Ladies and gentlemen, good day and welcome to E. I. D. Parry India Q4 FY 2026 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Abhishek Mehra from DAM Capital. Thank you and over to you, sir.
Hello, everyone, and a warm welcome on behalf of DAM Capital Advisors to the Q4 and FY 2026 earnings call of E. I. D. Parry. We thank E. I. D. Parry's management for giving us the opportunity to host this call. On the call today, we have Mr. Muthiah Murugappan, Whole Time Director and CEO, along with the senior management team of E. I. D. Parry. I hand over the call to the management for opening remarks, followed by a Q&A session. Thank you, and over to you, sir.
Thanks, Abhishek, good morning to everyone. It gives me a great pleasure to be a part of the analyst call to share an update on the global as well as the Indian scenario and explain further on Q4 performance and FY 2026 performance of our company. I'll start with the global scenario. Global sugar markets are softening with a clear downward price trajectory and a shift back to surplus conditions. White sugar prices have corrected from $500 per ton levels in 2025 to about $420 per ton levels by early 2026. While raw sugar has declined from about $0.80 per pound to about $0.14 per pound in the same period.
This reflects improving global supply with total production of 196.7 million tons, exceeding demand of 193.8 million tons in 2025-2026, led by higher output in India and Thailand, partially offsetting mixed trends in Brazil and the EU. Overall, global balances are moving from deficit to surplus and exerting downward pressure on prices and limiting export attractiveness. On the India front, sugar year 2025-2026 estimates are as follows. Gross production 31 million tons, diversion for ethanol 3 million, domestic consumption 28 million, exports of 0.7, and closing stocks of 4.25 million tons. Domestic sugar trends indicate a recovery in production led by key states with an all India output net of ethanol diversion reaching 27 million tons as of March 31st, driven primarily by Maharashtra and Karnataka, which grew in excess of 20% while Uttar Pradesh remained flat.
At a balance sheet level, internal consumption has been revised onwards to 28 million tons, keeping the overall availability comfortable despite the 3 million diversion to ethanol and limited exports of 0.75 million. Further exports have been banned till September 30th. Regionally, the trend reflects a shift towards the western and southern states, which are driving incremental output. While UP remains stable but not the primary growth driver. I now hand the call over to Mr. Venkateshwarlu, our CFO, to take you through the operating and financial performance of the company.
Thank you, Muthu. Good morning to all participants. It's a great pleasure to be part of the analyst call and to share the key information of the operational and financial performance of the company. I would like to share with you the key operating parameters of each of the segments. Sugar operations. The crushing operations in Karnataka and Tamil Nadu and UP we have completed in Q4. On an average, we have run about 77 days against the 76 days of the corresponding quarter of the previous year. As far as the cane crushing is concerned, we crushed about 17.75 lakh metric tons against the 17.62 lakh metric tons of the corresponding quarter of the previous year. As far as the recoveries is concerned, for the current quarter, we are at 11.19 lakh metric tons against the 10.89 lakh metric tons of the corresponding quarter of the previous year.
As far as the sugar production is concerned, in the current quarter, we produced about 1.74 lakh metric tons of sugar against the 1.55 lakh metric tons of the corresponding quarter of the previous year. Cane cost for the current quarter is INR 4,087 per metric ton as against INR 3,768 per metric ton of the corresponding quarter of the previous year. This increase is mainly on account of the FRP increase, about INR 150 per metric ton, which is announced by the central government. As far as the sugar volumes is concerned, as far as the biofuel division is concerned, we sold about 97,000 metric tons, which includes about 6,000 metric tons of the exports against the 73,000 metric tons of the corresponding quarter of the previous year.
As far as the sugar realization is concerned, for the current quarter it is at INR 39.28 as against INR 39.22 of the corresponding quarter of the previous year. We maintained the closing stock at 1.92 lakh metric tons for the current quarter, which is valuated at INR 13 per kg against the 1.83 lakh metric tons of the corresponding quarter of the previous year. As far as the revenue from the sugars is concerned, about INR 466 crore for the current quarter as against the INR 408 crore of the corresponding quarter of the previous year, registering an increase of about 14% on account of the exports and the higher release quota for the current quarter. As far as the co-gen operations is concerned, we generated about 1,499 lakh units as against 1,450 lakh units in the corresponding period of the previous year.
