Balrampur Chini Mills Limited has informed the Exchange about Transcript
BALRAMCHIN · price
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Balrampur Chini Mills shared the transcript of its Q1 FY26 earnings call held on August 13, 2025. The company reported a weak operational quarter with sugarcane crushing declining ~66% and sugar production dropping ~65%, leading to under-absorption of fixed overheads due to a short crushing season. Net recovery stood at 11.38% versus 11.15% last year, though pre-diversion recovery was lower at 11.57% versus 12.18%. Management highlighted sector expectations of ~35 million tonnes of sugar production for SS2025-26 (up 18% YoY), needing diversion of 4.5 MT to ethanol and 2 MT to exports. For its Polylactic Acid (PLA) project, the company has spent Rs. 927 crore of the Rs. 2,850 crore capex, with commissioning targeted for October 2026 and a six-month ramp-up to full utilization. Management expressed confidence on recovery improvement, ethanol price revision, and PLA demand, though acknowledged ethanol prices have been unchanged for two years.
Short-term operational weakness from the seasonal dip is likely already priced in, but management's optimistic tone on PLA commissioning timeline, ethanol pricing policy support, and recovery normalization could support sentiment. The Rs. 1,650 crore debt plan for PLA through FY28 and principal repayments starting Q3 FY29 keep leverage elevated in the near term.