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 advancing its PLA bioplastics project, with construction underway, significant capex incurred, and commissioning targeted for October 2026.

• Strategic focus remains on strengthening cane availability, policy advocacy for ethanol pricing and sugar MSP, and advancing the PLA bioplastics project as a future growth pillar.

• 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

• Standalone revenue rose 8.5% year-over-year to Rs. 1,542.27 crore in Q1FY26, with standalone EBITDA at Rs. 365.24 crore, up from Rs. 134.25 crore in Q1FY25.

• Standalone revenue from operations was ₹154,227.45 lakhs, up from ₹142,159.95 lakhs year-over-year.

• Standalone PBT margin improved to 8.7% in Q1FY26 from 4.1% in Q1FY25; consolidated TCI margin increased to 8.1% in Q1FY26 from 3.3% in Q1FY25.

• Standalone net profit for the quarter was ₹4,308.68 lakhs, compared to ₹6,463.22 lakhs in the same quarter last year; consolidated net profit was ₹5,157.30 lakhs, down from ₹7,015.31 lakhs 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.

Outlook and guidance

• Management expects a positive year for cane yields and recovery, with weather conditions and pest management supporting stable or improved performance.

• IMD forecasts above-normal monsoon, which may improve yields for the upcoming season.

• 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.

• Lower diversion of cane to Gur-Khandsari and improved yields expected to offset reduced acreage in Uttar Pradesh.