EIDPARRY - EID Parry

📊 NSE: EIDPARRY 🏢 Sugar 📅 Last Updated: 12/13/2025 21:45

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 7.46% to INR 31,608.61 Cr. Standalone revenue grew 12.8% to INR 3,168.12 Cr. Segment growth included Consumer Products Group (CPG) at 65% and Distillery at 42%, while Sugar, Co-generation, and Refinery segments experienced sluggish growth or declines due to lower cane availability and global price drops.

Geographic Revenue Split

100% of sugar manufacturing operations are concentrated in South India, with seven units located across Tamil Nadu, Karnataka, and Andhra Pradesh.

Profitability Margins

Consolidated Net Profit After Tax was INR 1,772.54 Cr (FY25). Standalone performance resulted in a Net Loss of INR 428.30 Cr, primarily due to a one-time impairment provision of INR 427.15 Cr for the refinery subsidiary PSRIPL. Operating profitability is expected to remain at low levels of 2.5-3% in the near term.

EBITDA Margin

Consolidated EBITDA was INR 2,992.64 Cr, representing a 9.47% margin, up 3.5% YoY from INR 2,891.43 Cr. Standalone EBITDA fell 17.9% to INR 251.81 Cr due to higher cane costs and lower recovery rates.

Capital Expenditure

Total planned capex for FY25 included INR 166.71 Cr for the Haliyal distillery expansion and INR 84.99 Cr for the Nellikuppam unit. Future maintenance capex is estimated at less than INR 100 Cr per annum.

Credit Rating & Borrowing

Reaffirmed 'CARE A1+' for short-term instruments and 'CRISIL AA/Stable' for long-term facilities. Borrowing costs are optimized through access to CP markets and Murugappa group financial flexibility.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary raw material, accounting for the majority of production costs. Raw sugar is also imported for the refinery segment.

Import Sources

Sugarcane is sourced locally from farmers in Tamil Nadu, Karnataka, and Andhra Pradesh. Raw sugar for the refinery is sourced from global markets including Brazil.

Key Suppliers

Primary suppliers are local sugarcane farming communities in South India.

Capacity Expansion

Current sugar crushing capacity is 40,800 TCD. Distillery capacity was expanded from 417 KLPD to 582 KLPD in FY25. Co-generation capacity stands at 140 MW.

Raw Material Costs

Cane costs rose in FY25, impacting standalone profitability. Procurement is managed through direct farmer relationships and government-mandated pricing (FRP/SAP).

Manufacturing Efficiency

Targeting 43-44 LMT of cane crushing in FY26. Efficiency is measured by recovery rates, which moderated in FY25 due to climatic factors.

Logistics & Distribution

Distribution costs are a significant factor for the CPG segment as it scales branded sugar products across India.

📈 Strategic Growth

Expected Growth Rate

2-3%

Growth Strategy

Growth will be achieved by pivoting from a sugar-centric model to a multi-pronged architecture focusing on ethanol (targeting >18 crore liters in FY26), scaling the Consumer Products Group (which grew 65% in FY25), and expanding the Nutraceuticals business.

Products & Services

Refined Sugar, Ethanol, Cogenerated Power, Nutraceuticals (Spirulina, Chlorella), and Branded Consumer Sugar products.

Brand Portfolio

Parry's

New Products/Services

Expansion into branded consumer products and digital transformation of the agri-supply chain to improve farmer engagement.

Market Expansion

Focus on unlocking latent potential in adjacencies like nutraceuticals and increasing the footprint of branded consumer goods.

Market Share & Ranking

Established market leader in the South Indian sugar industry and a major player in the Indian ethanol segment.

Strategic Alliances

Joint Venture with Algavista Greentech Pvt Ltd for nutraceuticals.

🌍 External Factors

Industry Trends

The industry is shifting toward a 'Sugar-to-Ethanol' model to reduce cyclicality. EID Parry is positioned to benefit from the national 20% ethanol blending target by FY26.

Competitive Landscape

Fragmented industry with regional competition; EID Parry differentiates through its integrated Murugappa Group ecosystem.

Competitive Moat

Durable advantage derived from a 56.16% stake in Coromandel International Limited (CIL), valued at >INR 38,700 Cr, providing significant dividend income (INR 199 Cr in FY25) and financial flexibility.