Balrampur Chini Mills Ltd

- The company is making steady progress on its PLA (Polylactic Acid) project, a key element of its forward integration and value addition strategy. - Construction activities for the PLA project are advancing well. - Market development has commenced through trading of imported PLA. - As of 31st October 2025, INR 1,093 crore has been invested in the PLA project, funded through INR 570 crore debt and internal accruals. - Commercial production of the PLA plant is expected to commence in October following the call date. - The PLA project aims to diversify the product portfolio and offer eco-friendly alternatives to conventional plastics, aligning with government sustainability objectives.

- **Ethanol Business Growth**: Expecting increased ethanol production (~28 crore liters for 2025-26) with better profitability in grain-based ethanol (especially maize), despite some feedstock allocation challenges. - **Sugar Production & Exports**: Anticipate a 7-8% rise in cane crushing at Balrampur; potential for sugar exports especially from Maharashtra and Karnataka, as granted export quotas increase market clarity. - **PLA (Polylactic Acid) Project**: Commercial production expected from October 2025; ongoing customer trials and government mandate developments suggest confidence in full utilization and scale-up. - **Price & Cost Dynamics**: Ethanol price revisions and government reliefs are awaited, which will aid margins amid rising cane costs; INR 30/quintal SAP hike is likely absorbed without major issues. - **Power Business Upgrades**: Revised power tariffs contributed positively, supporting overall profitability. - **Overall Outlook**: Management hopeful for clarity and improved market conditions in the next 3-6 months, aiming at sustainable revenue and volume growth.

- The next three months are expected to bring significant clarity on various growth questions and strategies. - The PLA project is a key growth driver, with commercial production expected to start in October and stabilization over 2-4 months after that. The company is confident about selling the entire PLA output once capacity utilization and mandates improve. - Ethanol business growth is dependent on government policy, price revisions, and allocation; a rise in ethanol prices and increased allocation to the sugar sector is anticipated to improve profitability. - Sugar exports are expected to increase, particularly from Maharashtra and Karnataka, supporting revenue growth. - A 7%-8% increase in cane crushing and improved recovery are expected, which will positively impact operational efficiency and margins. - Cost control measures and operational improvements, including higher power tariffs, are expected to sustain margin improvement. - The company declared an interim dividend, signaling confidence in earnings sustainability.

- The PLA (Polylactic Acid) business is in the early stages of commercialization, with expected commercial production to commence in October. - The company is currently importing some quantities of PLA for market development. - Trials with various customers, including government bodies, are ongoing to provide visibility for large or meaningful applications. - Customers have expressed interest but are awaiting production to begin. - The management does not view the PLA business on a quarter-to-quarter basis and is focusing on mandates and macro factors. - While no formal orders are confirmed yet, dialogues with both large and small buyers are active. - The company expects to stabilize production over 2-4 months post-commencement and aims to sell the entire output eventually. - Demand is expected to be driven by customer engagement and government mandates promoting bioplastics.

- As of 31st October 2025, Balrampur Chini Mills Limited has invested INR 1,093 crore in the PLA project, of which INR 570 crore has been funded through debt and the remainder from internal accruals. - There is no specific mention of any new or upcoming fundraising through debt or equity in the disclosed transcript. - The company is focused on disciplined investment and operational excellence but hasn't indicated plans for fresh capital raising at this time.