The Curious Case Of Oswal Overseas: Zero Revenue, Rs 1.99-Crore Loss And A 2,426% Stock Surge

In Uttar Pradesh's sugar belt, a company that once bought cane from farmers is now under auction orders for unpaid dues. Yet, even as production remains halted, Oswal Overseas Ltd.'s share price has risen 2,426% since March, turning a small sugar producer into one of the year's most actively traded penny stocks.

The Delhi-headquartered firm reported zero revenue and a Rs 1.99-crore loss for the July–September quarter of FY26. Its shares, which traded at Rs 5.39 on March 27, rose 204% between July and September — the same quarter in which it posted no income—and have climbed another 61% since October. The company now commands a market capitalisation of about Rs 176 crore.

Company filings with the BSE between September and October show signs of financial stress. Oswal Overseas has reported insolvency proceedings, state-led auctions, bank defaults and senior management exits, with no statement of operational recovery. The company, the BSE and the Securities and Exchange Board of India have been contacted to confirm whether the stock is under regulatory surveillance. Responses are awaited.

On Sept. 6, LH Sugar Factories Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, seeking to initiate a Corporate Insolvency Resolution Process against Oswal Overseas before the National Company Law Tribunal in New Delhi. The company told the exchange the matter was pending admission.

The cane commissioner of Uttar Pradesh ordered two auctions to recover sugarcane dues of Rs 70.3 crore. Land in Bareilly district valued at Rs 1.37 crore was listed for sale on Sept. 8. Another auction on Sept. 25, 2025, included 8,900 quintals of sugar stock worth Rs 3.55 crore. The company said it is assessing the financial effect of these proceedings.

State Bank of India's commercial branch in Bareilly informed Oswal Overseas on Sept. 10, that its loan account would be classified as non-performing from Sept. 15. The bank cited total dues of Rs 7.2 crore, including Rs 4.97 crore under cash credit and Rs 2.23 crore under the GECL facility.

Several senior officials left during the quarter. Chief Executive Officer Vijay Kumar Mishra resigned on Sept. 5, citing better prospects. Chief Financial Officer Aijaz Ahmad stepped down on July 27 after accepting another opportunity.

Independent Director Priyanka Gandhi resigned on Sept. 19 for personal reasons. The board appointed Neha Gupta as additional woman independent director on Sept. 24.

The surge in Oswal Overseas shares has sharply increased the market value of promoter holdings. Based on BSE data, the six promoters' combined 96.77 lakh shares were worth about Rs 5.47 crore at the end of March. By Nov. 5, that value had risen to about Rs 141 crore, a notional gain of nearly Rs 136 crore.

The largest paper increases were recorded by Surjeet Singh and Surjeet Singh, whose holdings together rose by more than Rs 62 crore in value.

The promoter ownership, however, remained unchanged at 74.89% through the March, June and September quarters. The six promoters — Paramjeet Singh, Surjeet Singh, Simranjeet Singh, Gurinder Kaur, Ranjeeta Kaur and Surjeet Singh HUF — together hold 96.77 lakh shares. The filings show no foreign or institutional investors.

The company’s financial statement for the September quarter showed zero operational revenue and a net loss of Rs 1.99 crore for the quarter. Total liabilities stood at Rs 94.77 crore against total assets of Rs 89.97 crore, resulting in a negative net worth.

Trade payables were Rs 62.64 crore, inventories were valued at Rs 6.33 crore, and cash and bank balances fell to Rs 1.60 crore from Rs 2.71 crore in March. The company recorded Rs 31.1 lakh as other income, with Rs 75.9 lakh in employee costs and Rs 91.1 lakh in depreciation.

The auditors issued an unmodified review opinion, meaning there was no qualification or adverse remark. The company said sugar operations are seasonal, with crushing from November to April, and confirmed the audit was a limited review.

Registrar Beetal Financial & Computer Services confirmed compliance with the SEBI Regulation 74(5) for the September quarter. Oswal Overseas also told the exchange it filed certain disclosures late, including details of auctions and management exits, because of internal communication delays.

In another filing, the company said its paid-up capital stood at Rs 6.46 crore and its net worth was negative Rs 43.6 lakh as of March 31. It said provisions under Regulation 23(9) of SEBI’s Listing Regulations for related-party transaction disclosures do not apply, given its size and net worth.