Margin expansion masks 24% revenue decline, capex deferred

EBITDA 370 bps margin expansion (10.5% vs 6.8%) supports YoY growth on lower revenue base

Delivered ₹35.5 Cr, 6.1% YoY growth matches

Corroborated; up from 10% in Q1 FY26 and 11.8% in Q4 FY26

Management explicitly stated pricing pressure; aligns with volume diversion to ENA despite low margins

Unit only operational after Q1 ended (June 30); no Q1 contribution. Revenue decline driven by oil exit + fire, not 150 KLPD miss

Insurance covers stock loss + P&L, but 200 KLPD plant still shut at call end (repair expected ~15 days)

Now explicitly on hold due to ethanol policy backlash; machinery orders finalized but project deferred indefinitely

Management stated 'holding on to it' indefinitely. Was promised August start (per Jul ET Now interview), now deferred due to ethanol policy backlash. Machinery orders finalized, but project frozen pending policy visibility.

ENA realizations ₹58/L (Q1 FY27) vs ₹70/L (Q1 FY26), a -17% hit. Management expects prices to stay under pressure from oversupply; hedged on near-term recovery.

Sales 6,37,993 boxes in Q1, +42% QoQ and +46% YoY. New launches (Punjab Raspberry Q4, Jamun Vodka Jul) expanding portfolio. Target 30 lakh cases FY27 vs ~1.25 crore market in Punjab.

Total debt ₹360 Cr vs ₹576 Cr (FY26 year-end), ~₹200 Cr repaid. WC utilization dropped significantly; further ₹50 Cr reduction planned Aug. Unpledged 75 lakh shares from SBICAP.

Commissioned first half Jul (post-Q1 end). Fire at 200 KLPD plant and oil exit masked potential upside. Revenue contribution will flow H2 FY27 onwards.

IMFL entry 'next year' with no capex guidance. Biodiesel 75 KLPD unit at Svaksha on hold (rates not remunerative). CBG 'actively evaluated' but no timeline set. Prior capex pipeline narrowed.

Private ethanol ₹58/L ex-factory (vs ₹70/L prior Q1). Maize procurement ₹22–23/kg. FCI rice mandated at 40% for OMC allocation; private buyers source from market/damaged grains.

Static charge likely cause (cloth friction near ethanol storage). No injuries. Additional safety facilities added. Incident described as rare and well-managed.

Demand should improve slightly (sugarcane ethanol likely excluded, molasses-based in). Growth from flex-fuel engines (long-term), isobutanol (hopeful), SAF, cooking fuel. Pace will slow but roadmap intact.

Bio-CNG favorable policy just announced, company exploring. Biodiesel rates not favorable, not manufacturing. CBG technology from paddy straw tricky; company actively evaluating but no timeline.

Holding on project pending industry evolution and policy clarity. Want to see roadmap before committing. (Prior interview stated August start; now deferred.)

FCI rice ethanol almost at cost (40% mandate). Maize ethanol to OMC profitable. ENA/private ethanol margins similar, ~12% EBITDA overall. Per-liter EBITDA on maize/ENA ~₹9–10 on average.

No; ethanol and isobutanol are distinct. Ethanol used to make isobutanol, which CAN be blended with diesel. Isobutanol trials ongoing; policy pending, not shelved.

E20 running 1.5 years; no major damage reported. Demand from isobutanol, SAF. Flex-fuel vehicles coming but slow. Pace of demand creation will slow but not stall. Indian grain stocks high; policy durable.

Biodiesel rates very low. Prices unviable. 75 KLPD unit on hold. Government prioritizes indigenous raw materials (ethanol) over imported ones (biodiesel feedstock). Farmer income driver.

Malt unit still under consideration. First step is IMFL entry, targeted 'next year' if team/strategy finalized. Country liquor more profitable than IMFL (competitive). No set timelines for malt.

Statement made, but post-call saw ethanol policy backlash on social media. Holding orders/advances. Want to evaluate industry roadmap. Machinery finalized; only need to press start button.

Finance cost down. WC utilization low. Paid off small loans. Banks agreed to unpledge pledged shares (75 lakh released). WC limit being cut another ₹50 Cr in Aug. Land sale: Bathinda real estate slow; no rush.