As far as the power exports is concerned, we exported about 845 lakh units as against the 732 lakh units in the corresponding period of the previous year. As far as the power tariff is concerned, we could able to realize INR 4.57 per unit for the current quarter as against INR 4.38 per unit in the corresponding period of the previous year. As far as the revenue is concerned, for the current quarter, about INR 66 crores as against INR 58 crores in the corresponding period of the previous year. As far as the distillery operations is concerned, we produced about 452 lakh liters during the quarter as against 438 lakh liters of the corresponding quarter of the previous year. As far as the sales is concerned, 404 lakh liters we have sold the current quarter as against the 389 lakh liters in the corresponding previous quarter.
The composition of 404 lakh liters consists of 112 lakh liters of [audio distortion] 4 lakh liters of ethanol. As far as the price list is concerned, average realization is at INR 64.75 for the current quarter as against the INR 61.98 per liter as compared to the corresponding period of the previous year. As far as the revenue is concerned, for the current quarter, we have achieved about INR 275 crores revenue as against INR 268 crores during the corresponding period of the previous year. As far as the Nutra operations is concerned, we achieved a turnover of about INR 13 crores in the current quarter as against INR 9 crores in the corresponding period of the previous year. The increase is due to the more exports to the U.S., as the U.S. tariff has got settled at 10%.
At a consolidated level, turnover was about INR 50 crores as against INR 60 crores in the corresponding period of the previous year. Next is a consumer product group, CPG division. The consumer product group has achieved a turnover of INR 115 crores during the Q4 as against INR 195 crores of the corresponding period of the previous year, registering a decline of about 48%. The decrease in the CPG revenues stem from a principal operating model recalibration with a deliberate shift towards the better channel optimization and an improvement in the margin profile of the business. I'll move on to the refinery operations. With the production in the refinery for the current quarter is about 1.69 lakh metric tons, against 1.17 lakh metric tons in the corresponding previous year. As far as the sales are concerned, we sold about 2.3 lakh metric tons.
The same was in the previous corresponding quarter was about 2.05 lakh metric tons. As far as revenue is concerned, the current quarter about INR 1,006 crore against the INR 1,019 crore in the corresponding previous year quarter. Loss for the current quarter after accounting of the other cost, about INR 293 crore against the loss of INR 99 crore in the corresponding previous year quarter. Intercorporate deposits are nil. As far as external borrowings is concerned, INR 593 crore. I also wanted to update the status on the PSRIPL, the closing operations, because we have intimated to the stock exchange by the E.I.D. Parry and the statutory authorities as on 31st March about the closure of the operations. At the same time, we will also operate and inform to all the statutory authorities in the first week of April.
As far as the labor settlement is concerned, the final settlement for all the management staff is completed on the 1st of April 2026. The remaining contractors are completed by 15th April also. The next activity what we have taken is on the SEZ exit. The unit is located in the SEZ. We obtained a SEZ principal exit letter from the SEZ authorities on the 20th April. The exit formalities are commenced and expected to be completed by 30th September 2026. As far as the bank loan payments is concerned, INR 49 million equivalent to INR 460 crores paid to the banks as on 24th April. This was funded through E.I.D. Parry equity infusion about INR 338 crores, and the cash available with the PSRIPL as on 31st March 2026. The further payment to the banks on the 15th May 2026, about INR 29 million equivalent of INR 202 crores.
This funding is funded through investments from the E.I.D. Parry. With these two tranches of the investment, E.I.D. has infused so far by 15th of May, about INR 600 crores into the payment obligations of the PSRIPL. Another INR 1.4 million scheduled for the payment in June 2026. This will be funded through internal receivables from the PSRIPL. The liquidation with the above all the loans obligations of PSRIPL will get completed by 30th of June 2026. As far as the liquidation of the plant and machinery is concerned, discussions are initiated with the vendors and also exploring to call for the tenders from the interested parties on the machineries which is required.
Thanks, Venkat. I think we've also uploaded the presentation.
Yeah.
