Hello, everyone, and a warm welcome on behalf of DAM Capital Advisors to the Q4 and FY 2026 earnings call of E.I.D. - Parry.

We thank E.I.D. - Parry's management for giving us the opportunity to host this call.

On the call today, we have Mr. Muthiah Murugappan, Whole-Time Director and CEO, along with the senior management team of E.I.D.

- Parry. I hand over the call to the management for opening remarks, followed by a Q&A session.

Thank you, and over to you, sir.

Thanks, Abhishek, and good morning to everyone. It gives me a great pleasure to be a part of the analyst call to share an update on the global as well as the Indian scenario, and explain further on Q4 performance and FY 2026 performance of our company.

I'll start with the global scenario. Global sugar markets are softening with a clear downward price trajectory and a shift back to surplus conditions.

White sugar prices have corrected from USD $500 per ton levels to about in 2025 to about USD $420 per ton levels by early 2026, while raw sugar has declined from about 18 cents per pound to about 14 cents per pound in the same period. This reflects improving global supply, with total production of 196.7 million tons exceeding demand of 193.8 million tons in 2025-2026, led by higher output in India and Thailand, partially offsetting mixed trends in Brazil and the EU.

Overall, global balances are moving from deficit to surplus, and exerting downward pressure on prices, and limiting export attractiveness. On the India front, sugar year 2025-2026 estimates are as follows: gross production 31 million tons, diversion for ethanol 3 million, domestic consumption 28 million, exports of 0.7, and closing stocks of 4.25 million tons.

Domestic sugar trends indicate a recovery in production led by key states, with an all-India output net of ethanol diversion reaching 27 million tons as of March 31st, driven primarily by Maharashtra and Karnataka, which grew in excess of 20%, while Uttar Pradesh remained flat. At a balance sheet level, internal consumption has been revised downwards to 28 million tons, keeping the overall availability comfortable despite the 3 million diversion to ethanol and limited exports of 0.75 million.

Further exports have been banned till September 30th. Regionally, the trend reflects a shift towards the Western and Southern states, which are driving incremental output, while UP remains stable, but not the primary growth driver.

I now hand the call over to Mr. Venkateshwarlu, our CFO, to take you through the operating and financial performance of the company.

Thank you, Muthu, and good morning to all participants. It's a great pleasure to be part of this analyst call and to share the key information of the operational and financial performance of the company.

I would like to share share with you the key operating parameters of each of the segment. Sugar operations: The crushing operations in Karnataka and Tamil Nadu and AP we have completed in Q4.

On an average, we have run about 77 days against the 76 days of the corresponding quarter of the previous year. As far as the cane cane crushing is concerned, we crushed about 17.75 lakh metric tons against 17.62 lakh metric tons of the corresponding quarter of the previous year.

As far as the recoveries is concerned, for the current quarter, we are at 11.19 against 10.39 of the corresponding quarter of the previous. As far as the sugar production is concerned, in the current quarter, we produced about 1.74 lakh metric tons of sugar against 1.55 lakh metric tons of the corresponding quarter of the previous year.

Cane cost for the current quarter is Rs. 4,087 per metric ton as against Rs.

3,768 per metric ton of the corresponding quarter of the previous year. This increase is mainly on account of the FRP increase, about Rs.

150 per metric ton, which is announced by the central government. As far as the sugar volumes is concerned, as far as the biofuel division is concerned, we sold about 97,000 metric tons, which includes about 6,000 metric tons of the exports, against 73,000 metric tons of the corresponding quarter of the previous year.

As far as the sugar realization is concerned, we are for the current quarter, it is Rs. 39.28 against Rs.

39.22 of the corresponding quarter of the previous year. We maintained at the closing stock at 1.92 lakh metric tons for the current quarter, which is valued at Rs.

39 per kg, against 1.83 lakh metric tons of the corresponding quarter of the previous year. As far as revenue from the sugars is concerned, about Rs.

466 crores for the current quarter as against Rs. 408 crores of the corresponding quarter of the previous year, registering an increase of about 14% on account of the exports and the higher release quota for the current quarter.

