E.I.D. Parry Q2 FY'26 results navigate market shifts, report increased EBITDA

E.I.D. Parry (India) Limited reported a global sugar market projected for a mild surplus in Sugar Year 25-26, driven by increased production in Brazil, India, and Thailand. India's net sugar production for Sugar Year 24-25 stood at 26.1 MMT, with domestic consumption at 28.1 MMT. Sugarcane output for Sugar Year '26 is expected to rise by 15%, potentially softening sugar prices. The company noted that the government of Karnataka recently increased the price of cane by INR 50 per metric ton over FRP.

For Q2 FY'26, E.I.D. Parry crushed 3.66 lakh metric tons (LMT) of cane, down from 5.62 LMT in the prior year, with a recovery rate of 7.97%. Sugar production was 27,000 metric tons (MT) compared to 42,000 MT previously. Sugar sales were 83,000 MT at INR 41.19 per kg, with a closing stock of 66,000 MT. The sugar segment achieved a turnover of INR 368 crores. Ethanol operations saw sales of 409 lakh litres (170 lakh litres ENA, 233 lakh litres ethanol) at INR 67.50 per litre.

The consumer products group reported a turnover of INR 169 crores, a 30% degrowth due to release quota restrictions and lower dal prices. Nutraceuticals, including US Nutra operations, achieved INR 61 crores turnover. Overall EBITDA for the quarter was INR 58 crores, a significant increase from INR 29 crores in the prior period, partly due to an insurance claim for facility damage in the US. The company expects Q3 volumes in the consumer business to be impacted by channel correction exercises.