Bajaj Hindusthan Sugar Approves Major Debt Restructuring and Capital Increase Plan

Bajaj Hindusthan Sugar Limited's Board of Directors has approved a comprehensive debt restructuring plan aimed at resolving the company's stressed assets under the Reserve Bank of India's Prudential Framework. The board meeting, held on February 12, 2026, from 11:45 A.M. to 01:20 P.M., marked a significant step in the company's financial restructuring journey. Major Board Approvals The Board approved several key resolutions that will reshape the company's capital structure: Resolution: Details Authorized Share Capital: Increase approved, subject to shareholder consent Debt Restructuring: Under RBI Framework with April 01, 2025 cut-off date Equity Issue: Rs. 570.03 crores to consortium lenders CCPS Issue: Rs. 2,855.54 crores on preferential basis EGM Notice: Draft approved for shareholder approvals Debt Restructuring Details The restructuring plan addresses multiple components of the company's outstanding debt obligations. The existing OCDs worth Rs. 3,215.31 crores will continue as debt with significantly modified terms to provide relief to the company. OCD Restructuring Terms Parameter: New Terms Tenor: 15 years Moratorium Period: First 6 years (April 01, 2025 to March 30, 2031) Repayment Structure: 10 structured annual instalments from 6th to 15th years Coupon Rate: 0.20% per annum for entire tenor YTM Accrual: Waiver of further accrual on outstanding OCDs Promoter and Company Infusion As part of the resolution plan, the company and promoters are required to infuse Rs. 1,000 crores during financial year 2025-26. The infusion strategy demonstrates the promoters' commitment to the restructuring process. Infusion Component: Amount (Rs. Crores) Status Already Infused (June 2025): 630.79 Completed through share buy-back OCD Instalment Payment: 267.94 Paid from buy-back proceeds YTM Instalment Payment: 275.77 Paid from buy-back proceeds Coupon Payment: 87.08 Paid from buy-back proceeds Balance Infusion Required: 369.21 Within FY 2025-26 Conversion of Outstanding Amounts The most significant aspect of the restructuring involves converting substantial outstanding amounts into equity instruments. The outstanding YTM of Rs. 2,939.97 crores and right of recompense of Rs. 485.60 crores under the 2014 restructuring agreement will be converted into equity shares and CCPS. Conversion Structure Equity Shares: Up to Rs. 570.03 crores, ensuring consortium lenders' shareholding does not exceed 50% initially CCPS: Balance amount of Rs. 2,369.94 crores from YTM conversion Additional CCPS: Rs. 485.60 crores from right of recompense conversion CCPS Terms and Conditions Feature: Details Buy-back Provision: Company has buy-back rights Tenor: Up to 20 years Coupon Rate: 0.01% per annum (cumulative basis) Conversion Mechanism: Quarterly conversion when lender shareholding falls below 50% Lender Consortium The restructuring involves a consortium of 12 major Indian banks that will receive equity shares and CCPS as part of the debt conversion: State Bank of India Punjab National Bank Indian Bank Central Bank of India Bank of Maharashtra IDBI Bank Limited Canara Bank Union Bank of India UCO Bank Bank of Baroda Indian Overseas Bank Bank of India Securities Issuance Framework The company will issue securities through preferential allotment to the lender consortium. The equity shares worth Rs. 570.03 crores represent approximately 111,33,39,844 equity shares of face value Re. 1 each. The conversion prices for both equity and CCPS will be calculated as per SEBI regulations and RBI Framework guidelines, computed by a registered valuer. Regulatory Compliance and Next Steps The Board has approved the draft notice for an extraordinary general meeting to seek necessary shareholder approvals for the proposed restructuring. The company will provide detailed outcomes of subscription and allotment prices after the securities are issued to the lender consortium. This comprehensive restructuring plan represents a significant milestone in the company's efforts to resolve its stressed assets while maintaining operational continuity. Bajaj Hindusthan Sugar Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, demonstrating a return to quarterly profitability after facing losses in previous quarters. The Board of Directors approved these unaudited standalone and consolidated financial results on February 12, 2026, following review by the Audit Committee. Financial Performance Overview The company's Q3FY26 performance showed mixed results across different timeframes: Metric Q3FY26 Q2FY26 Q3FY25 9M FY26 9M FY25 Standalone Revenue ₹1,368.20 crore ₹1,153.11 crore ₹1,465.95 crore ₹3,763.41 crore ₹3,998.57 crore Standalone Net Profit/(Loss) ₹15.06 crore (₹99.59 crore) (₹99.34 crore) (₹253.10 crore) (₹217.09 crore) Consolidated Revenue ₹1,380.44 crore ₹1,157.19 crore ₹1,475.75 crore ₹3,786.05 crore ₹4,021.10 crore Consolidated Net Profit/(Loss) ₹14.71 crore (₹105.25 crore) (₹102.20 crore) (₹264.54 crore) (₹244.88 crore) Segment-wise Performance The company operates across four main business segments with varying performance levels: Revenue Distribution (Q3FY26) Segment Revenue (₹ crore) Segment Result (₹ crore) Sugar 1,670.78 (6.35) Distillery 93.35 5.28 Power 371.52 27.43 Others 0.73 (1.16) The Power segment emerged as the strongest performer with positive results of ₹27.43 crore, while the Sugar segment, despite being the largest revenue contributor, reported losses of ₹6.35 crore for the quarter. Key Financial Highlights Earnings Per Share Performance: Q3FY26 Basic EPS: ₹0.12 per share Q2FY26 Basic EPS: (₹0.79) per share 9M FY26 Basic EPS: (₹2.01) per share Operational Metrics: Total comprehensive income for Q3FY26: ₹25.61 crore (standalone) Finance costs reduced significantly to ₹5.34 crore in Q3FY26 from ₹22.31 crore in Q3FY25 Paid-up equity share capital: ₹127.74 crore (face value Re.1/- per share) Debt Resolution and Going Concern The company continues to work on resolving its debt restructuring under the Scheme for Sustainable Structuring of Stressed Assets (S4A). Key aspects include: Optionally Convertible Debentures (OCDs) aggregating ₹3,483.25 crore issued to Joint Lenders' Forum Unrecognized YTM liability of ₹4,131.57 crore as of December 31, 2025 Resolution plan under discussion with lenders Company entitled to receive ₹1,944 crore under Sugar Industry Promotion Policy, 2004 (matter sub-judice) Auditor Observations The statutory auditors issued qualified opinions highlighting: Non-recognition of YTM and coupon interest liabilities pending debt resolution finalization Material uncertainty regarding going concern due to past losses and outstanding cane dues Company's aggregate exposure of ₹2,568.69 crore in subsidiaries requiring recovery measures Operational Capacity Bajaj Hindusthan Sugar maintains significant operational infrastructure: Sugar crushing capacity: 1,36,000 TCD Distillery capacity: 800 KLD Co-generation capacity: 449 MW The company's management expressed confidence in meeting financial and operational obligations, citing improved liquidity position, debt reduction measures, and favorable market dynamics in the sugar industry. The financial results have been prepared on a going concern basis, reflecting management's optimism about the company's long-term viability despite current challenges. 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. 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