Balrampur Chini Mills (BALRAMCHIN) Q1 25/26 earnings summary

Executive summary

• Sugar production for 2025-2026 is projected to rise 18% year-over-year to 35 million tonnes, driven by favorable monsoon and improved crop health, with Maharashtra and Karnataka seeing significant gains and UP remaining stable.

• Q1FY26 began on a steady note with revenue growth in both sugar and distillery segments, driven by higher volumes and realizations, despite a 66% decline in sugarcane crushing and a 65% drop in sugar production from a short season.

• The company is progressing on cane development and varietal rebalancing to address supply issues, with strategic focus on strengthening cane availability and policy advocacy for ethanol pricing and sugar MSP.

• Construction and market development for the PLA bioplastics project are underway, with Rs. 927 crores invested by July 2025.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2025 were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Consolidated Q1FY26 revenue rose to Rs. 1,542.27 crore, up 8.5% year-over-year, with standalone revenue at ₹154,227.45 lakhs.

• Standalone net profit for the quarter was ₹4,308.68 lakhs, and consolidated net profit was ₹5,157.30 lakhs, both down year-over-year.

• Gross CapEx for the PLA project reached INR 927 crore by July, funded by INR 460 crore in debt and the remainder from internal accruals.

• Standalone EBITDA for Q1FY26 was ₹16,613 lakhs, margin at 10.8%; consolidated PBT margin was 4.7%.

• Share of profit from associate Auxilo Finserve Pvt. Ltd. included in results.

Outlook and guidance

• Management expects a positive year for cane yields and recovery, with above-normal monsoon and improved pest management supporting stable or improved performance.

• PLA plant commissioning is targeted for October 2026, with expectations to reach 50% capacity utilization in the first year and full ramp-up within six months.

• Anticipates government policy support for ethanol pricing and sugar MSP, especially in a surplus year, to sustain profitability and timely farmer payments.

• Sugar inventory as of September 2025 expected at ~5.3 MMT; production and consumption trends may allow for exports.

• Sugar is a seasonal industry, and quarterly results are not indicative of annual performance.