Riga Sugar first-half loss widens to Rs 15.03 crore in 2026

Riga Sugar Co. Limited reported a standalone net loss of Rs 15.03 crore for the half-year ended 30 September 2026, compared with a Rs 3.29 crore loss a year earlier, even as revenue from operations rose to Rs 39.10 crore from Rs 6.33 crore. Expenses reached Rs 53.68 crore in the latest half-year.

How did Riga Sugar perform in the first half of 2026?

Riga Sugar reported a Rs 15.03 crore loss for the half-year ended 30 September 2026 as total expenses of Rs 53.68 crore exceeded total income of Rs 39.10 crore. In the corresponding half-year ended 30 September 2025, total income was Rs 6.33 crore and total expenses were Rs 11.18 crore, resulting in a lower pre-tax loss of Rs 4.85 crore.

Riga Sugar did not separately report other income for the current half-year, so total income matched revenue from operations at Rs 39.10 crore. Total comprehensive loss was Rs 15.03 crore after other comprehensive loss of Rs 13,000, while basic and diluted loss per share from continuing operations was Rs 10.41, compared with Rs 2.28 a year earlier.

Why did Riga Sugar’s loss rise despite higher revenue?

Riga Sugar’s loss rose because changes in inventories of finished goods, work-in-progress and stock-in-trade reached Rs 33.55 crore in the latest half-year, against Rs 4.05 crore in the year-earlier period. This was the largest expense line reported for the six months ended 30 September 2026 and exceeded the Rs 32.27 lakh cost of materials consumed.

Finance costs were Rs 4.57 crore for the latest half-year, while the corresponding prior-year half-year did not show an amount under that line. Other expenses increased to Rs 7.82 crore from Rs 4.15 crore, employee-benefit expense rose to Rs 3.83 crore from Rs 38.58 lakh, and depreciation and amortisation increased to Rs 3.58 crore from Rs 2.60 crore.

The tax movement also increased the post-tax loss. Riga Sugar recorded deferred tax expense of Rs 45.68 lakh in the six months to September 2026, compared with a deferred tax credit of Rs 1.56 crore in the prior-year half. Consequently, the pre-tax loss of Rs 14.58 crore became a loss after tax of Rs 15.03 crore.

What happened in Riga Sugar’s September quarter?

Riga Sugar recorded a net loss of Rs 8.48 crore in the three months ended 30 September 2026, compared with a Rs 6.55 crore loss in the preceding quarter ended 30 June 2026. Revenue from operations fell sequentially to Rs 9.75 crore in the September quarter from Rs 29.35 crore in the June quarter.

September-quarter expenses were Rs 17.86 crore, below Rs 35.82 crore in the June quarter, but revenue also declined by Rs 19.60 crore over the same comparison. The September period included Rs 6.06 crore of inventory-change expense, Rs 5.29 crore of other expenses and Rs 2.27 crore of finance costs, producing a pre-tax loss of Rs 8.11 crore.

The corresponding quarter ended 30 September 2025 showed no revenue from operations in the statement and a net loss of Rs 4.54 crore. Riga Sugar’s September-quarter loss per share was Rs 5.87, versus Rs 4.53 in the June 2026 quarter and Rs 3.14 in the year-earlier September quarter; the filing states that these per-share figures are not annualised.

What do Riga Sugar’s cash flow and balance sheet show?

Riga Sugar generated net operating cash flow of Rs 2.85 crore in the half-year ended 30 September 2026, down from Rs 5.07 crore in the prior-year half. A Rs 32.32 crore reduction in inventories supported operating cash generation, partly offset by a Rs 21.53 crore decrease in trade payables and a Rs 1.17 crore increase in other current assets.

Investing activities used Rs 3.45 crore, including Rs 2.14 crore added to capital work in progress and Rs 1.21 crore added to property, plant and equipment. Financing activities provided Rs 16.45 lakh because Rs 4.74 crore of short-term borrowings from related parties exceeded interest paid of Rs 4.57 crore.

Cash and cash equivalents stood at Rs 2.66 lakh on 30 September 2026, down from Rs 45.94 lakh at 31 March 2026. Total assets decreased to Rs 359.24 crore from Rs 391.40 crore, alongside inventories falling to Rs 39.21 crore from Rs 71.52 crore, while short-term borrowings rose to Rs 81.35 crore from Rs 76.61 crore.

When were Riga Sugar’s results approved and reviewed?

Riga Sugar’s board approved the standalone unaudited results for the quarter and half-year ended 30 September 2026 on 7 November 2026, after Audit Committee review. The results were prepared under Indian Accounting Standards, known as Ind AS, and Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements regulations.

YCRJ & Associates issued its limited-review report on 7 November 2026. The statutory auditor said nothing had come to its attention that caused it to believe the statement failed to make required disclosures or contained a material misstatement, while noting that a review gives less assurance than an audit.

The filing also says other expenses for the quarter and year ended 31 March 2026 were adjusted by Rs 63.26 lakh for prior-period adjustments under Ind AS 8. Previous-period figures were regrouped or reclassified where necessary to conform with the presentation for the half-year ended 30 September 2026.

Conclusion

Riga Sugar’s six-month results show that revenue growth to Rs 39.10 crore did not offset substantially higher reported inventory-change expense, finance costs and other expenses. Total expenses of Rs 53.68 crore produced a Rs 15.03 crore loss, compared with a Rs 3.29 crore loss in the corresponding prior-year half.

The filing does not disclose a management target or operational plan to address the loss. The unresolved items to watch in subsequent disclosures are whether inventory movements and related working-capital changes continue, whether cash improves from Rs 2.66 lakh, and whether short-term borrowings and finance costs change from the Rs 81.35 crore and Rs 4.57 crore reported at the half-year.