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Balrampur Chini Mills Ltd (BALRAMCHIN) Q4 2026 Earnings Call Transcript

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.

Balrampur Chini Mills Ltd (NSE: BALRAMCHIN) Q4 2026 Earnings Call dated Apr. 28, 2026

Corporate Participants:

Jenny RoseInvestor Relations

Vivek SaraogiManaging Director

Pramod PatwariChief Financial Officer

Analysts:

Prashant BianiAnalyst

Unidentified Participant

Unidentified Participant

Unidentified Participant

Unidentified Participant

Vikram SuryavanshiAnalyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Balrampur Chin Amins Limited’s conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jenny Rose from CDR India.

Thank you. And over to you Ma’. Am.

Jenny RoseInvestor Relations

Good afternoon everyone and thank you for joining us today on this call to discuss Balrampur Chini Mill’s update on the PLA project and the capital raising initiative we have with us today Mr. Vivek Saraogi, Chairman and Managing Director of Barrampur Srini Mills, Ms. Abant, Executive Director and Mr. Pramod Patwari, Chief Financial Officer of the company. We will begin the call with brief opening remarks from the management following which we will have the forum open for the question and answer session.

Before we proceed, I would like to remind everyone that certain statements made in today’s may be forward looking in nature. Accordingly, please note that the company is currently in a silent period. We request that you refrain from asking questions related to the quarterly business performance and limit your questions to the current development. With that I would now like to invite Mr. Saragi to deliver his opening remarks. Thank you and over to you sir.

Vivek SaraogiManaging Director

Good afternoon everyone and thank you for joining us on this call today. We thought you know and in our genre of transparency to connect with all of you post the board meeting held on 23rd to share an update on the PLA project, the investment around it and the associated financing initiatives approved at the meeting. At a broader level, these different decisions reflect the direction in which we are taking the business and the way we are positioning ourselves for the next ways. PLA project is a key strategic initiative for us and forms an important important part of our efforts to build a more growth oriented business with attractive opportunities emerging around the value chain as the project has progressed through implementation and detailed review we have stock of the updated capital requirement and adjacent opportunities around it.

Let me first cover the PLA project itself. As disclosed, there has been a cost overrun of 230 crores taking the project cost to 3080 from 2850. The revision primarily is on account of key construction material, global supply chain disruptions, forex movement and certain refinements in engineering and design to be which is the final 90% engineering and review modeling. Alongside the PLA project we have identity and together with this people take advantage of the situation and supplier also, you know, in the garb of giving material on time, say there’s an overrun and a little more cost gets into that.

Alongside the PLA project we have identified and attractive opportunity to create value chain around its byproduct. As part of his approach. As part of this approach, Board has approved the lacto gypsum processing plant at Kumbi. This facility will convert Lacto gypsum which is a synthetic and eco friendly byproduct generated during the PLA manufacturing process into gypsum boards are scalable and commercially attractive production segment. The proposed plant has an investment output 160 crores and is expected to have a capacity of 76 lakh boards per annum with commercial production starting in 18 months.

We see this as a highly compelling initiative with multiple benefits. It enables us to monetize our byproduct, enhance overall efficiency and create an incremental revenue stream. At the same time it reinforces our sustainability agenda by embedding circular economic principles into our operation. And this synergizes with our initiatives of converting our kind of waste into value added products. To support these initiatives, the board has approved a preferential allotment of equity shares Approximately worth approximately 450 crores at the SEBI price of 483 which that was the SEBI price on that.

In addition the board has unapproved and enabling resolution for raising debentures of 200 crores. This is just part of the financing because if you’re going for a big project you need to do something through debentures. This will provide us the financial flexibility required to execute our expansion plans while maintaining our balance sheet discipline. We’d like to highlight that continued participation from the promoters in the fundraiser will keep our stake, the family stake at the 43%. So if you see we have put in 43% or 450 crores which is about 193 crores which is exactly synergetic with our existing stake.

