E.I.D.- Parry’s Q2 FY’26 earnings call revealed a projected mild surplus in the global sugar market. The company saw increased sugarcane output due to favorable weather. India’s net sugar production stood at 26.1 MMT. The company’s sugar sales reached 83,000 MT domestically. E.I.D. – Parry is actively engaging with policymakers regarding Minimum Support Price (MSP) revision and increased ethanol blending percentages.
Global Sugar Market Overview
The global sugar market is projected to remain in a mild surplus through Sugar Year 25-26, driven primarily by increased production in Brazil, India, and Thailand. Favorable weather conditions have supported higher output in India, with monsoons 50% above normal during October. Brazil continues aggressive crushing with a sugar mix of 53%. The global sugar surplus is expected to reach 2.23 million metric tons (MMT) in 25-26.
Indian Sugar Scenario
In Sugar Year 24-25, India’s net sugar production stood at 26.1 MMT, with gross production at 29.6 MMT. Diversion to ethanol accounted for 3.5 MMT. Domestic consumption was approximately 28.1 MMT, while exports were just under 1 MMT. Closing stocks were around 5 MMT. Sugarcane output is likely to increase by 15% at an all-India level for Sugar Year ’26. Ethanol diversion is expected to account for 3.4 MMT.
Operational Performance
Crushing operations in Tamil Nadu commenced during the quarter. The company crushed 3.66 lakhs metric tons (LMT) compared to 5.62 LMT in the corresponding quarter of the previous year. Recovery for the current quarter was 7.97% against 7.60%. Sugar production was about 27,000 metric tons (MT) against 42,000 MT. Cane landed cost is INR 3,620 per MT. Sugar sales reached approximately 83,000 MT domestically. Sugar prices averaged INR 41.19 per kg.
Segment Performance
The sugar segment achieved a turnover of INR 368 crores. The Consumer Product Group achieved a turnover of INR 169 crores. Co-gen operations generated approximately 307 lakh units. Distillery operations sold about 409 lakh litres. Nutraceuticals segment achieved about INR 7.6 crores revenue in India. Consolidated nutraceutical business turnover was about INR 61 crores. The refinery produced about 2.21 LMT of refined sugar, with revenues of INR 1,168 crores.
Financial Highlights
EBITDA for the quarter was about INR58 crores, and PBT was INR31.42 crores. Short-term loans stood at INR 159 crores.
Challenges and Future Outlook
The industry faces challenges related to overall higher ethanol capacities and lower allocations on ethanol, particularly in Karnataka. The company expects consumer business to move into a growth phase, with larger release quotas coming in the third and fourth quarters. Focus will be on prudence in cost management while enabling growth. Plans are underway to implement a new strategy, with an aspiration to grow the business and achieve a good EBITDA percentage.
Source: BSE