Shree Renuka Sugars’ board has approved the conversion of a ₹573.65 million loan to its subsidiary, KBK Chem-Engineering, into equity via a rights issue. Additionally, the board reviewed and approved the unaudited financial results for Q2 2026, ended September 30, 2025. The loan conversion aims to strengthen KBK’s capital structure and reduce indebtedness, with completion expected by November 14, 2025.
KBK Chem-Engineering Loan Conversion
The Board of Directors at Shree Renuka Sugars has given the go-ahead for the conversion of a loan extended to KBK Chem-Engineering Private Limited, a wholly-owned subsidiary, into equity. The conversion amounts to ₹573.65 million as of October 31, 2025. This will be achieved through a rights issue, with KBK issuing fully paid-up equity shares at a face value of ₹100 each. The aim is to strengthen KBK’s capital structure, reduce its debt, and improve overall profitability. The expected date of offer closure is November 14, 2025.
Details of KBK Chem-Engineering
KBK Chem-Engineering is involved in the engineering industry. In fiscal year 2025 (FY25), KBK’s turnover was ₹1,270.47 million. In FY24, it reported ₹2,448.99 million, and in FY23, it was ₹4,599.39 million. The conversion is structured as an arm’s length transaction, with no fresh infusion of capital.
Q2 2026 Financial Results (Standalone)
For the quarter ended September 30, 2025, Shree Renuka Sugars reported revenue from operations of ₹23,233 million. The company recorded a loss before tax of ₹3,495 million and a net loss of ₹3,693 million. Basic and diluted earnings per share both stood at ₹(1.50). Total equity reached ₹(9,262) million as of September 30, 2025.
Q2 2026 Financial Results (Consolidated)
On a consolidated basis, revenue from operations was ₹24,228 million for the quarter ended September 30, 2025. The Group’s loss before tax totaled ₹4,013 million, and the net loss was ₹3,693 million. Basic and diluted earnings per share were both recorded at ₹(1.73). Total equity reached ₹(23,209) million as of September 30, 2025.
Source: BSE
