Avadh Sugar & Energy Ltd

Meeting Details

• Board meeting scheduled for 3 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve the unaudited financial results for the quarter ended 30 June 2026.

Dematerialisation processing and ownership update

• The registrar/transfer agent confirmed processing dematerialisation requests; securities listed on exchanges.
• Dematerialisation certificates were mutilated and cancelled; depository name substituted as registered owner within timelines.

Overview

• Standalone BRSR for FY2025-26; Avadh Sugar & Energy Ltd reports core activities.
• Turnover mix: Sugar 77.27%, Industrial Alcohol 15.92%, Power 6.81%.
• Locations: six plants and three offices nationwide; nine total locations.
• Markets served: national; exports are not material.

Key ESG Risks & Opportunities

• Climate variability threatens sugarcane yields; mitigated by emissions management and renewables.
• Ethanol production offers growth aligned with blending programs; positive opportunity.
• Water scarcity risk addressed through ZLD, recycling, and rainwater harvesting.
• By-product use (bagasse, molasses, press mud) enables circular economy benefits.
• Health and safety risks mitigated by OHSMS, training, and audits.
• Human capital development through continuous learning and structured performance management.

Governance & Policy Highlights

• CSR Committee oversees ESG implementation and monitoring.
• Policies include Code of Conduct, Whistleblower, Supplier Code of Conduct, ESG Policy, and Product Responsibility.
• Policies translated into procedures; extended to value chain; board-approved with oversight.
• Independent external assessment not conducted; no material penalties or fines reported.

Social Responsibility & Workforce

• Total employees 879: 489 permanent, 390 non-permanent; 1,011 total workers.
• Board female representation 25%; female employees 0.4% of permanent staff; female workers 0%.
• Turnover: permanent employees 12% male; 0% female; permanent workers 4% male; 0% female.
• Well-being spend 0.03% of revenue; health/accident insurance and maternity/paternity benefits provided.
• OHSMS covers all staff; 24/7 occupational health centre; regular safety audits and trainings.
• Grievance Redressal Mechanism in place; whistleblower framework supports confidential reporting.

Environmental Performance

• Total energy 1,52,48,831 GJ; renewable share ~99.5% via bagasse cogeneration.
• Scope 1: 34,890 MT CO2e; Scope 2: 570 MT CO2e; intensity 0.000001 MT CO2e per INR.
• Groundwater 1,143,927 KL; ZLD implemented across distilleries; total water discharge 1,061,146 KL.
• Total waste 3,274 MT; 3,271 MT recycled; 3 MT incinerated; no landfill.
• EPR applicable; plastics packaging recycled via CPCB-registered recyclers; compliance tracked.

Stakeholder Engagement & Complaints

• Key groups: employees, farmers (vulnerable), government, customers, shareholders, community.
• Engagement channels: emails, meetings, town halls; regular frequency.
• Community engagement: group meetings with panchayat; CSR initiatives and local development.
• Affiliations: five trade/industry chambers; Indian Sugar Mills Association and others listed.

Other Notable Metrics

• Direct inputs from MSMEs: 6% of inputs; 100% sourced from India.
• Value chain partner awareness training: 50% by value of business.
• Cybersecurity/data privacy: policy in place; no data breaches reported.
• Product information meets regulatory requirements; no voluntary recalls or POSH cases reported.

Financials

• Revenue from operations: 2,69,351.81 Lakhs; up 2.20% YoY
• EBITDA: 22,407.24 Lakhs; margin 8.30%
• Profit after tax: 5,730.53 Lakhs; prior year 8,793.51
• Total comprehensive income: 4,335.66 Lakhs; down 53%
• EPS: 28.63; basic and diluted
• Dividend proposed: ₹10 per equity share; record date 17-Jul-2026
• Credit rating: IND A+ Stable (long-term); IND A1 (short-term)

Operations

• Cane crushed: 48.99 lakh tonnes; 168-day season
• Sugar produced: 4.84 lakh tonnes; recovery 10.33%
• Hargaon unit capacity expansion: 10,000→13,000 TCD
• Distillery: ethanol produced 892.94 lakh litres; 325 KLPD scale
• Ethanol realizations: syrup ₹65.61/L; B-heavy ₹60.73/L
• Power: co-generation 21.30 crore units; exports 9.86 crore units; 74 MW
• Revenue mix: Sugar 77.27%; Distillery 15.92%; Power 6.81%
• Farmer payments: cane payments within 12-13 days of delivery

