EID Parry (India) Ltd (NSE: EIDPARRY) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Muthiah Murugappan — Whole-Time Director and Chief Executive Officer
Y. Venkateshwarlu — Chief Financial Officer
Analysts:
Unidentified Participant
Rajesh Majumdar — Analyst
Vaishnavi Gurung — Analyst
Sanjay Manyal — Analyst
Ritwik Sheth — Analyst
Presentation:
operator
The conference is now being recorded. It, SAM, it, naming. It. Ladies and gentlemen, good day and welcome to the EID Parry India Q1 FY26 earnings conference call hosted by Dan Capital Advisors Ltd. 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 this 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 Mr. Sanjay Manyal. Thank you. And over to you sir.
Sanjay Manyal — Analyst
Hello everyone and a warm welcome on behalf of Dam Capital to the Q1FY26 earning call of EID Pari India Ltd. We thank EID Parry Management for giving us an opportunity to host this call. On the call Today we have Mr. Muthaya Mughappan, full time Director and other senior management team of Eid Pari. I hand over the call to the management for opening remarks followed by a question answer session. Thank you and over to you sir.
Muthiah Murugappan — Whole-Time Director and Chief Executive Officer
Thanks Sanjay and very good morning to everyone. It gives me a great pleasure to be a part of this analyst call and to share some updates on both the global as well as the Indian scenario and explain the Q1 performance of the company. We’ll also note that our quarterly investor presentation has been uploaded online. Post our board meeting yesterday. I’ll start with the global scenario. The global sugar market is projected to remain in mild surplus through the sugar year 2526, primarily due to increased production in Brazil, India and Thailand. Favorable weather has supported higher output in India and Thailand, while Brazil continues to crush aggressively with a sugar mix of about 52% despite dry conditions affecting cane quality.
However, risks to Brazilian output persist due to lower cane yields, declining ATR and weak sugar prices, which may prompt a shift towards ethanol production. According to Zarnico, the market is still oversupplied by approximately 2 million metric tons of raw sugar and 1.1 million metric tons of white sugar in 2025, with an additional 1.2 million metric tons of white sugar surplus expected in the first half of 2026. This has driven raw sugar prices down from 21.5 cents per pound in February to about 16 cents per pound at present. The white premium remains uncertain, with refiners needing $100 per metric ton to remain viable, suggesting a necessary range of US 80 to $100 million a metric tonne to incentivize supplies.
Muthiah Murugappan — Whole-Time Director and Chief Executive Officer
EU sugar output is expected to decline while demand from key destination markets such as China, Indonesia And Bangladesh have softened with prices trading near ethanol parity. Any further shift in Brazil’s mix towards ethanol would help stabilize the market. Strategic policy decisions and production responses will be key to rebalancing global fundamentals. I’ll now move to the Indian scenario. As of mid July, India sugar Production stands at 25.7 million metric tonnes with 14 mills still operational. Early season yields were impacted by adverse weather but improved recoveries on the back half of the season have supported output. Pre monsoon rainfall, which largely occurs during the months of March to May 2025 was 42% above normal, significantly affecting cane growing states positively.
Maharashtra, Karnataka and Tamil Nadu all recorded surplus across major districts. Domestic consumption is projected to be 27.9 million metric tonnes with 0.6 million metric tons expected to be exported. From the 1 million tonne quota which was provided, 3.4 million metric tonnes is the expected diversion towards ethanol. Estimated closing stocks are in the range of 5.5 million metric tons, roughly two and a half months of demand. Most states have seen a decline in sugar output with Maharashtra and UP showing the largest drops. In absolute terms, statewise, UP leads with 9.24 million metric tons followed by Maharashtra at 8.09, Karnataka at 4.5 million metric tons and Tamil Nadu at 0.5 as of mid July.
Key factors to monitor going forward will really be how the cane crop pans out in the upcoming sugar season. The good monsoon spells are encouraging on this front. Also, developments on the ethanol blending program, particularly on ethanol pricing as well as outcomes of India US trade talks and any bearings this might have on the ethanol and sugar sector will also need to be monitored. I now hand over to our CFO Mr. Venkateshwarlu to take you through the operating performance of the company in Q1.
Y. Venkateshwarlu — Chief Financial Officer
Thank you Mithu. Good morning to all participants. It’s a great pleasure to be part of the analyst call and to share the key information of the operational financial performance of the company. I would like to share with you the key operating parameters of each segment. So as far as the sugar operations is concerned we have crushed the Tamil Nadu plants and about 63 days average 64 days we have crushed during the quarter one. So I would like to share the quantitative details. As in the Q1 we crushed about two 11,000 metric tons when compared to the corresponding quarter of the Previous it was 1.93 lakh metric tons.