Quarterly presentation on the BSE and NSE, and hope you'll have chance to go through that. We are now open for questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Gautam from Nalanda Securities. Please go ahead.
Yeah. Hi. Thanks for taking my question. The first question is on the consumer goods business. Now going ahead, what's the plan over there in terms of, we have the sweetener division, and now you're focusing on some adjacencies. What would those products look like? Basically, when you say value added, what should we define the margin profile of those products as opposed to the rice and pulses that we were doing?
Gautam, thanks for the question. Going forward on the CPG side, the strategy is to have a stronger margin profile on the business model. I think as you indicated, some of the rice and pulses, et cetera, are pretty low-margin products. We have de-focused to some extent. We're focusing on those products only in sort of a few channels. In terms of the margin-accretive products and value-added products, they will be more on the browns line, which is jaggery, a couple of variants of brown sugar, premium whites. This is all in the realm of sweeteners. Newer product launches also in the realm of sweet products, which are being planned for later in the year. A lot of these value-added products move the business into the 30 %+ gross margin level.
This is really the intent in terms of how we want to move forward.
Okay. We were looking at some acquisition also, right? You had mentioned in the last call. Has there been any progress made on that? Are we still looking at it or there's a shift in strategy for that also?
Gautam, I think on the last call, we had sort of outlined that we will specify the sort of segments within the food FMCG space, which we're going to be looking at. I think the investor presentation covers that. I've been talking about ethnic snacking and culinary convenience. These are segments which we are looking at further. In terms of how to enter these segments, these are conversations which we are having as well. These are the segments of focus if we look at beyond the sweet products and sweeteners as well.
Okay. Secondly, on the Nutra division, now how should we look at this division? There are two, three products that we are focusing on. What would be the scale-up strategy over there, and what would be the general margin profile of this business once everything stabilizes?
Gautam, on the Nutra piece, Nutra India continues. There are no new product launches planned. We obviously have the algae processing and exports, which we do. That will continue. I think they've had a reasonable performance, and I think we will continue now with some of the tariff issues being settled. We'll continue to progress that piece. I think there will be more action on the Valensa front, where we have also communicated two product launches, one on the prostate side as well as one on the derm health side. This scale-up will happen in Valensa going forward. I think what we will see in Valensa is an expansion of top line as well as stronger bottom-line performance. As mentioned, we have reoriented the strategy a little bit. We've also had some org and management restructuring.
A stronger operating team is in place right now, and they're driving this mandate forward.
Okay. Just one last question. Just like how we've seen the West Asia crisis, post that, have you all seen any change on the ethanol division when you're interacting with some government bodies in terms of either improving the mandate from E20 or in terms of pricing also? Do you see anything positive happening this year?
Good morning. This is Ashiq here. I head the Sugar and Biofuel division. Obviously, most of the news around this is in the public space. The good development has been the government sharing their intent through the BIS spec for E30. We have been telling this for the last four to five quarters, expect positive action from the government. It will become visible during the allocations that will come up in the new ethanol year. We remain firmly positive that the crisis, one silver lining would be the improvement in ethanol blending percentages because it's good for the fuel security of the country.
Sir, any talks you had on pricing revisions?
Our last read of the situation was that there may not be too much action on pricing, but there will be an action on increase in blending percentages.
Okay. Thank you so much.
Thank you. Next question is from the line of Rushabh from RBSA Investments. Please go ahead.
Post the restructuring that has happened, I just want to understand for every INR 100 that operating cash that is generated, how would we be allocating capital now across the existing segments? If you could just share some thoughts, where are you doubling down more? Also, is there any strategic divestments left or are you looking to continue all the existing businesses?
Rushabh, thanks for your question. I think now we will post the restructuring at the refinery. I think we will be continuing with the existing sugar and biofuel operation, the CPG as well as the Nutra operations. I think that's the plan. In terms of capital allocation, there will be a focus on the CPG segment. A lot of the investment there really goes into the AMHP program. There's no real CapEx as such. The only CapEx that we're doing this year is largely the new jaggery facility that's about a INR 45 odd crore CapEx which we're doing. There are no other CapEx plans. I think just given the industry situation, given perhaps the more macroeconomic situation, I think we will hunker down and run for cost and efficiency in terms of the core business.
