Kothari Sugars And Chemicals Limited (KOTARISUG)
₹25.78 -0.96% last close, 16 Oct
Latest quarterly results (Q4 FY26)
In its latest reported quarter, Q4 FY26, Kothari Sugars' revenue was ₹42.0 Cr (+16.4% year on year, -40.1% on the previous quarter), and net profit ₹0.6 Cr (against a loss a year earlier); the operating margin was -6.9%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹42.0 | +16.4% | -40.1% |
| Operating profit | ₹-2.9 | loss widened | loss narrowed |
| Net profit | ₹0.6 | from loss | -94.7% |
| EPS (₹) | 0.08 | from loss | -94.4% |
| Operating margin | -6.9% | — | — |
KOTARISUG exchange data
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📢 Recent Corporate Announcements
Kothari Sugars and Chemicals Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing covers the quarter ended September 30, 2026. Share transfer agent Cameo Corporate Services Limited confirmed that dematerialisation requests received during this period were duly processed, cancelled, and substituted in the records within 15 days.
- Compliance certificate submitted for the quarter ended September 30, 2026
- Confirmation received from RTA Cameo Corporate Services Limited dated October 05, 2026
- Securities certificates mutilated and registered within the mandated 15 days
Kothari Sugars and Chemicals has issued notices for NCLT-directed meetings of its equity shareholders and unsecured creditors scheduled for November 13, 2026. The meetings are convened to approve the proposed Scheme of Amalgamation of the company into Kothari Petrochemicals Limited. For shareholders, the e-voting window runs from November 10 to November 12, 2026, with a cut-off date of November 06, 2026. The merger represents a major structural consolidation within the promoter group for the Rs 214 Cr market cap sugar producer.
- NCLT Chennai Bench-directed meeting of Equity Shareholders scheduled on November 13, 2026 at 10:30 AM
- Meeting of Unsecured Creditors convened on November 13, 2026 at 11:30 AM
- Remote e-voting for shareholders opens on November 10, 2026 at 9:00 AM and ends on November 12, 2026 at 5:00 PM
- Shareholder voting cut-off date fixed as November 06, 2026
- Proposed amalgamation of Kothari Sugars (Transferor) into Kothari Petrochemicals (Transferee) under Sections 230-232
Kothari Sugars and Chemicals Limited (KSCL) has issued a notice convening a meeting of its unsecured creditors on November 13, 2026, as directed by the NCLT Chennai Bench. The meeting is called to approve the proposed Scheme of Amalgamation of KSCL into Kothari Petrochemicals Limited (KPL). The remote e-voting window is scheduled from November 10 to November 12, 2026, with a cut-off date of July 31, 2026. This step advances the group consolidation process following earlier NSE observation clearance received on August 19, 2026.
- NCLT-convened Unsecured Creditors meeting scheduled for November 13, 2026 at 11:30 AM via VC/OAVM
- Remote e-voting period open from November 10, 2026 (9:00 AM) to November 12, 2026 (5:00 PM)
- Cut-off date for reckoning voting eligibility established as July 31, 2026
- Scheme involves the amalgamation of KSCL (Transferor) into Kothari Petrochemicals Limited (Transferee)
Kothari Sugars and Chemicals Limited (KSCL) has issued a notice convening an NCLT-directed meeting of equity shareholders on November 13, 2026, to approve its amalgamation into Kothari Petrochemicals Limited (KPL). The scheme is pursuant to the NCLT Chennai Bench order dated September 30, 2026, and follows an NSE Observation Letter received on August 19, 2026. The cut-off date to determine shareholder voting eligibility is November 06, 2026, with remote e-voting scheduled from November 10 to November 12, 2026. This structural merger aims to pool resources and diversify revenue streams away from cyclical sugar operations.
