Dharani Sugars Q2 FY27 Results: Significant Losses Continue, Operations Non-Operational
Dharani Sugars & Chemicals Limited reported continued significant losses for Q2 FY27 with operations remaining non-operational. The company defaulted on loan repayments, leading to the cancellation of its Master Restructuring Agreement (MRA) and One Time Settlement (OTS) for an SDF loan. Significant accumulated losses and negative net worth persist.
The company's financial health is severely impacted, with ongoing defaults, cancellation of restructuring agreements, and a going concern warning from auditors. Operations remain non-operational, and trading of shares is suspended, indicating a high impact on the company's viability and stakeholders.
The company continues to report substantial losses, has non-operational facilities, and has defaulted on multiple loan obligations, leading to the cancellation of restructuring agreements. The auditor's report highlights material uncertainties regarding the company's ability to continue as a going concern.
Dharani Sugars & Chemicals Limited announced its un-audited financial results for the quarter and half-year ended September 30, 2026. The company reported substantial losses and accumulated losses, leading to a negative net worth. Its manufacturing facilities and operations have remained non-operational for a prolonged period.
The company has defaulted in the repayment of significant borrowings, settlement obligations, and statutory dues. The Master Restructuring Agreement (MRA) with India Debt Resolution Company Limited (IDRCL) has been cancelled due to breaches in repayment obligations and financial covenants. Consequently, the original outstanding dues, including unsustainable debt, have become payable.
The Sugar Development Fund (SDF) Loan also faced a default in repayment after the extension period expired, leading to the revocation of the One Time Settlement (OTS) arrangement. The company is facing significant liquidity and cash flow constraints, impacting its ability to recommence operations and meet its financial obligations.
Discussions with lenders and stakeholders are ongoing for restructuring, settlement, and revival arrangements. The company has also not provided for interest expense on borrowings from directors and related parties as per agreed terms, leading to an understatement of finance costs and current liabilities. Investments in Appu Hotels Limited are also noted as not reflective of fair value.
The equity shares of the company remain suspended from trading on NSE and BSE since July 03, 2023, due to liquidation proceedings initiated by the National Company Law Tribunal.
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