Balrampur Chini vs Dalmia Bharat vs Dhampur Sugar vs Shree Renuka Sugar: Which sugar stock to buy after Q4 results 2026?

Sugar companies reported challenging earnings for the fourth quarter of FY26, with most players facing pressure on profitability amid rising costs, lower sugar realisations, and weakness across the ethanol and distillery businesses.

Balrampur Chini Mills reported a 30% year-on-year decline in consolidated net profit to ₹159.56 crore for the March quarter, despite a 7% increase in total income to ₹1,616.23 crore.

For the full fiscal year, the company's net profit fell to ₹378.46 crore from ₹436.92 crore a year earlier, highlighting the impact of higher expenses on margins.

Similarly, Dalmia Bharat Sugar and Industries saw earnings weaken during the quarter. Revenue remained largely flat at ₹1,025 crore, while operating EBITDA declined 13% to ₹171 crore. Profit after tax plunged 48% to ₹104 crore, reflecting margin compression and softer profitability across business segments.

Dhampur Sugar Mills also reported subdued performance, with net sales falling 20.75% year on year to ₹490.65 crore. Net profit declined 6.46% to ₹45.64 crore, while EBITDA dropped nearly 10%, indicating continued pressure on operating performance.

Among the major sugar producers, Shree Renuka Sugars delivered one of the weakest quarters. While the sugar refinery business remained its largest revenue contributor and the only profitable segment, operating profitability deteriorated sharply. Quarterly operating profit (PBDIT) collapsed to ₹38.7 crore from ₹291.8 crore in the year-ago period, while operating margins narrowed significantly to 1.52% from 10.76%, reflecting severe cost pressures and a challenging sugar cycle.

Which sugar stock to buy?

Sunny Agrawal, Head of Fundamental Research at SBI Securities, believes policy measures related to sugar pricing and ethanol procurement will be key drivers for Balrampur Chini Mills and the broader sugar sector going forward.

According to Agrawal, India's sugar industry is currently operating with relatively low inventory levels, prompting the government to take proactive measures such as restricting exports to ensure adequate domestic availability of sugar, an essential commodity. However, he pointed out that while the Fair and Remunerative Price (FRP) paid to sugarcane farmers has increased steadily over the years, the Minimum Selling Price (MSP) of sugar has remained unchanged at ₹31 per kg since 2019, putting pressure on sugar millers' margins.

He believes any upward revision in the MSP would provide a significant boost to industry profitability, including for companies such as Balrampur Chini Mills.

Agrawal also highlighted the growing importance of ethanol in the sector's earnings profile. Amid ongoing geopolitical tensions in the Middle East and concerns over energy security, the government remains focused on increasing ethanol blending. Any increase in ethanol procurement prices by oil marketing companies (OMCs), particularly in the upcoming procurement cycle, could act as a meaningful earnings catalyst for integrated sugar producers.

He noted that Balrampur Chini has the capacity to produce 34-35 crore litres of ethanol annually, positioning it well to benefit from any favourable pricing revisions.

From a long-term perspective, Agrawal said the company's upcoming Polylactic Acid (PLA) plant could diversify its product portfolio by adding a higher-margin business segment, thereby improving earnings stability and reducing dependence on the cyclical sugar business.

He also highlighted Balrampur Chini's relatively strong balance sheet as a key advantage, noting that lower leverage provides additional comfort in a heavily regulated sector where policy decisions can have a significant impact on profitability.

Techincal Views

Virat Jagad, Senior Technical Research Analyst at Bonanza, believes the bullish outlook on Balrampur Chini Mills remains firmly intact, although the stock has now entered a more mature phase of its uptrend.

According to Jagad, the stock has maintained its strength after breaking above key resistance levels around ₹478 and ₹520, and continues to trade comfortably above its 20-day, 50-day, 100-day and 200-day moving averages, signalling a strong underlying trend. He noted that the chart structure remains constructive, with a consistent pattern of higher highs and higher lows.

Jagad added that the Relative Strength Index (RSI) has cooled to neutral levels, suggesting that excess froth has been absorbed without undermining the broader uptrend. While the stock may no longer offer an early-entry breakout opportunity, he believes it remains an attractive trend-following play for investors.

Comparing it with peers such as Dhampur Sugar Mills, Shree Renuka Sugars and Dalmia Bharat Sugar and Industries, Jagad said Balrampur Chini Mills continues to stand out due to its superior price structure, stronger momentum and greater trend consistency.

For investors seeking fresh exposure, he recommends avoiding aggressive buying during sharp rallies and instead accumulating the stock on dips towards key support zones and moving average levels, where the risk-reward profile becomes more favourable. A staggered investment approach, with partial allocations at current levels and additional purchases on corrections towards the breakout region, would be prudent, he said.

Jagad believes the medium- to long-term outlook remains positive as long as the stock holds above its key support levels and stays above the 50-day moving average, making it one of the preferred picks within the sugar sector.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.