One of the leading ethanol producers in India, BCL Industries Limited (BCL), will focus on maximizing both Extra Neutral Alcohol (ENA) and IMIL sales in the market to try to make up for the loss of revenue due to the low allocation of ethanol.
Kushal Mittal, Joint Managing Director at BCL Industries, highlighted during the Q2, H1 FY26 earnings conference call that the recent OMC ethanol allocation has been lower-than-expected.
He said, “As a part of our diversification strategy, we have steadily pivoted towards the Distillery business, which has now emerged as our core growth engine. Our biggest strength lies in our state-of-the-art facility that allows us to operate on multiple grain-based feedstocks while seamlessly switching between ethanol and ENA. Although the recent OMC allocation has been lower than expected, BCL will now try to maximize both ENA and IMIL sales in the market to try to make up for the loss of revenue due to the low allocation of ethanol. Our margins remain stable, reflecting the strength of our operating model and the flexibility of our product mix. Although ethanol demand remained rather flat during the period due to industry-wide oversupply, our ability to balance production between ethanol and ENA helped maintain stable operations and margins.”
He added that with grain emerging as a primary contributor to the ethanol supply, the continued focus on grain-based ethanol fares well for BCL Industries Limited. ENA has continued to deliver a strong performance, supported by strong demand from our PML portfolio and steady offtake from leading bottlers across the nation. We have now fully exited the Edible Oil segment with liquidation of remaining inventory expected to conclude by the end of the financial year. Our Maize Oil Extraction & Refinery segment continues to perform well and is expected to sustain its momentum in second half FY ’26.
Sharing updates on ongoing projects, Mittal said, “The 150 KLPD ethanol expansion at Bhatinda is progressing well and is in advanced stage with completion on track for Q4 FY ’26. The paddy straw-based boiler at Sangat Distillery is also moving as planned and is expected to be operational around the same time. BCL has long been a pioneer in using agriculture waste as fuel, and company already operate a 60 tonne per hour paddy boiler. Building on this foundation, company will be commissioning an additional 55 tonne of boiler alongside with it. Together, these 2 boilers will meet the demand and energy requirements for BCL 550 KLPD plant at Bhatinda. The Maize Oil Extraction unit at Bhatinda was commissioned in the latter half of Q1 and the same for Svaksha is on track to be commissioned in Q4 of this financial year. Looking ahead, we are consolidating our presence in IMIL segment and have introduced Punjab Special Whiskey in glass bottle in Q3 FY ’26 as a premium IMIL offering.”
“We are preparing to enter the IMFL value segment within the next 2 years with initial plans to launch products in vodka and whiskey categories. Our focus remains steadfast on maintaining stable margins and translating operational efficiency into superior shareholder returns, supported by our continued emphasis on process discipline, raw material efficiency and energy optimization,” he further added.
Speaking about key operational and financial highlights for the first half, he said, “Our distillery operations continued to deliver steady growth during the period. Ethanol volumes stood at 1,07,211 KL compared to 1,00,919 KL in the corresponding first half of previous financial year. ENA volumes increased to 20,089 KL from 11,206 KL in the corresponding period last year.
On the financial front, ethanol revenue for the first half stood at INR727 crores compared to INR719 crores in first half of last year, while ENA revenue grew sharply to INR139 crores from INR80 crores last year. EBITDA for the Distillery segment came in at INR113 crores compared to INR102 crores in the first half of last year, reflecting a growth of around 11% with margins stable around 10.5%.
In the Refinery segment, revenue for first half stood at INR486 crores compared to INR452 crores in the first half of last year, marking a growth of 7.5% year-on-year. EBITDA improved to INR13 crores from INR9.3 crores.
On a consolidated basis, total revenue in the first half increased to INR1,544 crores from INR1,409 crores, registering a growth of 10%. Year-on-year EBITDA for the period stood at INR125 crores compared to INR113 crores last year, reflecting a growth of 11% with margins maintained at healthy 8.1% versus 8% in the previous year. Profit after tax grew to INR65 crores compared to INR54 crores in first half of FY ’25, marking a growth of around 20%.
