K.M. Sugar Mills unsecured creditors approve demerger scheme
June 01, 2026
K.M. Sugar Mills Limited secured approval from unsecured creditors for its demerger scheme with KM Spirits and Allied Industries Limited via an NCLT-convened meeting on May 30, 2026. The resolution received 100% approval with 4,96,74,045 votes in favour.
K.M. Sugar Mills Limited has secured approval from its unsecured creditors for the Scheme of Arrangement for Demerger between itself and KM Spirits and Allied Industries Limited. The resolution was passed with a 100% majority, representing 4,96,74,045 valid votes, during a meeting convened by the National Company Law Tribunal (NCLT) on May 30, 2026. This demerger will separate the operations into the Demerged Company, K.M. Sugar Mills, and the Resulting Company, KM Spirits and Allied Industries, impacting their respective shareholders and creditors.
The meeting was held via video conferencing, with Sri Harnam Singh Thakur, Former Judicial Member of the NCLT Chandigarh, serving as the Chairperson. Mr. Ankit Kumar Singh was appointed as the Scrutinizer. A total of 21 unsecured creditors attended the proceedings, which commenced at 12:30 P.M. IST and concluded at 12:38 P.M. IST. The remote e-voting facility was open from May 27, 2026, to May 29, 2026.
The approval was granted under the provisions of Section 230-232 of the Companies Act, 2013. The combined voting results will be announced on the websites of BSE Limited and the National Stock Exchange of India Limited. The Chairperson informed that the e-voting facility remained open for 15 minutes after the conclusion of the meeting.
Key Meeting Details
Detail Information Meeting Date May 30, 2026 Convening Authority National Company Law Tribunal, Allahabad Bench Chairperson Sri Harnam Singh Thakur Scrutinizer Mr. Ankit Kumar Singh Mode of Meeting Video Conferencing / Other Audio Visual Means Creditors Present 21
Voting Results
Category Votes in Favour Votes Against % of Votes in Favour Public Institutions 4,81,44,458 0 100.00 Public Non-Institutions 15,29,587 0 100.00 Total 4,96,74,045 0 100.00
K.M. Sugar Mills Ltd. reported a significant improvement in its financial performance for the quarter and year ended March 31, 2026, as approved by its Board of Directors at a meeting held on May 18, 2026. The company published the audited standalone and consolidated financial results in the Financial Express and Jansatta on May 20, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors issued an unmodified opinion on both the standalone and consolidated annual audited financial results.
Standalone Financial Performance
The company's standalone revenue from operations for the year ended March 31, 2026 stood at Rs. 65,838 lakhs, compared to Rs. 65,901 lakhs in the previous year. Total income, including other income of Rs. 1,951 lakhs (which includes an insurance claim of Rs. 684 lakhs), rose to Rs. 67,789 lakhs from Rs. 66,638 lakhs. Net profit for the year grew substantially to Rs. 5,342 lakhs from Rs. 3,555 lakhs in the prior year. Total comprehensive income for the year stood at Rs. 5,331 lakhs against Rs. 3,541 lakhs previously. The following table presents the key standalone financial highlights:
Metric: Year ended 31.03.2026 Year ended 31.03.2025 Revenue from Operations (Rs. lakhs): 65,838 65,901 Other Income (Rs. lakhs): 1,951 737 Total Income (Rs. lakhs): 67,789 66,638 Total Expenses (Rs. lakhs): 60,533 61,746 Profit Before Tax (Rs. lakhs): 7,256 4,892 Net Profit (Rs. lakhs): 5,342 3,555 Total Comprehensive Income (Rs. lakhs): 5,331 3,541 Basic EPS (Rs.): 5.81 3.86 Diluted EPS (Rs.): 5.81 3.86
For the quarter ended March 31, 2026, standalone revenue from operations was Rs. 10,599 lakhs, with net profit of Rs. 924 lakhs, compared to Rs. 15,326 lakhs and Rs. 1,106 lakhs respectively in the corresponding quarter of the prior year.
