EID Parry — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

EID Parry reported a mixed Q3 FY26, marked by significant debt reduction in its refinery business and strong growth in sugar crushing and production volumes. However, the Consumer Products Group experienced a substantial decline in turnover due to channel restructuring and lower commodity prices, leading to a ₹10 crore impairment. The sugar and distillery segments continue to face cost pressures from stagnant ethanol prices and subscale operations, while the refinery business showed improved profitability.

Highlights

  • Refinery loss significantly reduced to ₹4.53 crores in Q3 FY26 from ₹17.53 crores in Q3 FY25, indicating a 74.16% improvement.

  • External borrowing for the refinery business reduced by 85.34% to ₹78 crores as of December 31, 2025, from ₹532 crores a year ago.

  • Sugar crushing volume increased by 20.55% to 15.31 lakh metric tons (LMT) in Q3 FY26 compared to 12.7 LMT in Q3 FY25.

  • Sugar production grew by 29.9% to 1.39 LMT in Q3 FY26 from 1.07 LMT in Q3 FY25.

  • Co-generation units produced increased by 16.14% to 1,108 lakh units in Q3 FY26 compared to 954 lakh units in Q3 FY25.

Concerns

  • Consumer Products Group (CPG) turnover declined by 39.41% to ₹143 crores in Q3 FY26 from ₹236 crores in Q3 FY25, primarily due to channel restructuring and lower pulse prices.

  • Sugar sales volume decreased by 8.74% to 94,000 MT in Q3 FY26 compared to 103,000 MT in Q3 FY25.

  • The sugar and distillery businesses face cost pressures due to flat ethanol prices and subscale operations in Tamil Nadu and Andhra Pradesh.

  • A one-time impairment of ₹10 crores was recorded in Q3 FY26 related to CPG channel correction.

Key financials

  1. Refinery Loss ₹4.53 Cr -74.2%YoY
  2. CPG Turnover ₹143 Cr -39.4%YoY
  3. Sugar Crushing Volume 1.531 LMT +20.5%YoY
  4. Sugar Production 1.39 LMT +29.9%YoY
  5. Co-generation Units Produced 1,108 lakh units +16.1%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

  • Sugar
    15.31 LMT Crushing Volume11.2% Recovery1.39 LMT Production₹4,122/mt Cane Landed Cost94,000 MT Sales Volume₹40 Average Selling Price₹389 Cr Revenue
  • Consumer Products Group
    ₹143 Cr Turnover
  • Co-generation
    1,108 lakh units Units Produced605 lakh units Units Exported₹4.4/unit Average Tariff₹37 Cr Revenue
  • Distillery
    407 lakh litres Litres Sold215 lakh litres ENA Sold192 lakh litres Ethanol Sold₹67.91/litre Price Realization₹289 Cr Revenue
  • Nutra
    ₹6 Cr Indian Operations Turnover₹62 Cr Consolidated Turnover
  • Refinery
    ₹714 Cr Operational Revenue₹4.53 Cr Loss2.2 LMT Refined Sugar Production1.57 LMT Refined Sugar Sales

Capital allocation

high confidence
  • Debt Debt disclosed
    • Repayment External borrowing for the refinery business reduced from INR 532 crores as on Dec 31, 2024, to INR 78 crores as on Dec 31, 2025. ₹454 Cr
    External borrowing is about INR78 crores as on 31st December 2025 as against INR532 crores as on 31st December 2024. ... We already have mentioned in the investor presentation, Prashant. So short term, it would be about INR750 crores or so.
  • M&A Coromandel International Limited (CIL) shares Divestment · Announced

    Enabling resolution by the Board for potential future use of funds.

    Sale of 1.5 lakh shares, representing 0.51% of CIL's paid-up capital. No immediate sale or timeline announced.

    Basically, you have mentioned that you are going to sell 15 lakh shares of Coromandel, around 0.51% of CIL's paid up capital. What is the timeline for the deal and going forward, what is the outlook of that investment in Coromandel? ... So Mr. Saha, it's an enabling resolution, which the Board has taken. So, we will determine at the right time basis any appropriate use of funds, which we may have, we will determine at that point in time. It's an enabling resolution for now.

Guidance & targets

CPG Business Model

  • Operating Model Efficiency CPG Business Model · Q1 · Medium confidence better clip with more efficient operating model
    I think we should be back at a better clip in Q1 with a more efficient operating model from the staples perspective.

    — Muthiah Murugappan

CPG Strategy

  • New Category Announcements CPG Strategy · Q1 · High confidence announce newer categories
    We will also announce in Q1 the newer categories we wish to enter in the food FMCG space.

    — Muthiah Murugappan

  • Industry Expert Report Completion CPG Strategy · next 6 weeks · High confidence done in 6 weeks
    Yes, it will be done in the next 6 weeks.

    — Muthiah Murugappan

Refinery Business

  • White Premium Environment Refinery Business · next 2 quarters · High confidence continue under pressure
    So, we expect this tightness or the lower white premium environment to continue at least for the next 2 quarters going forward.

