Balrampur Chini Mills (BALRAMCHIN) Q4 24/25 earnings summary

Executive summary

• India's sugar production for 2024-2025 is projected at 26 million tons net, down from 32 million tons last year due to reduced cane availability and adverse weather in key states.

• Strong sugar segment performance in Q4 FY25, with improved margins despite lower cane crushing and sugar recovery due to adverse weather.

• Distillery segment faced margin pressure as ethanol prices for juice and B-heavy routes were not increased by the government.

• PLA bioplastics project progressing on schedule, supported by favorable state policy incentives.

• Audited standalone and consolidated financial results for the quarter and year ended 31st March 2025 were approved, with unmodified audit opinions issued by statutory auditors.

Financial highlights

• Consolidated Q4 FY25 revenue rose 4.8% year-over-year to Rs. 1,503.68 crore; FY25 revenue up 3.3% to Rs. 5,593.74 crore.

• Standalone revenue from operations for FY2025 was ₹541,537.83 lakhs, down from ₹559,374.01 lakhs in FY2024.

• Q4 FY25 consolidated PBT increased to Rs. 289.36 crore (PBT margin 19.2%), and TCI to Rs. 311.70 crore.

• Basic EPS for FY25 at Rs. 21.65, up from Rs. 20.2 in FY24.

• Standalone EBITDA margin for Q4 FY25 at 24.3%; FY25 at 13.0%.

Outlook and guidance

• PLA project expected to commission in Q3 FY27, targeting Rs. 2,000 crore annual revenue and 35% EBITDA margin at full capacity.

• Ethanol volumes and margins for FY 2026 will depend on price increases for juice and B-heavy ethanol.

• Government's ethanol pricing policy may challenge long-term E30 blending targets.

• Key events to watch: SAP revision, MSP revision, ethanol price revision, and export policy for 2025-26.

• Sugar being a seasonal industry, quarterly results are not indicative of annual performance.