Shree Renuka Sugars Ltd

Action and instruments

• Ind-Ra downgraded SRSL's NCDs to IND A-/Negative from IND A/Negative.
• Bank loan facilities downgraded to IND A-/Negative/IND A2+ from IND A-/Negative/IND A1.
• NCD size 4,532 million INR (reduced from 4,558).
• Bank loan outstanding 27,596 million INR; increases due to rupee depreciation (USD50m).
• Outlook remains Negative; ratings reflect consolidated SRSL view with Wilmar support.

Rationale and drivers

• Weaker-than-expected FY26; EBITDA declined to INR 1.3b, FY25 comparative fared better.
• 1QFY27 EBITDA negative; refinery losses due to higher input costs and MTM hedges.
• Elevated external debt; interest coverage 0.3x; external net leverage ~44x.
• Strong Wilmar linkages with guarantees covering ~65% of consolidated external debt; ongoing support.
• Near-term liquidity adequate aided by Wilmar; cash ~INR 0.5b and unused lines.
• Sugar prices firm; ethanol policy remains monitorable for profitability.
• Forex losses in FY26; currency volatility adds to risk in working capital.

Financials and liquidity

• Consolidated FY26 revenue 91.7b; EBITDA 1.3b; EBITDA margin ~1.4%.
• FY26 external debt 56.9b; external net leverage ~44.4x; interest coverage 0.3x.
• Cash and cash equivalents ~0.5b; average working-capital line utilization ~70%.
• Scheduled repayments: INR 1.0b in FY27, INR 0.6b in FY28.
• Standalone FY26: revenue 85.2b; EBITDA loss 0.04b; external interest coverage 0x.

Outlook and sensitivities

• Outlook: Negative; positive shifts require sustained EBITDA growth and debt reduction.
• Upgrade triggers: EBITDA > sustained, external debt drop, interest coverage >1.5x with liquidity.
• Downgrade triggers: Wilmar linkages weaken, liquidity deteriorates, or EBITDA fails to recover materially.

Material changes since last rating

• Downgrade represents change from prior IND A/Negative to IND A-/Negative.
• Rated bank facilities increased to INR 27,596m due to rupee depreciation.

Transaction overview

• Target: Shree Renuka Sugars Ltd.
• Disclosing Party: ICICI Bank Limited (non-promoter).
• Transaction Type: disposal of equity shares via open market.
• Pre-transaction holding: 19,07,50,711 shares (8.96%).
• Shares sold: 46,198,815 (2.17%), via open market; last tranche Aug 20, 2026.
• Post-transaction holding: 14,45,51,896 shares (6.79%).
• Dates: various tranches, last on Aug 20, 2026.
• Equity share capital before/after: Rs 2,12,84,89,773; same post-sale.
• Total diluted capital: same as equity shares (not separately disclosed).

Meeting Details

• Board meeting scheduled for 5 August 2026; time and venue not disclosed.

Key Agenda Items

• Unaudited standalone and consolidated financial results for quarter ended 30 June 2026 to be considered.

Other Notes

• Trading window remains closed until 48 hours after filing the June 30, 2026 results.

Dematerialisation processing and certificate actions

• Dematerialisation requests received during quarter ended 30 June 2026 were processed and confirmed to depositories.
• Securities dematerialised have been listed on the stock exchanges where the earlier issued securities are listed.
• Physical certificates for dematerialisation were mutilated and cancelled; depository name substituted as registered owner within 15 days.

Appointment of Additional Director

• Appointment as Additional Director (Non-Executive Non-Independent) effective 2 July 2026; tenure until the next AGM within three months.
• Profile: Group Head, Sugar and Ethanol Energies at Wilmar Group since July 2026.
• Joined Wilmar Group in 2009, overseeing business development.
• Previously General Manager of Wilmar's sugar trading arm.
• Education: BA (Summa Cum Laude) in PPE from University of Pennsylvania.
• Not related to any Directors or KMP.
• Not debarred by SEBI or other authorities.

Resigning director details

• Name and designation: Jean-Luc Bohbot, Non-Executive Director.
• Directorship type: Non-Executive Director representing Wilmar Group.
• Effective resignation date: 2 July 2026 (date of receipt by SRSL).
• Reason for resignation: resigning from Wilmar Group, triggering SRSL board resignation.
• No other material reasons stated for resignation.
• Consequence: SRSL Board seat vacated as Non-Executive Director.