Revenue Rises 7 per cent, Distillery Business Remains Under Pressure
Sugar manufacturer Balrampur Chini Mills reported a 30.4 per cent year-on-year decline in consolidated net profit for the fourth quarter of FY26 at Rs 160 crore, compared with Rs 229 crore in the corresponding period last year, amid pressure on margins in its sugar business.
The company’s revenue from operations rose 6.7 per cent year-on-year to Rs 1,604 crore during the January-March quarter, against Rs 1,504 crore in the year-ago period. However, earnings before interest, tax, depreciation and amortisation (Ebitda) declined 22 per cent to Rs 285 crore from Rs 365 crore a year earlier. Ebitda margin narrowed to 18 per cent from 24.3 per cent in the same quarter last year.
Balrampur Chini’s board also approved the re-appointment of Vivek Saraogi as Chairman and Managing Director for a further period of five consecutive years beginning 1 April 2027, subject to shareholders’ approval at the ensuing annual general meeting.
The company said the re-appointment was cleared following recommendations from the Nomination and Remuneration Committee and the Audit Committee. It added that Saraogi’s office would not be liable to retire by rotation.
Sugar Margins Impacted
“The sugar segment delivered stable performance during the quarter despite a hike of 8 per cent in sugarcane price y-o-y from Rs 370/qtl. to Rs 400/qtl. by the Uttar Pradesh government, which led to reduced margins.
This was partly offset by higher sugar sales volumes coupled with a marginal increase in realisations. Results of the distillery segment were subdued as the govt did not increase the Ethanol procurement price from the juice and B-heavy route for three consecutive years,” said Vivek Sarapgi, Chairman and Managing Director, Balrampur Chini Mills.
The company said sugarcane crushing during the quarter increased 1.6 per cent year-on-year to 622.2 lakh quintals. For the full season, crushing stood at 1,043 lakh quintals, up 5.2 per cent compared with the previous season.
Gross sugar recovery before diversion during the fourth quarter declined by nine basis points to 11.59 per cent. For the full season, gross sugar recovery stood at 11.24 per cent compared with 11.28 per cent in the previous season.
