This article first appeared on GuruFocus .
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Sugarcane Crushing:1,043 lakh quintals, up 5.2%.
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Gross Recovery Rate:11.24%, slightly lower than 11.28% previously.
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Sugarcane Price Increase:INR30 increase from INR370 to INR400 per quintal.
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CapEx Plan:Revised to INR3,080 crores for PLA project.
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Fundraising:INR450 crores through preferential shares, with INR193 crores from promoters.
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Release Date: May 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Balrampur Chini Mills Ltd ( BOM:500038 ) reported a stable performance in the sugar segment despite increased sugarcane prices.
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The company achieved a 5.2% increase in cane crushing, outperforming the overall industry trend in Uttar Pradesh.
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Domestic sugar prices remained supportive due to balanced supply and limited inventory, which is expected to continue.
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The distillery business reported stable performance with higher volumes, despite margin pressures.
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The company is progressing well with its PLA project, which is expected to enhance the integrated value chain and has received positive market interest.
Negative Points
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The sugar sector faced challenges with lower than anticipated yields in key states due to weather abnormalities, impacting overall production.
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Ethanol prices have not been revised for three years, putting pressure on margins despite higher operational costs.
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The company faces challenges in replicating the high recovery levels of the 0238 sugarcane variety.
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There is an overcapacity in the ethanol industry, which could impact future supply-demand dynamics.
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The PLA project, while promising, faces uncertainties regarding mandates and customer adoption, which could affect timelines and profitability.
Q & A Highlights
Q: Can you provide an update on the government's mandate regarding PLA and the expected timeline for its implementation? A: Vivek Saraogi, Executive Chairman and Managing Director, explained that the company is working on a three-pronged approach involving central government mandates, UP government mandates, and direct customer engagement. The UP government has already formed a committee to advance a non-plastic mandate. The company is optimistic about the progress on all fronts.
Q: What is the expected timeline for the completion of the current CapEx project, and how quickly can future expansions be executed? A: Vivek Saraogi stated that the current CapEx project is expected to be completed by October, and future expansions could be completed within 15 months.
Q: Could you provide insights into the current global versus domestic PLA realizations and price trends? A: Vivek Saraogi noted that due to the rise in crude prices, PLA prices have increased, which is beneficial for the company. The company is progressing well with mandates, agreements, and customer engagements, although specific details are not being disclosed at this time.
Q: With no revision in ethanol prices for over three years, is there any positive feedback from the government regarding a potential price increase? A: Vivek Saraogi mentioned that positive conversations have begun, especially given the current crude and currency rates. The company is hopeful that both the quantum and price of ethanol will be addressed soon.
Q: How does Balrampur Chini Mills plan to maintain competitive margins in the PLA business compared to global players like Total Corbion? A: Pramod Patwari, CFO, highlighted the company's unique advantage of having sugar and bagasse at the doorstep, reducing logistics costs. The company also benefits from bagasse-based power, which is more cost-effective than energy-based power used by competitors. These factors contribute to the company's confidence in achieving competitive margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