- Shareholder meeting scheduled for Friday, November 13, 2026, at 10:30 AM via VC/OAVM pursuant to NCLT order dated September 30, 2026
- Voting eligibility cut-off date fixed as Friday, November 06, 2026
- Remote e-voting window runs from November 10, 2026 (9:00 AM) to November 12, 2026 (5:00 PM)
- Amalgamation scheme involves merger of KSCL (Transferor) into Kothari Petrochemicals Limited (Transferee)
- Valuation reports and fairness opinions completed as of May 19, 2026, alongside NSE Observation Letter received on August 19, 2026
Kothari Sugars and Chemicals Limited (KSCL) has received an order from the NCLT Chennai Bench directing it to convene meetings of equity shareholders and unsecured creditors on November 13, 2026. This pertains to the proposed Scheme of Amalgamation to merge KSCL into Kothari Petrochemicals Limited (KPL). Indian Bank, the secured creditor for both entities, has already provided consent, leading NCLT to dispense with secured creditor meetings. KSCL generated TTM revenue of ₹247 Cr and had a market cap of ₹213 Cr prior to this step.
- NCLT Chennai Bench pronounced order on September 30, 2026, directing shareholder and creditor meetings
- Equity shareholders and unsecured creditors meetings scheduled for Friday, November 13, 2026
- Indian Bank consented to the scheme, dispensing with secured creditor meetings for both companies
- KSCL (market cap ₹213 Cr) to be amalgamated with and into Kothari Petrochemicals Limited (KPL)
Kothari Sugars and Chemicals Limited (KSCL) has received an Observation Letter conveying 'No Objection' from the National Stock Exchange of India (NSE) dated August 19, 2026, regarding its proposed Scheme of Amalgamation with and into Kothari Petrochemicals Limited (KPL). This step follows the initial Board approval on May 19, 2026, and SEBI observations dated August 18, 2026. The observation letter is valid for 6 months, enabling the companies to approach the National Company Law Tribunal (NCLT). The completion of the amalgamation remains subject to approvals from the NCLT, shareholders, and creditors.
- NSE issued the 'No Objection' Observation Letter on August 19, 2026, under Regulation 37 of SEBI LODR Regulations.
- The Observation Letter remains valid for 6 months from August 19, 2026, within which the scheme petition must be submitted to the NCLT.
- SEBI issued its observation/comment letter on August 18, 2026, paving the way for the stock exchange clearance.
- Scheme is subject to statutory compliance, including shareholder/creditor voting and NCLT approval with financials not older than 6 months.
Kothari Sugars held its 65th Annual General Meeting on August 13, 2026, where shareholders approved the audited financial statements for the fiscal year ended March 31, 2026. A total of 6.18 crore votes were cast, representing a 74.60% turnout of the total share capital. Key resolutions, including the re-appointment of Director Arjun B. Kothari and the ratification of the Cost Auditor's remuneration for FY27, were passed with near-unanimous support. The meeting confirms management continuity despite a challenging FY26 which saw an operating margin of -5.31%.
- 65th Annual General Meeting concluded on August 13, 2026, with 64 shareholders attending via video conferencing.
- Total of 6,18,32,301 votes cast, representing a 74.60% turnout of the total share capital.
- Resolution to adopt FY26 financial statements passed with 99.9999% approval (only 54 votes against).
- Mr. Arjun B. Kothari re-appointed as Director with 6,18,31,897 votes in favor.
- Remuneration for the Cost Auditor for FY 2026-27 was ratified by the members.
Kothari Sugars reported a 25% YoY revenue growth to ₹83.42 Cr for Q1 FY27, primarily driven by a 51% surge in distillery segment revenue. However, the company posted an operational loss (before exceptional items) of ₹7.86 Cr compared to a profit of ₹0.08 Cr in the same quarter last year. Net profit was barely positive at ₹0.08 Cr, saved only by a one-time exceptional gain of ₹7.95 Cr from the reversal of an electricity-related provision. The core sugar segment remains a major drag, reporting a loss of ₹10.18 Cr at the PBIT level.
- Revenue from operations grew 25% YoY to ₹83.42 Cr, representing ~34% of TTM revenue.
- Net Profit fell 93.6% YoY to ₹0.08 Cr from ₹1.25 Cr, despite a ₹7.95 Cr one-time gain.
- Distillery segment revenue increased 51% YoY to ₹48.33 Cr, now contributing 58% of total revenue.
- Sugar segment reported a loss of ₹10.18 Cr at the PBIT level, worsening from a ₹9.91 Cr loss YoY.
- Power segment PBIT improved significantly to ₹8.39 Cr from ₹1.13 Cr in the previous year's quarter.
