India’s sugar sector is one of the world’s largest, producing about 257.44 lakh tonnes in the 2024-25 season as of May 2025, with total output projected to reach 261–262 lakh tonnes. Domestic consumption is estimated at 280 lakh tonnes, and the industry plays a crucial role in ethanol production and exports, ensuring a stable national supply.
With a market capitalization of Rs 11,896.09 crore, the shares of Balrampur Chini Mills Ltd closed at Rs 589.20 per share, increased around 0.74 percent as compared to the previous closing price of Rs 584.90 apiece.
Balrampur Chini Mills is setting up a Polylactic Acid (PLA) plant with 80,000 TPA capacity, targeting commissioning by Q3 FY27. With a gross capex of Rs 2,850 crore (net capex of Rs 1,750 crore, post 50% subsidy), it expects Rs 2,000 crore annual revenue and ~35% EBITDA margin. The project will use sugar-based bio-PLA, diverting ~1.25 lakh tonnes of sugar.
Financial & operational highlights
Looking forward to the company’s financial performance, revenue increased by 5 percent from Rs 1,434 crore in Q4FY24 to Rs 1,504 crore in Q4FY25. Further, during the same time frame, net profit increased by 12 percent from Rs 203 crore to Rs 229 crore.
As of March 31, 2025, Balrampur Chini Mills held a sugar inventory of ~7.1 lakh tonnes, rising to ~7.5 lakh tonnes with April production. The inventory is expected to be liquidated by November. Annual sales have averaged ~9.4 lakh tonnes, but management anticipates a potential increase to 10 lakh tonnes in FY26 due to higher inventory.
Balrampur Chini Mills maintains an optimistic and confident tone regarding cane management, recovery, and new ventures like PLA. They are proactive in varietal rebalancing, farm engagement, and capex planning. While critical of current ethanol pricing policy, they remain hopeful for corrective support. The company also demonstrates disciplined capital allocation and strong operational flexibility.
Balrampur Chini Mills Limited is engaged in the manufacturing and sale of sugar. Its allied business activities consist of the manufacturing and sale of ethanol, ethyl alcohol, the generation and sale of co-generated power, and the manufacturing and sale of agricultural fertilizers.
Written by Abhishek Singh
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