Dharani Sugars & Chemicals has announced its 39th AGM for September 25, 2026, amid persistent financial distress. The company reported a net loss of Rs 99.56 crore for FY26, with a negative net worth of Rs 262.84 crore. Despite exiting insolvency proceedings in 2024, the company remains non-operational, with trading in its shares currently suspended. Shareholders will vote on director re-appointments, related party transaction limits for liquidity, and auditor remuneration during the upcoming meeting.
Dharani Sugars & Chemicals AGM and Financial Overview
Dharani Sugars & Chemicals reported a net loss of Rs 99.56 crore for FY26. The company’s net worth remains negative at Rs 262.84 crore as operations stay dormant.
Reader Takeaway: Revenue remains negligible at Rs 2.41 crore, while the company grapples with defaulted loans and suspended trading.
What just happened
Dharani Sugars has issued the notice for its 39th Annual General Meeting (AGM) to be held on September 25, 2026, via video conferencing. The agenda includes the adoption of financial statements, the re-appointment of Mrs. Visalakshi Periasamy, and the ratification of cost auditors. Notably, the board is seeking approval for Related Party Transaction (RPT) limits of up to Rs 300 crore with Dharani Developers and Rs 25 crore with Dr. Palani G Periasamy to address urgent liquidity needs.
Why this matters
The company is in a precarious financial state. Despite exiting the Corporate Insolvency Resolution Process (CIRP) in May 2024, commercial production has not resumed. Statutory auditors have issued a qualified opinion, citing eroded net worth, borrowing defaults, and the underreporting of finance costs. The revocation of the Sugar Development Fund (SDF) settlement further complicates the company’s liability position.
Risks to watch
Trading in equity shares has been suspended on BSE and NSE since July 2023. While the management claims it has paid outstanding SOP fines and applied for trading revocation, there is no guarantee of immediate resumption. The lack of operational cash flow and high debt obligations remain critical barriers to stabilization.
Context metrics
For FY26, total revenue was Rs 2.41 crore compared to Rs 0.72 crore in the previous year. Loss before tax stood at Rs 82.77 crore. The company currently carries a significant burden of unserved statutory dues and defaulted borrowings.