Bcl Industries Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

BCL Industries reported a strong H1 FY26 with 10% consolidated revenue growth and 20% PAT growth, driven by robust distillery and refinery segment performance. The company is strategically pivoting towards ENA sales and bottling business due to lower ethanol allocations and unviable biodiesel prices, while also putting the Goyal Distillery project on hold. Ongoing capacity expansions are on track for Q4 FY26.

Highlights

  • Consolidated revenue for H1 FY26 increased to ₹1,544 crores from ₹1,409 crores, registering a growth of 10%.

  • Consolidated EBITDA for H1 FY26 stood at ₹125 crores compared to ₹113 crores last year, reflecting a growth of 11% with margins maintained at healthy 8.1%.

  • Profit after tax grew to ₹65 crores compared to ₹54 crores in H1 FY25, marking a growth of around 20%.

  • Distillery operations delivered steady growth, with ethanol volumes at 1,07,211 KL (vs 1,00,919 KL last year) and ENA volumes at 20,089 KL (vs 11,206 KL last year).

  • Refinery segment revenue grew 7.5% YoY to ₹486 crores, and EBITDA improved to ₹13 crores from ₹9.3 crores.

Concerns

  • OMC ethanol allocation was lower than expected, leading to a focus on ENA sales which may face margin pressure.

  • The Goyal Distillery project has been put on hold due to potential oversupply and utilization challenges.

  • Biodiesel tender prices (₹82/litre) were unviable, requiring prices around ₹90/litre for participation.

  • Short-term borrowing increased substantially (over ₹100 crores) by September end due to higher raw material stock.

Key financials

  1. Consolidated Revenue ₹1,544 Cr +10%YoY
  2. Consolidated EBITDA ₹125 Cr +11%YoY
  3. Consolidated EBITDA Margin 8.1% +0.13%YoY
  4. Consolidated PAT ₹65 Cr +20%YoY

What they filed

Q1 FY27: revenue down 26.4%, net profit up 9.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue721 735 723 792 691 −4%726 −1%582 −20%583 −26%
EBITDA55 46 49 53 67 +22%67 +46%55 +12%61 +15%
Net profit30 21 28 33 32 +7%35 +67%26 −7%36 +9%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of EBITDA
₹126 Cr Total
  • Distillery Segment ₹113 Cr 89.7%
  • Refinery Segment ₹13 Cr 10.3%

Capital allocation

high confidence
  • Capex Capex disclosed
    • 150 KLPD ethanol expansion at Bhatinda
    • Paddy straw-based boiler at Sangat Distillery
    • Maize Oil Extraction unit at Svaksha
    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 our Sangat Distillery is also moving as planned and is expected to be operational around the same time. The Maize Oil Extraction unit at Svaksha is on track to be commissioned in Q4 of this financial year.
  • Debt Debt disclosed Cost 6.5%
    • New borrowing Sanctioned loan from SBI for 150 KLPD ethanol unit at Bhatinda, to be availed in coming weeks. ₹70 Cr
    So for BCL, the long-term debt is around INR220 crores, in which I'm also adding the INR70 crores, which we will avail sorry, in INR220 crores, I'm adding the INR70 crores, which we will avail. And for Svaksha Distillery, the long-term debt is around INR90 crores. ... So I think an average cost will be around 6 - 6.5% maybe. I don't have the exact number. But out of this INR310 crores that I've just listed, INR150 crores is under interest subvention, on which the applicable interest after interest subvention is around 4.5%.

Guidance & targets

Capacity

  • 150 KLPD ethanol expansion at Bhatinda Capacity · Q4 FY26 · High confidence Completion on track
    The 150 KLPD ethanol expansion at Bhatinda is progressing well and is in advanced stage with completion on track for Q4 FY '26.

    — Kushal Mittal

  • Paddy straw-based boiler at Sangat Distillery Capacity · Q4 FY26 · High confidence Operational
    The paddy straw-based boiler at our Sangat Distillery is also moving as planned and is expected to be operational around the same time.

