Financial Performance Q1 FY27

  • Revenue from operations stood at INR557.9 crores, up 4.6% year-on-year
  • Total income was INR559.9 crores, representing growth of 4.9% year-on-year
  • EBITDA stood at INR2.6 crores compared to INR6.5 crores in Q1 FY26
  • EBITDA margin was 0.5% against 1.2% last year
  • Net loss was INR19.3 crores compared to INR16 crores in Q1 FY26
  • Profitability was impacted by elevated inventory carrying cost and higher raw material prices

Segment-wise Performance

Bio-based Chemicals Business:

  • Revenue grew 19.4% year-on-year to INR168.7 crores
  • EBITDA increased 53% to INR19.2 crores
  • EBITDA margin expanded to 11.4% from 8.9%
  • Performance supported by favorable product mix and benefits of debottlenecking initiatives

Integrated Sugar, Cogeneration and Ethanol Segment:

  • Revenue was INR377.9 crore compared to INR382.8 crores in Q1 FY26
  • EBITDA loss widened to INR14.6 crores from INR4.5 crores
  • Challenging due to feedstock conditions and higher manufacturing costs
  • Improved sugar realization provided some support

Operational Highlights

  • Successfully commissioned 200 kilolitres per day grain-based distillery at Sameerwadi
  • Total distillery capacity now stands at 800 kilolitres per day
  • Evaluating addition of 160 kilolitres per day fungible capacity within existing 800 KLPD capacity
  • This would enhance flexibility to optimize between sugar and ethanol depending on market conditions
  • Company secured Japanese patent for novel anticancer molecule
  • Filed application with CDSCO for preliminary efficacy trials for triple-negative breast cancer molecule
  • Trials expected to commence from Q3 FY27, subject to government regulatory approvals
  • Secured Indian patent for cost-effective process to manufacture branched alcohols

Future Outlook and Investments

  • Planning to invest INR25 crores in debottlenecking bio-based specialty chemical capacity
  • Expect bio-based chemicals business to reach INR190 crores in current quarter (Q2 FY27)
  • Post-debottlenecking completion (beginning of FY28), expect business to reach INR240 crores per quarter
  • Estimated INR20 crores investment over next 2-3 years for drug discovery preliminary efficacy trials
  • Company monitoring climate effects and rainfall patterns in Maharashtra and Karnataka operations

Management Commentary

  • Global operating environment remains dynamic with geopolitical developments and volatility in energy markets
  • Fossil resources have become scarce with higher oil prices, making bio-based solutions more relevant
  • Government draft guidelines for E85 and E100 expected to lead to these fuels coming to market
  • Company focusing on scaling specialty chemicals, improving product mix, and strengthening competitiveness
  • Integrated biorefinery model provides flexibility to switch between sugar and ethanol production
  • Sugar inventory at quarter end was approximately 65,000 tons, with 15,000-20,000 tons in long-term contracts