We believe this reflects the promoters continued confidence in the company’s growth strategy and long term value potential of these projects. So what I’d like to also add is non disposal of gypsum can also lead to a bit of a pollution issue. So our ability to dispose gypsum with our interaction with cement plant showed limited interest, very poor pricing and limited offtake. So not getting into a position where earlier in the 90s we got into with bagasse, where we had to sell bagasse free because there was no disposal.

And we were India’s first sugar factory to get into the cogeneration project which yielded us rich dividends down the line and stopped us from getting blackmailed. This initiative also has that theme embedded in it. So now I’d request the moderator and would be very happy to answer your questions.

Questions and Answers:

Operator

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press Star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press Star and one to ask questions. The first question is from the line of Prashant Biani from Ilara Capital.

Please go ahead.

Prashant Biani

Yeah, thank you for the opportunity, sir. What the rationale for this equity capital raise? So closer to the commercial timeline of the project, you would have already tied up its finances and leverage is also not that heavy on the balance sheet.

Vivek Saraogi

Yeah, so I believe this question exists in the mind of many of our equity investors. So I just. Let me give you some perspective. A, this is a 5% dilution. B, we are participating. So it’s not that there is a thought of lowering the promoter. Three, the ability to run business to maintain rating, to maintain the. You know, we almost getting our finance today at 6.75 and to ensure no ratios are disrupted. The idea was to raise this capital because there is a 390 crore out there, as you can see, 230 plus, 160 plus.

We have the sugar season coming up and we see our ability to purchase more cane, et cetera beyond time. So had to increase ensure liquidity to ensure rating, to ensure no banker says that, you know, you violated some ratios, etc. We thought that this would be a very prudent measure.

Prashant Biani

Okay. And so can you give some cost dynamics for the lacto gypsum plant in how much is the output of lack of gypsum when you make one unit of pla? And for this plant which will make gypsum board, how much could be the revenue potential as well as tentative margins if you would have budgeted the same?

Vivek Saraogi

Yeah, Pramod.

Pramod Patwari

So Prashant, on 80,000 tons of PLA, we are expecting lipo gypsum in the region of around 1.1, 1.6 lakh tons to 1.2 lakh and this has a revenue annual revenue potential of around 150 odd.

Prashant Biani

And sir, how many tons. How many units of lacto gypsum make one unit of gypsum board or I mean equivalent input output ratio.

Pramod Patwari

So this 1.16 lakh tons of gypsum will result into around 63 lakhs. 63 lakh pieces of.

Prashant Biani

How much would be the margins for this business? At least

Pramod Patwari

Payback period of around five years.

Prashant Biani

Five years? Yeah. Continue sir.

Vivek Saraogi

Yeah. So with the current disruption I believe since we started looking at this project the board prices what we affected in has moved up 25% higher already because of this West Asia crisis. But that’s. That’s just the current development raw material. Ours don’t need to learn anything.

Prashant Biani

Right. So we have investment in NBFC Also would we be willing to offload some or full part of it which we own eventually to deliver our balance sheet?

Vivek Saraogi

Definitely eventually. Yes. 100%.

Prashant Biani

Any timeline and entity evaluation would you be looking at?

Vivek Saraogi

While we

Prashant Biani

Have a history of past transaction at which the stake transfer happened.

Vivek Saraogi

You’re meaning the solar plant, isn’t it? No, the history you’re talking about is this. So there are two parts to Oxylos dilution. One is a dilution done to run the business. That is the capital requirement of the business itself. And the last dilution was done at about 3200 crores. Around 3000 odd crores. Market cap of Ovzilo. So that was the last valuation available. Currently yes, we. As I told you I’ve answered your question. The timing and etc are not fair to answer now. Yes, we are in the.

You know positively inclined towards answering your question in the affirmative.

Prashant Biani

Right. Okay sir. That’s it. From my side. Thank you so much.