Recoveries are under pressure because the recoveries for the current quarter is 8.02%. Organize the 8.6% of the corresponding quarter of the previous year we produced sugar about 17,000 metric tons during this quarter and organized the 16,000 metric tons of corresponding quarter of the previous year. So clean cost is about 80003844 rupees per metric ton occurring 3491 rupees per metric ton of the corresponding quarter of the previous year. This is mainly an account of the FRP impact which was declared by the central government from the 3150 rupees to the 3400 rupees per metric tonight as far as the sales sugar sales volume is concerned, sugar sales volume for the current quarter is 84,000 metric tons.
This is completely driven by the domestic sale. There is no export quota available to us. Whatever the quota was available we already exported. The corresponding quarter of the previous year was 1.05 lakhs metric tons. So the previous corresponding quarter also we were completely domestic that was about 6.05 lakhs metric tons. The reduction is mainly on account of the lower release order quota which is given by the dfpd. As far as the sugar selling price is concerned, average ceiling price overall is 41 rupees 99 paisa. Again as the previous year corresponding quarter of this 38 rupees 60 paisa.
Y. Venkateshwarlu — Chief Financial Officer
We are carrying about 1.2 lakhs metric tons of sugar as at June 25th and we are valued at a average at 37 rupees. So as far as the segment revenue is concerned, sugar revenue for the current quarter is about 347 crores has aggressed 404 crores of 404 crores of the corresponding quarter of the previous year registering a decline about 14% on a lower release total. So Consumer Product Group the Consumer Product Group delivered a turnover of about 192 crores for the current quarter registering a decline of 11% over the corresponding quarter of the previous year of 216 crores mainly on account of lower release quarter for the sweetness category, partly offset by steady performance in the staple segment which is registered a growth 33% over the corresponding quarter of the previous year.
The cogent as far as the coding is concerned, power generated during the quarter 1 about 221 lakhs units as against 3 not 7 lakhs units in the corresponding quarter of the year. Previous year we have exported about 122 lakhs unit against the 170 lakhs units in the corresponding quarter of the previous. Average power tariff for the current quarter is the 3 rupees 67 per unit as against 4.23 per unit in the corresponding quarter of the previous year. So revenue for the quarter is about 7.53 crores as against the previous previous year 11 rupees 11.94 crores in the corresponding quarter of the previous.
As far as the discovery is concerned we have sold about 413 lakhs l against previous corresponding quarter 390 lakhs liters of which ENA is a 153 lakhs liter and the ethanol was 260 lakhs l. As far as the relations is concerned 6759 paisa per liter against corresponding quarter of the previous Previous year’s realization of 64 rupees revenues were for 296 crores compared to the 263 crores during the corresponding quarter of the previous year. As far as the new pharmaceutical segment is concerned as far as the Indian operation is concerned we have done about 5.94 crores the turnover against 8.41 crores in the corresponding quarter of the previous year.
At the consolidated level neutral business Turnover is about 27 crores has agnesed 59 crores in the corresponding quarter of the previous year. As far as the refinery operations is concerned the operational revenue is about quarter this quarter is 998crores against 1213crores corresponding previous year’s quarter. As far as the PBT is concerned Good story because we made positive positive PBT of 67 lakhs against the loss of 6.79 crores. Sugar production is about 2.25 lakhs metric tons against 1.6 lakhs metric tons in the previous year quarter. Different sugar sales is about 2.02 lakhs metric tons against previous quarter of previous year quarter or 2.23 lakhs metric tons.
So as far as the loans is concerned there is no long term loans which is repaid to parent company about 200 crores and as far as the short term loans extended loans concern against 461 crores against the Q1 of 2425 is about 220 crores. So this all the operations operate operations of the Q1. Now the floor is open for the questions.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rajesh Majumdar from BNK Securities. Please go ahead.
Rajesh Majumdar
Yeah, good morning everyone and thanks for a very presentation this time when you’ve uploaded your presentation. So I had a few questions. First question was on the consumer product group, the sweetener category. So how do we read into the volumes of the consumer part of this business as in the entire sale is quota driven. So if you are not able to grow our sugar volumes over the next few years, will the consumer part as a proportion of the sweetener category, can it be theoretically 100% or what percent or do you have to sell some raw sugar as well? How do we read this? That was my first question.
