Q4 FY26 Results Presentation
BALRAMCHIN · price
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Balrampur Chini Mills reported Q4 FY26 revenue of Rs. 1,604 crore, up 6.7% year-on-year, driven by higher sugar volumes and marginal realization increases. However, profit before tax dropped 24% to Rs. 236 crore as margins contracted significantly. PBT margin fell from 20.7% to 14.7% due to an 8% hike in sugarcane prices by the UP government (from Rs. 370 to Rs. 400 per quintal). The distillery segment was particularly weak, with PBIT falling 38% to Rs. 53.7 crore because the government has not increased ethanol procurement prices from Juice and B-heavy routes for three consecutive years. The company is actively developing its 80,000 TPA PLA plant with Rs. 3,080 crore capex, expected to commence operations in Q3 FY27, and recently raised Rs. 450 crore via preferential equity shares with no promoter dilution.
The sharp margin compression in Q4 and subdued distillery performance are near-term headwinds for the stock. However, the PLA project represents a major growth catalyst with potential revenues of Rs. 2,000 crore at full capacity, and government incentives under the UP Bioplastic Policy provide additional support. The equity raise without promoter dilution is shareholder-friendly.