Ravalgaon Sugar Farm losses widen to ₹4.91 cr as legal costs mount
The inactive company posted a quarterly loss of ₹3.56 cr while facing a new tax threat from the Supreme Court.
— 1 earlier story on Ravalgaon Sugar Farm Ltd. →What's new
- Annual loss widened to ₹4.91 cr from ₹2.02 cr in FY25.
- Q4 loss hit ₹3.56 cr, jumping from a ₹19.52 lakh loss in Q3.
- Supreme Court overturned a tax exemption; Ravalgaon has filed a review petition.
Why it matters
Ravalgaon is a shell effectively, yet its losses are accelerating rapidly due to tax provisions and legal friction. With a market cap of only ₹33 cr, the potential electricity duty liability is a serious threat to shareholder equity.
What we're watching
- Outcome of the review petition filed with the Supreme Court.
- Cash burn rate for an inactive company with no remaining core business.
- The scale of any future demand for electricity duty.
The full read
Ravalgaon Sugar Farm is currently an inactive company following the sale of its core sugar and confectionery units. Despite the lack of operations, it burned ₹4.91 crore in FY26, more than double the ₹2.02 crore loss recorded the previous year. The deterioration accelerated in the final quarter, with a loss of ₹3.56 crore compared to just ₹19.52 lakh in Q3, pushed by property tax provisions and other expenses. Legal trouble adds a layer of uncertainty. The Supreme Court recently overruled a High Court decision that previously protected the company from electricity duty payments. While no specific demand has reached the balance sheet yet, the company is fighting back with a review petition. For a firm valued at roughly ₹33 crore, rising losses and lingering legal liabilities create a bleak outlook for the capital that remains.