Muthiah Murugappan
Yeah. So Rajesh, hi, good morning. Yes, it is quota driven, you know, so we will, we love to do a couple of things on the sweetener side of course, you know, focus on sales of value added product from the, from the sweetener segment. You know, launch new products, expand the product portfolio. That is on the anvil as well. We will also make tactical calls to take in more quarter. We also have to now feed an institutional market wherein we have to sort of balance overall pricing as well. So we’ll take some of those tactical calls going forward.
So those are opportunities for sales to grow in the sweetener part of the, of the CPG segment. There’s also, I would say the last point I would like to make here is you could also have traded volumes wherein which you would obviously based on the right quality control, have other mills packed for you. That’s something which will also be being explored. It needs to be done at the right economics. So there are opportunities to take this up. We’ll be tactical about it.
Rajesh Majumdar
So theoretically it can move up to whatever percentage of the overall quota. The consumer part of the business.
Rajesh Majumdar
Yeah, it can move up. It’s about the tactical choices that we make. I mean One theme of Q1 is to obviously we’ve got distribution which we’re expanding and we wanted to within our current quota. We wanted to take the attractive business and we’ve actually jettisoned some of that very low value business wherein discounting factors are high, so on and so forth. So we made some conscious calls in Q1.
Rajesh Majumdar
My second question sir was in the refinery segment. While we have seen we have closed down some step down subsidiary in the UAE which is into exports, we are also committing more capital in terms of the business. So what’s really going on here in terms of the Refinery business I would like to know.
Muthiah Murugappan
So yeah, I can come in on this radish. So I think that as you know the refinery business there is a lot of debt and this capital has really gone in for debt reduction in order to strengthen the operations of the refinery and I think that’s why we’ve had these infusions.
Rajesh Majumdar
What about the closure of the step down sub which is into exports in the year, what is it indicating?
Muthiah Murugappan
We didn’t find that of any strategic significance to the refinery operations. I think we are happy with the standalone operations here in Katinada and we’d like to remain focused on that.
Rajesh Majumdar
Okay. And sir, we’ve seen a sharp increase in the short term debt in a quarter where normally 1Q and 2Q we see the short term debt coming down and then probably it goes up when the sugar crushing starts in 3q and 4q but in 1q we’ve seen a sharp increase in the short term debt. So that is a bit alarming. I mean any reason why that has happened and how should we read that you know going forward? Thank you.
Muthiah Murugappan
You can Rajesh, this if you look at the short term debt this is not only the relating to the kashm and also we have started sourcing the molasses from the other states because we’re keeping in view the sincere increase the distillery capacities in the last year. So we need a molasses over and above it. What we are going to crash it. So those are all the molasses. So we have done a forward contract and some of the places we already sourced the molasses. That is one of the reason. Second reason also you have to look at it.
Our CPG business is guringal and our receivables also is slightly is going up in line with the turnover and in line with the industry standards. Thereby our working capital requirement is going up. So thereby correspondingly your short term debt is going up.
Rajesh Majumdar
That means the overall short term debt for the end of the year will be even higher. When the actual cashing happens more or.
Muthiah Murugappan
Less it will be the same levels Rajesh. Because like if you look at it today you are looking at about 1100 crores or something. Even at the year end also we will be looking at the same because if you look at it though most of the crushing will get closed by the February or somewhere. So the HNT payments and all the things will be already we are given the advances so that will be offset against the advances what we have given.
Rajesh Majumdar
Thanks to my last question. This is from Muthu sir, we have 56% stake in Coromandel and the Coromandel stock is now at 52 week highs. So can we contemplate some stake sale? Because technically it can come down to 51% and still retain a majority holding to reduce our debt.
Muthiah Murugappan
Yeah.
Rajesh Majumdar
Thank you.
Muthiah Murugappan
So Rajesh, I think there’s, you know, we’re really focused on the standalone business here. I think these are broader conversations which are more sort of board and group level. And I think we should stay focused on the standalone operations here.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is from the line of Vaishnavi Gurung from Craving Alpha Wealth Fund. Please go ahead.
Vaishnavi Gurung
Good morning sir. Thank you for taking my question. One question from my side.
Muthiah Murugappan
Mr. Vaishnavi, can you speak little louder?
Vaishnavi Gurung
Hello. Is it better?
Muthiah Murugappan
Yes, much better.
Rajesh Majumdar
Yeah. So my question was regarding the revenue from Nutrient and Allied business. The revenue is significantly up compared to last June quarters. So just wanted to know any specific reason for that?
