Simbhaoli Sugars Limited has provided an operational update regarding the turbine breakdown at its Brijnathpur power unit, following the initial incident reported on December 30, 2025. The company has informed stock exchanges about significant developments in the restoration process and temporary operational arrangements.

Government Order and Cane Center Reallocation

The Uttar Pradesh Cane Commissioner has issued an official order dated January 12, 2026, reallocating five cane purchase centers operated by Simbhaoli Sugars' Brijnathpur unit to Bindals Papers Mills Limited, Changipur, Bijnor district. This reallocation covers the remaining period of the current crushing season 2025-26.

Technical Assessment and Repair Timeline

Following a joint technical inspection conducted with the General Manager of Mawana Sugar Mill, the assessment revealed that the turbine fan was damaged and required specialized repair. The broken turbine component has been sent to Don Bosco Institute of Technology, New Delhi, for restoration work.

Operational Impact and Farmer Support

The reallocation ensures that sugarcane farmers in the affected areas continue to receive timely payments and processing services during the breakdown period. Under the new arrangement, Bindals Papers Mills will handle all aspects of cane procurement, including cane price payments, contributions, labor costs, and transportation expenses.

The District Cane Officer, Hapur, recommended this reallocation to ensure timely disposal of farmers' sugarcane and maintain prompt payment schedules. The order was issued under Section 15 of the UP Cane Supply and Purchase Regulation Act, 1953, and Rule 22 of the UP Cane Supply and Purchase Regulation Rules, 1954.

Insurance and Regulatory Compliance

The company has confirmed adequate insurance coverage for the affected plant and has notified the insurance company about the breakdown. A surveyor deployment has been requested to assess the extent of coverage and determine the financial impact.

The disclosure has been made pursuant to Regulation 30 of SEBI Listing Regulations and the SEBI Circular dated November 11, 2024. The company continues to work on restoring normal operations while ensuring minimal disruption to stakeholders through the temporary reallocation arrangement.

Simbhaoli Sugars Limited has announced its unaudited standalone financial results for the quarter ended September 30, 2025, marking the completion of the delayed Q2 FY26 results review that was conducted by the Interim Resolution Professional (IRP) on December 29, 2025. Following regulatory compliance requirements, the company published these results in Business Standard (English) and Business Standard (Hindi) newspapers on December 31, 2025.

Financial Performance Overview

The company's Q2 FY26 performance showed mixed operational results amid ongoing insolvency proceedings:

Segment-wise Performance

The company's two primary business segments showed contrasting performance during the quarter:

Half-Year Performance

For the six months ended September 30, 2025, the company reported:

Corporate Insolvency Resolution Process Status

The company has been operating under CIRP since July 11, 2024, following an order by the National Company Law Tribunal (NCLT), Allahabad Bench. Key developments include:

Regulatory Compliance and Publication

In compliance with SEBI regulations 30 and 47, the company published its Q2 FY26 financial results in newspapers on December 31, 2025:

Auditor Qualifications and Key Issues

The independent auditor's limited review report highlighted several significant qualifications:

Interest Provisions Not Made

• No provision for interest on bank borrowings: ₹86.92 crores (Q2) and ₹170.52 crores (H1)
• Accumulated unprovided interest expenses: ₹1,920.82 crores as of September 30, 2025
• No provision for interest on unsecured loans from related parties: ₹0.11 crores (Q2)

Other Material Issues

• Cane farmer interest dues claimed: ₹121.63 crores (as of July 11, 2024)
• Subsidiary-related penalties and disputes: ₹13.31 crores not provided
• CFO remuneration pending approval: ₹4.78 crores for period post-February 2025

Asset and Liability Position

As of September 30, 2025, the company's financial position showed:

Operational Challenges

The company faces significant operational headwinds for the crushing season 2025-26:

Going Concern and Future Outlook

Despite the complete erosion of net worth and ongoing losses, the financial results have been prepared on a going concern basis. The IRP continues to manage operations with the objective of maintaining the company as a viable entity while the NCLAT proceedings remain stayed pending settlement discussions among creditors.

The company remains fully operational, producing sugar, molasses, rectified spirit, IMFL, and other by-products. However, the significant reduction in cane area allocation for the current crushing season poses substantial challenges to future operational performance and viability.