Balrampur Chini Mills (BALRAMCHIN) investor relations material

Business overview and strategy

• Operates 10 sugar units, 5 distillery units, and 6 co-generation units with significant capacities in sugar, ethanol, and bioplastics.

• Announced India's first industrial-scale Poly Lactic Acid (PLA) bioplastic plant, aligning with sustainability trends.

• Diversification into bioplastics leverages government BioE3 policy and supports eco-friendly initiatives.

• Maintains a strong leadership team with deep industry experience and a focus on sustainability and innovation.

• Strategic growth through capacity expansions, acquisitions, and value-added product development.

Financial performance and capital management

• FY26 consolidated revenue reached Rs. 6,271 crore, with a 5-year average EBITDA of Rs. 689 crore.

• Distillery segment revenue grew to Rs. 1,721 crore in FY26, with ethanol sales and production showing robust growth.

• Capital employed increased due to ongoing PLA project; long-term debt primarily funds this expansion.

• Maintains strong credit ratings (AA+/Stable) and prudent treasury management, with significant dividend and buyback payouts.

• Cash flows reflect ongoing investments in new projects and consistent shareholder returns.

Operational highlights

• Sugar segment saw stable production and sales, with average blended realization rising to Rs. 40.7/kg in FY26.

• Ethanol blending in petrol achieved 20% target, supporting government biofuel policy and reducing surplus sugar.

• Sugarcane is the most efficient crop for ethanol production and water use, supporting sustainability claims.

• Co-generation business sold 31.7 crore units of power in FY26, with open market sales after PPA expiry.

• PLA project expected to add significant value and diversify revenue streams.