EID Parry — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

EID Parry delivered a strong bottom-line performance in Q2 FY26, primarily supported by improved sugar realizations and a one-off insurance settlement in the Nutraceuticals business. However, the core Consumer Product Group faced significant headwinds from falling commodity prices (pulses) and channel restructuring. Management is navigating a challenging ethanol environment characterized by national overcapacity and policy uncertainty, while the refinery business remains pressured by white premiums trading below breakeven levels.

Highlights

  • Consolidated PBT surged to ₹31.42 crores from ₹5.02 crores in the previous year, driven by higher sugar realizations and a one-off insurance claim.

  • Sugar segment turnover remained flat at ₹368 crores, despite a 35% drop in crushing volumes (3.66 LMT vs 5.62 LMT).

  • Domestic sugar realizations improved to ₹41.19/kg, up 7% YoY from ₹38.47/kg.

  • Consumer Product Group (CPG) revenue declined 30% YoY to ₹169 crores due to lower release quotas and a 37-38% crash in dal prices.

  • Distillery segment revenue grew to ₹292 crores with realizations increasing to ₹67.50/litre.

  • Refinery business (Parry Sugars Refinery) reported revenue of ₹1,168 crores with EBITDA doubling to ₹58 crores YoY.

  • Nutraceuticals segment saw a sharp turnaround to ₹61 crores revenue, aided by a one-off insurance claim for hurricane damage in the US.

Concerns

  • Ethanol Overcapacity in India

  • Refinery Margin Squeeze

Key financials

  1. PBT ₹31.42 Cr +525%YoY
  2. Sugar Realization ₹41.19 +7%YoY
  3. Refinery EBITDA ₹58 Cr +100%YoY
  4. Cane Landed Cost ₹3,620 +3.7%YoY

What they filed

Q1 FY27: revenue down 3.6%, net profit down 217.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue755 848 814 760 754 −0%770 −9%846 +4%733 −4%
EBITDA-41 -34 88 -31 -50 −22%-41 −21%72 −18%-48 −55%
Net profit28 -146 -232 -28 -286 −1121%-54 +63%-340 −47%-89 −218%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Turnover
₹1,997 Cr Total
  • Refinery ₹1,168 Cr 58.5%
  • Sugar ₹368 Cr 18.4%
  • Distillery ₹292 Cr 14.6%
  • Consumer Product Group ₹169 Cr 8.5%

Guidance & targets

Volume

  • Ethanol Delivery Volume Volume · FY26 · High confidence 17 crore litres
    We have a capacity of about 18 crores litres in a year. We will deliver about 17 crores litres, which is the current estimate.

    — Abdul Hakeem Ashiq, COO - Sugar and Biofuel

Capacity

  • Ethanol Capacity Utilization Capacity · FY26 · High confidence 90% plus
    our current position is we'll be able to deliver similar capacity utilization like last year, which is upward in the range of 90% plus

    — Abdul Hakeem Ashiq, COO - Sugar and Biofuel

Margin

  • White Premium Range Margin · Next few quarters · Medium confidence $80 to $110
    White premium values are expected to trade in the range of US$80 to US$110.

    — Muthiah Murugappan, CEO

Revenue

  • Consumer Business Recovery Revenue · Feb 2026 (Q4) · Medium confidence Back on track
    I think by the time we get into the Feb time frame, we should be back on track.

    — Muthiah Murugappan, CEO

Risks & concerns

  • Ethanol Overcapacity in India

    high

    Management noted 2,000 crore litres of national capacity against bids of only ~1,100-1,300 crores, leading to a pause in further capex.

    Both acknowledged

  • Refinery Margin Squeeze

    high

    White premiums ($80-$110) are currently below the full-cost breakeven point of $115-$120 for export refineries.

    Management acknowledged

  • Cane Price Inflation

    medium

    Karnataka government mandated an additional ₹50/MT over FRP, adding cost pressure in that state.

    Management acknowledged

  • Commodity Price Volatility (Pulses)

    medium

    A 37-38% drop in dal prices significantly impacted CPG revenue; management is looking at backward integration to hedge.

    Both acknowledged

Areas of evasion (1)

  • Forward guidance on specific growth numbers for the consumer business was refused.

Q&A highlights

3 direct
Ethanol Allocation and Capacity Utilization Direct
We have got about 69% allocation of the bidding that we did on the OMC side... We will deliver about 17 crores litres, which is the current estimate.

Confirms that despite national overcapacity, EID Parry has secured enough allocation to maintain high utilization.

Asked by Sanjay Manyal

Consumer Business Degrowth and Rationalization Direct
The second quarter for the consumer business has been subdued due to reasons of lower release quota and because of the lower prevailing prices of dal, which were almost 30% lower than the previous year prices.

Explains the sharp 30% revenue drop in CPG as a mix of external commodity pricing and internal channel restructuring.

Asked by Vaishnavi Gurung

Nutraceuticals Turnaround Sustainability Direct
We have an insurance claim which came through on account of some facility damage... So I don't believe you will see this flip going forward.

Crucial disclosure that the sharp profit turnaround in Nutraceuticals is largely a one-off event, tempering future expectations.

Asked by Atul Rastogi

2 min read 5 chapters

Detailed narrative

Sugar Segment Resilience Amid Lower Volumes

Despite a 35% reduction in cane crushing to 3.66 LMT, the sugar segment maintained flat revenue of ₹368 crores. This was achieved through a 7% increase in domestic sugar realizations to ₹41.19/kg and an improvement in recovery rates to 7.97%. However, cane landed costs also rose by 3.7% to ₹3,620/MT, and the Karnataka government's recent mandate for an additional ₹50/MT over FRP poses a fresh margin headwind.

Consumer Product Group Facing Commodity and Channel Headwinds

The CPG segment saw a significant 30% revenue decline to ₹169 crores. Management attributed this to a 37-38% drop in dal prices (from ~₹150 to ~₹95/kg) following increased imports, and internal channel consolidation where the company is merging sweetener and non-sweetener sales teams. They expect a 'channel correction' impact to continue through Q3, with a return to normalcy projected by February 2026.

Ethanol Strategy in an Overcapacity Market

India faces a massive ethanol overcapacity with 2,000 crore litres of capacity against a 20% blending requirement that only absorbs ~1,100-1,300 crore litres. EID Parry has secured 69% of its OMC bids and expects to deliver 17 crore litres in FY26, maintaining 90%+ utilization. Due to policy uncertainty and overcapacity, the company has explicitly stated it will avoid further capex in this segment for the foreseeable future.

Refinery Business Margin Pressure

The refinery business reported revenue of ₹1,168 crores, but management highlighted a challenging global environment. White premiums are currently trading between $80 and $110 per ton, which is below the $115-$120 range required for the refinery to breakeven on a full-cost basis. This suggests that while volumes are healthy (2.54 LMT sold), profitability remains highly sensitive to global sugar supply dynamics from Brazil and Thailand.

Nutraceuticals Turnaround Aided by One-offs

The Nutraceuticals segment reported a sharp increase in consolidated revenue to ₹61 crores. However, management clarified that this was significantly boosted by a one-off insurance claim related to hurricane damage at their Florida facility. While Indian operations are slowly recovering after regaining European certifications, the current high EBITDA levels in this segment are not considered sustainable in the long term.

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