E.I.D.- Parry (India) Limited discussed its Q3 FY’26 results, noting the global sugar market is heading towards a mild surplus. Management detailed challenges in the sugar and distillery segment due to flat ethanol offtake prices, while the Consumer Products Group (CPG) underwent channel restructuring, causing a temporary volume dip. The company plans strategic focus on the sweetener segment and exploring new categories in the food FMCG space moving into Q1 FY’27.
Global Sugar Market Update and Indian Scenario
During the Q3 FY ’26 earnings call held on February 13, 2026, management highlighted that the global sugar market is expected to remain in a mild surplus through SY ’25-’26, with S&P Platts projecting a 3.5 MMT surplus. White premium prices are constrained by surplus trade flows from India and Brazil.
For the Indian scenario in SY ’25-’26, estimated gross production is 34.3 MMT, with a 1.5 MMT export quota, leading to estimated closing stocks of about 6 MMT. Key sugar-producing states like Maharashtra, Karnataka, and UP have seen an amalgamated crushing output increase of about 25% year-over-year.
Segmental Operating & Financial Performance
Sugar & Biofuel Operations
The sugar segment showed better pricing this quarter compared to the previous year, despite increased input costs (FRP). Crushing volume reached 15.31 LMT against 12.7 LMT last year, with recovery improving to 11.19%. Sugar revenue for the quarter was INR389 crores (down from INR391 crores YoY).
The distillery segment sold 407 LL of product, with 215 LL being ENA and 192 LL being ethanol. ENA pricing is under pressure due to lower ethanol allocation in Karnataka, though better pricing (around INR72) is seen in Tamil Nadu. The management anticipates ENA pressure to ease as Karnataka crushing concludes.
Consumer Products Group (CPG)
The CPG group achieved a turnover of INR143 crores in the current quarter, significantly down from INR236 crores in the corresponding quarter last year. This reduction is attributed to channel restructuring and a lower release quota for sweeteners.
Sweetener segment performance remains strong, leveraging the ‘Parry’ brand equity. Management confirmed an INR10 crore impairment was taken in Q3 due to the channel correction, which is expected to conclude in Q4, setting the stage for a better clip in Q1 FY’27.
Refinery Operations
Operational revenue for the refinery business was INR714 crores against INR915 crores previously. The loss for the quarter significantly narrowed to about INR4.53 crores from INR17.53 crores YoY. Refined sugar production was 2.2 LMT.
Future Strategy and Outlook
For sugar and biofuels, the focus remains on efficiency, pending potential policy support on MSP and ethanol prices. For CPG, the growth story is expected to continue after the two-quarter strengthening phase. Management stated they will provide an update in the May call regarding newer categories planned for entry into the food FMCG space.
The company is open to inorganic opportunities, specifically in segments beyond sweeteners and staples, within the broader food FMCG realm. Management expects to finalize and outline the product portfolio expansion strategy within the next 6 weeks, with further clarity expected in the May call.
Balance Sheet Notes
Short-term external borrowing for working capital stood at approximately INR750 crores. Receivables were about INR170 crores, payables were around INR250 crores, and inventory was valued at about INR800 crores as of December 31st.
Source: BSE
