Dalmia Bharat Sugar and Industries500097Scheme of arrangement

Board approves demerger of Hippostores Technology into company; preference shares to be issued

Board approved Q2/H1 FY27 results and a Scheme of Arrangement.

By ScoutQuest · Tue 3 Nov 2026, 7:14 PM IST · 3 min read

Appointed Date: January 01, 2027
Investment in UAE wholly owned subsidiary: up to USD 22.70 Million
Q2 Net Profit After Tax (standalone): 70.61, against 23.32 a year earlier

Two decisions and a set of quarterly numbers came out of the Board meeting held on November 03, 2026, which ran from 3 p.m. to 6.30 p.m.

The demerger, in simple terms

Hippostores Technology Private Limited is the Demerged Company. Its business — described in the Scheme as multi-supplier aggregation, AI/ML driven optimisation, and developing, implementing and scaling technology-led solutions — moves into Dalmia Bharat Sugar and Industries Limited on a going concern basis.
The company is the Resulting Company. It does not pay cash for this business. Instead it will issue and allot fully paid-up Redeemable Preference Shares of face value of Rs. 10 each to the eligible equity and preference shareholders of Hippostores, in the share-entitlement ratio and on the terms set out in the Scheme.
The Appointed Date is the opening of business hours on January 01, 2027, or such other date as the NCLT or another competent authority approves.
The Scheme is subject to observation letters or no-objection letters from BSE Limited and National Stock Exchange of India Limited, approvals of the shareholders and creditors of the respective companies, sanction of the jurisdictional bench or benches of the NCLT, and other statutory and regulatory approvals.

What redeemable preference shares mean for a retail reader: they are a separate class of shares, not equity shares. They typically carry a stated dividend and are redeemed after a set period under the Scheme's terms. The consideration here is being paid in preference shares, so the transaction is not an issue of new equity shares to the sellers.

The overseas investment

The Board approved an investment of up to USD 22.70 Million in Dalmia Bharat Global Holdings Limited, a wholly owned subsidiary incorporated in the United Arab Emirates.
The stated purpose is to hold the company's present and future investments. The money can go in by way of equity or other instruments.

Q2 and H1 FY27 results (standalone, Rs. in crore)

Revenue from operations for the quarter was 1,060.81, against 988.72 in the same quarter a year earlier and 848.19 in the immediately preceding quarter.
Net profit after tax for the quarter was 70.61, against 23.32 a year earlier.
Earnings per share for the quarter was Rs. 8.72, against Rs. 2.88 a year earlier.
For the half year, revenue from operations was 1,909.00 against 1,929.60, and net profit after tax was 79.18 against 62.58. Half-year EPS was Rs. 9.78 against Rs. 7.73.

Consolidated basis

Revenue from operations for the quarter was 1,060.81.
Net profit after tax for the quarter was 68.40, against 23.32 a year earlier.
Half-year net profit after tax was 75.31, against 62.58.

Where the quarter's numbers came from (segment revenue, standalone)

Sugar: 769.00 for the quarter, against 793.16 a year earlier.
Distillery: 327.25 for the quarter, against 251.71 a year earlier.
Segment results were 79.22 for sugar and 28.37 for distillery in the quarter.

Balance sheet pointers (standalone, as at 30-09-2026)

Total assets 4,201.74, against 5,456.57 as at 31-03-2026.
Current borrowings 77.56, against 1,280.16 as at 31-03-2026.
Cash and cash equivalents 44.82, against 317.76 as at 31-03-2026.

The company also noted in the results that, because of the seasonal nature of the industry, the standalone results for any quarter may not be a true and appropriate reflection of the annual profitability.

How to read the mix

The results and the two corporate actions sit side by side in one update. The numbers show what the sugar and distillery businesses did in the September quarter. The Scheme is a separate, forward-looking step that brings a technology-led business into the company and pays for it with preference shares rather than cash or equity, and it is still at the approval stage with exchanges, shareholders, creditors and the NCLT. The UAE investment is a treasury and holding step through a wholly owned subsidiary, sized at up to USD 22.70 Million.

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