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Delayed ethanol price revision
View Risks →Balrampur Chini Mills Limited — Q1 FY26
Balrampur Chini Mills reported a steady start to FY26, with sugar and distillery revenues rising on higher volumes and realizations, though crushing dropped ~66% due to a short season, leading to fixed overhead underabsorption.
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Balrampur Chini Mills reported a steady start to FY26, with sugar and distillery revenues rising on higher volumes and realizations, though crushing dropped ~66% due to a short season, leading to fixed overhead underabsorption. Management highlighted favorable monsoon conditions and improved crop health, expecting sugar production to rise 18% YoY to 350 lakh tons (pre-diversion) for the upcoming season. The PLA project remains on track for commissioning in Q3 FY27 (Oct 2026), with 927 crores spent so far on total capex of 2,850 crores. First-year PLA capacity utilization is targeted at 50%, ramping to full within six months. Key risks include delayed government policy on ethanol pricing and MSP, which could pressure margins in a surplus year. The company is actively lobbying for ethanol price hikes and export allowances to manage inventory.
बलरामपुर चीनी मिल्स ने वित्त वर्ष 2026 की अच्छी शुरुआत की है। चीनी और डिस्टिलरी से आय बढ़ी है क्योंकि ज्यादा बिक्री और अच्छे दाम मिले। लेकिन गन्ना पेराई 66% कम हुई क्योंकि पिसाई का मौसम छोटा था, जिससे फिक्स्ड खर्च पूरा नहीं हो पाया। कंपनी का कहना है कि अच्छी बारिश और फसल की सेहत से अगले सीजन में चीनी उत्पादन 18% बढ़कर 350 लाख टन हो सकता है। PLA प्रोजेक्ट अक्टूबर 2026 में शुरू होगा। अब तक 927 करोड़ खर्च हो चुके हैं, कुल लागत 2,850 करोड़ है। पहले साल 50% क्षमता से शुरू करेंगे, फिर 6 महीने में पूरी क्षमता पर आ जाएंगे। जोखिम यह है कि सरकार एथेनॉल की कीमत और MSP पर फैसला देर से करे, जिससे मुनाफा कम हो सकता है। कंपनी एथेनॉल के दाम बढ़ाने और निर्यात की अनुमति मांग रही है।
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Sugar production estimate (India, pre-diversion, 2526 season)
350 lakh tons
+18% YoY
ISMA estimates sugar production for the upcoming season at 350 lakh tons, up 18% from 296 lakh tons last year.
PLA project capex spent till July end
927 crores
N/A
Total capex of 2,850 crores for PLA project; 927 crores spent, comprising 460 crores debt and balance from internal accruals.
PLA first-year capacity utilization target
50%
N/A
Management expects 50% capacity utilization in the first year of PLA production, ramping to full within six months.
Sugar recovery (pre-diversion, Q1 FY26)
11.57%
-61 bps YoY
Pre-diversion sugar recovery for Q1 FY26 was 11.57%, down from 12.18% in Q1 FY25, due to unfavorable weather last season.
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Guidance and risk preview
PLA plant commissioning targeted for Q3 FY27, with first-year capacity utilization of 50% and ramp-up to full capacity within six months.
Ethanol prices unchanged for two years; delay in revision could pressure distillery margins, especially in a surplus year.
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