Balrampur Chini Mills earnings calls.

Balrampur Chini Mills commenced FY27 on a stable note with revenues improving across sugar and distillery segments, aided by higher sugar realizations and dispatch volumes. The current season 25-26 has turned out tighter than anticipated — lower-than-expected production, healthy domestic consumption, and diversion towards ethanol have drawn down inventory levels, firming up domestic sugar prices and partially offsetting higher cane costs and distillery margin pressures. As of June 30, the company held 45.67 lakh tonsCurrent 45.67 lakh tons. Reported change: 4.8M tons at Rs.37.19/kg cost. of sugar inventory at an average carrying cost of Rs. 37.19/kg, providing a favorable profitability base for upcoming quarters. The 80,000 TPA PLA project remains on track with lactic acid commissioning targeted for October and PLA for December 2026; approximately Rs. 2,180 crore has been spent through July. Management expects a minimum 40% capacity utilization in the first year of operation (Q4 FY27 onwards), though full ramp-up remains contingent on product quality and market acceptance. Government policy uncertainty — specifically potential restriction of B-heavy ethanol diversion in FY27-28 — could reduce distillery volumes, but management believes the sugar price upside will more than compensate. Rainfall in the company's command area has been ideal, and sowing area is expected to be broadly flat to slightly better year-on-year.