    — Kushal Mittal

  • Maize Oil Extraction unit at Svaksha Capacity · Q4 FY26 · High confidence Commissioning on track
    The Maize Oil Extraction unit at Svaksha is on track to be commissioned in Q4 of this financial year.

    — Kushal Mittal

Product Launch

  • Punjab Special Whiskey (premium IMIL) Product Launch · Q3 FY26 · High confidence Launched
    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.

    — Kushal Mittal

  • IMFL value segment entry Product Launch · next 2 years · Medium confidence Enter market
    Additionally, 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.

    — Kushal Mittal

Revenue

  • Refinery revenue run rate Revenue · for the year · Medium confidence Around ₹700 crores
    So refinery revenue, I think along with the maize oil extraction, should stay around this level for the year.

    — Kushal Mittal

Sales

  • ENA sales Sales · coming months · Medium confidence Increase
    We will have to try and increase our ENA sales in the market.

    — Kushal Mittal

Biodiesel

  • Biodiesel tender participation viability Biodiesel · High confidence ₹90/litre
    See, with the current price atleast INR90.

    — Kushal Mittal

Growth

  • Bottling business growth Growth · yearly basis · Medium confidence At least 15%
    In the past 3 years, I think we've seen at least 15% growth on a yearly basis, and we hope to keep that.

    — Kushal Mittal

What to watch in Q3 FY26

Bhatinda 150 KLPD ethanol expansion completion

Q4 FY26
Current Progressing well, in advanced stage
Target Commercial operations start

Why it matters

This expansion is a key growth driver for the distillery segment and will significantly increase capacity.

The 150 KLPD ethanol expansion at Bhatinda is progressing well and is in advanced stage with completion on track for Q4 FY '26.

Risks & concerns

  • Lower than expected OMC ethanol allocation

    high

    OMC allocation has been lower than expected, forcing the company to maximize ENA and IMIL sales.

    Management acknowledged

  • ENA price pressure due to increased supply

    high

    With increased focus on ENA, the market is expected to become more competitive, potentially impacting margins.

    Management acknowledged

  • Oversupply in the ethanol market

    medium

    Industry-wide oversupply of ethanol has led to the decision to put the Goyal Distillery project on hold.

    Management acknowledged

  • Unviable biodiesel tender prices

    medium

    Current biodiesel prices (₹82/litre) are below the viable threshold (₹90/litre), preventing participation in tenders.

    Management acknowledged

  • Dependence on government policy for ethanol and biodiesel

    medium

    The business model is exposed to government policy changes, which management is mitigating by diversifying into bottling.

    Analyst acknowledged

Q&A highlights

5 direct
Maize prices and impact on margins Partial
So actually, the real prices, I'm not aware if they're around INR18. Prices we are getting are around INR23 landed at our units. So that's the price we are getting for maize. And in previous quarter, maybe it was INR1 to INR2 more than that.

Analyst questioned a significant discrepancy in maize prices (₹18 vs ₹23/kg), suggesting potential for better margins, which management attributed to quality and moisture.

Asked by Bala Murali Krishna

Increase in short-term borrowing Direct
No, ending of last quarter, we were sitting on a significant stock of raw material since we made a decision to procure quite heavily during the last harvest, looking at the prices then. So the increase is due to an increase in the raw material being held up on our premises.

Clarified that the increase in short-term debt was due to strategic raw material stocking during harvest, not operational issues or new capex.

Asked by Bala Murali Krishna

Strategy for low ethanol allocation and Goyal Distillery project Direct
See, unless blending is to increase, yes, there could be some challenges in the coming years, in the coming times. But of course, we at BCL have been ready for this... And with the flexibility between ENA and ethanol, we will continue to try and achieve as much capacity utilization as possible. But with that, unless there is a revision in the blending rates or the introduction of flex fuel vehicles, for the time being, we have decided to put the Goyal Distillery project on hold.

Management confirmed the Goyal Distillery project is on hold due to market oversupply and low ethanol allocations, indicating a cautious approach to capacity expansion in the current environment.