    — Suresh Kannan

Distillery Business

  • ENA Pricing Pressure Distillery Business · after another month or so · Medium confidence upward revision
    We expect the pressure on ENA to continue for another month or so after which you will see an upward revision once the crushing comes to a close in Karnataka markets.

    — Abdul Hakeem Ashiq

CPG Growth

  • Outlet Coverage Growth CPG Growth · next few quarters · Medium confidence growing as per requirements
    This will be growing as per our requirements of the business in the next few quarters.

    — Balaji Prakash

Market context

  • Global Sugar Surplus Market Outlook · SY '25-'26 · High confidence 3.5 MMT
    S&P Platts projects the global surplus of 3.5 million metric tons (MMT) for '25-'26.

    — Muthiah Murugappan

What to watch in Q4 FY26

CPG Operating Model & New Categories

Q1 FY27
Current Under restructuring and expert review
Target Stronger operating model and announcement of new categories in food FMCG space

Why it matters

Indicates the effectiveness of the CPG restructuring and the company's future growth strategy in new segments.

I think we should be back at a better clip in Q1 with a more efficient operating model from the staples perspective. ... We will also announce in Q1 the newer categories we wish to enter in the food FMCG space.

Risks & concerns

  • Stagnant MSP and Ethanol Prices

    high

    No upward revision of MSP and ethanol prices for almost 3 years, coupled with increased competition from grain ethanol, puts a strain on sugar and distillery profitability.

    Management acknowledged

  • CPG Channel Restructuring & Lower Pulse Prices

    high

    Restructuring of the distribution channel and 35-40% lower market prices for pulses/lentils led to a 39.41% decline in CPG turnover and a ₹10 crore impairment in Q3 FY26.

    Management acknowledged

  • Global Sugar Surplus

    medium

    S&P Platts projects a global surplus of 3.5 MMT for SY '25-'26, contributing to lower raw sugar prices and white premium pressure.

    Management acknowledged

  • El Nino Impact on Rainfall

    medium

    IMD warned of El Nino signs from August to September, potentially impacting rainfall distribution and reservoir levels later in the year.

    Management acknowledged

  • Subscale Operations in TN/AP

    medium

    Lesser cane planting in Tamil Nadu and Andhra Pradesh impacts throughput and necessitates sourcing molasses for distilleries, leading to cost pressure.

    Management acknowledged

  • White Premium Pressure

    medium

    White premium values are under pressure due to surplus trade flows and higher supplies from Brazil and India, expected to continue for at least the next two quarters.

    Management acknowledged

  • ENA Pricing Pressure in Karnataka

    medium

    Current ENA pricing in Karnataka is under pressure (₹58-60) due to under-allocation of ethanol, with an upward revision expected only after the crushing season closes.

    Management acknowledged

Q&A highlights

7 direct
Challenges and Future Outlook for Sugar/Distillery and CPG Direct
There's still really no clarity on any upward revision of the MSP. So, this continues to put a strain from a sugar perspective. If you look at the distillery segment, volumes are sort of largely hovered around last year's volumes. The challenge here is the ethanol offtake prices have also not gone up, and this has been now almost 3 years at the same ethanol offtake prices. ... In terms of the Consumer Products Group, I think the sweetener segment continues to fare well. We, of course, launched in 2 years ago into the staple segment. Here, we've consciously taken a bit of correction. We just want to correct the business model to better manage working capital and to have a sort of a stronger distribution model.

Management detailed the specific headwinds in sugar/distillery (flat ethanol prices, MSP uncertainty, subscale operations) and explained the CPG revenue decline as a conscious restructuring for better efficiency and distribution, with future growth expected.

Asked by Vaishnavi Gurung

Total Impact of CPG Channel Correction Partial
We've already taken in Q3, an INR10 crore impairment. So that's from an impact perspective. ... So, we will review at the end of quarter 4, whether there's any further impact, we're not foreseeing such a high impact, if at all.

Analyst sought total impact, but management only quantified the Q3 impairment (₹10 crores) and deferred a full assessment to Q4, suggesting no significant further impact is foreseen.

Asked by Vaishnavi Gurung

Inventory, Receivables, and Payables as of December 31st Direct
So as far as the receivable is concerned, about INR170 crores or so, Prashant. As far as the payables is concerned, it is about INR250 crores. So as far as the inventory is concerned, it is about INR800 crores.

Provided specific working capital component figures, which are crucial for assessing liquidity and operational efficiency.

Asked by Prashant

Refinery Cost Sustainability and Declining Spreads Direct
The costs have come down during the current year mainly on account of energy efficiency projects that are implemented over end of last year giving results. So, we expect we should be able to sustain these cost levels going forward. ... So, the white premiums, which is the indication of spread availability has been under pressure over the last 6 months. So, this is basically a reflection of the surplus refined sugar and white sugar availability globally. So, we expect this tightness or the lower white premium environment to continue at least for the next 2 quarters going forward.

Management confirmed cost reductions are sustainable due to efficiency projects and explained the reason for declining white premiums (global surplus), guiding for continued pressure for the next two quarters.

