BCL Industries shifts focus amid ethanol allocation challenges

BCL Industries reported a 10% increase in total revenue for H1 FY26, reaching INR1,544 crores, up from INR1,409 crores in the previous year. EBITDA also grew by 11% to INR125 crores, with profit after tax rising 20% to INR65 crores compared to H1 FY25. The distillery segment's EBITDA was INR113 crores, marking an 11% growth, while the refinery segment's EBITDA improved to INR13 crores. Ethanol volumes for H1 FY26 were 1,07,211 KL, and ENA volumes surged to 20,089 KL.

The company is strategically pivoting towards ENA and bottling business due to lower-than-expected ethanol allocations. The 150 KLPD ethanol expansion at Bathinda is on track for Q4 FY26, and the paddy straw-based boiler at Sangat Distillery is also progressing. BCL is also consolidating its presence in the IMIL segment and plans to introduce premium IMIL offerings. Additionally, the company is preparing to enter the IMFL value segment within two years.

Despite a significant drop in maize prices in some areas, BCL Industries stated its procurement prices remain around INR23 per kg landed at its units. The company has also put the Goyal Distillery project on hold and will focus on increasing ENA sales while facing potential margin pressure due to competitive pricing. Current long-term debt for BCL is approximately INR220 crores, with an additional INR70 crores to be availed, and Svaksha Distillery has long-term debt of around INR90 crores.