Is a budget DIY balanced DAC feasible from a cost effectiveness perspective

Add wings and it will fly as well.
Of course!
but the grounds for the left and right channels have to be separated as well no?
What grounds? In a balanced link, there is no ground, that's the whole point! There is positive, negative, and shield. And the signal is the difference between positive and negative wires. Each channel (left, right...) can have its own positive and negative, without any of them being "ground"... The balanced receiver does a substraction.

To make a balanced output on gear that doesn't have one, the positive pin of the XLR goes to the existing signal output, and the negative pin goes to a ground point on the board that is the closest thing to the 0V reference of the signal. If it's a DAC board with an opamp IV, the bets place would be the point that the output opamp thinks is "0V", on the arrow:

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The most important thing is that the impedances in series with the two wires must be equal, otherwise that lowers the common mode rejection (the substraction) in the receiver and noise is not remove as it should. In the above schematic, the opamp driving the RCA has a 100R resistor in series, so you'd neglect the output impedance of the opamp and put the same 100R in series with the negative wire.

A true balanced symmetrical output has two opamps, one outputs the inverted signal, so it has double voltage swing and therefore +6dB SNR. But besides that, actually having an inverted signal is not necessary for the most desirable property of balanced connection, which is noise rejection and no more ground loop headaches...

The shield should go to the metal box.
 
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"budget" and "valves" when the OP mentions a 109 Euro costing 103 x 146 x 37 mm DAC. That is quite a difference, sorry.

It really is simpler/cheaper/smaller to modify the output stage of the D10s to true balanced .....as I think OP wants good sound quality and maybe even best possible sound quality.
 
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