BCL Industries

BCL Industries reported a strong Q3 FY26, with total revenue reaching ₹758 crores. The company's EBITDA increased by 41% year-on-year to ₹68 crores, with EBITDA margins expanding by 270 basis points. This robust performance was largely attributed to easing raw material prices and the company's operational flexibility. Net profit (PAT) also saw significant growth, increasing by 69% year-on-year to ₹35 crores. For the nine months ended December 31, 2025, the company achieved a PAT of ₹100 crores on revenues of approximately ₹2,200-₹2,300 crores.

The distillery segment demonstrated strong performance, with ENA volumes growing by 60% year-on-year in Q3 FY26 to 15,330 KL, and 71% for the nine-month period. Ethanol volumes in Q3 reached 47,420 KL. The India ethanol blended program achieved a significant milestone, with blending levels effectively reaching 19.98% during ESY '24-'25, nearing the E20 target. However, ethanol demand remained subdued due to industry-wide oversupply and lower OMC allocations, leading the company to maximize ENA sales and explore private ethanol sales to maintain capacity utilization.

BCL Industries announced the acquisition of the remaining 25% stake in Svaksha Distillery Limited for ₹55 crores, expected to be completed by June 30, 2026, making Svaksha a wholly-owned subsidiary. Svaksha Distillery's production capacity is being expanded from 300 KLPD to 350 KLPD. Additionally, BCL is progressing with a planned 150 KLPD capacity expansion in Bathinda, aiming to increase total capacity to 900 KLPD by the end of FY26. A maize oil extraction unit at Svaksha is also on track for commissioning by Q4 FY26.

The company is in the process of fully exiting its packaged oil business operations, with stock liquidation expected to be completed by the end of the financial year. BCL will continue to import crude edible oil in bulk for soft oil refining, leveraging global market prices. The refinery segment contributed ₹153 crores in revenue for Q3, with an EBITDA margin of 5.23%. Going forward^⏳, BCL has decided to report its oil trading business separately for enhanced transparency.

Despite softening maize prices (around ₹20-₹21 a kg), ENA margins have been lower compared to ethanol manufacturing due to intense competition in the ENA market. ENA prices are currently around ₹59-₹60 per liter. The company has no choice but to sell more ENA given the lower ethanol allocations. Management acknowledged the risk of the government potentially reducing the price of maize-based ethanol from ₹72, which could further impact profitability.

As of the end of Q3, BCL Industries' consolidated debt stood at ₹494 crores, including working capital and long-term debt. The company maintains a strong interest coverage ratio of 6% or greater, with specific mention of 6.9%. Long-term debt for Bathinda units, amounting to ₹90 crores, is under interest subvention with an average interest cost of 4.5%. An additional ₹50 crores at Svaksha Distillery is also under subvention. The overall average cost of debt, excluding inter-subvention, is estimated to be between 7.5% and 8%.

BCL Industries is actively strengthening its presence in the IMIL (Indian Made Indian Liquor) segment. Following the launch of Punjab special whiskey in glass bottles, the company plans to introduce two more products in the IML market, focusing aggressively on this segment in the coming financial year. While current margins for new products are lower due to aggressive pricing and premium packaging, the strategy aims to increase portfolio and volumes. The company is also working towards entering the broader Punjab and surrounding states' IMFL markets.

BCL Industries continues its commitment to sustainability by utilizing agricultural waste for fuel. The company currently operates a 60-tonne per hour paddy straw-based biomass boiler and plans to commission an additional 55-tonne per hour boiler at its Bathinda ethanol plant. These initiatives are expected to enable BCL to meet 100% of its steam and power requirements through paddy straw, leading to further cost savings and environmental benefits.