Kothari Sugars and Chemicals Limited held its 65th Annual General Meeting on August 13, 2026, via video conferencing. Shareholders transacted three primary items: the adoption of FY26 audited financial statements, the re-appointment of Mr. Arjun B. Kothari as a Director, and the ratification of cost auditor remuneration for FY27. The meeting concluded within 50 minutes, and the final voting results are expected to be disclosed within two working days. This is a standard administrative filing following the close of the fiscal year.
- 65th Annual General Meeting successfully conducted on August 13, 2026
- Adoption of FY26 financial statements showing revenue of ₹246.78 Cr and PAT of ₹6.61 Cr
- Re-appointment of Mr. Arjun B. Kothari (DIN: 07117816) as Director retiring by rotation
- Ratification of remuneration for the Cost Auditor for the 2026-2027 financial year
- Meeting duration was 50 minutes, commencing at 11:00 hrs and concluding at 11:50 hrs
Kothari Sugars and Chemicals has scheduled its 65th Annual General Meeting for August 13, 2026. The company reported a challenging FY26 with Gross Revenue falling 21% YoY to ₹257.64 Cr and Profit After Tax (PAT) declining to ₹6.61 Cr from ₹10.43 Cr in FY25. Operations were impacted by a shortage of sugarcane and molasses, leading to a Loss Before Tax of ₹2.63 Cr, which was offset by a deferred tax reversal of ₹9.47 Cr. The Debt-Equity ratio increased to 0.24 as the company utilized more working capital to manage cane dues.
- FY26 Gross Revenue declined to ₹257.64 Cr from ₹326.42 Cr in the previous fiscal year.
- Profit After Tax (PAT) stood at ₹6.61 Cr, supported by a ₹9.47 Cr deferred tax reversal despite an operational loss.
- Debt-Equity ratio rose to 0.24 from 0.17 due to increased cash credit utilization for sugarcane payments.
- Inventory turnover slowed to 142 days from 155 days, reflecting lower production volumes in the sugar segment.
- Contingent liabilities totaling ₹11.81 Cr are disclosed, including disputed tax and electricity matters.
Kothari Sugars and Chemicals Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The document, issued by the Registrar and Share Transfer Agent (RTA), Cameo Corporate Services Limited, covers the quarter ended June 30, 2026. It confirms that securities received for dematerialization were processed and the original certificates were mutilated and cancelled within the mandated 15-day period. This is a standard administrative filing required for all listed entities to maintain the integrity of electronic shareholding records.
- Compliance certificate issued for the quarter ended June 30, 2026
- Confirmation that dematerialization requests were processed within 15 days of receipt
- Certificate provided by RTA Cameo Corporate Services Limited dated July 03, 2026
- Verification that the name of depositories has been substituted in the Register of Members
Kothari Sugars and Chemicals Limited has received a renewal of recognition for its in-house Research and Development (R&D) unit from the Department of Scientific and Industrial Research (DSIR). The recognition, which applies to the facility in Ulundai Village, Tamil Nadu, has been extended until March 31, 2029. This renewal allows the company to continue availing customs duty exemptions on R&D-related imports under various government notifications. This development ensures operational continuity for the company's innovation projects and maintains its eligibility for fiscal incentives.
- DSIR renewal granted for the in-house R&D unit located at Ulundai Village, Tamil Nadu.
- The recognition and registration are valid for a five-year period ending March 31, 2029.
- Enables continued customs duty exemptions under multiple notifications including No. 38/2024 and No. 45/2025.
- Supports the company's long-term focus on scientific and industrial research within the sugar and chemical sectors.
Kothari Sugars and Chemicals Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting July 01, 2026. This routine regulatory measure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015. The closure precedes the announcement of the company's unaudited financial results for the quarter ending June 30, 2026. The trading window will remain closed until 48 hours after the financial results are officially declared.
- Trading window closure effective from July 01, 2026.
- Closure is in anticipation of the Unaudited Financial Results for the quarter ended June 30, 2026.
- The window will reopen 48 hours after the results are declared to the stock exchange.
- Applies to all Designated Persons and their immediate relatives under SEBI guidelines.