Pramod Patwari

Thank

Prashant Biani

You Prashant.

Operator

Thank you. The next question is from the line of Shailesh Kanani from nsec. Please go ahead.

Prashant Biani

Good afternoon everyone. And thanks for giving me this opportunity. And first of all congratulations on the equity fundraise after a long time to the whole Balrampur team. Sir, I had few questions. First one is on the PLA project. Now the cost has accelerated by 230 crores. And you have given the reasons that the engineering changes and supply chain issues. So are these modifications fundamentally altering any yield or efficiency of the plant?

Vivek Saraogi

So minor tweakings always will lead to it. Yes, you’re right. But it’s impossible to be able to quantify all that Today. Everything has been done. Some part is towards improving the engineering. A lot of it is foreign exchange Also so one could not have booked the machinery which is to come in. You don’t move from 95 to 110 of them. I write

Pramod Patwari

90

Vivek Saraogi

210. So that’s not in my hand. I could not have booked the machinery which is to come as per we are laws I’m told. So that is one major part to this shipping cost. This crude, this ships not coming around Hormuz. And then keep, you know, keep up go to local transportation. You know the biggest consignment just to give you a figure is costing me 9 crores to transport a column or a part of the machinery. One, there’s. There are two such consignments. It takes four months. So people at this point of time I have to complete the project.

And there are some costs which are probably a little higher than what it should be. Some are genuine, 90% are genuine. 10% is bit of blackmail. One has to succumb to that in order to complete the plant with precision shipping cost, inland transport cost, currency fluctuation, revision of prices of some existing contracts we have put in fixed price contracts and that we try to keep to a minimum. And lastly some minor engineering and etc for the 90% modeling which just throws up some new maybe valves, pipelines kind of things.

Combination of all.

Prashant Biani

Fair enough. So with project being so closer in terms of completion and operational say six to nine months. So can we expect this is the final kind of revision in project cost and there will be further in cost irrespective of macro environment?

Vivek Saraogi

Yes, because our machinery is largely coming. Yeah, I. That. That. That should be it.

Prashant Biani

Okay, thanks a lot. Such. My second question was to the UP bioplastic policy where we are. They are giving 50% capital subsidies. So even if this upward revision that would be kind of eligible for the same, right?

Vivek Saraogi

A very good question. Pertinent question. The. The document, the policy document does not curtail your investment. And yes, therefore what you said is absolutely correct.

Prashant Biani

Fair enough. Thanks Raj. So my third question would the gypsum boards what we are planning to do? So I was reading something that requires fillers and reinforcements. So are we planning to utilize the bagasse ash or bagasse fiber for production of this and do we have that excess?

Unidentified Participant

No, that does not. It’s not required at all. It requires the paper and gypsum. That’s it.

Prashant Biani

Okay. So there will not be any further collection from the byproduct from the sugar mills as such?

Unidentified Participant

No, only in terms of utilities like steam and power will go which will be accounted

Vivek Saraogi

For in the project revenue. I mean sorry, in the expense.

Prashant Biani

Just to answer

Vivek Saraogi

Your question.

Prashant Biani

Yeah,

Vivek Saraogi

Just to answer question how we work in Balrampur and I guess in any prudent company is if you see our three divisions, Sugar, ethanol and power, there is a transfer pricing for everything and then you get your segmental revenue and segmental profitability. So when Pramod has spoken to you about a five year payback and which makes substantially decrease with the current raise in the board prices, each utility used here, whether it is team anything is accounted as an expansion and a revenue in the PLA plant.

Right.

Prashant Biani

So just last question from my side on this continuing with this point. So business boards what we’ll be making would be positioning themselves as a commodity alternative or some kind of. We have a leverage with respect to bio based or some recycled content in it. So we can kind of target the premium ESG or green building, something like that. Is it possible?

Unidentified Participant

This is not envisage at this point of time but it is definitely replacing my material. So in that case it is of course a very, very much more eco friendly way. But to attribute value based on that, I don’t know if you will get more value but definitely tag is definitely there.

