Balrampur Chini Mills Limited (BCML) reported a robust performance for the third quarter of FY26 ending December 31, 2025. Revenue from operations surged to ₹1,454.12 crore, up 21.97% year-on-year, with PBIT reaching ₹171.06 crore and an 11.8% margin. The sugar segment showed strong momentum with increased realizations, while distillery performance remained stable despite static ethanol prices. Significant progress was noted on the Poly Lactic Acid (PLA) project, which is on track for commissioning in Q3FY27.
Chairman’s Commentary on Q3FY26 Performance
Mr. Vivek Saraogi, Chairman and Managing Director, highlighted a strong performance in the sugar segment, driven by improved realizations despite the increase in State Advised Price (SAP) of sugarcane from ₹370 to ₹400/quintal. Sugarcane crushing during the quarter was ~8.4% higher at 387.6 lac quintals. India’s net sugar production (post-diversion) is estimated at 28.8 MMT, an increase of ~10.3% from the previous season. The distillery segment maintained stable performance via higher volumes, though margins declined due to no revision in Ethanol prices. The company is proceeding with its commitment to sustainable value creation through integrated operations and the new PLA project.
Consolidated Financial Highlights (Q3 FY26)
The consolidated results demonstrate significant top-line growth:
- Revenue from Operations: Increased to ₹1,454.12 crore in Q3FY26 from ₹1,192.15 crore in Q3FY25 (up 21.97%).
- PBIT: Rose to ₹171.06 crore from ₹89.02 crore, with the margin improving to 11.8% from 7.5%.
- Total Comprehensive Income (TCI): Reached ₹114.47 crore (margin 7.9%) from ₹72.36 crore.
- Basic EPS: Improved to ₹5.62 from ₹3.49.
For the 9MFY26 period, Revenue stood at ₹4,667.16 crore, and PBIT was ₹323.99 crore (6.9% margin).
Standalone Performance Review
Standalone figures also showed strong growth:
- Revenue from operations: Grew by 21.97% to ₹1,454.12 crore in Q3FY26.
- EBITDA: Increased to ₹201.84 crore (13.9% margin) from ₹123.78 crore (10.4% margin).
- PBT: Rose to ₹163.16 crore (11.2% margin).
- Finance Costs: Decreased significantly by (45.84%) to ₹3.76 crore owing to lower interest rates.
Sugar Segment Deep Dive
The sugar segment delivered strong revenue of ₹1,406.54 crore in Q3FY26, with PBIT margin hitting 13.0%. While sugar sales volume saw a marginal 0.04% increase (23.34 lac quintals), average realization improved by 6.21% to ₹41.03/kg.
Operational metrics for the sugar segment in Q3FY26:
- Sugarcane Crushed: 387.59 lac quintals.
- Net Sugar Recovery: Improved to 8.62% (up from 8.43% in Q3FY25).
- Sugar Production: 33.40 lac quintals.
The inventory position as of December 31, 2025, stood at 28.16 lac quintals valued at ₹40.01/kg.
Distillery Segment Performance
The distillery segment revenue reached ₹353.31 crore in Q3FY26, with Sales* at ₹5.59 Cr BL. The PBIT margin for the quarter was 3.6%, compared to (4.0%) in Q3FY25, despite no revision in ethanol prices.
Operational data shows production growth across routes:
- Ethanol Production (B-heavy molasses route): 7.20 Cr BL in Q3FY26.
- Ethanol Production (Syrup route): 2.91 Cr BL in Q3FY26.
- Ethanol Production (Grain route): 4.75 Cr BL in Q3FY26.
Transfer prices for molasses saw an increase for 9MFY26 (effective Oct-25): B-heavy molasses at ₹1,360/quintal and C-heavy molasses at ₹800/quintal.
Policy Updates and Ethanol Blending
The EBP Programme allocation for ESY 2025-26 (Cycle 1) is contracted at ~1048 Cr BL. The company noted that the government allowed 52 lakh tonnes of FCI rice to be sold at ₹23.20 per kg for ethanol production for ESY 2025-26.
Co-generation Segment
Power Generated in Q3FY26 stood at 24.23 Cr Units. Average realization improved to ₹4.25/Unit from ₹3.71/Unit in Q3FY25.
Poly Lactic Acid (PLA) Project Update
The PLA project remains a key focus, scheduled for commissioning in Q3FY27. The Gross CAPEX is estimated at ~₹2,850 crores, leading to a Net CAPEX of ~₹1,750 crores post expected subsidy. Funding is proposed as ₹1,650 crores in debt and ₹1,200 crores from internal accruals. The targeted capacity has been optimized to 80,000 TPA, with potential revenue of ~₹2,000 crores at full capacity. Committed contracts so far total ~₹2,619 crores.
Significant progress includes ~75% completion in civil erection and ~90% of imported equipment arrival. The project benefits from the Uttar Pradesh Bio Plastic Industrial Policy 2024, which includes a 50% capital subsidy over 7 years.
Treasury and Investment Update
Credit ratings were reaffirmed: CRISIL at AA+ (Stable) and India Ratings at “IND AA+/Stable”. During 9MFY26, the company availed long-term debt of ₹307.00 crores for the PLA capex, while repaying ₹66.75 crores across existing business loans. Long-term borrowings as of December 31, 2025, totaled ₹119.75 crores (existing business) and ₹702.00 crores (PLA Project).
Update on Associate: Auxilo Finserve
BCML holds 30.47% equity shareholding in Auxilo Finserve. For Q3FY26, Auxilo reported a Profit After Tax of ₹29.56 crore on revenues of ₹137.44 crore. Key performance indicators included an Interest Income of ₹160.61 crs, Total Income of ₹173.87 crs, and a strong CRAR of 29.59%.
Cash Flow Analysis
Standalone analysis for H1FY26 showed Net Cash generated from operating activities at ₹2,120.24 crore. Net cash used in financing activities was substantial at (₹1,927.00 crore), resulting in Cash & Cash equivalents of ₹7.25 crore as of the reporting date.
Source: BSE