As far as the co-gen operations is concerned, we generated about 1,499 lakh units of units, as against 1,450 lakh units in the corresponding period of the previous year. As far as the power exports is concerned, we exported about 845 lakh units as against 732 lakh units in the corresponding period of the previous year.

As far as power tariff is concerned, we could able to realize Rs. 4.57 per unit for the current quarter as against Rs.

4.38 per unit in the corresponding period of the previous year. As far as the revenue is concerned, for the current quarter, about Rs.

66 crores as against Rs. 58 crores in the corresponding period of the previous year.

As far as the distillery operations is concerned, we produced about 452 lakh liters during the quarter as against 438 lakh liters of the corresponding quarter of the previous year. As far as the sales is concerned, 404 lakh liters we sold the current quarter as against 389 lakh liters in the corresponding previous quarter.

The composition of 404 lakh liters consists of 150 lakh liters of [unclear] 254 lakh liters of ethanol. As far as the price realization is concerned, average realization is at Rs.

64.75 for the current quarter as against Rs. 64.98 per liter as compared to the corresponding period of the previous year.

As far as the revenue is concerned, for the current quarter, we have achieved about Rs. 275 crores revenue as against Rs.

268 crores during the corresponding period of the previous year. As far as the Nutra operations is concerned, we achieved a turnover of about Rs.

13 crores in the current quarter as against Rs. 9 crores in the corresponding period of the previous.

The increase is due to the more exports to the US, as the US tariff has got settled at 10%. At a consolidated level, turnover was about Rs.

50 crores as against Rs. 60 crores in the corresponding period of the previous year.

Next is like a consumer product group, CPG division. The consumer product group has achieved a turnover of Rs.

115 crores during Q4 as against Rs. 195 crores of the corresponding period of the previous year, registering a decline of about 48%.

The decrease in CPG revenues stemmed from a purposeful operating model recalibration, with a deliberate shift towards better channel optimization and an improvement in the margin profile of the business. I'll move on to the refinery operations.

We produce with the production in the refinery in the current quarter is about 1.69 lakh metric tons against 1.17 lakh metric tons in the corresponding previous year. As far as the sales is concerned, we sold about 2.3 lakh metric tons, with the same was in the previous corresponding quarter was about 2.05 lakh metric tons.

As far as revenue is concerned, the current quarter about Rs. 1,006 crores, Rs.

1,006 crores against Rs. 1,019 crores in the corresponding previous year quarter.

Loss for the current quarter, after accounting of the other cost, about Rs. 293 crores against loss of Rs.

99 crores in the corresponding previous year quarter. Inter-corporate deposits are nil.

As far as external borrowings is concerned, Rs. 593 crores.

I also wanted to update the status on the PSRSPL the closing operations, because we intimated to the stock exchange by the E.I.D. - Parry and the statutory authorities as on 31st March about the closure of the operations.

At the same time, we have also inform all the statutory authorities in the first week of April. As far as the labor settlement is concerned, the final settlement for all the management staff is completed in the first of April 2026.

The remaining contractors are completed by 15th 15th April also. The next activity what we have taken is on the SEZ SEZ exit.

The unit is located in the SEZ. We obtained a SEZ exit principal exit letter from the SEZ authorities on the 20th April.

Exit formalities are commenced and expected to be completed by 30th September 2026. As far as the bank loan payments is concerned, $49 million, equivalent to Rs.

460 crores, paid to the banks as on 24th April. This was funded through funded through E.I.D.

- Parry equity infusion, about Rs. 338 crores, and the cash available with the PSRSPL as on 31st March '26.

The further payment to the banks on 15th May 2026, about $29 million, equivalent of INR is Rs. 272 crores.

This entire thing is funded through investments from the E.I.D. - Parry.

With these two tranches of the investment, EID has infused so far by 15th of May about Rs. 610 crores into the payment obligations of the PSRSPL.

Another $1.4 million scheduled for the payment in June '26. This will be funded through internal receivables from the PSRSPL.