Vivek Saraogi

Yeah. Because our product.

Unidentified Participant

That’s a good point.

Vivek Saraogi

But that’s a good thought. We had the most numbers people we must get on to later since it’s 18 months away.

Prashant Biani

Thanks a lot sir. Thanks a lot for answering all the questions and best of luck sir.

Pramod Patwari

Thank you.

Operator

Thank you. The next question is from the line of Nishita from Crown Capital. Please go ahead.

Unidentified Participant

Yes, hello. Am I audible?

Operator

Yes, ma’. Am. Yes.

Unidentified Participant

So I actually just had a follow up question on a previous participants questions. So I just wanted to understand that our PLA capacity. So you mentioned that on the 80000 ton of PLA capacity we can expect around 1.16 lakh ton of Laska gypsum, right?

Unidentified Participant

Yes, yes, yes.

Unidentified Participant

And from the 1.16 lakh of lactate gypsum, we can have around 63 lakh pieces of gypsum boards.

Unidentified Participant

Yes, yes, yes.

Unidentified Participant

So the revenue potential that you mentioned of 150 crores, that is from the 63 lakh pieces of gypsum board per annum. Is that understanding correct?

Unidentified Participant

Yes, yes.

Unidentified Participant

Okay. Okay, got it. So I just wanted to understand what is the revenue potential from our PLA project?

Pramod Patwari

Project? That’s already.

Vivek Saraogi

Yes.

Pramod Patwari

Nothing has changed. Nothing has changed. The

Vivek Saraogi

PNA project, everything remains the same. This is a value addition to a byproduct which is like if not added waste

Unidentified Participant

Okay. Okay. Thank you so much.

Operator

Thank you. A reminder to all the participants that you may please press Star in one to ask questions. The next question is from the line of riya Bhatia from CNBC TV18. Please go ahead.

Unidentified Participant

Yes, sir, I just wanted to understand the breakdown of the preferential issue of 450crores. Where exactly will this be used? Because I believe 160 crores will be for this lactogypso plant and 230 crores for the PLA plant. Right.

Pramod Patwari

Balance will be on account of corporate general purpose.

Unidentified Participant

Okay, understood. And the PLA plant commissioning, does that remain on track for quarter three?

Vivek Saraogi

Yes, absolutely.

Unidentified Participant

Okay, understood.

Vivek Saraogi

But we leaving no stone unturned. And as things go, it looks absolutely visible.

Unidentified Participant

Okay. All right, sir. And so I just wanted to understand what led to this increase in the cost for the pla plant. This 230crores, was it largely because of the West Asia crisis?

Vivek Saraogi

Yeah, I think if you had joined the call. I have headbed laid down all the points.

Unidentified Participant

Okay. All right, sir. Okay. Thank you.

Operator

Thank you. The next question is from the line of Vikram Suryamanshi from Philip Capital India Private Limited. Please go ahead.

Prashant Biani

Yeah, good afternoon sir. Just on this next project some how is the sales will be done? Will it require the sales distribution channel or is it like a commodity where we cannot focus on sales? Probably it will be sold to the dealers directly just to get something from the distribution side of the support.

Unidentified Participant

So we are working on the same strategy and in time to come we will be laid out there. But just the beginning. Beginning. Yeah, we have. We are evaluating a few options.

Vivek Saraogi

So it’s 18 months down the line. Yes, we. We are confident. We’ve taken a broad stroke understanding. We get to it.

Prashant Biani

Okay, got it. Thank you. And

Vivek Saraogi

We are already tracking the prices as you can see.

Operator

Thank you. The next question is from the line of Bharat Seth from Quest Investment Advisors Private Limited. Please go ahead.

Vikram Suryavanshi

Hi sir. Thanks for the opportunity. Sir, pardon my ignorance. If you can run through the whole. I mean with this PLA plant and this gypsum plant. How I mean once gypsum plant where the lot of. I mean output of PLA will be used as a raw material and cost. So is there any change in the payback time or it still remains five years.

