Kesar Enterprises Limited has released the Chairman’s address for its 91st Annual General Meeting. The address reviews the financial year 2025-26, detailing a narrowed net loss of ₹48.41 crore and improved EBITDA despite lower sugar sales volumes. It also discusses segment performance, industry challenges, and the outlook for FY 2026-27, emphasizing a cautiously positive industry view.
Chairman Addresses 91st AGM
Kesar Enterprises Limited’s Chairman, Harsh R Kilachand, delivered his address at the company’s 91st Annual General Meeting (AGM) on August 20, 2026. He welcomed shareholders and provided an overview of the company’s performance and strategic direction.
Performance Overview FY 2025-26
The financial year 2025-26 presented challenges for Kesar Enterprises and the Uttar Pradesh sugar industry. Revenue from operations decreased to ₹304.50 crore from ₹333.97 crore in the previous year, mainly due to a reduction in sugar sale volumes to 6.23 lakh quintals. However, the company reported a meaningful reduction in net loss, which stood at ₹48.41 crore compared to ₹72.62 crore in FY 2024-25. EBITDA also improved from a negative ₹38.92 crore to a negative ₹11.00 crore, attributed to cost discipline and one-off items including an interest write-back on an OTS settlement and an insurance claim.
Crushing operations for Season 2025-26 were impacted by delayed start and earlier closure, processing 55.31 lakh quintals of cane over 98 days. This was lower than the 59.46 lakh quintals processed in the preceding season, primarily due to the diversion of cane centres by farmers to neighbouring mills amidst delays in clearing cane price dues. Consequently, the command area reduced from 27,012 hectares to 18,636 hectares. On a positive note, sugar recovery improved to 10.23% from 9.55%.
Segment Performance
The Power Division benefited from the Uttar Pradesh Electricity Regulatory Commission’s revised multi-year tariff, averaging ₹4.43 per unit for FY 2025-26. The Spirits Division remained shut as molasses costs and realisation rates rendered distillery operations commercially unviable. A decision on restarting operations will be made around September-October 2026 based on market conditions.
Industry Environment and Outlook
The Uttar Pradesh sugar industry faces structural challenges including the State Advised Price regime, an unchanged Minimum Selling Price (MSP) of ₹31 per kilogram for sugar for over six years, and high production costs. Kesar Enterprises, alongside industry bodies, advocates for a rational, recovery-linked cane pricing formula and a timely MSP revision. For FY 2026-27, steady sugar prices are anticipated, supported by lower opening stocks and export restrictions. The company intends to prioritize improving its cane payment cycle to protect its command area, especially with a new sugar mill opening within 15 kilometres. The Board views the near and medium-term industry outlook as cautiously positive.
Governance and Appreciation
The Board reaffirmed its commitment to prudent financial management, internal controls, and high standards of governance. The Chairman expressed appreciation to fellow Directors, employees, farmers, bankers, and regulatory authorities for their support through a demanding year. Shareholders were thanked for their patience and continued confidence.
The address concludes with a cautionary statement regarding forward-looking statements, noting that actual results may differ materially from projections.
Source: BSE
