Magadh Sugar & Energy Ltd

Magadh Sugar & Energy Ltd — Trading Window closed from October 1, 2026 until 48 hours after declaration of financial results for the quarter ending September 30, 2026

Purpose

• Appointment of Lt Gen Rakesh Kapoor (Retd.) as Non-Executive Independent Director for 5 years (2026–2031).

Resolutions

• Resolution 1 (Special): Appointment of Lt Gen Rakesh Kapoor as Non-Executive Independent Director for 5-year term.

Outcome

• Approved by requisite majority per Scrutinizer's Report; promoters in favour 100%; public in favour on votes polled.

Director appointment details

• Role: Non-Executive Independent Director.
• Term: 5 years (4 Aug 2026–3 Aug 2031).
• DIN: 11763655.
• Background: Retired Lieutenant General.

Shareholder context

• Record date: 14-08-2026; on-record shareholders: 12,495.

Voting & process

• E-voting period: 25 Aug–23 Sep 2026; result deemed passed on 23 Sep 2026.

Material impact

• No changes to share capital or buyback; governance change only.

Purpose of postal ballot

• Special resolution to appoint Lt. Gen. Rakesh Kapoor as Non-Executive Independent Director for five-year term.

Resolution details

• Item No.1: Special Resolution for appointment as Non-Executive Independent Director for five years, non-rotational.

Term and independence

• Term: 4 Aug 2026 to 3 Aug 2031; independence confirmed; not liable to retire by rotation.

Voting status

• Outcome not yet known; voting period Aug 25, 2026 to Sep 23, 2026; results within two working days.

Director profile

• Lt. Gen. Rakesh Kapoor (Retd.); Independent Director; 38 years in defence, security, strategy.

Business overview

• Core business: sugar, ethanol, and power generation.
• Three sugar mills (21,500 TCD) and two distilleries (155 KLPD).
• Co-generation facility of 38 MW.
• Narkatiaganj refinery conversion to improve quality and realisations.
• Narkatiaganj distillery boiler to lift operating days to ~340.
• Transformative agenda with digitalisation, governance, and rising capex focus.
• Patronage of K.K. Birla Group; A+ rating upgrade in May 2026.

Key operational highlights

• Narkatiaganj refinery to commence operations in the upcoming sugar season.
• Incineration boiler at Narkatiaganj distillery targeted by Sep 2026.
• Q1FY27 sugar sales volume declined 7% YoY.
• Ethanol sales volume declined 5% YoY.
• Total revenue declined 7% YoY; sugar realisation up 1%.

Financial performance

• Total Income (Q1FY27) 311.27 Cr; YoY (7%).
• EBITDA 1.46 Cr; YoY decline 93%.
• PAT after tax -12.22 Cr; EPS -8.67 Rs.
• Raw material cost 272.52 Cr; employee cost 15.68 Cr.
• Cash profit -8.48 Cr; depreciation 7.82 Cr.
• Interest 9.94 Cr; tax -4.08 Cr.
• Dividend for FY25-26: Rs 12.5 per share (125%).
• Stock on hand as of 30 Jun 2025: Rs 456 Cr.
• Avg cost of long-term borrowings 7.32%; short-term 6.82%.

Capital structure & liquidity

• Long-term rating upgraded to A+ by India Ratings, May 2026.

Strategic priorities & outlook

• Strategic priorities: digitalisation, systems orientation, and rising capex.
• Ethanol blending remains a growth lever; ESY allocations ongoing.
• Industry outlook: tight sugar supply with government monitoring of prices.

Risks & governance

• Monsoon variability and El Niño risk.
• Delays in export permissions.
• Regulatory interventions if sugar prices rise; potential ethanol pricing revisions.

Governance & leadership

• Birla Group patronage reinforces governance framework.

Financial highlights

• Total income for Q1 FY27: Rs 311.27 Cr, down from Rs 333.88 Cr in Q1 FY26.
• EBITDA for Q1 FY27: Rs 1.46 Cr, down from Rs 19.92 Cr in Q1 FY26.
• PAT for Q1 FY27: Rs (12.22) Cr, versus Rs 0.22 Cr in Q1 FY26.

Governance

• Board took on record unaudited Q1 FY27 results for quarter ended June 30, 2026.

Strategic developments

• Narkatiaganj Sugar Plant to shift from sulphitation to refinery to improve quality and realisations.
• Incineration boiler at Narkatiaganj Distillery to operate about 340 days annually, boosting capacity utilisation.
• Policy context: Bihar's Investment Promotion Policy 2026 aims to attract investments and revive mills.

Operational footprint

• Three sugar mills with 21,500 TCD crushing capacity; two ethanol distilleries with 155 KLPD capacity.
• Cogeneration facility capable of generating 38 MW.

Outlook

• Sector outlook constructive; higher cane procurement costs pressuring margins; profitability tied to sugar recovery and by-products.

Financial results

• Unaudited Q1 FY2026-27 results approved for quarter ended June 30, 2026; Limited Review Report enclosed.
• Limited Review by BSR&Co; no audit opinion expressed.
• Total income from results: 31,127.47 lakhs; Net loss after tax: 1,221.82 lakhs.

Governance & appointments

• Rakesh Kapoor (Retd) appointed Independent Director for 5 years from 4 Aug 2026, subject to shareholder approval.

AGM Details

• AGM held July 29, 2026 at 11:00 IST via VC/OAVM; concluded 11:45 IST.
• Remote e-voting July 25–28, 2026; AGM voting open for 15 minutes; live webcast provided.

Ordinary Resolutions

• Adoption of Audited Financial Statements and Directors'/Auditors' Reports - passed.
• Re-appointment of Pankaj Singh by rotation - passed.

Dividend

• Dividend declared on equity shares at Rs 12.50 per share for FY2025-26.

Special Resolutions

• Remuneration payable to Cost Auditors for 2026-27 - passed.
• Appointment of Rajan Arvind Dalal as Independent Director for five years - passed.

Director changes

• Pankaj Singh reappointed by rotation.