Kolkata-based sugar manufacturer Balrampur Chini Mills is cautiously optimistic about the upcoming sugar season, with CFO Pramod Patwari pointing to better yields if current monsoon conditions hold.
While the company expects a slight drop in its cane area compared to last year, improved weather could offset the decline. On a national scale, sugar output is projected to rise sharply to around 35 million tonnes, driven by higher production in Maharashtra and Karnataka.
The government’s policy decisions on sugar exports and ethanol pricing will play a key role in determining realisations. Patwari noted that while domestic prices are currently stable at around ₹40–₹40.50 per kg, sustainability will depend on export timing and ethanol price revisions.
For FY25, the company is also eyeing a 4–5% increase in cane availability, translating to potential ethanol output of 27–28 crore litres in the next ethanol year.
In addition to its sugar and ethanol operations, Balrampur Chini is making steady progress on its ₹2,850-crore polylactic acid (PLA) manufacturing project. With most major equipment orders placed and market seeding already underway, the venture is on track to start commercial operations by late 2026 or early FY27.
In the April–June 2025 quarter (Q1FY26), Balrampur Chini Mills posted revenue of ₹1,542 crore, a net profit of ₹52 crore, and a margin of 8.70%.
This is the edited excerpt of the interview.
Q: The first quarter crushing has been lower. It's typically off season, so that's unexpected lines. What's the outlook for cane crushing, if you could help us out, what kind of recovery and also realisations – the last time around, you said, at around ₹41 per kg, you don't think it's really sustainable. So where is that number headed?
A: As far as the upcoming sugar season is concerned, we are witnessing a lower acreage in Uttar Pradesh (UP). For a UP basis, the overall cane availability should be at par with last year, as for the initial estimates. However, at a country level, the production from Maharashtra and Karnataka is very high. We are looking at a gross sugar production of around 35 million tonne, which was around 29.50 million tonne last year. There is a strong case for very high diversion of sugar into ethanol, which could be in the region of around 4.5 million tonne.
This will further leave a room for exports so the policy on export front will be extremely crucial, as well as the timing. As far as Balrampur Chini is concerned, our cane area is slightly lower than last year, but on the basis of the current monsoon conditions, we are hopeful that yield should be better this time. If this kind of weather continues for another two to three months, then we will get a better visibility with respect to recovery. It is too early to predict any number as far as the recoveries are concerned.
On the realisations front, realisations will be a function of sugar availability to the country. At a country level, the production or the availability is very high. Going forward, the realisations will depend upon the government policy as well as the timing. What kind of ethanol price increase the government gives, as well as the timing of the exports.
Q: Do you export to the US markets?
A: No, we don't export to US markets.
Q: So, no impact then on account of the Trump tariffs?
A: Yes.
Q: Could you give us an indication, some numbers in terms of what you might do in terms of sugar sales volumes for the full year, and even a number on realisation?
A: It will be difficult to give any number, because we are dependent upon the government policy. The country level, domestic consumption in the sugar season 2024-25 is expected to be around 28 million tonne, and next year it can be around 28.50million tonne. Our quota for domestic release will be a function or in proportion to that. This year, Diwali is early so may be the crushing will start two to three weeks early. Government will have a better visibility as far as the availability of sugar in the country is concerned.
If the decision on the export is taken at an appropriate time, then the revenue from the exports may also kick in in the last quarter of this financial year. So that is very important. Currently, we are selling sugar at around ₹40- 40.50 per kg and we are expecting that end inventory of sugar at the country on 30th September will be around 5.2 million tonne.
Going by this number for the period up to September-October, availability of sugar is there. So, we are not seeing any run up in the prices, but these prices should sustain till that time.
Q: For ethanol, could you give us a sense on volumes?
A: We are expecting around 4 to 5% increase in cane availability for our company, so going by that number, we are expecting that for the next ethanol year, which will start from November and end on October, may be around 27 to 28 crores litre of ethanol is a possibility for us. But obviously that will also depend upon the pricing of the ethanol.
Q: There has been some chatter with 20% lending, which has already been achieved. That number perhaps needs to go up, anything you heard with regards to that?
A: The current blending the government has achieved five years in advance. This is all in accordance with the BIS standards. So currently, the government is looking or working with the formation or the fixation of the BIS standards for E20 E25, E27 or E30 which will take some time, may be another five, six months. Till November 2026, we would continue to be in the region of around 20% ethanol blending.
Q: Could you give us an update on the PLA (polylactic acid) manufacturing venture as well, give us a status update?
A: The physical progress of the project underway is as per schedule. As of now, we have already spent around ₹925 crores out of the project cost of ₹2,850 crores. Financial tie up has been done. Most of the orders for the large lead items have already been placed. We are in the process of developing the market now. We have started seeding the market by importing the PLA and selling. So, project is as much schedule as of now.
Q: It kicks off according to your earlier guidance, when sir?
A: In the last quarter of FY27, or maybe October or November 2026.
Balrampur Chini Mills’s current market capitalisation is ₹10,986 crore. The stock is currently trading at ₹543.95 as of 9:19 am on the NSE and has gained 6% over the last year.
