Balrampur Chini Mills (BALRAMCHIN) Q4 25/26 earnings summary

Executive summary

• Gross sugar production for the season is projected at 31 million tons, with net production at 28 million tons after diversion, and government export restrictions due to lower yields in key states.

• Q4FY26 saw stable sugar segment performance despite an 8% y-o-y hike in sugarcane prices, which compressed margins; higher sales volumes and realizations partly offset this impact.

• Distillery segment results were subdued due to stagnant ethanol procurement prices for three years.

• The PLA plant project is progressing on schedule, with operations expected to commence in Q3FY27.

• Board approved preferential equity issue of up to ₹45,000 lakhs (Rs. 450 crore) for capex, with promoters subscribing ₹19,300 lakhs (Rs. 193 crore).

Financial highlights

• Standalone and consolidated revenue from operations for FY 2025-26 was ₹630,796 lakhs, up from ₹541,538 lakhs year-over-year.

• Standalone net profit for FY 2025-26 was ₹34,722 lakhs; consolidated net profit was ₹37,846 lakhs.

• Cane crushed increased by 5.2% YoY to 1,043 lakh quintals, while gross recovery was marginally lower at 11.24% versus 11.28%.

• Q4FY26 consolidated revenue rose 6.7% y-o-y to ₹160,399 lakhs; PBT margin improved to 14.99%.

• Basic EPS (standalone) for FY 2025-26 was ₹17.19, and consolidated EPS was ₹18.74.

Outlook and guidance

• Sugar prices are expected to remain steady or inch up due to tight inventory and balanced demand-supply.

• India's net sugar production post-ethanol diversion estimated at 28 MMT, matching domestic consumption.

• PLA plant expected to generate ₹200,000 lakhs revenue at full capacity; commissioning in Q3FY27.

• Management is optimistic about government action on ethanol price revision, which is seen as necessary for margin support.

• Company continues to monitor regulatory changes, including new Labour Codes and power tariff revisions.