- Balrampur Chini shares rose 17.87% to close at Rs 767.10 on NSE on Thursday
- Stock gained about 25% in five sessions amid tighter sugar supply conditions
- India limits sugar stockholding for bulk users to 15 days from Sept to Nov
Balrampur Chini Mills Ltd. shares jumped 17.87% on Thursday, closing at Rs 767.10 apiece on the NSE, as the sugar stock extended its recent rally even as the government tightened stockholding restrictions amid record-high sugar prices.
The stock has gained around 25% over the past five trading sessions. The move comes at a time when the sugar market is witnessing tighter inventory conditions and firmer domestic sugar prices. Balrampur Chini management has said the tighter demand-supply balance has supported sugar realisations and helped offset higher sugarcane and other costs.
“This tighter demand-supply balance has led to firming up of domestic sugar prices, providing relief to millers and helping offset higher sugarcane costs and other costs & margin pressures in terms of distillery, especially,” said Chairman and Managing Director of Balrampur Chini Mills Vivek Saraogi.
Government Tightens Sugar Stockholding Rules
India has ordered that bulk consumers using more than 10 tonnes of sugar a month cannot hold inventories for more than 15 days, Reuters reported, citing a government order. The new restriction will come into force from Sept. 1 and remain effective until Nov. 30.
The latest move follows a July order that restricted sugar dealers from holding stocks for more than 30 days. That earlier order, issued by the Department of Food and Public Distribution, also capped dealer stock at 4,000 quintals at any time and came into effect from Aug. 1.
The latest restriction comes as sugar prices have climbed sharply amid tightening supplies and stronger demand ahead of the festival season, Reuters reported.
Also Read: Sugar Rush Meets Govt Clampdown: Stock Limits Tightened As Prices Soar Ahead Of Festive Season
Why Balrampur Chini Is In Focus
For Balrampur Chini, the key factor remains the sugar price environment and the company's inventory position. As of June 30, the company was carrying 45.67 lakh quintals of sugar inventory at an average carrying cost of Rs 37.19 per kg. Management said firm sugar prices provide a favourable base for profitability in the coming quarters.
The company also said the 2025-26 season was tighter than anticipated because of lower-than-expected production, healthy domestic consumption and diversion towards ethanol. This resulted in an inventory drawdown and supported domestic sugar prices.
The management also expects the company's 80,000-tonne PLA project to progress towards commissioning, with lactic acid commissioning expected in October and PLA commissioning in December.
Stock Price Movement
Balrampur Chini shares closed at Rs 767.10 on Thursday, up Rs 116.30, or 17.87%, from the previous close of Rs 650.80.
The stock has rallied over 77.5% in this calendar year, 2026, while over the past five years, the stock has delivered an overall return of more than 118%.
Investors will track sugar prices, inventory levels and government policy on ethanol diversion as the next crushing season approaches. Balrampur Chini management said the outlook for the 2026-27 season remains dependent on monsoon progress, crop development and yields, with more clarity expected towards the end of September.
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