Segment-Wise Performance
The company operates across two segments — Sugar and Distillery. For the year ended March 31, 2026, the Sugar segment contributed revenue of Rs. 59,792 lakhs (vs. Rs. 59,490 lakhs) and segment profit before tax and finance costs of Rs. 8,047 lakhs (vs. Rs. 6,486 lakhs). The Distillery segment reported revenue of Rs. 9,377 lakhs (vs. Rs. 9,121 lakhs) and segment profit of Rs. 379 lakhs (vs. Rs. 223 lakhs). The segment-wise performance is summarised below:
Segment: Revenue FY26 (Rs. lakhs) Revenue FY25 (Rs. lakhs) Profit FY26 (Rs. lakhs) Profit FY25 (Rs. lakhs) Sugar: 59,792 59,490 8,047 6,486 Distillery: 9,377 9,121 379 223 Total (before inter-segment): 69,169 68,611 8,426 6,709
Balance Sheet and Cash Flow Highlights
As at March 31, 2026, total standalone assets stood at Rs. 74,974 lakhs compared to Rs. 72,988 lakhs in the prior year. Total equity increased to Rs. 39,188 lakhs from Rs. 33,859 lakhs, reflecting the improved profitability. Inventories were at Rs. 38,087 lakhs, while current borrowings stood at Rs. 24,621 lakhs, down from Rs. 26,277 lakhs. Net cash generated from operating activities for the year was Rs. 8,862 lakhs, a significant improvement from Rs. 3,133 lakhs in the prior year. Net cash used in investing activities was Rs. 4,710 lakhs, primarily on account of additions to property, plant and equipment of Rs. 5,186 lakhs.
Balance Sheet Metric: As at 31.03.2026 (Rs. lakhs) As at 31.03.2025 (Rs. lakhs) Total Assets: 74,974 72,988 Total Equity: 39,188 33,859 Non-Current Borrowings: 353 1,909 Current Borrowings: 24,621 26,277 Inventories: 38,087 36,721
Consolidated Financial Results
The consolidated financial results of K.M. Sugar Mills, which include the subsidiary K M Spirit & Allied Industries Limited, mirror the standalone figures closely. Consolidated revenue from operations for the year ended March 31, 2026 was Rs. 65,838 lakhs, total income was Rs. 67,789 lakhs, and net profit was Rs. 5,342 lakhs. Total consolidated assets stood at Rs. 74,974 lakhs. The subsidiary reported total assets of Rs. 5.39 lakhs, total revenues of Rs. 0.32 lakhs, and a net profit of Rs. 0.01 lakhs for the year ended March 31, 2026.
Corporate Actions and Appointments
At the same Board meeting, several key corporate decisions were approved. The Board reconstituted the Corporate Social Responsibility (CSR) Committee, with Mrs. Naina Jhunjhunwala as Additional Director, Shri Sushil Solomon as Non-Executive Independent Director, and Shri Sanjay Jhunjhunwala as Non-Executive Independent Director. The Board also approved an increase in the salary of Mr. Vatsal Jhunjhunwala, Vice President and related party (son of Managing Director Mr. Aditya Jhunjhunwala), empowering the Board to grant remuneration up to Rs. 10 lakhs per month, subject to shareholder approval.
Additionally, M/s Aman Malviya & Associates, Cost Accountants, Lucknow, were appointed as Cost Auditors for FY 2026-27 for a term of one year. On the recommendation of the Nomination & Remuneration Committee, Smt. Naina Jhunjhunwala (DIN: 01837824) was appointed as Additional Director effective May 18, 2026, subject to approval at the ensuing Annual General Meeting. The key appointment details are as follows:
Appointee: Role Tenor / Validity M/s Aman Malviya & Associates: Cost Auditor One year (FY 2026-27) Smt. Naina Jhunjhunwala (DIN: 01837824): Additional Director Effective May 18, 2026; subject to AGM approval Mr. Vatsal Jhunjhunwala: Vice President (Salary Revision) Subject to shareholder approval; up to Rs. 10 lakhs per month
The Board meeting commenced at 03:30 P.M. (IST) and concluded at 07:00 P.M. (IST). All disclosures have been uploaded on the company's website at https://www.kmsugar.com . The company is headquartered at Motinagar, Dist. Ayodhya, Uttar Pradesh.
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The meeting was held via video conferencing, with Sri Harnam Singh Thakur, Former Judicial Member of the NCLT Chandigarh, serving as the Chairperson. Mr. Ankit Kumar Singh was appointed as the Scrutinizer. A total of 21 unsecured creditors attended the proceedings, which commenced at 12:30 P.M. IST and concluded at 12:38 P.M. IST. The remote e-voting facility was open from May 27, 2026, to May 29, 2026.
