Balrampur Chini Shares Jump 13% To Record High As Sugar Prices Rise; Stock Gains 67% In 2026
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Balrampur Chini Mills shares had ended at Rs 630.25 on the BSE on Wednesday, down Rs 24.10 or 3.68%. The stock's sharp move on Thursday has taken it well above that level as investors track the impact of tighter inventory rules and elevated sugar prices on the sector despite a weaker Q1 FY27 profit.
Shares of Balrampur Chini Mills surged as much as 13.37% on Thursday, August 20, hitting a fresh record high as sugar stocks remained in demand after the government tightened inventory limits for bulk buyers.
The stock was trading 12.9% higher at Rs 732.50 at around 1:10 PM. With Thursday's rally, Balrampur Chini has gained around 67% so far this year. The latest move also marked the stock's strongest single-day gain since January 4, 2022, when it had risen 14.2%.
Other sugar stocks were also seeing strong buying. Dhampur, Dwarikesh Sugar and Ugar Sugar Works gained between 8% and 11% during the session.
The Centre's latest order limits sugar inventories held by dealers and traders using more than 10 metric tonnes of sugar a month to 15 days of consumption. The restriction will come into effect from September 1 and remain in place until November 30, 2026.
The limit applies to dealers and traders and not sugar mills. The move is aimed at improving the availability of sugar in the domestic market, preventing hoarding and bringing down prices after a sharp rise in recent weeks.
The government had previously allowed dealers to hold up to 30 days of inventory from August 1 to November 30. Despite that measure, sugar prices have risen around 10% over the past month.
The all-India average ex-mill sugar price stood at Rs 5,400-5,500 per quintal on August 18, compared with around Rs 3,900 a year earlier, according to an industry body.
Supply concerns are also adding to the focus on sugar prices. During FY26, total sugar availability was estimated at 320 lakh tonnes, against domestic consumption of 285 lakh tonnes and exports of 7 lakh tonnes. Closing stock was estimated at 35 lakh tonnes.
With the new sugar season beginning on October 1, lower opening inventories could put further pressure on supplies, particularly as demand typically rises during the festive period.
Balrampur Chini Mills Q1 FY 2026-27 Results Snapshot
The latest rally comes despite a mixed set of first-quarter numbers from Balrampur Chini Mills.
For the quarter ended June 30, 2026, the sugar manufacturer reported a 14.5% year-on-year decline in net profit to Rs 44.1 crore from Rs 51.6 crore in the same quarter last year.
Revenue, however, increased 6% year-on-year to Rs 1,636.8 crore from Rs 1,542.3 crore.
EBITDA fell 15% to Rs 114 crore from Rs 134.3 crore a year earlier. As a result, EBITDA margin narrowed to 6.96% from 8.71%, a contraction of 170 basis points.
The company had also announced the appointment of Vartika Shukla as an Additional Director in the category of Non-Executive Independent Director, subject to shareholder approval. Her five-year term is effective from August 11, 2026, to August 10, 2031.
Shukla has more than 38 years of experience across engineering consultancy, project management, business strategy and the energy sector. She spent her career at Engineers India Ltd, under the Ministry of Petroleum & Natural Gas.
Following the June quarter results, shares of Balrampur Chini Mills had ended at Rs 630.25 on the BSE, down Rs 24.10 or 3.68%, before Thursday's sharp rally.
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Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