The liquidation with the above, all the loans obligations of PSRSPL will get completed by 30th of June '26. As far as the liquidation of the plant and machinery is concerned, discussions are initiated with the vendors, and also exploring to call for the tenders from the interested parties on the machineries which is required.

Thanks, Venkat. I think we've also uploaded the presentation, quarterly presentation on BSE and NSE, and hope you'll have chance to go through that.

We are now open for questions.

Hi. Thanks for taking my question.

The first question is on the consumer goods business. Now going ahead, what's the plan over there in terms of, we have the sweetener division and now you are focusing on some adjacencies.

What would those products look like? Basically when you say value-added, what should we define the margin profile of those products as opposed to the rice and pulses that we were doing?

Gautam, thanks for the question. Going forward on the CPG side, the strategy is to have a stronger margin profile on the business model.

I think as you indicated, some of the rice and pulses etc. are pretty low-margin products.

We have defocused to some extent. We're focusing on those products only in sort of few channels.

In terms of the margin accretive products and value-added products, they will be more on the browns line, which is jaggery, couple of variants of brown sugar, premium whites. This is all in the realm of sweeteners.

Newer product launches also in the realm of sweet products, which are being planned for later in the year. A lot of these value-added products move the business into the 30+% gross margin level.

This is really the intent in terms of how we want to move forward.

Okay. We were looking at some acquisition also, right?

You had mentioned in the last call. Has there been any progress made on that or and are we still looking at it, or there's a shift in strategy for that also?

Gautam, I think on the last call, we had sort of outlined that we will specify the sort of segments within the food FMCG space which we're going to be looking at. I think the investor presentation covers that, as we talking about ethnic snacking and culinary convenience.

These are segments which we are looking at further in terms of how to enter these segments. These are conversations which we're having as well.

These are the segments of focus which we look at beyond the sweet products and sweeteners well.

Okay. Secondly, on the Nutra division, now how should we look at this division?

There are two, three products that we are focusing on. What would be the scale-up strategy over there, and what would be the general margin profile of this business once everything stabilizes?

Gautam, on the Nutra piece, Nutra India continues. There are no new product launches planned.

We obviously have the algae processing and exports which we do. That will continue.

I think they've had a reasonable performance, and I think we will continue now with some of the tariff issues being settled. We will continue to progress that piece.

I think there will be more action on the Valensa front, where we have also communicated two product launches, one on the prostate side as well as one on the derm health side. This scale-up will happen in Valensa going forward.

I think what we will see in Valensa is an expansion of top line as well as stronger bottom-line performance. As mentioned, we have reoriented the strategy a little bit.

We've also had some org and management restructuring, a stronger operating team is in place right now, and they're driving this mandate forward.

Okay. Just one last question.

Just like how we've seen the West Asia crisis, post that, have you all seen any change on the ethanol division when you're interacting with some government bodies in terms of either improving the mandate from E20 or in terms of pricing also? Do you see anything positive happening this year?

Good morning. This is Ashiq here, I head the sugar and biofuel division.

Obviously, most of the news around this is in the public space. The good development has been the government sharing their intent through the BIS spec for E30.

We have been telling this for the last 4 to 5 quarters, expect positive action from the government. It will become visible during the allocations that will come up in the new ethanol year.

We remain firmly positive that the crisis, one silver lining would be the improvement in ethanol blending percentages because it's good for the fuel security of the country.

Sir, any talks you had on pricing revisions?

Our last feel of the situation was that there may not be too much action on pricing, but there will be an action on increase in blending percentages.

Okay. Thank you so much.

Post the restructuring that has happened, I just want to understand for the say, Rs. every Rs.

100 that operating cash that is generated, how are we allocating capital now across the existing segments? If you could just share some thoughts and where are you doubling down more?

Also, is there any strategy divestments left, or looking to continue all the existing businesses?

Rushabh, thanks for your question. I think now we will, post the restructuring at the refinery, I think we will be continuing with the existing sugar and biofuel operations, CPG, as well as the Nutra operations.

I think that's the plan. In terms of capital allocation, there will be a focus on the CPG segment.

