Balrampur Chini Q1 FY27 Results (NSE: BALRAMCHIN)
Signal: Margin pressure
The read
The quarter marks a sharp reversal from Q3FY26's 14% operating margin: revenue still grew 6.12% YoY, but operating margin fell to about 7.87% and PAT declined 14.40% as sugar profitability weakened; distillery is increasingly carrying earnings while PLA remains a material drag.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,636.79 Cr | +6.12% | +2.04% |
| Net profit | ₹44.15 Cr | -14.40% | |
| EPS | ₹2.14 | -15.42% | |
| EBIT margin | 7.87% |
P&L walk
Revenue increased to ₹163679.30 lakh, +6.12% YoY and +2.04% QoQ, but gross margin fell to 20.08% from 33.63% YoY as inventory and production-cost movements rose; operating margin declined to about 7.87%, while PAT fell 14.40% to ₹4414.64 lakh despite ₹648.80 lakh of associate profit.
Segments
Distillery is the earnings driver, with revenue up 16.94% YoY to ₹53961.50 lakh and segment result up 3.50% to ₹8037.54 lakh, while sugar result fell 56.73% to ₹3876.08 lakh and PLA remained loss-making at -₹984.28 lakh.
Key positives
- Revenue reached ₹163679.30 lakh, +6.12% YoY, with distillery revenue growing 16.94% to ₹53961.50 lakh.
- Distillery segment result increased 3.50% YoY to ₹8037.54 lakh, making it the largest disclosed segment profit contributor.
- Finance costs declined 3.52% YoY to ₹3248.40 lakh, while employee benefits plus other expenses grew only 2.41% YoY.
Key concerns
- Sugar segment result fell 56.73% YoY to ₹3876.08 lakh despite sugar revenue growth of 4.93%, showing weak profit conversion in the core business.
- PLA remained loss-making at -₹984.28 lakh, with the loss widening from -₹400.99 lakh YoY.
- Operating margin fell about 123bps YoY to 7.87% and PAT declined 14.40% to ₹4414.64 lakh despite revenue growth.
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