India · Delayed Price · Currency is INR Balrampur Chini Mills Earnings Call Transcripts
Fiscal Year 2026
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Project cost for PLA increased to INR 3,080 crore due to material and supply chain factors, but commissioning remains on track. A new INR 160 crore lacto gypsum plant will monetize byproduct waste, with a five-year payback. Capital raising of INR 450 crore ensures liquidity and supports expansion.
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Tight sugar inventories and rising prices, coupled with higher cane costs, supported strong operational results. Ethanol price stagnation pressured distillery margins, while the PLA project advanced with robust technical progress and market engagement.
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Production and profitability improved despite higher cane costs, with strong progress on the PLA project and a positive ethanol outlook. Government policy on exports and ethanol pricing remains a key variable. Dividend declared and investments continue in forward integration.
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Sugar and distillery revenues rose despite a sharp drop in crushing, with strong prospects for cane yield and recovery. PLA bioplastics project is on track for October 2026 commissioning, supported by robust demand and government policy tailwinds.
Fiscal Year 2025
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Sugar segment delivered strong margins despite sector headwinds, while distillery performance was impacted by ethanol price restrictions. PLA project remains on track, with robust government support and strong market prospects. Firm sugar prices and improved cane management support a positive outlook.
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Sugar segment saw higher crushing but lower recovery, with margins supported by robust prices. PLA project CAPEX increased, targeting 80,000 tons capacity and 35%+ EBITDA margin, while ethanol margins remain under pressure due to stagnant prices and higher costs.
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Net sugar production is expected to decline year-over-year, with high inventory pressuring prices and profitability impacted by lower crushing and ethanol restrictions. The PLA bioplastics project is on track, supported by substantial government incentives, and an interim dividend of INR 3 per share was declared.
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Q1 FY25 saw steady performance with strong sugar segment results and distillery challenges due to a temporary ban. Ample inventory supports ethanol blending, and the PLA project is progressing with INR 300 crore invested. Sugar prices remain resilient, and policy clarity is awaited on ethanol and MSP.