A lot of the investment there really goes into the A&SP program. There's no real capex as such.

The only capex that we're doing this year is largely the new jaggery facility, that's about a 45 odd crore capex which we're doing. There are no other capex planned.

I think it is just given the industry situation, given perhaps the more macroeconomic situation, I think we will hunker down and run for cost and efficiency in terms of the core business, and in terms of the CPG business, of course, invest in brand building, expansion of distribution, and strengthening of the marketing mix.

In terms of the consumer products, just a follow-up. I think you have recalibrated the strategy, you're focusing more on the higher-margin segments.

Is it reasonable to assume that I think since you have been in this segment since quite a while now, at least in the next 3 to 4 years, can we assume a significant share of profits or revenue, say, this 20-25% coming from this segment? Or how should one look at the segment scaling up now?

Or it is too early to say

or to... Rushab, the intent is to break even within the next 6 to 8 quarters and exit this decade with a good single-digit percentage EBITDA on this business.

Okay? Sir.

Thank you.

Good morning. Can you hear me?

Yes, we can.

Thanks for the opportunity. Sir, just couple of questions.

The first one is there was an recent APTEL September 2025 tariff ruling which many of the Tamil Nadu sugar companies have taken advantage of. Just want to know, is that award not applicable to E.I.D.

- Parry?

Can you repeat the question?

APTEL.

No,

it's not. Some of the others took benefit.

Not

folks who are supplying power to TANGEDCO.

TANGEDCO, which was applicable to us because largely our power exports are through IEX.

Some of our peers have taken benefit of it, you're right. Okay.

Because

I saw even EID was mentioned in the tribunal order as a co-applicant. That's the reason I'm asking.

You want to comment on

that? No, earlier we may be done it in the past.

It's not now, maybe, because the order is applicable, I think, way back 2010 something like 2012. Correct,

my colleague is just commenting on that.

At present, we are exporting mostly on exchanges, but the tariff order also predates. We had some units where had power purchase agreement, we may get little benefit for those period.

Here we are yet to assess those years.

Any reason you are not taking cognizance of that benefit in this quarter? Because other companies have already accrued that benefit, that's the reason I'm asking.

We have not taken cognizance of those things.

Okay. Is it a substantial amount?

I don't think it is a substantial amount.

Got it. The second question is what is the outlook for the sugar planting in Tamil Nadu sugar mills?

We are looking at about 10% to 15% increase in the planting.

Okay. Even the recoveries were better, right, in the current year compared to the previous years?

We had a good upside on recovery. If your question is relevant to Tamil Nadu, we had about a 0.5% improvement in recovery, and that I think is endemic across multiple sugar units in TN because we have had a good weather, diurnal weather.

Karnataka also had a good upside in recovery. Those two are big positives for us.

Do you expect this momentum to continue the upcoming years? Do you see increase in planting based on the previously good performance?

Tamil Nadu will be constrained because of attractiveness of the other crops. The government has been focusing on paddy per se, as you are aware.

Having said that, we look at a portion of improving from where we are in terms of planting, and also expect some upsides on recovery.

Okay. Lastly, any word on this if the fuel blending if it goes beyond 20%, what would be the impact for sugar companies and particularly E.I.D.

- Parry? Will we participate on the upside, and what is your outlook on that?

Any increase in the ethanol blending percentage would benefit the sugar industry. Our base assumption is that government would want to support the sugar industry.

We will benefit by higher allocations in Karnataka from the OMCs. What it would translate is probably increased capacity utilizations.

Muthu pointed out in the earlier thing, we have produced about 16 crore liters. We would probably tend towards 17 crore liters if there is an improvement in ethanol blending percentage.

Okay.

Lastly, any word on MSP for sugar? Have you heard anything?

Not really. I think given the inflationary pressures, that looks unlikely.

Okay. Thank you so much.

The company has a grand vision of diversifying into a food company, but other than sugar, I don't see any growth anywhere, no significant operations either yet. When do you think Parry will turn profitable, actually?

Yes, sugar refinery is gone, that is one big stone off the neck, but other divisions are also not showing much improvement.