The approval was granted under the provisions of Section 230-232 of the Companies Act, 2013. The combined voting results will be announced on the websites of BSE Limited and the National Stock Exchange of India Limited. The Chairperson informed that the e-voting facility remained open for 15 minutes after the conclusion of the meeting.
Key Meeting Details
Detail Information Meeting Date May 30, 2026 Convening Authority National Company Law Tribunal, Allahabad Bench Chairperson Sri Harnam Singh Thakur Scrutinizer Mr. Ankit Kumar Singh Mode of Meeting Video Conferencing / Other Audio Visual Means Creditors Present 21
Voting Results
Category Votes in Favour Votes Against % of Votes in Favour Public Institutions 4,81,44,458 0 100.00 Public Non-Institutions 15,29,587 0 100.00 Total 4,96,74,045 0 100.00
K.M. Sugar Mills Ltd. reported a significant improvement in its financial performance for the quarter and year ended March 31, 2026, as approved by its Board of Directors at a meeting held on May 18, 2026. The company published the audited standalone and consolidated financial results in the Financial Express and Jansatta on May 20, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors issued an unmodified opinion on both the standalone and consolidated annual audited financial results.
Standalone Financial Performance
The company's standalone revenue from operations for the year ended March 31, 2026 stood at Rs. 65,838 lakhs, compared to Rs. 65,901 lakhs in the previous year. Total income, including other income of Rs. 1,951 lakhs (which includes an insurance claim of Rs. 684 lakhs), rose to Rs. 67,789 lakhs from Rs. 66,638 lakhs. Net profit for the year grew substantially to Rs. 5,342 lakhs from Rs. 3,555 lakhs in the prior year. Total comprehensive income for the year stood at Rs. 5,331 lakhs against Rs. 3,541 lakhs previously. The following table presents the key standalone financial highlights:
Metric: Year ended 31.03.2026 Year ended 31.03.2025 Revenue from Operations (Rs. lakhs): 65,838 65,901 Other Income (Rs. lakhs): 1,951 737 Total Income (Rs. lakhs): 67,789 66,638 Total Expenses (Rs. lakhs): 60,533 61,746 Profit Before Tax (Rs. lakhs): 7,256 4,892 Net Profit (Rs. lakhs): 5,342 3,555 Total Comprehensive Income (Rs. lakhs): 5,331 3,541 Basic EPS (Rs.): 5.81 3.86 Diluted EPS (Rs.): 5.81 3.86
For the quarter ended March 31, 2026, standalone revenue from operations was Rs. 10,599 lakhs, with net profit of Rs. 924 lakhs, compared to Rs. 15,326 lakhs and Rs. 1,106 lakhs respectively in the corresponding quarter of the prior year.
Segment-Wise Performance
The company operates across two segments — Sugar and Distillery. For the year ended March 31, 2026, the Sugar segment contributed revenue of Rs. 59,792 lakhs (vs. Rs. 59,490 lakhs) and segment profit before tax and finance costs of Rs. 8,047 lakhs (vs. Rs. 6,486 lakhs). The Distillery segment reported revenue of Rs. 9,377 lakhs (vs. Rs. 9,121 lakhs) and segment profit of Rs. 379 lakhs (vs. Rs. 223 lakhs). The segment-wise performance is summarised below:
Segment: Revenue FY26 (Rs. lakhs) Revenue FY25 (Rs. lakhs) Profit FY26 (Rs. lakhs) Profit FY25 (Rs. lakhs) Sugar: 59,792 59,490 8,047 6,486 Distillery: 9,377 9,121 379 223 Total (before inter-segment): 69,169 68,611 8,426 6,709
Balance Sheet and Cash Flow Highlights
As at March 31, 2026, total standalone assets stood at Rs. 74,974 lakhs compared to Rs. 72,988 lakhs in the prior year. Total equity increased to Rs. 39,188 lakhs from Rs. 33,859 lakhs, reflecting the improved profitability. Inventories were at Rs. 38,087 lakhs, while current borrowings stood at Rs. 24,621 lakhs, down from Rs. 26,277 lakhs. Net cash generated from operating activities for the year was Rs. 8,862 lakhs, a significant improvement from Rs. 3,133 lakhs in the prior year. Net cash used in investing activities was Rs. 4,710 lakhs, primarily on account of additions to property, plant and equipment of Rs. 5,186 lakhs.
