Balrampur Chini Mills LimitedConsumer GoodsBALRAMCHIN
Q1 FY27 earnings callBalrampur Chini Mills Limited
The company commenced FY27 on a stable note with higher sugar realizations and distillery volumes, while navigating a tight sugar market and preparing for its PLA plant commissioning.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Sugar Inventory (as of June 30) | 45.67 lakh quintals | — | |
| Average Carrying Cost of Sugar Inventory | INR 37.19 per kg | — | |
| PLA Project Spend (by end July) | INR 2,180 crore | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,192.15 Cr-3.1% YoY-8.2% QoQ | ₹70.47 Cr-22.8% YoY+4.9% QoQ | ₹3.49-23% YoY+4.8% QoQ |
| Q2 FY25 | ₹1,297.95 Cr-15.7% YoY-8.7% QoQ | ₹67.18 Cr-59.6% YoY-4.2% QoQ | ₹3.33-59.6% YoY-4.3% QoQ |
| Q1 FY25 | ₹1,421.60 Cr+2.3% YoY-0.9% QoQ | ₹70.15 Cr-4.6% YoY-65.5% QoQ | ₹3.48-4.4% YoY-65.5% QoQ |
| Q4 FY24 | ₹1,434.26 Cr-3.8% YoY+16.6% QoQ | ₹203.39 Cr-20.1% YoY+122.7% QoQ | ₹10.08-19.4% YoY+122.5% QoQ |
| Q3 FY24 | ₹1,230.39 Cr+25.4% YoY-20.1% QoQ | ₹91.33 Cr+97.3% YoY-45.1% QoQ | ₹4.53+99.6% YoY-45% QoQ |
TL;DR
- Q1 FY27 started stable with improved revenue across Sugar and Distillery segments.
- Sugar prices firmed up due to tight demand-supply, providing relief against higher cane costs.
- Company carrying sugar inventory of 45.67 lakh quintals at an average cost of INR 37.19 per kg.
- PLA plant construction progressing well with expected lactic commissioning in October and PLA in December.
- Management expects positive net outcome from industry dynamics despite potential ethanol diversion bans and cane price hikes.
Said on the call
“The sugar price is the biggest delta in a company like ours or in any company.”
From the Q&A
| Topic | What management said |
|---|---|
| Ethanol Volumes & Feedstock | Management anticipates a ban on B-heavy and juice diversion next season, expecting to operate only on C-heavy and grain (broken rice/maize), with volumes potentially around 10 crore litres from C-heavy and similar from grain. |
| Sugar Price & Cost Dynamics | Higher sugar prices are expected to offset negatives from potential cane price hikes and ethanol diversion bans, with management believing the net impact will be positive. |
| PLA Project Status & Opportunity | PLA plant commissioning expected in October (lactic) and December (PLA), with a potential 40% capacity utilization target from January to March and a large addressable market in pan masala/gutka packaging. |
| Crop & Rainfall Outlook | Rainfall in the company's area has been ideal for cane, with no El Niño impact expected; sowing season was good and yield looks better, though area may be flat. |
| Distillery Margins | Q1 margins were resilient due to feedstock mix (largely B-heavy and maize-based ethanol) and transfer pricing adjustments, but margins may vary quarter-to-quarter. |
Guidance
- Lactic acid plant commissioning expected in October and PLA plant in December.
- Targets around 40% average capacity utilization for PLA from January to March, assuming things go as per plan.
- Expects some hike in sugarcane price and a ban on B-heavy/juice diversion for ethanol next season.
- Believes net impact of industry dynamics (higher sugar price vs. cost pressures) will be positive.
Source
Summary written from the transcript filed by Balrampur Chini Mills Limited for the call held on 18 Aug 2026; published 21 Aug 2026, 20:02 IST.