Bcl Industries Limited — Q4 FY25 earnings call

Call held 30 May 2025

Management summary

BCL Industries reported a strong FY25 with 32% revenue growth, driven by its distillery segment. Q4 FY25 saw 21% revenue growth, though EBITDA margins remained moderate at 7%. The company is actively expanding its ethanol and biodiesel capacities, with key projects expected to commission by December 2025. Management is also phasing out the low-margin edible oil business to improve overall profitability and reduce debt.

Highlights

  • Total revenue of INR 747 crores in Q4 FY25, reflecting a 21% increase year-on-year.

  • FY25 total revenue of INR 2,910 crores, marking a 32% year-on-year growth.

  • Distillery segment showed robust volume growth with ethanol volume rising by 18% to 45,921 KL and ENA volumes reaching 9,313 KL in Q4 FY25.

  • FY25 distillery segment recorded robust volume growth of 51%.

  • 150 KLPD ethanol expansion at Bathinda progressing well, expected commissioning by December 2025.

  • 75 KLPD biodiesel plant at Bathinda expected commissioning by July 2025, with projected revenue of INR 200-225 crores.

Concerns

  • EBITDA margin for Q4 FY25 stood at 7% (INR 52 crores), which is moderate.

  • Edible oil business exit is a phased process, requiring liquidation of existing stock, with some inventory sold at a discounted price.

  • Distillery segment EBITDA margins in Q4 FY25 were only moderately increased despite softening maize prices due to outstanding contracts and DDGS price reduction.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹747 Cr
    YoY +21%
  • EBITDA
    ₹52 Cr
  • EBITDA Margin
    7%

FY25

  • Revenue
    ₹2,910 Cr
    YoY +32%
  • PAT
    ₹95.7 Cr

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

  • Distillery Segment
    ₹48 Cr EBITDA (Q4 FY25)45,921 KL Ethanol Volume (Q4 FY25)9,313 KL ENA Volume (Q4 FY25)51% Volume Growth (FY25)

Capital allocation

high confidence
  • Capex Capex disclosed
    • 75 KLPD Biodiesel Plant ₹140 Cr
    • 150 KLPD Ethanol Plant ₹110 Cr
    • Paddy Straw Boiler
    For the biodiesel business, I think most of the CapEx has already been incurred. The total project cost is around INR 140 crores for the 75 KLPD biodiesel plant. [...] And for the CapEx, as I mentioned, 75 KLPD biodiesel is around INR 140 crores. Majority of the CapEx has been done and the 150 KLPD ethanol plant, total CapEx is around INR 110 crores. And I think the company has incurred about INR 30-odd crores on that front.
  • Debt Debt disclosed
    • Repayment Working capital adjusted with bank for edible oil business exit ₹90 Cr
    The working capital of INR 90 crores, which was utilized for the edible oil business now stands adjusted with the bank. [...] the INR 90 crores of working capital that we had to adjust with the closing down of our edible oil business, we had a deadline of 30th June from our bank, but we have done that prior to 31st March only. So the company is actively working to reduce its debt through internal accruals.. In terms of working capital, the company has a sanction limit of INR 135 crores of working capital for BCL and INR 55 crores for Svaksha. The company has a term loan of INR 120 crores for the expansion that took place in Bathinda. And so the INR 120 crore term loan has an outstanding of INR 107 crores now, and it's under interest subvention. The company had taken INR 51 crores loan for Svaksha. Current outstanding is INR 39 crores. The company had taken an INR 65 crore again, term loan for Svaksha expansion, which is under interest subvention which has an outstanding of INR 65 crores. Besides this, the company had taken a INR 50 crores loan for biodiesel, which has an outstanding of INR 50 crores.
  • Dividend ₹0.26/share (interim)
    The company is in an expansion mode. And that's why the dividend of INR 0.26 was announced.
  • Liquidity Cash ₹20 Cr
    Cash on the books would be in the cash flow statement, I think around INR 20 crores.

Guidance & targets

Capacity

  • 75 KLPD Biodiesel Plant Commissioning Capacity · July 2025 · High confidence July 2025
    Our 75 KLPD biodiesel plant in Bathinda is at an advanced stage of development, and is expected to be commissioned in July 2025.

    — Kushal Mittal

  • 150 KLPD Ethanol Expansion Commissioning (Bathinda) Capacity · December 2025 · High confidence December 2025
    The work for 150 expansion at Bathinda is progressing well, with all clearances in hand, and we are hoping to commission this plant by December 2025.

