Financial Performance Highlights

Q2 FY27 Performance (Standalone and Consolidated)

  • Revenue from Operations: ₹811 crores, representing 606% YoY growth (Q2 FY26: ₹115 crores)
  • Sequential Growth: Increased from ₹627 crores in Q1 FY27 to ₹811 crores in Q2 FY27
  • EBITDA: ₹114 crores with EBITDA margin of 14.03%
  • Profit Before Tax (PBT): ₹47 crores (compared to loss of ₹49 crores in Q2 FY26)
  • Profit After Tax (PAT): ₹35 crores (compared to loss of ₹38 crores in Q2 FY26)

H1 FY27 Performance

  • Revenue from Operations: ₹1,438 crores, representing 243% YoY growth (H1 FY26: ₹419 crores)
  • EBITDA: ₹261 crores with EBITDA margin of 18.2%
  • PAT: ₹94 crores (compared to loss of ₹33 crores in H1 FY26)

Cost Structure

  • Finance Costs: ₹87 crores for H1 FY27 (H1 FY26: ₹76 crores)
  • Depreciation & Amortization: ₹49 crores for H1 FY27
  • Raw Material Impact: Maize prices increased by 25-30% during Q2, causing margin compression

Operational Highlights

Ethanol Business

  • Additional Allocation: Received additional 15 crore liters allocation from oil marketing companies (OMCs) post Supreme Court judgment in August 2026
  • Total Allocation: Increased from 24.5 crore liters to approximately 40 crore liters for last ethanol supply year (November 2025-October 2026)
  • Capacity Utilization: Average utilization reached 65-70% of total installed capacity
  • Current Orders: 8.5 crore liters pending supply for October-November 2026 from previous allocation
  • Expected Allocation: 40-42 crore liters anticipated for new ethanol supply year (November 2026-October 2027)
  • Feedstock Shift: Government ban on sugarcane juice and B-heavy molasses for ethanol production, creating increased demand for grain-based ethanol

CBG (Compressed Biogas) Business

  • Current Operations: First 20 TPD plant commissioned under JV with Sumitomo Corporation
  • Capacity Expansion: Two additional plants to be commissioned by end of Q3 FY27, taking total CBG capacity to 72 TPD
  • Subsidy Eligibility: Eligible for capital subsidy of ₹2 crores per TPD under GOBARdhan scheme
  • Expected Subsidy: ₹25-30 crores expected by December 2026-January 2027
  • Future Plans: Construction of additional 6 units planned with GAIL
  • Pricing: CBG price increased from ₹84/kg to ₹104-120/kg depending on purity

Sustainable Aviation Fuel (SAF)

  • Status: Front-end engineering ongoing
  • Government Support: Received ₹150 crores viability gap funding under PM JI-VAN Yojana
  • Pending: Awaiting government policy roadmap to commence capex

Fuel Retail Business

  • Current Status: 7 outlets operational, additional outlets nearing commissioning
  • Strategy: Growth slowed due to crude oil price volatility

Balance Sheet and Cash Flow

Balance Sheet Position (as of September 30, 2026)

  • Total Equity: ₹1,687 crores (March 2026: ₹1,578 crores)
  • Debt-to-Equity Ratio: 0.55x
  • Inventory Reduction: Reduced from ₹528 crores (March 2026) to ₹206 crores (September 2026)
  • Trade Receivables: Reduced from ₹406 crores (March 2026) to ₹367 crores (September 2026)

Cash Flow Performance

  • Operating Cash Flow: Generated ₹192 crores from operating activities during H1 FY27
  • Capex Investment: Invested approximately ₹180 crores in property, plant, equipment and CWIP

Strategic Initiatives

Badami Plant Sale

  • Transaction Type: Slump sale of Unit 5 (ethanol plant)
  • Expected Proceeds: Approximately ₹170 crores
  • Debt Repayment: ₹125 crores term loan outstanding to be repaid from proceeds
  • Additional Utilization: ₹46 crores to be used for working capital
  • Expected Savings: Approximately ₹22 crores annual savings from interest and employee expenses

Raw Material Strategy

  • Procurement Focus: Sourcing maize and rice across Bihar, Madhya Pradesh, and Punjab
  • Inventory Management: Stocking raw material at lowest possible prices to mitigate price volatility
  • Byproduct Revenue: DDGS (Distillers Dried Grains with Solubles) prices at ₹28-30/kg providing additional revenue stream

Market Outlook and Guidance

Industry Dynamics

  • Capacity Reduction: ~230 mono-feed ethanol plants (sugar-based) unable to participate in tenders due to feedstock ban
  • Expected Shortage: ~300 crore liters shortage from sugar-based ethanol plants
  • Total Supply: Expected 1,600 crore liters supply for current year against total installed capacity of 1,900 crore liters

Raw Material Outlook

  • El Nino Impact: Expected 35% drop in maize availability, 10-12% drop in rice and sugarcane cultivation
  • Price Pressure: Continued raw material price inflation expected

Volume Guidance

  • Q3 FY27 Expectation: 6-7 crore liters additional volume beyond existing 8.5 crore liters orders
  • Full Year: Targeting 75-80% capacity utilization

Management Commentary

Margin Outlook

  • Q2 Performance: Lowest margin quarter due to seasonal raw material availability issues
  • Future Expectation: Margins expected to improve from Q3 onwards despite potential 1-2% drop in blended realization
  • Blended Realization: Expected ₹64-65/liter (down from ₹67/liter previous year)

Growth Priorities

  • Improve capital utilization
  • Optimize feedstock and product mix
  • Improve EBITDA margins
  • Strengthen operating cash flows
  • Reduce working capital requirements
  • Maintain disciplined capital allocation