Magadh Sugar & Energy Ltd

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.

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.

Meeting Details

• Board meeting scheduled for August 4, 2026; time and venue not disclosed.

Key Agenda Items

• Approval of unaudited quarterly financial results for the quarter ended June 30, 2026.

Other Notes

• No other items disclosed in the filing.

Dematerialisation processing and listing status

• Dematerialisation requests in the reporting quarter were confirmed to the depositories (accepted or rejected).
• Securities dematerialised have been listed on the stock exchanges where the earlier issued securities are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled; the depository's name was substituted as registered owner.

Rating action highlights

• Long-term bank facilities reaffirmed at CARE A+, Stable outlook.
• Short-term bank facilities reaffirmed at CARE A1.
• Facility amounts: Rs 826 crore (LT); Rs 2 crore (ST).
• Rationale available via CARE press release link.

Financial snapshot

• Revenue from operations: 1,24,453.71 lakh in 2025-26; 1,32,228.50 lakh prior year.
• Total income: 1,24,878.34 lakh (including 424.63 lakh other income).
• Profit after tax: 6,350.76 lakh; down from 10,944.61 lakh prior year.
• Net profit margin: 5.09% for 2025-26.
• EBIT margin: 11.40% as highlighted; Profit before tax: 8,523.26 lakh; tax: 2,172.50 lakh.
• Total borrowings: 69,123.06 lakh; long-term debt: 19,108.89 lakh; current borrowings: 50,014.17 lakh.
• Debt-Equity ratio: 0.79; Debt service coverage ratio: 1.34x; current ratio: 1.25.
• Cash flows: operating 14,841.17 lakh; investing -7,778.34 lakh; financing -7,043.78 lakh; net cash increase 19.05 lakh.
• Dividend proposed: 12.50 per equity share; total payout 1,761.45 lakh; AGM 29 July 2026.
• Equity capital: 1,409.16 lakh; net worth: 88,019.16 lakh.
• Segment revenue mix: Sugar 92,841.99; Distillery 29,773.89; Co-generation 1,837.83 lakh.
• Major customer contributed 14.55% of total revenue.

Operations and capacity

• Three Bihar sugar mills with total cane crushing capacity of 21,500 TCD; distilleries 155 KLPD; co-generation 38 MW.
• Narkatiaganj capacity expanded from 7,500 to 10,000 TCD; debottlenecked under C boiling.
• Sugar refinery being installed to enhance value realisation.
• Distilleries migrated to multi-feed configurations; capability to process grain, molasses, boosting days-worked.
• Ethanol revenues of 297.92 crore; B-Heavy 1.69 crore BL; C-Heavy 1.99 crore BL; total 3.68 crore BL.
• ICUMSA quality: Sidhwalia below 45; premium positioning maintained.
• Sugar production: 2.03 lakh tonnes in 2025-26 vs 2.17 lakh in 2024-25.
• Cane crushed: 19.11 lakh tonnes; Narkatiaganj 9.98; Sidhwalia 4.45; Hasanpur 4.68.
• SAP cane price increased by Rs 15/quintal; ~Rs 30 crore procurement burden.

Strategy and investments

• Integrated cane economy: sugar, ethanol, and co-generation in a unified value chain.
• Digital cane management: cloud-based systems and Kisan platform for farmer engagement.
• Farmer focus: engagement with ~88,500 farmers; payments within 14 days of procurement.
• Integrated expansion: Narkatiaganj and Sidhwalia multi-feed distilleries; extended operating days.
• Energy sustainability: bagasse cogeneration supports captive use and grid export; environmental priorities highlighted.
• Outlook: ethanol blending growth remains a core driver; aim to shift revenue mix toward ~70% sugar to 30% ethanol.
• Policy exposure: monitor 2026 Southwest Monsoon and MSP adjustments; export restrictions to support domestic supply.

Governance and leadership

• Board size nine; five Independent Directors; one woman Independent Director.
• Pankaj Singh appointed Whole-time Director from 14 May 2025; regularised at AGM 2 Aug 2025.
• Ms. Shalini Nopany added as Non-Executive Director (Nov 2025).
• Board meetings totaled four in 2025-26; Audit, NRC, CSR, Stakeholders, Risk, and Finance & Corporate Affairs committees in place.
• Remuneration: WTD 177.74 lakh; Chandra Mohan 47.24 lakh (till May 2025).
• CFO appointed: Aditya Baheti from 6 Aug 2025; earlier CFO Manoj Prasad stepped down in Aug 2025.
• Board evaluations, independence declarations, and secretarial audits without material qualifications.

Dividend and shareholder info

• Final dividend proposed: Rs 12.50 per equity share; AGM approval pending.
• Record date for dividend entitlement: 17 July 2026.
• AGM to consider financials for year ended 31 March 2026 on 29 July 2026.
• Shares dematerialised: 99.67%; total 1,40,91,630 shares outstanding.
• Promoter and top holders include SIL Investments, Avadh Sugar, New India Retailing, etc.

ESG and CSR highlights

• CSR outlay: 2.73 crore; CSR spend varied across education, health, environment, and rural development.
• Education and youth development programs included textbooks, scholarships, and computer training.
• Health camps and mobile health units expanded rural healthcare access.
• Environmental stewardship includes tree planting, river-cleaning initiatives, and solar street lighting.
• Employee well-being and DEI initiatives actively pursued; awards received for HR excellence.

Risks, macro outlook, and sector context

• Key risks: cane supply variability, disease pressure (Co-0238), and rising input costs.
• Ethanol blending policy supports demand; domestic safeguards and MSP revisions affect margins.
• Monsoon uncertainty and possible El Niño could impact cane availability and costs.
• Industry dynamics: solar and biofuel policy shifts influence demand for ethanol and sugar.

Capital structure and liquidity

• Total borrowings: 69,123.06 lakh; long-term 19,108.89; current 50,014.17.
• Debt-equity ratio 0.79; DSCR 1.34x; current ratio 1.25.
• Capex additions: approximately 7,849.57 lakh; CWIP ending at 2,999.28 lakh.
• Internal controls robust; no material fraud; secretarial audit clean.

Operational and geographic footprint

• Operations centered in Bihar with three modern mills: Narkatiaganj, Sidhwalia, Hasanpur.
• Integrated product portfolio: white sugar, ethanol, industrial spirits, bagasse-based power, molasses, and by-products.
• Proximity to cane areas enhances supply security and reduces logistics costs.