Balrampur Chini Mills reported a consolidated net profit of ₹44.15 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 10.4% decline from ₹49.23 crore in the corresponding period of the previous year. The dip in profitability was primarily driven by seasonal compression in sugar margins during the non-crushing season and increased operational expenses linked to the ramp-up of its Poly Lactic Acid (PLA) project. Despite the profit contraction, revenue from operations grew by 6.13% to ₹1,636.79 crore, supported by higher realizations in the sugar segment and increased volumes in the distillery business.

The Board of Directors, meeting on August 11, 2026, approved the unaudited financial results and appointed Ms. Vartika Shukla (DIN: 08777885) as an Additional Director in the category of Non-Executive Independent Director. Her appointment is effective from August 11, 2026, for a term of five consecutive years until August 10, 2031, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The Board also approved the revised notice for the 50th AGM, scheduled for September 16, 2026, to be conducted via Video Conferencing or Other Audio-Visual Means.

Financial Performance Highlights

The standalone net profit for the quarter stood at ₹38.59 crore, down from ₹43.09 crore in Q1FY26. EBITDA decreased to ₹113.92 crore from ₹134.25 crore year-on-year, resulting in an EBITDA margin contraction to 6.96% from 8.70%. The revenue growth was broad-based, with the distillery segment contributing ₹53.96 crore, up from ₹46.15 crore in Q1FY26. The sugar segment generated ₹122.53 crore in revenue, though its pre-tax profit fell to ₹38.76 crore from ₹48.07 crore due to inventory adjustments and cost pressures.

The consolidated financial results include the company’s proportionate share in the net profit after tax, other comprehensive income, and total comprehensive income of its associate, Auxilo Finserve Private Limited. Additionally, the regional filing notes that the consolidated results also incorporate Visual Percept Solar Project Private Limited. Sugar being a seasonal industry, performance varies significantly from quarter to quarter, meaning quarterly results are not representative of annual performance.

Corporate Developments and Capital Raise

Ms. Vartika Shukla brings over 38 years of experience in engineering consultancy and project management, having previously served as Chairman and Managing Director of Engineers India Limited (EIL). She holds a B.Tech in Chemical Engineering from IIT Kanpur and a Certificate Programme in Management from IIM Lucknow. Her appointment follows recommendations from the Nomination and Remuneration Committee.

During the quarter, Balrampur Chini Mills issued and allotted 9,316,771 equity shares on a preferential basis at ₹483 per share, raising ₹45,000.00 lakh. Of this amount, ₹17,074.00 lakh was utilized towards the objects of the issue, while the balance of ₹27,926.00 lakh was temporarily invested in bank deposits and money market mutual funds. Additionally, the company completed the allotment of 199,907 equity shares arising from the exercise of Employee Stock Appreciation Rights (ESARs) on July 29, 2026.

What the Numbers Show

The divergence between stable revenue growth (+6.13%) and declining profitability highlights the seasonal nature of the sugar business, where margins typically compress during off-seasons. While higher sugar realizations provided some relief, the lack of price increases for ethanol under Juice & B-heavy routes compressed distillery margins. The significant rise in other expenses (₹115.11 crore vs ₹91.55 crore) was driven by fair value losses on forward contracts (₹6.99 crore) and interest rate swaps (₹4.57 crore). Meanwhile, the associate company, Auxilo Finserve Private Limited, contributed a share of profit of ₹6.49 crore to the consolidated bottom line.

Balrampur Chini Mills Limited has secured an ESG rating of 78.6 for FY 2025, reflecting a leadership position in managing ESG risk through best-in-class disclosures, policies, and performance. The rating was assigned by CARE ESG Ratings Limited, a SEBI registered ESG Rating Provider operating under the Issuer Pays Model. This score underscores the company's robust approach to environmental, social, and governance factors during the assessed financial year.

The intimation regarding the ESG rating was received by the company via email on July 21, 2026. This disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating assessment covers the company's performance and risk management capabilities across the ESG spectrum.

Rating Details

The following table summarizes the key details of the ESG rating assignment:

The information regarding the ESG rating is now available on the official website of CareEdge-ESG. Additionally, the details have been published on the company's website at www.chini.com . Manoj Agarwal, Company Secretary & Compliance Officer of Balrampur Chini Mills Limited, signed the disclosure regarding this development.