Asked by Atul Rastogi

Negative Working Capital and Borrowing Levels Direct
As far as the net working capital is concerned, you must see it in conjunction with the borrowings, external borrowings that are there. As the external borrowings have come down, the net negative working capital has increased. ... if you look, year-to-date (YTD) is as much as INR532 crores, whereas December '25, it is at INR78 crores. ... So short term, it would be about INR750 crores or so.

Clarified that the increase in negative working capital is linked to a significant reduction in external borrowings (from ₹532 crores to ₹78 crores for refinery) and efficient inventory management, with overall short-term borrowing at ₹750 crores.

Asked by Atul Rastogi

Degrowth in Non-Sugar Branded Business Direct
The reason for reduction is mainly on account of the restructuring of the distribution channel and lower release quota for the sweetener. But then, the focus is more on the retail pack and profitable product mix in non-sweetener segment. ... So, I think on value terms, the price of pulses itself was about 35% to 40% lower in the market compared to the previous year.

Management attributed the decline to lower market prices for pulses (35-40% YoY drop) and strategic channel restructuring to focus on profitable SKUs and retail packs, rather than a fundamental demand issue.

Asked by Ajit

Scaling in South Market and Learnings for CPG Direct
We've this year, we had bought lentil in raw form, and we have bought our own plant, and we have processed it. So, we've done a full scale backward integration of this entire exercise and our learnings in that area are significant in terms of the cost of conversion as well as how do we play out on the pricing. ... The right to win is very, very clear in the South markets because of the 'Parry' brand and the share that we have in the sweetener business is a very dominant share. So, I think we'll be focusing more on the South markets in order to stay focused on the business.

Management highlighted strategic backward integration in pulses and reaffirmed focus on leveraging the strong 'Parry' brand equity in the South market for CPG growth, indicating a clear regional strategy.

Asked by Rushabh

New Product Launches and Inorganic Opportunities in CPG Direct
We will also announce in Q1 the newer categories we wish to enter in the food FMCG space. ... Yes, it will be done in the next 6 weeks. As I said, we'll cover elements of that in May. ... So, Gautam, yes, we are open to inorganic opportunities. I think it would be the nice optimal way to grow.

Management confirmed plans to announce new food FMCG categories in Q1, informed by an industry expert report due in 6 weeks, and expressed openness to inorganic growth as an optimal strategy for expansion.

Asked by Ajit, Gautam

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Detailed narrative

Q3 FY26 Performance Overview

EID Parry reported a mixed Q3 FY26. The sugar segment saw a 20.55% increase in crushing volume to 15.31 LMT and a 29.9% rise in sugar production to 1.39 LMT, despite a slight revenue decline to ₹389 crores. The Co-generation business also performed well, with units produced growing by 16.14% to 1,108 lakh units. The refinery business significantly improved, reducing its loss to ₹4.53 crores from ₹17.53 crores in the prior year, driven by energy efficiency projects.

Sugar & Biofuel Segment Challenges

The sugar and distillery businesses continue to face significant cost pressures. Management highlighted that MSP and ethanol prices have remained flat for almost three years, with no clarity on upward revisions. Increased competition from grain ethanol and subscale operations in Tamil Nadu and Andhra Pradesh, due to lower cane planting, further impact profitability by requiring more expensive molasses sourcing for distilleries. Despite these challenges, the team focused on efficiency and cost management.

Consumer Products Group (CPG) Restructuring & Future Strategy

The CPG segment experienced a substantial 39.41% decline in turnover to ₹143 crores, primarily due to a conscious restructuring of the distribution channel and lower market prices for pulses (35-40% YoY drop). The company recorded a ₹10 crore impairment in Q3 related to this correction. Management aims for a more efficient operating model in Q1 FY27, focusing on profitable SKUs and leveraging the strong 'Parry' brand in the South market. New categories in the food FMCG space are expected to be announced in Q1 FY27, informed by an external industry expert report due in six weeks.

Refinery Business Turnaround and Cost Management

The refinery business demonstrated a significant turnaround, reducing its loss from ₹17.53 crores in Q3 FY25 to ₹4.53 crores in Q3 FY26. This improvement is attributed to energy efficiency projects implemented since the end of the last fiscal year, which management expects to sustain. However, white premium values remain under pressure due to global sugar surplus and higher supplies, a trend expected to continue for the next two quarters.

Capital Structure and Debt Reduction

EID Parry achieved a substantial reduction in external borrowing for its refinery business, bringing it down by 85.34% from ₹532 crores as of December 31, 2024, to ₹78 crores as of December 31, 2025. This reduction is linked to an increase in negative working capital, higher inventory turnover, and longer credit periods from suppliers. Overall short-term borrowing for working capital stands at approximately ₹750 crores.

Strategic Growth Initiatives and Inorganic Opportunities

The company is actively exploring growth avenues, particularly in the CPG segment, with plans to announce new categories in the food FMCG space in Q1 FY27. Management also indicated an openness to inorganic opportunities as an optimal strategy for growth, especially in segments beyond sweeteners and staples. An enabling resolution was passed by the Board for the potential sale of 1.5 lakh shares of Coromandel, providing flexibility for future capital allocation decisions.

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