Balrampur Chini Mills – Latest Fundamental Update

Balrampur Chini Mills has a positive sector outlook, mainly because domestic sugar prices have strengthened sharply and sugar supply is expected to remain relatively tight. Domestic sugar prices reportedly rose 8–10% over the past month to around a seven-year high, helped by global supply concerns, stronger ethanol demand and expectations of tighter exports. This has been a major trigger for the recent rally in sugar stocks, including Balrampur Chini. However, the Q1 FY27 results were mixed. Revenue increased about 6.1% YoY to ₹1,636.8 crore, but operating profit declined 15.1% to ₹113.9 crore and PAT fell 14.4% to ₹44.15 crore. The main concern was weaker profitability in the sugar segment, while the distillery business performed better. Distillery revenue grew about 16.9% YoY, making ethanol an increasingly important earnings driver.