Company declares Rs 3.50 interim dividend; forecasts higher sugar output for 2025–26 season

Balrampur Chini Mills Limited (BCML), India’s second-largest private-sector sugar manufacturer, reported a 19.77 per cent decline in consolidated net profit to Rs 53.89 crore for the second quarter of FY26, even as revenue from operations rose 29 per cent year-on-year to Rs 1,670.76 crore, reflecting steady demand and improved realizations across core business segments.

In a regulatory filing, the company said total expenses grew 22.62 per cent YoY to Rs 1,608.91 crore, while EBITDA (excluding other income) surged 145 per cent to Rs 120 crore, driven by stronger sugar and distillery volumes and higher power tariff revisions effective April 2024.

Despite being a seasonally weak quarter, BCML’s performance underscores operational resilience amid sectoral transitions and evolving ethanol dynamics. The company’s diversified portfolio—spanning sugar, ethanol, and power—continues to provide a balanced revenue base in an otherwise cyclical industry.

Industry outlook strengthens

India’s net sugar production (post ethanol diversion) is projected to rebound in the 2025–26 season to 31 million metric tonnes (MMT), up nearly 19 per cent from 26.1 MMT in the previous year. Favorable weather, stable cane recovery, and improved factory throughput are expected to support this uptick, even as sugarcane acreage declines marginally.

The Government’s recent approval for 1.5 MMT of sugar exports for the 2025–26 season is likely to balance domestic supply. With consumption estimated at 28.5 MMT, closing stock by September 2026 is projected to hover around 6 MMT, ensuring adequate domestic availability without inflationary pressures.

Dividend declared

The Board of Directors announced an interim dividend of Rs 3.50 per equity share (face value Rs 1 each, fully paid-up) for FY2025–26, reflecting continued confidence in the company’s fundamentals and growth prospects.

BCML remains focused on driving integrated growth across its sugar, ethanol, and power segments through operational excellence, sustainability initiatives, and capacity optimization.