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...
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
67%Questions answered3Evaded / deflected12Questions audited
Answered
High priority
View on ethanol demand and government discussions on blending beyond 20%.
Asked by Sanjay Manal, Dam Capital
Management provided specific government roadmap and expressed confidence in demand.
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Question
what is your view from the demand conditions say next few years? what is your discussions with the government about increasing the blending from 20 to 25%
Vivek Sarogi (Management)
Government's commitment to the program doesn't worry me especially after what we have read yesterday. They have detailed a road map from 20 to 22 then 25 to 27. So demand conditions don't worry me.
Partial answer
Medium priority
View on proportion of maize vs molasses ethanol diversion.
Asked by Sanjay Manal, Dam Capital
Management acknowledged the issue but gave a vague assurance of getting share without specifics.
no specific balance commitment
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Question
what is your view on the proportion because last few years the maze ethanol diversion has been a lot higher than the molasses. So you think that government this year will balance this out?
Vivek Sarogi (Management)
Maize came and did the gap filling. Now current year if you see there have been some unintended consequences of maze area increasing. So I think if Sanjay I get your question correctly. What if there is an over supply we will get our share is the answer.
Partial answer
Medium priority
Possibility of sugar recovery returning to 11.7% from 11.3%.
Asked by Sanjay Manal, Dam Capital
Management gave a positive trend but avoided committing to a specific recovery level or timeline.
no precise timelinehedged language
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Question
is it possible that we can go back from again 11.3 to 11.7% or new varieties have been hampering that
Avantika (Management)
I would definitely feel very positive in trend towards recovery but maybe not 11.72 in one year maybe 2 years but yes a definite uptick from 11.28 to it halfway maybe it's too tough to say now
Declined
High priority
Landed cost of imported PLA and whether it defines future realizations.
Asked by Sanjay Manal, Dam Capital
Management explicitly refused to provide pricing details citing confidentiality.
refused to disclosecited NDA
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Question
at what price or what would be the landed cost of PLA and will in future that imported price will define the your realization for the product.
Avantika (Management)
we are not at liberty to disclose the figures like this due to NDAs and things that we have.
Answered
High priority
View on any changes in SAP (State Advised Price) this year.
Asked by Prashant Biani, Ara Capital
Management gave a clear expectation of SAP increase and its potential impact.
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Question
what would be your view on any changes in SAP that may happen this year?
Vivek Sarogi (Management)
SAP might go up for two years and that may not be all that bad if supported by the measures which we have spoken about
Answered
Medium priority
Reason for lower cane acreage in UP and if SAP increase can compensate.
Asked by Prashant Biani, Ara Capital
Management directly attributed lower acreage to multiple factors and confirmed SAP increase would help.
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Question
the lower acreage of cane that we are seeing in up is it a result of because the varietal change has happened from 0 to 38 to others farmers have seen lower yields on newer varieties and hence it is resulting in decline in their income. U is the lower acreage relating to that and any SAP increase can compensate for that?
Avantika (Management)
definitely this has a part to play. Secondly, people are trying to experiment with a different blend of crops a little bit to see how they can get a better realization and definitely the SAP going up will increase the acreage back.
Answered
High priority
Will customers pay a premium for PLA given past experience with biodegradable products?
Asked by Nikil Agarwal, Kotak non-discretionary PMS
Management directly argued that premium is justified by functionality and regulatory push.
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Question
do you actually see customers paying a premium for the product that you are making because in this case in the case of biodegradable products it did not I don't see that working out.
Avantika (Management)
people will pay a premium where they see functionality and opportunity to create a better atmosphere. if they don't do it willingly, I think the governments and there are many big companies who want to lower their virgin plastic consumption
Evasive
Medium priority
Reasons for low global bioplastics capacity utilization (58%) and how Balrampur's facility differs.
Asked by Shalesh Kanani, Centrum Broking
Management dismissed the global utilization figure as irrelevant without addressing how their facility would avoid similar issues.
dismissed the questionattributed to China only
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Question
what are the reasons for that and how would our facility would be a little bit on the higher side or how we are going to tackle those hurdles.
Avantika (Management)
China has one single facility of 300,000 tons which is not able to ramp up capacity is what I understand not for want of a market but for want of their own internal technology or whatever those things so I don't think that this is the way to sort of look at this question
Answered
High priority
Clarification on 50% utilization in first year: 12 months or FY27?
Asked by Shalesh Kanani, Centrum Broking
Management clarified the ramp-up timeline to 100% in 6 months, not 12.
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Question
you said that we would be 50% utilization within the first year. So I assume that is 12 months not that financial year FY27 right?
Avantika (Management)
No we are hoping 6 months in that 6 months stabilization etc. So ramp up to ramp up to maybe total 100% in 6 months is what we want.
Evasive
Medium priority
Unit economics and profitability of grain ethanol, especially maize.
Asked by Shalesh Kanani, Centrum Broking
Management declined to provide unit economics, deferring to a later date.
deferred to next quarterno numbers given
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Question
can you just kind of give some unit economics in terms of how profitability availability and costing is for various feed stocks and how maze is looking at the current prices.
Vivek Sarogi (Management)
to give a profitability indication on the basis of two months of performance is not the right thing maybe at the end of next quarter earnings score we will be in a better position to present that
Answered
Medium priority
Interest outflow on PLA debt: repayment start and 5% subvention timing.
Asked by Kishan Parvwani, JM Financial
Management clarified that interest is paid monthly and subvention starts after commercial operations.
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Question
till that time there'll be no interest outflow. Is that correct? and when will the 5% interest payment will start?
Vivek Sarogi (Management)
we are paying interest on a monthly basis we will get the 5% interest subvention claim from the government of UP after the commencement of our commercial.
Answered
High priority
Projected borrowing for PLA and interest outflow once operational.
Asked by Kishan Parvwani, JM Financial
Management provided specific borrowing figures and timeline.
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Question
what's the projected borrowing for FI28 and interest outflow once PLA is up and running
Vivek Sarogi (Management)
this entire 1650 crores would be borrowed within FI27 maybe 1 1500 crores within FI27 and 15200 crores in the first quarter of I28.