BCL Industries Q2 FY27 Results and Strategic Outlook

Event Type: Q2 and H1 FY27 Earnings Conference Call to discuss unaudited financial results for the quarter and half year ended September 30, 2026.

Date and Time: Held on Friday, November 6, 2026 (time not specified in transcript).

Purpose: Discussion of quarterly results, operational updates, and strategic outlook for the biofuel and distillery business.

Management Participants: Mr. Kushal Mittal (Joint Managing Director), Mr. Varun Gupta (CEO), and Mr. Aadith from Go India Advisors (IR).

Presentation Availability: The results and investor presentation were uploaded on stock exchanges prior to the call.

Financial Period Discussed: Q2 FY27 (Quarter ended September 30, 2026) and H1 FY27 (Half year ended September 30, 2026).

Forward-Looking Statements: Management discussed emerging opportunities in biofuels including pharmaceuticals, industrial chemicals, sustainable aviation fuel, isobutanol, clean cooking fuels, and compressed biogas (CBG) supported by government's GOBARdhan scheme and mandatory CBG blending targets of 3-5% by FY29.

Compliance: The conference call contained forward-looking statements based on beliefs, opinions and expectations of the company as of the call date, with disclaimer that these are not guarantees of future performance.

Operational Updates:

Temporary disruption at 200 KLPD ethanol unit in Bathinda following fire incident on June 19, 2026 fully resolved
Unit resumed operations on August 28, 2026 after receiving statutory approvals
Entire installed distillery capacity of 900 KLPD now operational (550 KLPD at Sangat distillery in Punjab, 350 KLPD at Svaksha distillery in West Bengal)
Insurance claim filed for fire incident, expected to be received by end of Q3 FY27
Additional ethanol allocation of 4.37 crore liters from OMCs for Q4 FY27 (2.35 crore liters for Sangat, 2.02 crore liters for Svaksha)
Total order book for ESY 2025-26 increased by 41% from 1 lakh KL to 1.5 lakh KL

Capacity Flexibility:

Distilleries can utilize capacity for either ethanol or ENA production
Q2 FY27 ENA volumes: 22,500 KL (vs 12,130 KL in Q2 FY26)
Q2 FY27 ethanol volumes: 39,500 KL
PML business sold 6.42 lakh cases in Q2 FY27, growth of 41.4% YoY
Oil refinery business focused on soft oil refining with 400 TPD capacity each at Bathinda and Kharagpur

Financial Performance (Consolidated):

Q2 FY27 revenue: INR695 crore
H1 FY27 revenue: INR1,319 crore
Q2 FY27 EBITDA: INR66 crore (margin: 9.5%)
H1 FY27 EBITDA: INR132 crore (up 5.9% YoY, margin improved 191 bps to 10%)
Q2 FY27 PAT: INR29 crore (margin: 4.2%)
Distillery business EBITDA margin: 11.9% in Q2 FY27 (vs 11% in Q2 FY26, improvement of 90 bps)
Oil refinery business Q2 FY27 revenue: INR188 crore (EBITDA margin: 3.7%)
Other income includes one-time gain of INR2 crore from sale of assets from former oil and vanaspati unit at Bathinda

CBG Project:

Other Expansion Plans:

Malt plant in Bathinda to support IMFL business launch
Goyal Distillery Private Limited: Application moved for environmental clearance for ENA and ethanol plant flexibility (9-10 months approval timeline expected)
IMFL business planned to start in FY28-29 from Punjab initially

Ethanol Industry:

Near-term headwinds from oversupply
Government tender changes: sugarcane juice disqualified, pressure on grains increased
Maize prices currently around INR29-30/kg (market closed for Diwali)
Ethanol margins expected to come under pressure
ENA prices currently INR68-70
DDGS prices increased slightly

Management Outlook:

The document includes the complete transcript of the analyst and investors conference call
The company emphasized its focus on strengthening core businesses while leveraging procurement expertise
Capital allocation strategy favors reinvestment over higher dividend payments in coming years