💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations stood at INR 5,415.38 Cr in FY 24-25, a decrease of 3.19% from INR 5,593.74 Cr in FY 23-24. Sugar segment revenue improved by 4.26% due to a 2.8% increase in realizations. Distillery revenue declined by 15.33% on account of lower volumes resulting from restricted government policy on ethanol diversion in ESY 2023-24.

Geographic Revenue Split

The company operates 10 manufacturing units across East and Central Uttar Pradesh, India. Specific geographic revenue split percentages are not disclosed, but operations are concentrated in the domestic Indian market.

Profitability Margins

Gross profitability was impacted by a 1.59% decrease in total expenses to INR 4,977.14 Cr. Net profit margin decreased to 6.35% in FY 24-25 from 7.74% in FY 23-24. Total comprehensive income margin decreased by 150 basis points to 6.39% compared to 7.89% in the previous year.

EBITDA Margin

EBITDA margin decreased by 105 basis points from 14.05% in FY 23-24 to 13.00% in FY 24-25. Core profitability was affected by lower distillery volumes and higher feedstock costs.

Capital Expenditure

Net cash used in investing activities was INR 880.43 Cr in FY 24-25, primarily for the ongoing Polylactic Acid (PLA) project. Total planned capex for the PLA capacity is expected to involve long-term debt peaking at INR 1,650 Cr by fiscal 2027.

Credit Rating & Borrowing

The company maintains a healthy financial risk profile with a 'Stable' outlook from CRISIL Ratings. Finance costs increased by 11.76% to INR 93.46 Cr in FY 24-25 due to higher working capital requirements and interest rates. Long-term debt-equity ratio stood at a comfortable 0.16.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary raw material. Raw material costs are the largest expense component, though total expenses decreased 1.59% YoY to INR 4,977.14 Cr.

Import Sources

Sugarcane is sourced locally from farmers in East and Central Uttar Pradesh, where the company's 10 manufacturing units are located.

Key Suppliers

The company sources raw materials from a large network of local sugarcane farmers in its catchment areas in Uttar Pradesh.

Capacity Expansion

Current crushing capacity is 80,000 TPD of sugarcane, exportable power capacity is 175.7 MW, and distillery capacity is 1,050 KLPD. The company is expanding into a new PLA (bioplastic) business with a major project currently underway.

Raw Material Costs

Raw material costs are influenced by government-fixed cane prices and recovery rates. Total expenses were INR 4,977.14 Cr in FY 24-25, representing approximately 91.9% of revenue.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was 11.83% in FY 24-25, down from 17.22% in FY 23-24, partly due to the capital-intensive nature of the ongoing PLA project.

Logistics & Distribution

Distribution is managed through a network of 10 integrated units. Specific logistics costs as a percentage of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be driven by the diversification into the Polylactic Acid (PLA) business, which is a high-growth bioplastic segment. The company is investing over INR 2,000 Cr in this project. Additionally, growth is supported by a distillery capacity of 1,050 KLPD and a focus on high sugar recovery rates.

Products & Services

Sugar, Ethanol (for fuel blending and other uses), Power (bagasse-based co-generation), and upcoming Polylactic Acid (PLA) bioplastics.

Brand Portfolio

Balrampur Chini Mills Limited (BCML).

New Products/Services

Polylactic Acid (PLA) is the major new product launch, representing a strategic shift toward bio-based chemicals and sustainable plastics.

Market Expansion

The company is expanding its market presence from traditional sugar and ethanol into the global bioplastics market through its PLA project.

Market Share & Ranking

BCML is one of the largest integrated sugar manufacturers in India with a crushing capacity of 80,000 TPD.

Strategic Alliances

The company holds a 30.48% stake in Auxilo Finserve Pvt Ltd, an NBFC associate.

🌍 External Factors

Industry Trends

The industry is shifting toward structural transformation with a focus on ethanol blending and bio-based products like PLA. The Indian sugar sector is evolving from a cyclical sugar business to a more stable integrated bio-energy and bio-chemical model.

Competitive Landscape

The landscape consists of large integrated mills and smaller standalone units. BCML maintains leadership through scale and diversification into high-margin segments like ethanol and PLA.

Competitive Moat

The moat is built on a fully integrated model (Sugar-Ethanol-Power), large scale (80,000 TPD), and high operational efficiency. This integration provides financial stability and mitigates market risks associated with any single product.

Macro Economic Sensitivity

The business is highly sensitive to monsoon rainfall and agricultural policies, which directly impact sugarcane yields and recovery rates.

Consumer Behavior

There is a growing consumer and regulatory shift toward sustainable packaging and bio-plastics, which BCML is targeting with its PLA project.

Geopolitical Risks

Global custom tariffs and climatic impacts on global cane crops influence international sugar prices and export opportunities.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily regulated by government policies on ethanol diversion, sugar sale quotas, and sugarcane pricing (Fair and Remunerative Price/State Advised Price).

Environmental Compliance

The company is committed to ESG and sustainability, integrating these principles throughout its organization. It monitors risks related to discharge and water compliance.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates. It recently issued notices regarding TDS on interim dividend payouts for 2025-26.

Legal Contingencies

The company manages routine legal matters including share transfers under the Investor Education and Protection Fund (IEPF) and tax proceedings. Specific case values in INR Cr are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Key risks include regulatory changes in ethanol blending policies, fluctuations in sugar realizations, and climatic impacts on sugarcane availability.

Geographic Concentration Risk

Manufacturing is 100% concentrated in Uttar Pradesh, making the company vulnerable to state-specific agricultural policies and local weather patterns.

Third Party Dependencies

High dependency on thousands of local farmers for sugarcane supply, which is the critical input for all business segments.

Technology Obsolescence Risk

The company is mitigating technology risk by investing in world-class technology for its new PLA project to ensure product quality and market competitiveness.

Credit & Counterparty Risk

Debtors' turnover ratio was 37.88 in FY 24-25, indicating healthy receivables management. Liquidity is supported by fund-based bank limits utilized at 56% on average.