CRISIL Ratings has updated the credit outlook for Kothari Sugars and Chemicals Limited's bank facilities totaling Rs 103.00 crores. The long-term rating of CRISIL BBB+ and short-term rating of CRISIL A2 have been placed on 'Watch with Developing Implications'. This replaces the previous 'Negative' outlook on the long-term facility, indicating that the rating agency is monitoring specific developments that could impact the company's credit profile.
- CRISIL placed Rs 100.00 crore of long-term fund-based cash credit on 'Watch with Developing Implications'.
- The short-term non-fund-based bank guarantee of Rs 3.00 crore was also placed on 'Watch with Developing Implications'.
- The long-term rating remains at CRISIL BBB+, while the short-term rating remains at CRISIL A2.
- The previous outlook for the long-term facility was 'Negative', suggesting a shift from a downward bias to a monitoring phase.
Kothari Sugars and Chemicals Limited has issued a notice regarding the mandatory transfer of equity shares to the Investor Education and Protection Fund (IEPF). This applies to shareholders who have not claimed their dividends for seven consecutive years, specifically starting from the dividend declared on August 7, 2019. The transfer to the IEPF Demat Account is scheduled for September 11, 2026. Affected shareholders must take action by contacting the Registrar and Share Transfer Agent (RTA) by September 10, 2026, to prevent the transfer.
- Shares with unclaimed dividends for 7 consecutive years will be transferred to the IEPF Demat Account.
- The transfer process relates to dividends declared during the 2019-2020 financial year on August 7, 2019.
- Shareholders must contact the RTA, Cameo Corporate Services, on or before September 10, 2026, to avoid transfer.
- The scheduled date for the transfer of shares and unclaimed dividends to IEPF is September 11, 2026.
- Post-transfer, shareholders lose membership rights but can reclaim shares from IEPF authorities via prescribed forms.
Financial Performance
Revenue Growth by Segment
Total revenue from operations declined 29.5% YoY to INR 134.73 Cr for the half-year ended September 30, 2025, from INR 191.21 Cr. Annual revenue fell 17.6% from INR 609.61 Cr in FY23 to INR 502.23 Cr in FY24. In the distillery segment, sales volume decreased by 14% and production fell by 15% due to raw material shortages. The power segment saw an 85% decline in grid exports due to lower crushing volumes.
Geographic Revenue Split
Operations are concentrated in Tamil Nadu, India, with manufacturing plants located in Kattur and Sathamangalam villages. Specific percentage split by region is not disclosed, but revenue is heavily influenced by the Government of India's domestic quota mechanism implemented in February 2024.
Profitability Margins
Net Profit Margin declined from 5.87% in FY24 to 3.36% in FY25. Operating Profit Margin turned negative at -0.78% in FY25 compared to 5.98% in FY24, driven by higher sugarcane costs and lower yields. Profit before tax for H1 FY26 was a loss of INR 9.15 Cr compared to a profit of INR 8.90 Cr in H1 FY25.
EBITDA Margin
Operating profit before working capital changes for H1 FY26 was negative INR 5.28 Cr, a sharp decline from positive INR 12.51 Cr in H1 FY25. This deterioration is linked to a 29.5% drop in revenue and increased cost of materials consumed relative to sales.
Capital Expenditure
Capital expenditure for the half-year ended September 30, 2025, was INR 11.49 Cr, significantly higher than the INR 0.27 Cr spent in the corresponding period of 2024, indicating ongoing investment in fixed assets despite subdued performance.
Credit Rating & Borrowing
CRISIL has assigned a 'Negative' outlook with a short-term rating of CRISIL A2. Bank limit utilization averaged 41% for the 12 months ended May 2025. Finance costs for H1 FY26 were INR 3.13 Cr, a marginal increase from INR 3.01 Cr YoY.
Operational Drivers
Raw Materials
Sugarcane (primary input), Molasses (distillery feedstock), and Bagasse (fuel for co-generation). Sugarcane costs increased in FY25, contributing to a negative operating margin of -0.78%.
Import Sources
Sourced locally from farmers in Tamil Nadu, specifically around the Kattur and Sathamangalam plant regions. The company maintains relationships with a diverse base of sugarcane farmers.
Key Suppliers
Primary suppliers are local sugarcane farmers in the catchment areas of the Tamil Nadu plants. No specific corporate supplier names are disclosed.