Vaishnavi Gurung
No, the neutral business revenue is actually lower. I think she’s asking about the Coromandel from the consolidated.
Muthiah Murugappan
Okay. Yeah. I think that the other consolidated is we consolidate Coromandel International. We can’t comment on their results. I think their board and earnings call has already concluded they’ve had a good first quarter. But you may want to look up publicly available data to go over their results.
Vaishnavi Gurung
My second question was if there, if any capacity expansion plans. We have. Not at present. We’ve just finished up last year our ethanol Capex. So Capex cycle has largely concluded. It’s the phase of consolidation right now. Okay, that’s it for my question.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is from the line of Sanjay Manyal from DAM Capital. Please go ahead.
Sanjay Manyal
Hi sir, have just a few questions specifically regarding, you know, good monsoon and what kind of a crushing is expected in in Karnataka and some of the southern states. And what is our plan sort of over here to increase the crushing in the next season. What is the expectation on that side?
Muthiah Murugappan
Monsoon has been good in the states of Karnataka and Maharashtra. So overall the industry is looking for a good crop this year. Our internal data also is showing robust situation. So we would expect marginal positive upside in Karnataka crushing this year as compared to last year. TM will be largely neutral. There’s a lot of action we are doing in terms of reviving tm but being ugly crop, it might take one or two cycles. But overall we have a positive outlook on crushing for the year.
Sanjay Manyal
Right. So and on our peak utilization of our distillery capacity. What kind of an, what kind of ethanol or ethanol ENA we can sell? I mean what would be our sort of optimum revenue from distillery segment?
Muthiah Murugappan
Our overall capacity is about 18 crore liters across all our facilities. The choice of the product mix varies depending on the margins we will make. So we actively look at the product portfolio and keep changing it as the situation develops depending on the pricing in the market. Obviously ethanol pricing is relatively stable given the government decisions. The ENA is option we keep evaluating, it’s a revenue mix management approach. But the full capacity is about 18 crore liters is what we’ll be able to do in a year and utilization will be about 90 to 95% providing there are no outliers that hit us from a policy perspective.
Sanjay Manyal
And given the fact that now there is a lot of talk about, you know, increasing the internal blending from 20 to 25% or 27%, that’s what we hear in the a lot of discussion from the government side. So is there any plan again to sort of further increase our capacity over here and what are the discussions with the government happening on this ethanol blending part? Is there any roadmap for that which they have decided?
Muthiah Murugappan
Obviously they have decided it would be in the public domain. But we would presume the government is seized of the situation. Given the news that we read, the direction the government has been taking on the EBP program is highly appreciable. They seem to be steering the industry and the usage of ethanol in the right direction. So we remain positive about the government’s approach on the issue. He may not be able to comment on what is the internal discussions that the government is currently doing because we would not have visibility on them.
Y. Venkateshwarlu
Sanjay, just to add to Ashik’s point on capacity expansion, not we don’t have any plans for expansion. I think we’ll have to wait to see how policy pans out if at all there’s something we might consider. It might be, you know, we have one dual feed distillery. We might consider repurposing one or two of our other distilleries to, you know, operate on both grain as well as molasses based feedstock. This is perhaps something we might consider, but this is again subject to obtaining policy clarity and subject to sort of further internal evaluation.
Sanjay Manyal
Right. So just on this part, how are margins in the separate grain part as well as in Brussels, which is better feedstock as of now and also There has not been any increase on the ethanol prices from last two years. Is there any clarity on that? At least on the sugarcane base stocks there is a possibility of any.
Muthiah Murugappan
On margins. Obviously the. We would not want to comment between the feedstocks but right now both maize and molasses are profitable. In terms of. What was your second question? I’m sorry?
Sanjay Manyal
So about the Ethanol Price act has not taken place in last two years. So is there again any discussion on that or.
Muthiah Murugappan
There is a lot of representation we have been doing to the government on ethanol pricing. We would actually look forward to some action on that front. Yes, it’s concerning for us that the last three years we have not had a price increase. The FRP of cane which is our feedstock keeps increasing year on year. That should take care of the farmers and vikleys. So we would look forward to some positive news on the ethanol pricing. But that rests with the government.
Sanjay Manyal
Right sir? Right, sir. That’s all from my side, sir. Thank you. Thank you very much.
operator
Thank you. A reminder to all participants to press star and one to ask a question. Ladies and gentlemen, let’s wait for a moment while the question queue assembles. The next question is from the line of Ritwik Seth from one UP Financial. Please go ahead.