Past 2–3 months steady with minor dips (₹1–2/kg). Maize-based DDGS ₹24–25/kg, rice-based similar.

Market ~1.25 crore cases p.a.; company targeting 30 lakh cases FY27 (~2.4% market share estimate).

Yes, on our radar. Requires proper team, strategy, heavy marketing spend (1.5–2 years). Taking time to execute properly; moving in that direction.

Volumes may increase when 200 KLPD plant (shut by fire) returns to operation (~15 days post-call). Until then, volumes will stay same. Only catalyst is plant restart.

Current ~₹360 Cr total (₹320 Cr term + ₹60 Cr WC). WC utilization dropped significantly since FY26. Will only rise if capex projects greenlit.

Minimize WC to near zero. No buyback plans on agenda. Wait-and-see mode; clarity expected ~1.5 years when policies settle.

Yes, company on list. One of biggest gainers: ~4.5 crore liters allocation (from both units). Strong order book next 2–3 months through Nov.

No false hope. E85/E100 is future. Flex-fuel vehicle availability minimal (one model only). Until new models launched and bought, E85/E100 won't drive demand. Order book full 3 months; ops at 100%; demand creation slow.

Maize prices increasing to ~₹25/kg. ENA prices revised upward accordingly. Raw material + fuel costs rising; too early to comment. Historical margins ~10–12%; track record shows resilience to commodity swings.

Track past record—margins ~10–12% with variation from raw material/byproduct/finished goods price moves. Overall range robust at 10–12%.

Actively evaluated. Paddy straw is tricky raw material; want all bases covered before execution. Haryana has state policy; central policy just released.

150 KLPD commissioned Jul; will contribute Q2+ FY27. Prior guidance was aspirational (full-year impact not quantified per quarter). Q1 shows structural headwind from oil exit will persist.

Delivered 12.41% in Q1, supported by vertical integration. Management confident in 10–12% range despite raw material volatility (maize now ₹25/kg, up from ₹22–23/kg prior Q).

Machinery finalized, orders held, awaiting policy roadmap. No timeline or capex amount disclosed. De facto capex moratorium until policy settles (~1.5 years per guidance).

Recognized capital-intensive (marketing 1.5–2 years). No capex guidance provided. Dependent on team assembly and regulatory clarity.

Paddy straw complexity and regulatory uncertainty cited. 75 KLPD biodiesel unit at Svaksha on hold (rates not remunerative). No capex forecast.

ENA realizations crashed to ₹58/L from ₹70/L (Q1 FY26 vs Q1 FY27); maize cost rose to ₹25/kg from ₹22–23/kg. Margin swing large if realization lags input. Unit EBITDA on ENA/maize ethanol only ₹9–10/L, leaving thin buffer.

June 19 fire at Bathinda ethanol storage tank (200 KLPD plant) caused temporary shutdown. ~90K liters stock destroyed (insured). Tank repair extends past Q1 close; expected restart ~15 days post-call (late Aug 2026). Volume ramp-up from 150 KLPD newly commissioned (Jul) partially mitigates, but Q2 output still below capacity.

250 KLPD distillery project at Fatehabad was announced as commencing in August 2026 (per Jul ET Now interview with Rajinder). On this call (Aug 14), management stated the project is 'on hold' due to ethanol policy backlash (E20 vehicle issues, government 'backfoot'). Machinery orders finalized but capex not deployed. No restart timeline given; contingent on policy roadmap clarity. This was the primary growth capex driver in prior guidance; deferral signals long-term revenue stagnation.

E20 blending has faced negative media coverage and government pushback (diesel-ethanol blending ruled out by Parliament per Suresh Gopi statement). Higher blends (E22/E27) being shelved. Flex-fuel vehicle availability minimal (one model only). E85/E100 adoption is '5–10 year play' per management. Isobutanol trials ongoing but policy not finalized. This stalls volume growth unless demand creation from SAF or cooking fuel materializes, both vague timelines.

Private ethanol sales (at depressed ₹58/L realization) are almost entirely to Reliance. Government allocation (40% of capacity) tied to FCI rice mandate (low-margin). Loss of either customer would crater volumes/margins. Government policy on E20 blending also determines demand. This creates dual revenue concentration + regulatory exposure.