Balrampur Chini Mills shares: Over 50% returns in 1 year, sugar stock in focus with new ₹3100 cr plant - check target
Balrampur Chini Mills Ltd is likely to remain in focus as the company expects its ₹3,080 crore polylactic acid (PLA) plant in Uttar Pradesh to commence commercial operations in the fourth quarter of the 2026-27 financial year. The 80,000-tonne-per-annum facility is expected to strengthen the company's presence in the bioplastics sector and emerge as a significant revenue and earnings growth driver over the coming years.
The stock has delivered strong returns to investors, rising over 50% in one year. It has gained 4% in the past three months and 26% over six months. The company's upcoming PLA facility, September-quarter earnings, interim dividend announcement and a recent upgrade by Elara Capital have brought the stock into focus.
Balrampur Chini expects its 80,000-tonne-per-annum PLA plant in Uttar Pradesh to begin commercial operations in Q4FY27. The company is investing around ₹3,080 crore in the project, which is expected to expand its presence in the bioplastics business.
Chairman and Managing Director Vivek Saraogi said in the company's latest investor presentation that construction was progressing at full pace and the project remained largely on track for its planned commissioning timeline. He indicated that execution was advancing in line with the company's plans.
As of October 15, 2026, Balrampur Chini had spent around ₹2,400 crore on the project. The investment is being financed through a combination of equity, debt and internal accruals.
At full capacity, the PLA plant is expected to generate annual revenue of around ₹2,000 crore, according to the investor presentation. This would be a substantial addition to the company's existing business, with its total revenue having stood at approximately ₹6,300 crore in FY26.
The company is also eligible for incentives under the Uttar Pradesh government's Bio Plastic Industrial Policy, announced in October 2024. Executive Director Avantika Saraogi had earlier highlighted the benefits available to the company under the policy.
Balrampur Chini Mills reported an 88.9% year-on-year increase in net profit to ₹102 crore for the September quarter, compared with ₹54 crore in the corresponding period last year.
Revenue from operations rose 12.3% to ₹1,876 crore from ₹1,671 crore in the year-ago quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 42.5% to ₹171 crore, compared with ₹120 crore a year earlier. EBITDA margin also expanded to 9% from 7% in the corresponding quarter last year, reflecting an improvement in operating performance.
The company's performance comes against the backdrop of a change in India's ethanol policy. The country prohibited the use of sugar for ethanol manufacturing during the 2026-27 supply year, seeking to improve domestic availability and contain record-high retail sugar prices. The move came as inadequate rainfall raised concerns over sugar production, Reuters reported.
Separately, Balrampur Chini's board declared an interim dividend of 400%, translating into ₹4 per equity share of face value ₹1 for FY27. The company fixed November 11, 2026, as the record date to determine shareholders eligible for the dividend. The payment will be made on or after November 26, 2026.
Elara Capital upgraded Balrampur Chini Mills to Buy from Accumulate and set a target price of ₹874, implying an upside of around 33% from the prevailing market price.
The brokerage said rising sugar prices had come at an opportune time to offset input-cost pressure in both the sugar and distillery segments. It expects growth in and beyond FY28 to be driven by the commencement of the PLA plant and improving sugar realisations.
Elara retained its FY28 EBITDA estimates but reduced its FY27 EBITDA estimates by around 11%. The upgrade followed an 11% decline in the stock price over the preceding 2.5 months. The brokerage arrived at its ₹874 target price using a sum-of-the-parts (SoTP) valuation.
Elara also highlighted the investment made in the PLA project, noting that Balrampur Chini had invested ₹24 billion, or ₹2,400 crore, in the facility till date. The project is slated for commissioning this year and is expected to be a key earnings growth driver over the next two years.
The brokerage said, "A steep decline in sugar price from current levels is a key risk to our call. We continue to be bullish on BRCM and the sugar sector as a whole."
Elara's positive view on the company is therefore linked to the expected commissioning of the PLA plant, improving sugar realisations and the growth opportunities in the sugar and bioplastics businesses. However, a sharp decline in sugar prices remains a key risk to its investment call.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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HomeMarketsStock MarketsBalrampur Chini Mills shares: Over 50% returns in 1 year, sugar stock in focus with new ₹3100 cr plant - check target
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