In terms of the CPG business, of course, invest in brand building, expansion of distribution, and strengthening of the marketing mix.
In terms of the consumer product, just a follow-up. I think you have recalibrated strategy here of focusing more on the higher margin segments. Is it reasonable to assume that since you have been in this segment since quite a while now, at least in the next three to four years, can we assume a significant share of profits or revenue share is 20%-25% coming from this segment? How should one look at the segment scaling up now? Is it too early to say?
Sir, the intent is to break even within the next six to eight quarters and exit this decade with a good single-digit percentage EBITDA on this business segment.
Okay. Okay, sir. Thank you.
Thank you. Before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star and one. We will take our next question from the line of Rajakumar Vaidyanathan from RK Invest. Please go ahead.
Yeah, good morning. Can you hear me?
Yes, we can.
Yeah, thanks for the opportunity. Just a couple of questions. The first one is, there was a recent APTEL September 2023 tariff ruling, which many of the Tamil Nadu sugar companies have taken advantage of. Just want to know, is that award not applicable to E. I. D. Parry?
Can you repeat the question?
APTEL.
No.
No. I think some of the others took benefit.
Some of the other-
Not us.
The folks who are supplying power through TANGEDCO.
It was applicable to us because largely our power exports are through IEX.
Some of our peers have taken benefit of it, you're right.
I saw even E.I.D . Was mentioned in the tribunal order as a co-applicant, so that's the reason I'm asking.
You want to comment, sir?
Maybe you have done it in the past, sir. Like it's not now, maybe because this order is applicable I think way back 2010 something, like 2010.
My colleague is just commenting on it.
At present, we are exporting mostly on exchanges. The tariff order also predates. We have some units where the power purchase agreement, we may get little benefit for those periods. We are yet to assess those years.
Okay. Any reason you are not taking cognizance of the benefit in this quarter because other companies have already accrued that benefit? That's the reason I'm asking.
We have not taken cognizance of those things.
Okay. Is it a substantial amount?
I don't think it's a substantial amount.
Okay, got it. The second question is, what is the outlook for the sugar planting in Tamil Nadu sugar mills?
We are looking at about 10%-15% increase in the planting.
Okay. Even the recoveries are better, right, in the current year compared to the previous years?
We had a good upside on recovery. If your question is relevant to Tamil Nadu, we had about a 0.5% improvement in recovery. That I think is endemic across multiple sugar units in TN because we have had a good weather, a diurnal weather. Karnataka also had a good upside in recovery. Those two are big positives for us.
Okay. Do you expect this momentum to continue in the upcoming years? Do you see an increase in planting based on the previous good performance?
Tamil Nadu will be constrained because of attractiveness of the other crops. The government has been focusing on paddy per se, as you are aware. Having said that, we look at a portion of improving from where we are in terms of planting, and also expect some upsides on recovery.
Okay. Lastly, any word on this, if the fuel blending, if it goes beyond 20%, so what would be the impact for sugar mills and particularly E.I.D. Parry? Will you participate on the upside? What is your outlook on that?
Any increase in the ethanol blending percentage would benefit the sugar industry, and our base assumption is that government would want to support the sugar industry. We will benefit by higher allocations in Karnataka from the OMCs. What it would translate is probably increase the capacity utilizations. As Muthu pointed out in the earlier thing, we have produced about 16 crore liters. We would probably tend towards 17 crore liters if there is any improvement in ethanol blending percentage.
Lastly, any word on MSP for sugar? You have heard anything?
Not really. I think given the inflationary pressures, that looks unlikely.
Okay. Thank you so much.
Thank you. Participants, you may press star and one to ask a question. Next question is on the line of Varadarajan, an individual investor. Please go ahead.
The company has a grand vision of diversifying into a food company. Other than sugar, I don't see any growth anywhere, no significant operation either yet. When do you think Parry will turn profitable, actually? Yes, sugar refinery has gone. That is one big stone off the neck. The other divisions are also not showing much improvement.
