents a strategic corporate restructuring that maintains the existing business operations while providing enhanced corporate governance structure through the private limited company format. The subsidiary continues to operate as a related party to Sayaji Industries Limited, ensuring seamless integration with the parent company's overall business strategy.

Sayaji Industries Limited (ISIN: INE327G01032) has experienced a significant downgrade in its credit ratings across multiple facilities, as reported by CARE Ratings Limited. This development comes in the wake of recent operational and financial performance challenges faced by the company.

Credit Rating Downgrades

CARE Ratings has revised Sayaji Industries' ratings as follows:

These downgrades are likely to impact the company's borrowing costs and investor confidence negatively.

Financial Performance Analysis

A closer look at Sayaji Industries' recent financial performance reveals some concerning trends:

Quarterly Performance

The company has reported a significant decline in its financial performance for Q2. Revenue decreased by 8.58% compared to the previous quarter, while EBITDA turned negative at Rs. -1.00 crore, down from Rs. 5.60 crore in Q1. The net loss widened to Rs. 9.20 crore, compared to a loss of Rs. 3.50 crore in the previous quarter.

Half-Yearly Performance

While the company's revenue for the first half showed an 8.61% increase compared to the same period last year, profitability has been severely impacted. EBITDA declined by 81.89%, and the company swung from a marginal profit to a significant loss.

Factors Contributing to the Downgrade

1. Deteriorating Profitability: The sharp decline in EBITDA and net profit margins indicates operational challenges and cost pressures.

2. Increased Financial Leverage: The interest expense has risen by 12.28% year-over-year, suggesting an increase in debt burden.

3. Working Capital Pressures: The decline in revenue coupled with increased losses may be putting strain on the company's working capital management.

4. Market Conditions: External factors such as industry-wide challenges or economic headwinds may also be contributing to the company's difficulties.

The credit rating downgrade reflects CARE Ratings' assessment of Sayaji Industries' increased financial risk profile. Investors and stakeholders should closely monitor the company's future performance and any strategic initiatives aimed at improving its financial health and credit standing.