Riddhi Siddhi adds Rs 173.2576 crore capex after starch deal

Riddhi Siddhi Gluco Biols Limited completed its Cargill India Private Limited starch-division asset acquisition on April 27, 2026 and reported Rs 173.2576 crore of capital expenditure in the half year ended September 30, 2026, while approvals to begin manufacturing at Davangere were still being obtained.

When did RSGBL complete the starch-assets acquisition?

RSGBL completed the asset acquisition on April 27, 2026, under an Asset Purchase Agreement dated January 19, 2026 with Cargill India Private Limited. Its standalone financial results for the quarter and half year ended September 30, 2026 include operations of the acquired starch division from April 27 through September 30.

RSGBL did not disclose the purchase consideration for the transaction in its November 5, 2026 filing. It said the increase in relevant expenses during the September 2026 quarter was primarily attributable to including the acquired business, which was absent from both the immediately preceding quarter and the corresponding quarter a year earlier.

The acquisition has therefore changed the composition of reported results without creating directly comparable prior-period figures. The filing specifically states that the quarter and half-year results cannot be directly compared with periods before the April 27, 2026 acquisition because the starch business was not then part of RSGBL's operations.

Has RSGBL started manufacturing at the Davangere facility?

RSGBL had not disclosed the start of manufacturing at the acquired Davangere facility as of September 30, 2026 because it was still obtaining necessary regulatory approvals. The filing gives no expected approval date or planned production commencement date.

The pending approvals are material to the integration because the acquired starch division had already contributed to results from April 27, 2026, while manufacturing at Davangere remained unresolved. RSGBL's reported standalone revenue from operations was Rs 138.5812 crore in the half year ended September 30, 2026, compared with Rs 170.706 crore in the corresponding prior-year half.

The segment disclosure continued to identify wind energy generation and trading business as RSGBL's operating segments. It did not provide a separate starch-division revenue or profit figure, so the filing does not quantify the acquired operation's standalone contribution between April 27 and September 30, 2026.

What renewable-power investment was linked to the transaction?

RSGBL disclosed that it acquired a 26% partnership interest in Clean Max Pluto Solar Power LLP on July 7, 2026 as part of the same Asset Purchase Agreement. The limited liability partnership operates a dedicated 25.30 megawatt wind and solar power plant.

The disclosure later says RSGBL holds 25% in Clean Max Pluto Solar Power LLP, rather than 26%, without explaining the difference. The company also said it does not exercise significant influence over the LLP's decisions, so it does not construe the LLP as an associate.

RSGBL records the holding as a non-current investment measured at fair value through profit and loss. The filing therefore does not consolidate the power plant's operations, even though the investment was disclosed as part of the arrangements associated with the April 2026 starch-assets purchase.

How did RSGBL's asset base and cash deployment change?

RSGBL reported Rs 173.2576 crore of capital expenditure on property, plant and equipment, including capital advances, during the half year ended September 30, 2026. The corresponding figure for the half year ended September 30, 2025 was Rs 0.59 lakh, making the current-period spending substantially higher after the April acquisition.

Property, plant and equipment rose to Rs 206.84 crore at September 30, 2026 from Rs 89.1953 crore at March 31, 2026. Capital work in progress was Rs 63.8941 crore at September 30, while the March 31 balance sheet did not report an amount under that line item.

RSGBL recorded Rs 67.5428 crore of net cash used in investing activities in the first half of 2026-27, compared with Rs 56.0328 crore used a year earlier. The current-period investing cash flow included the Rs 173.2576 crore capital-expenditure outflow, partly offset by Rs 108.8028 crore of net inter-corporate deposit redemptions.

Operating activities used Rs 10.4664 crore of cash in the six months ended September 30, 2026, versus Rs 44.8026 crore used a year earlier. Financing activities generated Rs 17.4482 crore, while cash and cash equivalents fell by Rs 60.561 crore from Rs 107.4395 crore at the start of the financial year to Rs 46.8785 crore at September 30.

How did RSGBL's operating results change during integration?

RSGBL's revenue from operations declined to Rs 138.5812 crore in the half year ended September 30, 2026 from Rs 170.706 crore a year earlier. Trading-business revenue fell to Rs 125.8912 crore from Rs 158.4537 crore, while wind-energy-generation revenue increased to Rs 12.69 crore from Rs 12.2523 crore.

Profit after tax declined to Rs 31.1822 crore in the 2026 half year from Rs 42.2693 crore in the corresponding previous half. Profit before tax decreased to Rs 35.1435 crore from Rs 48.9516 crore, alongside a fall in other income to Rs 46.9407 crore from Rs 58.9645 crore.

In the September 2026 quarter, revenue from operations was Rs 58.4343 crore, down from Rs 80.1469 crore in the June 2026 quarter but above Rs 25.2718 crore in the September 2025 quarter. September-quarter profit after tax was Rs 17.6776 crore, compared with Rs 13.5045 crore in June 2026 and Rs 23.9532 crore a year earlier.

What funding and regulatory matters remain relevant?

RSGBL's non-current borrowings increased by Rs 35.1477 crore between March 31 and September 30, 2026, reaching Rs 202.2252 crore. Current borrowings fell to Rs 110.4093 crore from Rs 113.8938 crore, leaving total reported borrowings at Rs 312.6345 crore at September 30, compared with Rs 280.9713 crore at March 31.

RSGBL also disclosed a Rs 3.08 crore contingent income-tax liability relating to additions of income or expense disallowances upheld by the Commissioner of Income Tax (Appeals). The company has appealed to the Income Tax Appellate Tribunal, Ahmedabad, and made no provision for the amount.

A securities-market restraint period began on June 24, 2026 and is scheduled to end on December 23, 2026. Before the restraint began, Vital Connections LLP sold 823,422 shares, representing 11.55% of issued and paid-up equity capital, through an offer for sale on June 22 and 23, bringing promoter and promoter-group ownership down to 75% and public ownership to 25%.

Conclusion

RSGBL's April 2026 starch-assets acquisition has been followed by a marked increase in capital deployment, with Rs 173.2576 crore of first-half capital expenditure, property and equipment rising to Rs 206.84 crore, and Rs 63.8941 crore of capital work in progress at September 30. The results also include acquired operations only from April 27, limiting direct comparisons with earlier periods.

The next disclosed operational matter is the regulatory approval process for starting manufacturing at the Davangere facility, for which RSGBL provided no target date. Readers can also watch for any clarification of the stated 26% and 25% Clean Max Pluto Solar Power LLP holdings and for the scheduled December 23, 2026 end of the securities-market restraint period.