EIDPARRY

The global sugar market expects a mild surplus through 2025-26, driven by stronger production from Brazil, India, and Thailand. India alone projects a 15% jump in 2026 sugar output, building healthy 8 million metric ton closing stocks. EID Parry’s Q2 sugar production and domestic sales declined notably, yet a higher average price of ₹41/kg offered some relief. Its ethanol segment aims for over 90% capacity, achieving ₹67.50/liter, though rising cane costs and no price hike are squeezing margins. Consumer products struggled, revenue down 30% from lower quotas and sharp dal price drops, though Q4 recovery is anticipated. Despite mixed operations, consolidated Q2 revenue grew to ₹1,168 crore, with significant increases in EBITDA to ₹58 crore and PBT to ₹31.42 crore. Management prudently holds off major ethanol capacity expansions, citing industry overcapacity and policy uncertainty. EID Parry’s robust consolidated Q2 earnings, with strong jumps in EBITDA and PBT, are a clear positive despite segment headwinds. While ethanol margins are squeezed and consumer products suffered, the underlying profitability and prudent capacity management indicate resilience. This points to a cautiously optimistic outlook for investors.