Unidentified Participant

It remains the same.

Vivek Saraogi

There is no change at all. So let me explain to everyone. The way bagasse comes out. When you run a sugar factory, that bagasse is either fed into the boiler for cogeneration which you sell power or you can Sell bagasse to paper manufacturing.

Prashant Biani

Correct.

Vivek Saraogi

So this is the way gypsum will come out. Either you dispose, throw, give to cement at dirt rate, dirt cheap rates with a huge volume staring at your head or we have taken this call to convert.

Vikram Suryavanshi

Correct. And you also said some of the these sugar plant, I mean output will be used in pla. So and which will be the cost for PLA plant. So how that can really will benefit to sugar plant, existing sugar business.

Vivek Saraogi

There is no sugar plant. I said, I said out of the PLA plant. The capacity of the boiler let’s say is 100 tons and 2 tons is needed in this process. That 2 ton steam used to make board will be the cost of the board factory let’s say and 2 ton therefore will be revenue of the PLA factory.

Vikram Suryavanshi

I understand sir, but when we are going ahead with the converting ethanol into pla so that economics if you can explain sir, I’ll be grateful.

Vivek Saraogi

There is no ethanol converted into pla.

Unidentified Participant

Sugar

Vivek Saraogi

Is converted into pla. Story over for sugar factory.

Vikram Suryavanshi

Yeah. So you can give some economics on that part. Broader economics.

Unidentified Participant

So actually we can take this question offline because for the rest of the audience we have explained.

Vikram Suryavanshi

Thank you and all the best.

Operator

Thank you. The next question is from the line of Prashant Biani from Elara Capital. Please go ahead

Prashant Biani

Sir. For marketing of these gypsum boards, would you rather be like an outsourced manufacturer for already existing branded company like ziproc or anyone or you would want to take it with your own brand?

Unidentified Participant

Actually this is what we also try to answer before we are evaluating our. Give us some

Vivek Saraogi

Time Prashant. We’ll

Unidentified Participant

Go for the best one that comes to us slightly closer to the delete of commissioning.

Vivek Saraogi

So once we set up the plant like three, six months into the game plan, we’ll start searching and you know we already contacting people. We will do what is best for the company. Prashant.

Prashant Biani

We don’t

Vivek Saraogi

Want to sort of get into some big time branding expense and all but yes, we’ll do what is best for the company.

Prashant Biani

Yeah. And actually those companies have a portfolio to offer to the dealers which we would not have.

Vivek Saraogi

I get your stance. I’m, I’m. I’m aligned. But too early enough. Rashan’s too early.

Prashant Biani

Right. And just one last thing on this. Would the up market be enough for this or we would have to go pan India.

Vivek Saraogi

I think pan India would be not

Prashant Biani

Okay, sir. Thank you.

Vivek Saraogi

Yeah. So we will get to the marketing. Let’s say 69 months, 66 months, 9 months. Give some idea.

Prashant Biani

Sure. Thanks.

Operator

Thank you, ladies and gentlemen. That was the last question. I would now like to hand the conference over to the management for closing comments. Thank you. And over to you, sir.

Vivek Saraogi

Thank you. And all the best. Any other questions offline can be answered. So I hope you have been able to answer everything and you can call us for anything you so need. Again, so basically it is to give you. The idea of today’s call is to give you a broad construct and understanding so that every. All the investors are on the same page as far as the knowledge sharing goes. And you know, people don’t need to get into any kind of speculation and. Or understanding and nobody has a preferential understanding.

That is the reason for our taking this time out and giving this brief to all of you. Thank you. And thank you to all the shareholders for being with us as always.

Pramod Patwari

Thank you everyone. Thank you. Thank you,

Operator

Sir. Thank you, members of the management, on behalf of Belrampur Genie Mills. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.