Ritwik Sheth
Good morning sir. So just one question from my end on the consumer product division. If you can throw some light on the strategy for the consumer product division going forward. We’ve built a decent base in the last four to six quarters. How to look at the sweetener category you mentioned earlier and the staples category in the next three, three years. If you could just throw some strategy on that.
Sanjay Manyal
Yeah. Morning Ritvik, this is Balaji. I head the consumer products business. So in terms of the non sweetener part of the business, we will continue to stay focused on driving distribution and increasing our brand equity through brand. In terms of sweetener the focus is largely on the value added brown skills category where we are seeing potential opportunity to grow. And most of the expansion and growth will come in largely on the grounds category for the sweetener. For the non sweetener it will be the continued focus on distribution and brand building for the next few quarters.
There is some work happening on the development of new products which will come in into the food spaces. But as of now those are all rudimentary and developmental in nature. And we will come back to you as and when we are ready.
Ritwik Sheth
The question. Hello?
Muthiah Murugappan
Yeah.
Muthiah Murugappan
Can you be little louder? I. We can’t hear you.
Ritwik Sheth
Yeah. Is this better?
Muthiah Murugappan
Yes. Yeah, much better.
Vaishnavi Gurung
Yeah. So. And on the distribution part, I believe we are around 2 lakh currently in the next three years what kind of distribution we are targeting and you know are we looking to add more SKUs in the non in the stables category.
Muthiah Murugappan
So as part of the. As part of the growth strategy we would be growing and expanding the distribution. We are not, we cannot put a number to it at this point in time but we would definitely be focusing on numerical distribution growing and expanding. For us in terms of SKUs, all growth will come in with addition of new SKUs when we are launching new products and in existing products we will be coming up with skus more from a consumer perspective as and when there is a need which arises. The plans are upput to grow in this.
Ritwik Sheth
Okay. And safe to assume that sweetener category will be quota driven going forward and will be. You mentioned we’ll be focusing on the higher value added which will be the browns category, right?
Muthiah Murugappan
So yes, I think Mr. Mupru Murgapan answered this question earlier. The quota is going to be a limiting factor on the sweetener sales. But we have our ways and means of moving around on this. One is by focusing on the browns category which are not driven by the quota so much. The second is that there is always an opportunity to buy and brand sugar which is something that we will consider as we go forward when we feel that the quotas are restricting us in.
Ritwik Sheth
Terms of our growth and over a three year period, you know sir, would you like to give any aspirations we are currently around 800, 900 crores on an annual basis brand staples category combined. What would be, you know, reasonable growth assumption for the next years? Would you have anything on this?
Muthiah Murugappan
We won’t have a number at this point in time but I think we will be growing pretty aggressively in this category and our expansion plans will include consolidating ourselves largely in the modern trade, e commerce and the general trade channel.
Ritwik Sheth
Okay sir, what’s the question?
Muthiah Murugappan
Thank you.
Ritwik Sheth
Thank you.
operator
Thank you. A reminder to all participants. You may press Star and one to ask a question. The next question is from the line of Vaishnavi Gurung from Craving Alpha wealth fund. Please go ahead.
Vaishnavi Gurung
Hi sir, my question is on the future outlook. How do we see our position for 2013? Do we plan to be more inclined towards agri or energy sector?
Muthiah Murugappan
So Vaishnavi, thanks for your question. I think the focus on the the biofuels and bioenergy space will continue. Of course it’s ethanol and it’s a consolidation phase right now. We’ll have to see you know what how policy pans out. There’s also seemingly an opportunity in sustainable aviation fuel which is being spoken about, but it’s very, very early days and an opportunity which is being spoken about using this ecosystem. But we’ll have to really wait and watch as to how the policy framework pans out. So one area of focus will be will be the space. The other area of focus, of course, is the Consumer Product Group which we’ve spoken about just in today’s discussions as well.
And that is a business which will really take a separate path to the biofuel and bioenergy business. So I think these are the two areas of focus of the company going forward.
Sanjay Manyal
Thank you sir.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. Let’s wait for a moment while the question queue assembles as there are no further questions from the participants. I now hand the conference over to the management for closing comments.
Muthiah Murugappan
Thank you and thank you all for logging into our Q1 earnings call today. We wish you the best and hope to see you at the next quarter earnings call. Thank you and all the best on.
operator
Behalf of Dam Capital Advisors Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your line.