Balrampur Chini Mills , a leading sugar producer in India, has released its financial results for the first quarter, revealing a mixed performance. The company also announced new stock option grants to its employees, signaling confidence in its future growth.

Q1 Financial Performance

Balrampur Chini Mills reported a consolidated net profit of ₹516.00 million for the quarter, down from ₹702.00 million in the same period last year. Despite the decline in profits, the company saw an increase in revenue, which rose to ₹15.40 billion compared to ₹14.20 billion year-over-year.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at ₹1.34 billion, down from ₹1.66 billion in the previous year. Consequently, the EBITDA margin compressed to 8.70% from 11.69% in the same quarter last year.

Key Financial Metrics

The results indicate that while Balrampur Chini Mills managed to grow its top line, profitability remained under pressure during the quarter.

Employee Stock Options

In a separate announcement, Balrampur Chini Mills revealed that its Nomination & Remuneration Committee has approved new grants under its employee stock option plans. The company granted:

1. 144,182 Employee Stock Appreciation Rights (ESARs) under the "BCML Employees Stock Appreciation Rights Plan 2023" at an ESAR price of ₹545.20 per ESAR.
2. 101,161 Restricted Stock Units (RSUs) under the "BCML Restricted Stock Unit Scheme 2025" with an exercise price of ₹1.00 per RSU.

These grants are designed to align employee interests with those of the company and its shareholders, potentially boosting motivation and retention.

Recent Corporate Actions

The company also disclosed that it had allotted 41,587 equity shares to employees who exercised their stock options under the ESAR 2023 plan. This allotment increased the total issued share capital to 201,943,958 shares.

Industry Context

Sugar companies like Balrampur Chini Mills often face seasonal fluctuations in their performance. The company noted that quarterly results may not be representative of its annual performance due to the seasonal nature of the sugar industry.

Legal Development

Balrampur Chini Mills, along with other sugar producers in Uttar Pradesh, is currently involved in a legal matter regarding export pass fees on denatured alcohol (ethanol). The Allahabad High Court has granted interim relief, allowing the dispatch of ethanol without payment of these fees, pending a final order.

As the sugar industry navigates through regulatory challenges and market dynamics, Balrampur Chini Mills' mixed Q1 results and proactive employee incentive measures reflect its efforts to maintain growth and stakeholder value in a complex operating environment.

Balrampur Chini Mills , a prominent player in the Indian sugar industry, is facing a significant financial challenge as the Uttar Pradesh government reinstates import and export fees on denatured alcohol. The company has disclosed that it now faces charges amounting to ₹218.1 million (₹21.81 crore) due to this regulatory change.

Regulatory Background

The reinstatement of these fees comes in the wake of a Supreme Court order dated October 23, 2024, which upheld the state's authority to levy import and export fees on denatured alcohol. Following this ruling, the Assistant Excise Commissioner of Uttar Pradesh issued a letter on July 15, 2025, revoking a 2018 order that had previously suspended these fees.

Retrospective Implementation

In a significant move, the Uttar Pradesh Excise Department has decided to impose these charges retrospectively. The fees cover the period from the financial year 2019-2020 up to July 15, 2025, affecting Balrampur Chini Mills' operations, particularly at its Gularia unit.

Financial Impact

The company has reported the following details regarding the financial implications:

Company's Response

Balrampur Chini Mills has stated that it will contest these charges. The company's management has indicated that they are evaluating legal recourse options and plan to approach appropriate forums to address this matter.

Disclosure and Compliance

In compliance with SEBI regulations, Balrampur Chini Mills has made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Company Secretary and Compliance Officer, Manoj Agarwal, signed the official communication to the stock exchanges.

While the company maintains that there is no material impact financially, operationally, or otherwise, except for the charged amount, the situation remains fluid. Investors and stakeholders will likely be watching closely to see how this regulatory challenge unfolds and its potential impact on Balrampur Chini Mills' future operations and financial health.