Capacity Expansion
Current installed capacity includes 6,400 tonnes crushed per day (TCD) for sugar, 60 kilolitres per day (KLPD) for the distillery, and 33 megawatts (MW) for co-generation. No specific expansion timeline for these units is provided.
Raw Material Costs
Cost of materials consumed for H1 FY26 was INR 77.83 Cr, representing 57.8% of revenue from operations. This is an increase in cost intensity compared to H1 FY25 when material costs were INR 62.34 Cr (32.6% of revenue).
Manufacturing Efficiency
Manufacturing efficiency was adversely impacted by lower crushing volumes and lower yields in FY25. Distillery production efficiency fell by 15% due to feedstock (molasses) shortages.
Logistics & Distribution
Most sales (excluding Electricity Board dues) are conducted on a 'cash and carry' basis, which minimizes distribution credit risk. Specific logistics costs as a % of revenue are not disclosed.
Strategic Growth
Expected Growth Rate
6%
Growth Strategy
The company is shifting focus toward distillery operations to reduce vulnerability to sugar price volatility. It aims to achieve growth through enhanced sugarcane crushing and improved yields via satellite irrigation monitoring, targeting an operating margin recovery to above 6%.
Products & Services
Sugar, Ethanol (Alcohol), and Cogenerated Power.
Brand Portfolio
Kothari Sugars and Chemicals Limited (part of the H.C. Kothari Group).
New Products/Services
Increased focus on ethanol production within the distillery segment to capitalize on government blending mandates, though specific new product revenue % is not disclosed.
Market Expansion
The company is focusing on stabilizing its Tamil Nadu operations and improving sugarcane availability in its command area to restore crushing to optimal levels.
Strategic Alliances
The company operates as part of the H.C. Kothari Group; no specific external JVs or alliances are mentioned in the provided documents.
External Factors
Industry Trends
The industry is shifting from pure sugar production to integrated 'sugar-ethanol-power' models. The government is using quotas and export bans to manage domestic supply, while promoting ethanol blending to support distillery margins.
Competitive Landscape
KSCL is a significant player in the Tamil Nadu sugar industry, competing with other regional integrated sugar mills.
Competitive Moat
Moat is based on integrated operations (sugar, distillery, co-gen) and long-standing (70+ years) relationships with farmers. Sustainability is challenged by heavy government regulation of both input (cane) and output (sugar) prices.
Macro Economic Sensitivity
Highly sensitive to agricultural output and monsoon patterns. A 20% decline in revenue is cited as a downward rating sensitivity factor.
Consumer Behavior
Demand for sugar remains stable as a commodity, but there is increasing industrial demand for ethanol for fuel blending.
Geopolitical Risks
Minimal direct impact due to domestic focus, but global sugar price trends influence government export/import policies.
Regulatory & Governance
Industry Regulations
Subject to the Essential Commodities Act, government-fixed Fair and Remunerative Price (FRP) for cane, and monthly domestic sugar release quotas. Ethanol pricing is also government-regulated.
Environmental Compliance
The company operates distilleries and co-generation plants which are subject to environmental norms; however, specific ESG compliance costs in INR are not disclosed.
Taxation Policy Impact
The company noted a higher tax provision in FY25 which contributed to lower net profit margins. Specific tax rate % is not disclosed.
Legal Contingencies
No instances of non-compliance or penalties from SEBI or Stock Exchanges were reported. Specific pending court case values for labor or tax disputes are not disclosed.
Risk Analysis
Key Uncertainties
Regulatory changes in sugar quotas and ethanol pricing pose significant risks. A decline in revenue by 20% or more is identified as a key risk to the credit profile.
Geographic Concentration Risk
100% of manufacturing operations are concentrated in Tamil Nadu, making the company highly vulnerable to regional monsoon variations and state-specific sugarcane pricing (SAP).
Third Party Dependencies
High dependency on local farmers for sugarcane supply; shortages in cane lead to underutilization of distillery and power capacities.
Technology Obsolescence Risk
Low risk for core commodity production, but the company is adopting digital tools like satellite monitoring to prevent agricultural yield obsolescence.
Credit & Counterparty Risk
Exposure to the state Electricity Board for power sales; other sales are primarily on a cash-and-carry basis, mitigating general trade receivable risk.