Thank you for the question. Maybe let me start with the first point which you made in terms of product line.

It's largely sweetener focused. I think that is obviously a core competency, and that's how we've gotten started on the CPG business.

I think we are really doubling down. We are the market leader there.

I think it makes sense to strengthen that position. We, as launched into the staples category.

We've recalibrated the strategy there to focus on certain channels. There's also more products on the sweet products and sweeteners realm which we are looking at.

I also spoke in response to an earlier question around newer categories which we're looking at, which is ethnic snacking as well as culinary convenience. There certainly is a broader vision.

You're right, for now, I think the revenues are really focused around the sweetener segment, where we're consciously doubling down with the intent of strengthening the business model and strengthening the margins on the business over time. I think doing so will enable us to really attract that capital to grow the business out further.

I think that's the intent from a CPG perspective. Now, in a broader sense, I think you have pointed out from a profitability standpoint, the refinery was, of course, a constraining element.

We have addressed it. There was some conversations around the TN operations, and I would put AP into that as well, where cane has been dwindling.

This has been a drag. Where are running very tightly on cost and efficiency.

Over time, I think we will have to manage this piece better, bring costs down, improve our working capital management to stem the losses which are coming from this segment. I think our Karnataka operations remain a very, very critical and core area of focus.

They are very positive EBITDA generating. We've looked at the metrics, and they certainly compare to best-in-class in the industry.

I think we will continue to focus on Karnataka, which will drive the core part of the company in terms of profits and cash flows.

I have two more questions, significant questions. Number one is whether are we looking at acquisitions in the food business or snacking business to grow the product line?

As I mentioned, there are two areas of interest for us: one is ethnic snacking and culinary convenience. We are working out how best to launch into these spaces.

I will reiterate that I think strengthening the current business model is very, very important in order to build a stronger business model and also to attract capital for growth. This is really why we're focused on that.

The biggest concern for the Murugappa Group is that Coromandel and E.I.D. - Parry both have become vulnerable for takeover.

Look at Coromandel's market cap, we hold 56% of it in E.I.D. - Parry.

Look at our market cap, 41% of the equity in E.I.D. - Parry is held with public.

Don't you think we are under takeover attack?

This is not something which I would like to comment on here. I think we're here to really discuss the E.I.D.

- Parry operations.

Yeah. Sir, to your question, I think I will refrain from commenting on this because this is not really in the context of the discussions here today, which is really to focus on the E.I.D.

- Parry operations. You want to add anything, sir?

I'm talking of E.I.D. - Parry survival.

Sir, E.I.D. - Parry is 40% held by promoters, 60% by public.

Coromandel 56% held by E.I.D. - Parry.

How can it be takeover threat? Anyway, this forum is not for discussion on that.

I don't think there is any such takeover threat.

I think a strong player acquiring some considerable portion of the public equity can influence some institutional investors to swing also. I'm concerned.

I'm talking out of concern. I'm not casting aspersions.

I'm worried about E.I.D. - Parry and its existence.

That is a concern for every public limited companies, because as per SEBI regulations, only 25% should be held by the promoters. Anyway,

if you are satisfied, I have nothing to get worried about. At least we get stronger answer.

Sir, we're not concerned. As this promoter group has owned and run these businesses for a very long time.

We've seen multiple cycles. We've also seen a very challenging restructuring, which we've just done of the refinery.

I think we are very, very long-term players, we're not seeing a concern. You're free to voice this, but we're not seeing a concern.

As I said, I would refrain from further discussing it here because we are here to talk about E.I.D. - Parry performance.

As a shareholder, I am concerned about when we will resume paying the dividends.

As I said, sir, I think we're working towards a strengthening of the business model. You have seen actions that we've taken through the year, and I think it's our endeavor to strengthen the business operations going forward.

Next year, possibly?

Sir, as I said, I think it's in our endeavor to strengthen the business operations of the company going forward. I can't really give you any timelines on this.

Okay.

Okay. Thank you all for logging in to the Q4 and FY 2026 conference call.

We look forward to connecting again at the end of Q1.