1. Cogen tariff reset - APTEL remand - APTEL set aside four TNERC tariff orders in September 2025 and directed fresh orders in strict compliance with its conclusions, covering the period from the cogen plant’s 2012 commissioning. The remand settles principles of cost computation, tariff determination, and compensation for delayed payment, and management has already recognised additional revenue in the financial statements based on its best estimates.
2. Cogen POC relief - recognised in FY26 - APTEL held in June 2025 that Parallel Operation Charges are not leviable on the company, and the impact has been booked in FY26. The order removes a recurring cost head from the cogen business, though the matter is now under challenge before the Supreme Court.
3. Transfer pricing - bagasse ALP dispute - The CIT-TP set aside the TPO’s earlier order on inter-unit bagasse transfer pricing for AY 2021-22, and the Madras High Court has admitted the company’s writ petition, keeping any TPO order subject to the final outcome. Separately, for AY 2023-24 the TPO proposed reducing eligible cogen profits by ₹34.05 crore versus the company’s ₹24.70 crore, with management describing the financial implications as material and multi-year.
4. Purchase tax incentive - three-decade dispute resolved - The Madras High Court ruled in August 2025 that the company is entitled to a purchase tax incentive linked to the 1984 establishment of the sugar mill, and ₹150 lakhs has been recognised as exceptional income in FY26. The company is now pursuing the refund of purchase tax paid under protest with state tax officials.
5. Cogen operational uplift - output and efficiency gains - Power production rose 8% to 1,189 lakh kwh in FY26, exports to the state grid hit a record, and auxiliary consumption fell to its lowest point, lifting cogen segment operating profit before exceptionals to ₹2,549 lakhs from ₹1,504 lakhs in FY25. Higher bagasse availability from improved crushing and lower fossil-fuel use allowed more bagasse to be sold externally.
6. Sugar crushing and recovery - best-in-class metrics - Cane crushed crossed 7 lakh tonnes and sugar recovery improved to 9.79% in FY26, described as the best among peers and well above the state average. The higher daily crushing rate of 2,822 tcd cut specific steam and power consumption, though sugar segment operating profit was broadly flat year-on-year at ₹1,200 lakhs.
7. Jaggery unit - diversification launch pad - The company acquired a 50 tcd jaggery manufacturing unit near Arachalur for ₹4.6 crore and commissioned commercial production in January 2026 after installing an effluent treatment plant. Management calls it a launch pad for future growth, though at current capacity it has no material bearing on overall turnover.