Thank you for the question. Maybe let me start with the first point which you made in terms of product line. It's largely sweetener-focused. I think that is obviously a core competency, and that's how we've gotten started on the CPG business. I think we are really doubling down. We are the market leader there, I think it makes sense to strengthen that position. As you know, launched into the staples category. We've recalibrated the strategy there to focus on certain channels. There's also more products on the sweet products and sweeteners realm which we are looking at. I also spoke in response to an earlier question around newer categories which we're looking at, which is ethnic snacking as well as culinary convenience. There certainly is a broader vision, but you're right.
For now, I think the revenues are really focused around the sweetener segment where we're consciously doubling down with the intent of strengthening the business model and strengthening the margins on the business. Over time I think doing so will enable us to really attract that capital to grow the business out further. I think that's the intent from the CPG perspective. Now, in a broader sense, I think you have pointed out from a profitability standpoint. The refinery was, of course, a constraining element. We have addressed it. There were some conversations around the TN operations, and I would put AP into that as well, where cane has been dwindling. This has been a drag. We're really running here. We are running very tightly on cost and efficiency.
Over time, I think we will have to manage this piece better, bring costs down, improve our working capital management to stem the losses which are coming from this segment. I think our Karnataka operations remain a very critical and core area of focus. They are very positive EBITDA generating. We've looked at the metrics, and these are really compared to best in class in the industry. I think we will continue to focus on Karnataka, which will drive the core part of the company in terms of profits and cash flows.
I have two more questions, significant questions. Number one is, are we looking at acquisitions in the food business or snacking business to grow the product line?
As I mentioned, there are two areas of interest for us. One is ethnic snacking and culinary convenience, and we are working out how best to launch into these spaces. I will reiterate that I think strengthening the current business model is very important in order to build a stronger business model and also to attract capital for growth, which is really why we're focused on that.
The biggest concern for the Murugappa Group is that Coromandel and E. I. D. Parry both have become vulnerable for takeover. Look at Coromandel's market cap. We hold 56% of it in E. I. D. Parry. Look at our market cap. 41% of the equity in E. I .D. Parry is held with public. Don't you think we are under a takeover attack?
Look, I mean, yeah. Listen, this is not something which I would like to comment on here. I think we're here to really discuss the E.I.D. Parry operations.
I'm sorry to interrupt, sir. Your voice is breaking.
Yeah. Sir, to your question, I think I will refrain from commenting on this because this is not really in the context of the discussions here today, which is really to focus on the E. I. D. Parry operations. You want to add anything, sir?
I'm talking of E. I. D. Parry survival.
Sir, E.I.D. Parry, 40% held by promoters, 60% is public. Coromandel, 56% is held by E.I.D. Parry. How can it be takeover threat? Anyway, this forum is not for discussion on that. I don't think there is any such takeover threat.
I think, like a strong player acquiring some considerable portion of the public equity can influence some institutional investors to swing also. I'm concerned. I'm talking out of concern. I'm not casting aspersions.
Yeah.
I'm worried about E. I. D. Parry and its existence.
That is a concern for every public listed companies, because as per SEBI regulations, only 25% should be held by the promoters.
If you are satisfied, I have nothing to get worried about. I just need to get a stronger answer.
Sir, we're not concerned. As you know, this promoter group has owned and run these businesses for a very long time. We've seen multiple cycles. We've also seen a very challenging restructuring, which we've just done of the refinery. I think, we are very long-term players, so we are not seeing a concern. You're free to voice this, but we're not seeing a concern. As I said, I would refrain from further discussing it here because we are here to talk about E. I. D. Parry performance.
As a shareholder, I am concerned about when we will resume paying the dividends.
As I said, sir, I think we're working towards a strengthening of the business model. You have seen actions that we've taken through the year, I think it's in our endeavor to strengthen the business operations going forward.
Next year, possibly?
Sir, as I said, I think it's in our endeavor to strengthen the business operations of the company going forward. I can't really give you any timelines on this.
Okay.
Thank you. A reminder to all the participants, anyone who wishes to ask a question, may press star and one. Participants, you may press star and one to ask a question. Final reminder to all the participants, if you wish to ask a question, please press star and one. There are no further questions from the participants, I now hand the conference back to the management for closing comments.
Okay. Thank you all for logging into the Q4 and FY 2026 conference call. We look forward to connecting again, at the end of Q1.
Thank you very much. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.