Balrampur Chini Mills Limited held a conference call on April 28, 2026, to provide updates on its PLA project and capital raising initiatives. The company disclosed a cost overrun of INR230 crore in the PLA project, revising the total project cost to INR3,080 crore from the previously estimated INR2,850 crore. The revision was attributed to key construction materials, global supply chain disruptions, forex movements, and certain refinements in engineering and design.

Capital Raising Initiatives

To support the PLA project and new initiatives, the Board approved a preferential allotment of equity shares worth approximately INR450 crore at the SEBI price of INR483 per share. Additionally, the Board approved an enabling resolution for raising debentures of INR200 crore. The promoters will participate in the fundraise, maintaining their stake at 43%, which amounts to approximately INR193 crore of the total equity raise.

Lactogypsum Processing Plant

The Board has approved a lactogypsum processing plant at Kumbhi with an investment outlay of INR160 crore. This facility will convert lactogypsum, a synthetic and eco-friendly by-product generated during the PLA manufacturing process, into gypsum boards. The plant is expected to have a production capacity of approximately 76 lakh boards per annum, with commercial production scheduled to commence in 18 months.

Financial Projections and Capacity

Project Timeline and Commissioning

The PLA plant commissioning remains on track for quarter three. Management indicated that machinery is expected to arrive soon, and this should represent the final revision in project cost. The company noted that the revised costs remain eligible for the 50% capital subsidy under the UP bioplastic policy. The lactogypsum plant is expected to begin commercial production in 18 months.

Balrampur chini mills Limited has successfully concluded Sugar Season 2025-26 operations across all its ten manufacturing units, reporting enhanced crushing volumes and production metrics. The company disclosed comprehensive operational data under SEBI LODR regulations, highlighting significant improvements in sugarcane processing capacity and diversified product portfolio management.

Enhanced Sugarcane Processing Operations

The company achieved substantial growth in sugarcane crushing operations during Sugar Season 2025-26. Total sugarcane processed reached 104.30 lac MT, representing an increase from 99.16 lac MT recorded in Sugar Season 2024-25. This expansion demonstrates the company's enhanced operational capacity and improved supply chain management across its manufacturing facilities.

Diversified Processing Strategy

Balrampur Chini Mills implemented a strategic approach to sugarcane utilization, directing different portions toward various production routes. The company allocated 10.3% of sugarcane toward syrup ethanol production, compared to 10.7% in the previous season. B-heavy route molasses processing increased to 56.1% from 51.4%, while C-heavy route molasses decreased to 33.6% from 37.9%.

The diversification strategy resulted in varying recovery rates across different processing methods:

Sugar Production and Ethanol Impact

Net sugar production for Sugar Season 2025-26 reached 9.68 lac MT, representing an increase from 9.24 lac MT in the previous season. The overall sugar recovery rate of 9.28% reflects the impact of diversified processing strategies, particularly the emphasis on ethanol production routes.

Sugar sacrificed for ethanol production totaled 2.04 lac MT, compared to 1.94 lac MT in Sugar Season 2024-25. The impact on sugar recovery due to cane diversion toward ethanol production was 1.96%, consistent with the previous season's rate of 1.96%. This strategic allocation demonstrates the company's commitment to maximizing value from sugarcane processing while supporting government ethanol blending initiatives.

Operational Efficiency Metrics

The company's operational data reveals improved efficiency in sugarcane utilization and processing optimization. The increase in total crushing volume, combined with enhanced sugar production, indicates successful capacity utilization across all ten manufacturing units. The consistent recovery rates across different processing routes demonstrate operational stability and technical expertise in managing diverse production streams.

Balrampur Chini Mills' completion of Sugar Season 2025-26 with increased crushing volumes and diversified product output positions the company favorably for continued growth in both sugar and ethanol markets, reflecting strategic operational management and enhanced manufacturing capabilities.