Asked by Bala Murali Krishna

Total debt and cost of debt Direct
So for BCL, the long-term debt is around INR220 crores, in which I'm also adding the INR70 crores, which we will avail sorry, in INR220 crores, I'm adding the INR70 crores, which we will avail. And for Svaksha Distillery, the long-term debt is around INR90 crores. ... So I think an average cost will be around 6 - 6.5% maybe. I don't have the exact number. But out of this INR310 crores that I've just listed, INR150 crores is under interest subvention, on which the applicable interest after interest subvention is around 4.5%.

Provided a clear breakdown of long-term debt for BCL and Svaksha, total debt, average cost of debt, and the portion benefiting from interest subvention.

Asked by Deepesh Sancheti

Viability of biodiesel prices Direct
No, currently, I don't think there's any viability with the current prices, which are around INR82 a litre. Hence, we did not participate in the tender.

Management explicitly stated that biodiesel production is not viable at current market prices (₹82/litre), requiring ₹90/litre to participate in tenders, explaining why their plant is not operational.

Asked by Deepesh Sancheti

Dependence on government policy Partial
See, ethanol will continue to remain a sector that will be driven by government since it's a petroleum product. And ENA is relatively free market and demand is increasing in the market. And yes, it's government regulated in terms of permits and licenses and red tape. But beyond that, I think we are working towards increasing our bottling as much as possible.

Analyst raised concerns about the company's business model being highly exposed to government policy flip-flops; management acknowledged this and highlighted diversification into bottling to mitigate risk.

Asked by Neeraj

Next leg of growth given ethanol capacity sufficiency Direct
As already mentioned, the company will now focus towards ENA business and bottling business.

Management reiterated its strategic shift towards ENA and the bottling business as the primary growth drivers, moving away from sole reliance on ethanol.

Asked by Prerna Khandelwal

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Financial Performance

BCL Industries delivered a robust financial performance in H1 FY26, with consolidated revenue growing 10% year-on-year to ₹1,544 crores. Consolidated EBITDA increased 11% to ₹125 crores, maintaining a healthy margin of 8.1%. Profit after tax saw a significant 20% growth, reaching ₹65 crores, reflecting improved operational efficiency and strategic shifts.

Distillery Segment's Strategic Pivot

The distillery segment continued its growth trajectory, with ethanol volumes at 1,07,211 KL and ENA volumes sharply rising to 20,089 KL in H1 FY26. However, due to lower-than-expected OMC ethanol allocations and industry-wide oversupply, the company is strategically shifting focus towards maximizing ENA and IMIL sales. This pivot led to the decision to put the Goyal Distillery project on hold to avoid overcapacity in a challenging market.

Refinery Segment Sustains Momentum

The refinery segment reported a 7.5% revenue growth to ₹486 crores in H1 FY26, with EBITDA improving to ₹13 crores. The Maize Oil Extraction unit at Bhatinda was commissioned in Q1, and the unit at Svaksha is on track for commissioning in Q4 FY26. Management expects refinery revenue to maintain its current run rate of approximately ₹700 crores for the full year.

Ongoing Capacity Expansion & Diversification

Key projects are progressing as planned, with the 150 KLPD ethanol expansion at Bhatinda and the paddy straw-based boiler at Sangat Distillery both on track for completion and operationalization in Q4 FY26. In line with diversification, BCL Industries launched 'Punjab Special Whiskey' in Q3 FY26 and plans to enter the IMFL value segment with vodka and whiskey products within the next two years, aiming to reduce reliance on government-regulated businesses.

Capital Structure and Debt Management

The company's long-term debt stands at approximately ₹310 crores (including ₹70 crores to be availed for the 150 KLPD expansion), with an average cost of debt between 6-6.5%. A significant portion of ₹150 crores benefits from interest subvention at 4.5%. Short-term borrowing increased by over ₹100 crores at September end, primarily due to strategic procurement and stocking of raw materials during the harvest season.

Input Costs and Biodiesel Viability Challenges

Discussions around maize prices revealed a discrepancy, with management stating a landed cost of ₹23/kg, higher than analyst estimates, attributing it to quality and moisture. Furthermore, the company highlighted that biodiesel production is currently unviable at the prevailing tender price of ₹82/litre, requiring a price point of around ₹90/litre to participate, leading to the non-operation of its biodiesel plant.

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