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Further cost escalation in PLA project
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Balrampur Chini Mills Ltd — Q4 FY26
Balrampur Chini Mills announced a ₹230 crore cost overrun on its PLA project (total now ₹3,080 crore) due to supply chain disruptions, forex movements, and engineering refinements.
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Balrampur Chini Mills announced a ₹230 crore cost overrun on its PLA project (total now ₹3,080 crore) due to supply chain disruptions, forex movements, and engineering refinements. The board also approved a ₹160 crore lacto gypsum processing plant to convert PLA byproduct into gypsum boards, with a capacity of 76 lakh boards and expected revenue of ₹150 crore annually. To fund these, a preferential equity issue of ₹450 crore at ₹483/share (promoters contributing 43%) and a debenture raising of ₹200 crore were approved. The PLA plant remains on track for Q3 FY27 commissioning. Risks include execution delays, further cost escalation, and marketing challenges for gypsum boards. Management did not discuss quarterly financials due to a silent period.
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PLA Project Cost
₹3,080 Cr
+₹230 Cr vs. original
Cost overrun due to supply chain disruptions, forex, and engineering changes.
Gypsum Board Capacity
76 Lakh Boards
New project
Expected commercial production in 18 months from the lacto gypsum plant.
Gypsum Board Revenue Potential
₹150 Cr
New revenue stream
Annual revenue from 63 lakh pieces of gypsum boards.
Preferential Issue Price
₹483/Share
SEBI price on that date
Equity raise of ₹450 Cr at this price; promoters to maintain 43% stake.
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Guidance and risk preview
The PLA plant remains on track for commissioning in Q3 of FY2026-27, despite cost overruns.
Management stated that 90% of cost overruns are genuine but 10% is 'blackmail' from suppliers; further increases cannot be ruled out.
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