Balance Sheet Metric: As at 31.03.2026 (Rs. lakhs) As at 31.03.2025 (Rs. lakhs) Total Assets: 74,974 72,988 Total Equity: 39,188 33,859 Non-Current Borrowings: 353 1,909 Current Borrowings: 24,621 26,277 Inventories: 38,087 36,721
Consolidated Financial Results
The consolidated financial results of K.M. Sugar Mills, which include the subsidiary K M Spirit & Allied Industries Limited, mirror the standalone figures closely. Consolidated revenue from operations for the year ended March 31, 2026 was Rs. 65,838 lakhs, total income was Rs. 67,789 lakhs, and net profit was Rs. 5,342 lakhs. Total consolidated assets stood at Rs. 74,974 lakhs. The subsidiary reported total assets of Rs. 5.39 lakhs, total revenues of Rs. 0.32 lakhs, and a net profit of Rs. 0.01 lakhs for the year ended March 31, 2026.
Corporate Actions and Appointments
At the same Board meeting, several key corporate decisions were approved. The Board reconstituted the Corporate Social Responsibility (CSR) Committee, with Mrs. Naina Jhunjhunwala as Additional Director, Shri Sushil Solomon as Non-Executive Independent Director, and Shri Sanjay Jhunjhunwala as Non-Executive Independent Director. The Board also approved an increase in the salary of Mr. Vatsal Jhunjhunwala, Vice President and related party (son of Managing Director Mr. Aditya Jhunjhunwala), empowering the Board to grant remuneration up to Rs. 10 lakhs per month, subject to shareholder approval.
Additionally, M/s Aman Malviya & Associates, Cost Accountants, Lucknow, were appointed as Cost Auditors for FY 2026-27 for a term of one year. On the recommendation of the Nomination & Remuneration Committee, Smt. Naina Jhunjhunwala (DIN: 01837824) was appointed as Additional Director effective May 18, 2026, subject to approval at the ensuing Annual General Meeting. The key appointment details are as follows:
Appointee: Role Tenor / Validity M/s Aman Malviya & Associates: Cost Auditor One year (FY 2026-27) Smt. Naina Jhunjhunwala (DIN: 01837824): Additional Director Effective May 18, 2026; subject to AGM approval Mr. Vatsal Jhunjhunwala: Vice President (Salary Revision) Subject to shareholder approval; up to Rs. 10 lakhs per month
The Board meeting commenced at 03:30 P.M. (IST) and concluded at 07:00 P.M. (IST). All disclosures have been uploaded on the company's website at https://www.kmsugar.com . The company is headquartered at Motinagar, Dist. Ayodhya, Uttar Pradesh.
We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better.
Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians.
As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. While both traders & investors have gotten smart about how they make money and build wealth, as users they have continued to use the same products, features, and platforms that were available for years with little or no innovation.
We plan to change that - a technology-led and artificial intelligence enabled platform built for super traders and long term investors.
Disclaimer:
The data and information provided on this website is for general informational and research purposes only. While we strive to ensure that the content is accurate, up-to-date, and reliable, this platform utilizes artificial intelligence (AI) tools to generate, curate, and summarize information. As such, the content may occasionally contain errors, omissions, or outdated information. All users are therefore advised to cross verify the source of the data and information.
This website does not constitute professional, legal, financial, medical, or any other form of licensed advice. Users are encouraged to independently verify any information before relying on it, especially for decisions that may have legal, financial, or personal consequences.
The views, analyses, and summaries presented on this platform may be generated or assisted by AI and do not necessarily reflect the opinions of the website owners, operators, editors, or affiliates.
We make no warranties or representations, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information contained on this website. Any reliance you place on such information is strictly at your own risk.
This website may include links to third-party sources or content. We do not control or endorse the nature, accuracy, or availability of those external sites and are not responsible for any content or damages arising from their use.
By using this website, you acknowledge and agree that the use of AI-generated content involves inherent limitations, uncertainties and inaccuracies, and you accept full responsibility for how you interpret and use the information provided.
We reserve the right to modify, update, or remove content and this disclaimer at any time without prior notice.