Segment Performance

• Sugar: revenue 2,571.51 Cr; PBIT 101.84 Cr; cane crushed 48.99 Lakh tonnes
• Distillery: revenue 530 Cr; PBIT 42.00 Cr; ethanol 892.94 lakh litres
• Co-generation: revenue 226.74 Cr; PBIT 34.47 Cr; power 21.30 crore units
• Sugar recovery improvement to 10.33%; varietal transition nearing completion
• Cane procurement from ~2.54 lakh farmers; value ₹2,017.23 Cr
• Ethanol alignment with EBP; 2024-25 735.78 lakh L; 2025-26 892.94 lakh L
• Net debt metrics and liquidity indicators remain within policy framework

Capital & Dividends

• Authorized capital ₹170.05 Cr; issued equity ₹200.18 Cr (2,00,18,420 shares)
• Dividend: ₹10 per equity share; cash outflow ₹2.00184 Cr; record date 17-Jul-2026
• Debt metrics: Debt-Equity 1.25x; Current ratio 1.16x
• Credit ratings: IND A+ Stable (long-term); IND A1 (short-term)
• No public deposits; RTA: MUFG Intime India Private Limited
• Subsidiaries: None; policy for material subsidiaries disclosed on company website
• AGM date: 28-Jul-2026; AGM via VC/OAVM; record date for dividend 17-Jul-2026

Governance & Leadership

• Board consists of 9 directors; 5 Independent Directors; one woman Independent Director
• Sukhvir Singh appointed Whole-time Director from 11-Jun-2025; regularised at AGM 2025
• Chandra Shekhar Nopany appointed MD & Co-Chairman from 1-Sep-2025
• Amit Dalal elevated to Independent Director from 12-May-2026; Rahul Chhabra appointed Independent Director from 15-Jun-2026
• Audit Committee chaired by Anand Dalal; 4 meetings in 2025-26
• CSR Committee chaired by Kalpataru Tripathy; 2 meetings in 2025-26
• Risk Management Committee reconstituted 4-Nov-2025; chair: Pradip Kumar Bishnoi
• Management confirms independence declarations; Board evaluation conducted for 2025-26

ESG & CSR

• CSR spend: ₹3.18 Cr; 2% of average net profit ₹3.1656 Cr; surplus ₹0.1194 Cr
• CSR focus: Education, Healthcare, Rural development, Environmental sustainability
• ZLD implemented at distilleries; water conservation and recycling initiatives
• 77% of employees have >5 years tenure; total workforce 1,890
• ESG framework anchored in 6 capitals; governance and sustainability-led investments
• CSR governance: CSR Committee oversees policy, budget, and program impact; policy on website

Outlook & Risks

• Global growth steadies; India GDP growth around 7.7% in 2025-26
• Inflation around 2.1%; INR depreciation amid global volatility
• Sugar industry: 2025-26 production ~27.9 MMT; MSP and ethanol demand supportive
• Export policy: sugar quota adjusted; policy to regulate exports through Sep 2026
• EBP: 20% ethanol blending achieved; potential move toward 30% by 2030
• Avadh’s four-year plan emphasizes cane-to-fuel value chain, capital discipline, and operational excellence

AGM Details

• AGM scheduled for 28 July 2026 at 11:00 IST via VC/OAVM.
• Dividend record date set for 17 July 2026.
• E-voting cut-off date is 21 July 2026.
• Remote e-voting window runs 24 July 2026 to 27 July 2026.

Key Resolutions

• Adopt audited financial statements and reports.
• Declare dividend on equity shares for the year.
• Re-appoint director retiring by rotation.
• Ratify cost auditor remuneration for cost records audit.
• Appoint independent director for five-year term.

Voting Results

• Adoption of financial statements: voting results not disclosed.
• Dividend declaration: voting results not disclosed.
• Director appointment: voting results not disclosed.
• Cost auditor remuneration: voting results not disclosed.
• Independent director Amit Dalal: voting results not disclosed.
• Independent director Rahul Chhabra: voting results not disclosed.

Dividend

• Dividend per share proposed, subject to AGM approval.
• Record date for dividend entitlement fixed.

Director Changes

• Director retiring by rotation to seek re-appointment.
• Independent director candidates proposed for five-year terms.

Auditor Appointments

• Cost auditor appointed for cost records audit for the 2026-27 year.
• Remuneration for cost auditor to be ratified.

Material Related Party Transactions

• No material related party transactions disclosed.

Other Material Approvals

• No ESOPs or other major approvals disclosed.

AGM notice and access

• 12th AGM scheduled for July 28, 2026 at 11:00 IST via Video Conference.
• Annual Report 2025-26 and AGM notice accessible on company's website.
• Shareholders with registered email will receive notices electronically; others via website link.
• e-Voting starts July 23, 2026 9:00 AM; ends July 27, 2026 5:00 PM.
• Record date for final dividend July 17, 2026.
• Dividend payment within 30 days from the AGM.
• KYC update reminders issued; physical holders urged to update details.
• Letters issued to shareholders without registered emails with AGM notice link.