EID Parry

The sugar business faced a difficult quarter with revenue declining 40% YoY to ₹216 crores. This was primarily driven by a reduction in release quotas and a sharp drop in recovery rates in Tamil Nadu to 7.6% from 8.22% in the previous year. Crushing volumes in TN also fell to 5.61 lakh metric tons compared to 8.54 lakh metric tons YoY, while cane landed costs rose to ₹3,301 per metric ton.

The CPG segment was a standout performer, achieving a turnover of ₹236 crores, a 76% increase over the previous year's ₹134 crores. Branded staples like rice and dal contributed ₹82 crores to this total. Management is aggressively expanding distribution, with modern trade and e-commerce now accounting for 25-30% of the business, supported by a steady A&SP spend of 10-12% of sales.

Distillery operations showed strong volume growth, selling 419 lakh liters compared to 304 lakh liters in the prior year. Revenue for the segment reached ₹281 crores with an average price realization of ₹64.20 per liter. Despite the volume growth, margins were somewhat diluted due to higher molasses prices resulting from poor sugar recoveries.

The PSRIPL refinery operations reported revenue of ₹1,116 crores, down from ₹1,296 crores in the previous quarter. PBT fell to ₹5 crores from ₹14 crores. Management warned that global white premiums have collapsed from $110-$130 to $75-$80 per metric ton, which will likely prevent the segment from repeating its H1 performance levels in the second half of the year.

Following a heavy CAPEX phase, EID Parry is shifting focus toward 'ruthless execution' and driving manufacturing efficiencies. The company aims to reach an EBITDA of ₹650 per ton of sugar in the next three years. While TN remains a structural challenge, robust outputs from Karnataka are expected to provide balance, and the lifting of ethanol diversion restrictions is viewed as a major positive policy shift.