Balrampur Chini Mills Limited has reported a strong performance for the second quarter of FY27, with the sugar segment PBIT increasing by 166% to INR140 crore, driven by strong volume and improved realizations. The company also highlighted significant progress on its strategic 80,000 PLA project, which is on track for November operations. An interim dividend of INR4 per equity share was also declared.
Balrampur Chini Mills Announces Strong Q2 FY27 Results
Balrampur Chini Mills Limited has announced robust financial results for the second quarter ending September 30, 2026 (Q2 FY27). The company witnessed a significant upswing in its sugar segment performance, with Profit Before Interest, Taxes, and Depreciation (PBIT) surging by 166% to INR140 crore compared to the corresponding quarter in the previous year. This growth was attributed to strong volume coupled with improved realization prices.
Sectoral Outlook and Company Performance
The sugar sector experienced tighter-than-expected production in the 2025-2026 season, leading to a drawdown in inventory. This has resulted in firmer domestic sugar prices, providing relief to millers despite rising cane costs and pressure on ethanol margins. Looking ahead to the 2026-2027 season, production is expected to decline, particularly in Maharashtra and Karnataka, due to El Niño conditions, while Uttar Pradesh is anticipated to maintain stable production owing to better water availability and irrigation.
Balrampur Chini Mills delivered a strong performance even during a seasonally weak quarter. The company’s sugar segment PBIT increase was bolstered by firm domestic prices, which helped offset cost pressures. The distillery segment, however, was affected by compressed margins due to the non-revision of ethanol procurement prices over the last three years, despite a 16% increase in sugarcane prices.
Strategic Initiatives and Future Outlook
A key highlight for the quarter is the progress on the strategic 80,000 PLA project, which remains on track for commencement of operations in November 2026. Construction activities are in full swing, with approximately INR2,400 crore invested by October 15, 2026. The company is also making progress in product development and market engagement for its PLA-based product, having secured its first institutional order.
Balrampur Chini Mills views its integrated model as crucial for navigating evolving industry dynamics and maximizing value from each sugarcane. The company emphasized its commitment to strengthening core operations, enhancing efficiencies, and creating sustainable long-term value for all stakeholders.
Dividend Declaration
Further good news for shareholders, the board of directors, in its meeting, has declared an interim dividend of INR4 per equity share.
Source: BSE
