BCML Distillery Revenue Falls 19.9% as PBIT Margin Narrows

Balrampur Chini Mills Limited reported Q2FY27 distillery revenue of Rs 324.59 crore, down 19.9% year on year, while profit before interest and tax (PBIT) fell 34.1% to Rs 39.13 crore and margin narrowed to 12.1%. Sales declined 13.2% and average blended realisation fell 7.8% during the quarter.

Why did BCML’s distillery revenue fall in Q2FY27?

BCML’s Q2FY27 distillery revenue fell because both reported sales volume and average blended realisation declined from the prior-year quarter. Sales, including extra-neutral alcohol (ENA) and other products, declined 13.2% to 5.11 crore bulk litres (Cr BL) from 5.89 Cr BL. Average blended realisation, excluding freight realised on free-on-road contracts, fell to Rs 56.47 per BL from Rs 61.28 per BL.

The first-half outcome was less severe than the quarterly movement. H1FY27 distillery revenue was Rs 864.21 crore, down 0.3% from Rs 866.48 crore in H1FY26, as sales increased 3.6% to 13.49 Cr BL from 13.02 Cr BL. However, H1 average blended realisation fell 3.1% to Rs 57.96 per BL from Rs 59.80 per BL, limiting the benefit of higher volume.

BCML’s Q2FY27 revenue was also below the FY26 annual revenue of Rs 1,720.97 crore, although the presentation does not provide a quarterly FY26 comparison. The reported combination of lower sales and lower blended realisation accounts for the direction of Q2 revenue, without the presentation assigning a single additional cause to the decline.

How did lower revenue affect BCML’s distillery PBIT?

BCML’s Q2FY27 distillery PBIT declined faster than revenue, falling 34.1% to Rs 39.13 crore from Rs 59.36 crore. The PBIT margin decreased by 2.6 percentage points to 12.1% from 14.7%, alongside the 7.8% decline in average blended realisation to Rs 56.47 per BL.

H1FY27 showed the same direction, but with a smaller reduction. PBIT fell 12.8% to Rs 119.50 crore from Rs 137.03 crore in H1FY26, and the margin reduced to 13.8% from 15.8%. This occurred while H1 revenue was nearly unchanged at Rs 864.21 crore and sales rose 3.6% to 13.49 Cr BL.

FY26 provides a separate annual comparison point: BCML reported distillery PBIT of Rs 203.27 crore, equal to an 11.8% margin, on revenue of Rs 1,720.97 crore. H1FY27’s 13.8% margin remained above the FY26 level, while Q2FY27’s 12.1% margin was closer to the annual result.

Which distillery feedstock routes changed during H1FY27?

BCML reduced maize-route ethanol production and sales substantially in H1FY27 while increasing output from B-heavy molasses. Maize-route production declined 49.9% to 2.34 Cr BL from 4.67 Cr BL, while maize-route sales fell 41.8% to 2.34 Cr BL from 4.02 Cr BL. In Q2FY27 alone, maize production declined 52.7% to 1.14 Cr BL.

B-heavy molasses ethanol production increased 7.0% in H1FY27 to 6.29 Cr BL and rose 30.4% in Q2FY27 to 1.63 Cr BL. Sales did not move in the same direction: H1 B-heavy sales decreased 1.5% to 6.43 Cr BL, while Q2 sales decreased 17.8% to 1.94 Cr BL from 2.36 Cr BL.

BCML reported 0.84 Cr BL of rice-route production and sales in H1FY27, compared with no reported rice-route volume in H1FY26. Syrup-route sales increased to 1.31 Cr BL from 0.28 Cr BL, while C-heavy molasses sales increased 14.1% to 0.81 Cr BL despite production declining 15.2% to 0.95 Cr BL.

ENA and other products partly offset declines in some ethanol routes. Q2FY27 ENA and other-products sales rose 49.2% to 0.88 Cr BL, and H1FY27 sales rose 17.4% to 1.75 Cr BL. Production was lower by 11.6% in Q2 at 0.76 Cr BL, while H1 production was broadly unchanged at 1.67 Cr BL.

What do BCML’s inventory and transfer-price figures show?

BCML held less alcohol and B-heavy molasses at 30 September 2026 than a year earlier, while maize inventory increased. Alcohol stock declined to 0.56 Cr BL from 1.77 Cr BL at 30 September 2025. B-heavy molasses stock fell to 1.23 lakh quintals from 2.59 lakh quintals over the same dates.

Maize stock increased to 1.86 lakh quintals at 30 September 2026 from 0.18 lakh quintals a year earlier, despite H1FY27 maize-route production declining to 2.34 Cr BL. C-heavy molasses stock reduced to 1.29 lakh quintals from 1.63 lakh quintals, while the presentation reported no rice or syrup stock on either reporting date.

BCML disclosed higher internal molasses transfer prices for H1FY27. The B-heavy molasses transfer price was Rs 1,360 per quintal, compared with Rs 1,150 per quintal in H1FY26, while the C-heavy molasses price was Rs 800 per quintal, compared with Rs 600 per quintal. The presentation does not quantify the effect of those transfer prices on distillery PBIT.

How do ethanol policy and pricing affect BCML’s feedstock options?

BCML’s disclosed policy backdrop changes the available sugar-based routes for ethanol in ethanol supply year (ESY) 2026-27. The presentation says government directions reduced sugar diversion for ethanol to zero for ESY 2026-27. It also says oil marketing companies’ first-cycle tender covers 1,100 Cr BL and that 72 lakh tonnes of surplus Food Corporation of India rice may be supplied to distilleries under the ethanol blending programme.

Published prices show that maize ethanol pricing is lower in ESY 2026-27 than in ESY 2025-26, while several other route prices are unchanged. Maize ethanol is priced at Rs 68.86 per BL, down from Rs 71.86 per BL. B-route remains at Rs 60.73 per BL, syrup at Rs 65.61 per BL and C-route at Rs 57.97 per BL.

ESY 2025-26 allocations totalled 1,196.6 Cr BL, comprising 908.0 Cr BL for grains, 165.9 Cr BL for syrup, 110.5 Cr BL for B-heavy molasses and 12.2 Cr BL for C-heavy molasses. The presentation states that total ethanol supply was about 987 Cr BL through 30 September 2026, resulting in blending of about 19.99%.

Conclusion

BCML’s Q2FY27 distillery result combined lower realised pricing with lower overall sales volumes: revenue declined 19.9%, PBIT declined 34.1% and the PBIT margin narrowed to 12.1%. First-half revenue remained broadly flat because total sales increased to 13.49 Cr BL, but lower blended realisation and a 49.9% fall in maize-route production reduced H1 PBIT by 12.8%.

The next disclosed factors to watch are the 1,100 Cr BL ESY 2026-27 tender, the permitted supply of 72 lakh tonnes of surplus Food Corporation of India rice, and the zero sugar-diversion direction. BCML’s 1.86 lakh quintals of maize stock, 1.23 lakh quintals of B-heavy molasses stock and maize ethanol price of Rs 68.86 per BL will indicate how its feedstock mix develops.