Balrampur Chini Mills Limited (BCML) announced an interim dividend of ₹3.50 per equity share. The company is progressing with its PLA project, having invested ₹1,093 crore so far. BCML anticipates a 7%-8% increase in cane crushing and remains optimistic about improved sugar recovery. The company expects domestic sugar consumption to be 28.5 million tonnes. BCML hopes for governmental support regarding ethanol pricing and sugar exports.
Interim Dividend Declared
The Board of Directors of Balrampur Chini Mills Limited has declared an interim dividend of ₹3.50 per equity share, amounting to a total payout of ₹70.7 crore, inclusive of taxes.
PLA Project Progress
BCML is making steady progress on its Poly Lactic Acid (PLA) project. As of October 31, 2025, investments of ₹1,093 crore have been made, with ₹570 crore funded through debt and the balance from internal accruals. The construction activities are advancing well. Market development has commenced through trading of imported PLA, and the company anticipates commercial production to begin in October.
Sugar and Ethanol Outlook
Sugar production is expected to rise to about 34.5 million tonnes before diversion for ethanol. Net production is projected to be around 31 million tonnes after diverting 3.5 million tonnes for ethanol. The company anticipates a 7%-8% increase in cane crushing due to favorable weather conditions and improved cane allotment. The company expects domestic sugar consumption to be 28.5 million tonnes with an opening stock estimated at around 5 million tonnes.
Ethanol Production and Government Support
For the 2025-26 Ethanol Supply Year, approvals from sugar sources stand at 289 crore litres, accounting for 28% of the total requirement. BCML hopes the government will revise ethanol prices and provide support to offset the increase in cane costs, ensuring viability for sugar mills. The company remains hopeful for a relief package from the U.P. Government, addressing ethanol pricing and transport rebates.
Export and Industry Outlook
The Government has allowed exports of 1.5 million tonnes of sugar for the 2025-26 season. Maharashtra is set to lead the output, rising 39% to 13 million tonnes. U.P. is expected to produce 10.3 million tonnes. The company is hoping for a rise in ethanol prices and an increase in the sugar sector’s share of ethanol production.
Source: BSE
