Ethanol Stock Jumps 6% After Merger Petition Approval from NCLT

SYNOPSIS: NCLT admits merger petition between transferor and transferee entities, directs regulatory notices and public disclosures, with authorities given 30 days for responses; next hearing scheduled for 13th May 2026.

During Friday’s trading session, shares of a company involved in the business of sugar, industrial alcohol and co-generation of power surged over 6 percent on BSE, after the National Company Law Tribunal (NCLT) has cleared the Scheme of Amalgamation with further proceedings to be held in May 2026.

With a market cap of Rs. 323 crores, shares of Mawana Sugars Limited are currently trading in the green at Rs. 82.62 on BSE, up by around 5 percent, compared to its previous closing price of Rs. 78.78. The stock has delivered negative returns of around 7 percent in one year, but has gained by nearly 5 percent in the last one month.

News

As per its latest disclosure to the stock exchanges, Mawana Sugars Limited has informed that the National Company Law Tribunal (NCLT), New Delhi Bench, through its order dated 18th March 2026, has admitted the second motion petition filed under Sections 230 to 232 of the Companies Act, 2013, in relation to the proposed scheme of amalgamation between Mawana Foods Private Limited (transferor company) and Mawana Sugars Limited (transferee company), along with their respective shareholders and creditors.

As part of the process, the NCLT has directed both companies to undertake newspaper publications in Business Standard (English and Hindi, Delhi editions) and to issue notices to the relevant statutory authorities as per the provisions of the Companies Act. The authorities have been given 30 days from the date of receipt of notice to submit any representations, if applicable. The matter has been scheduled for further hearing on 13th May 2026.

Financials

Mawana Sugars reported a marginal growth in revenue from operations, experiencing a year-on-year increase of around 10 percent, from Rs. 334.4 crores in Q3 FY25 to Rs. 367 crores in Q3 FY26. However, its net profit decreased during the same period from Rs. 72.5 crores to Rs. 4 crores, representing a decline of more than 94 percent YoY.

Mawana Sugars Limited is engaged in the business of manufacturing and marketing of sugar, ethanol and cogeneration of power at its units at Mawana Sugar Works and Nanglamal Sugar Complex located in Meerut, Uttar Pradesh.

During FY25, the company produced 29,657 KL of ethanol, compared to 39,405 KL in the previous year. For the ethanol supply year 2024-25 (November 2024 to October 2025), Mawana Sugars has been allocated 33,801 KL of ethanol from B-heavy molasses by oil marketing companies (OMCs).

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