Balrampur Chini Mills Limited (BCML), a leading sugar producer in India, has reported a robust performance for the second quarter of fiscal year 2026, despite seasonal weakness typically associated with this period. The company's Board of Directors has declared an interim dividend of INR 3.50 per share, amounting to a total payout of INR 70.70 crore (including taxes).

Key Highlights

• Improved volumes and realizations in Q2 FY26
• Upward revision in power tariffs contributing positively to profitability
• Expected 7-8% increase in cane crushing for the upcoming season
• Steady progress on INR 2,800 crore PLA (Polylactic Acid) project

Financial Performance

BCML's performance in Q2 FY26 was marked by improvements in both volumes and realizations. The company benefited from upward revisions in power tariffs, which made a positive contribution to its overall profitability.

Dividend Declaration

The Board of Directors has declared an interim dividend of INR 3.50 per equity share. This translates to a total payout of INR 70.70 crore, including taxes, demonstrating the company's commitment to shareholder returns.

Operational Outlook

For the upcoming sugar season, BCML is anticipating a 7-8% increase in cane crushing volumes. This increase is expected to improve fixed cost absorption across the company's sugar, power, and ethanol businesses.

PLA Project Progress

BCML continues to make steady progress on its INR 2,800 crore Polylactic Acid (PLA) project, which represents a significant step in the company's forward integration and value addition strategy. Key updates include:

• INR 1,093 crore invested as of October 31, 2025
• INR 570 crore funded through debt, with the balance from internal accruals
• Construction activities advancing well
• Market development initiated through trading of imported PLA
• Commercial production targeted to commence in October 2026

Management Commentary

Vivek Saraogi, Chairman and Managing Director of BCML, stated, "We have delivered a healthy performance in a seasonally weak quarter, marked by improvement in both volumes and realizations. The PLA project marks a significant milestone in our growth journey, diversifying our product portfolio and offering eco-friendly alternatives to conventional plastics, in alignment with Government's sustainability objectives."

Future Outlook

BCML remains focused on operational excellence and disciplined investment to strengthen its growth trajectory. The company is optimistic about the potential of its PLA project, which is expected to diversify its product portfolio and align with the government's sustainability objectives.

As the sugar industry navigates challenges related to ethanol pricing and export quotas, BCML's management expressed hope for positive developments in government policies to support the sector's profitability and sustainability.

Investors and stakeholders will be keenly watching BCML's performance in the coming quarters, particularly as the PLA project nears completion and the company continues to adapt to evolving market dynamics in the sugar and ethanol sectors.

Balrampur Chini Mills Limited , a leading sugar producer in India, has reported a robust financial performance for the second quarter of the fiscal year 2025-26, demonstrating significant growth in revenue and profitability.

Key Financial Highlights

• Revenue Growth: The company's total income from operations surged to ₹1,670.76 crore in Q2 FY26, marking a substantial 28.7% increase from ₹1,297.95 crore in the corresponding quarter of the previous year.

• Profitability Improvement: Net profit after tax rose impressively to ₹45.95 crore, a significant turnaround from a loss of ₹3.50 crore in the same quarter last year.

• Half-Yearly Performance: For the six-month period ending September 30, 2025, total income reached ₹3,213.04 crore, up from ₹2,719.55 crore in the previous year, with net profit after tax increasing to ₹89.04 crore compared to ₹61.13 crore.

• Earnings Per Share: The company's earnings per share for the quarter stood at ₹2.28, a substantial improvement from negative ₹0.17 in the previous year.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹3.50 per equity share.

Financial Results Overview

The following table summarizes the key financial metrics for Q2 FY26:

Management Commentary

The company noted that sugar, being a seasonal industry, experiences quarterly performance variations that may not be representative of annual performance.

Tax Implications for Shareholders

Balrampur Chini Mills has advised shareholders about the tax implications on the declared interim dividend. As per recent amendments in the Income-tax Act, 1961, the company will be required to deduct tax at source (TDS) on dividend payments. Shareholders are encouraged to submit necessary declarations and documents through the company's website to ensure appropriate tax treatment.

Conclusion

Balrampur Chini Mills Limited's strong Q2 FY26 results reflect a positive trend in the sugar industry, with significant improvements in revenue and profitability. The company's performance, coupled with the dividend announcement, may be viewed favorably by investors. However, as noted by the company, the seasonal nature of the sugar industry suggests that quarterly results should be interpreted with caution when projecting annual performance.

Investors and stakeholders are advised to consider the complete financial report for a comprehensive understanding of the company's financial position and prospects.