    — Kushal Mittal

  • 60 TPH Paddy Straw Boiler Commissioning Capacity · November 2025 · High confidence November 2025
    We are expecting to commission this boiler in November 2025.

    — Kushal Mittal

  • Maize Oil Extraction Unit Commissioning Capacity · October 2025 · High confidence October 2025
    We are expecting to commission the maize oil extraction unit at Svaksha by October of this year.

    — Kushal Mittal

Revenue

  • 75 KLPD Biodiesel Plant Revenue Revenue · Annual (at 100% utilization) · High confidence INR 200-225 crores
    For the revenue figures, working at 100% capacity utilization at 75 KLPD biodiesel plant should give us around INR 200 crores to INR 225-odd crores in terms of revenue.

    — Kushal Mittal

  • 850 KLPD Capacity Revenue (Phase 1) Revenue · Before end of calendar year · High confidence INR 2,100 to INR 2,200 crores
    So a conservative figure for 850 capacity is around INR 2,100 to INR 2,200 crores in terms of revenue.

    — Kushal Mittal

  • 250 KLPD Expansion Revenue (Goyal Distillery) Revenue · Post commissioning · Medium confidence INR 700-750 crores
    So that should give us at least another INR 700 crores to INR 750 crores in revenue.

    — Kushal Mittal

Business Exit

  • Edible Oil Business Exit Business Exit · June 2025 · Medium confidence June end
    See, we are trying by June end. Let's see.

    — Kushal Mittal

Raw Material Prices

  • Maize Prices (FY26 Average) Raw Material Prices · FY26 · Medium confidence INR 25 to INR 25.5 per kg
    I expect that maize prices for the entire year should average around INR 25 to INR 25.5, because as of yesterday or day before, the government has also increased the MSP for maize to INR 24 now. So throughout the year, I would say, an estimate of INR 25 to INR 25.5 is probably a fair estimate.

    — Kushal Mittal

Fuel Mix

  • Paddy Straw Fuel Reliance (Bathinda) Fuel Mix · October/November 2025 · High confidence 100%

    From 60% today

    So firstly, for the fuel. So for Bathinda unit, about 60% of our fuel demand currently is being met by paddy straw and about 40% from rice husk. By October or November of this year, we are hoping that we will be 100% reliant on paddy straw with the commissioning of our new boiler.

    — Kushal Mittal

What to watch in Q1 FY26

75 KLPD Biodiesel Plant Commissioning

July 2025
Current Advanced stage of development
Target Commissioned and operational

Why it matters

This new plant is expected to contribute INR 200-225 crores in revenue and is a key diversification effort.

Our 75 KLPD biodiesel plant in Bathinda is at an advanced stage of development, and is expected to be commissioned in July 2025.

Risks & concerns

  • Raw Material Price Volatility

    medium

    Maize prices were volatile in FY25 (INR 23 to INR 28.5), making forecasting difficult, though softening is expected.

    Management acknowledged

  • Biodiesel OMC Contract Issues

    medium

    Acknowledged problems faced by the industry with OMC contracts for biodiesel, but a contingency plan is in place to process maize oil for other uses.

    Management acknowledged

  • Edible Oil Business Liquidation

    medium

    Phased exit requires liquidating existing inventory, some at discounted prices, and asset monetization will take time.

    Management acknowledged

  • Government Policy on 30% Blending

    low

    Official plan for 30% blending by 2030 is still awaited, creating some uncertainty, though management is confident in maize-based ethanol.

    Management acknowledged

Q&A highlights

7 direct
Biodiesel Plant Financials & Edible Oil Exit Offset Direct
For the biodiesel business, I think most of the CapEx has already been incurred. The total project cost is around INR 140 crores for the 75 KLPD biodiesel plant. As mentioned in my speech, we are expecting to commission this in July 2025. For the revenue figures, working at 100% capacity utilization at 75 KLPD biodiesel plant should give us around INR 200 crores to INR 225-odd crores in terms of revenue. [...] we are increasing our revenue with 150 KLPD ethanol expansion happening in Bathinda with the biodiesel unit coming, then the next phase would be the 250 KLPD ethanol plant that needs to be set up at Goyal Distillery. So of course, revenue will increase from that front.

Provides specific CapEx, revenue guidance for the new biodiesel plant, and strategy to offset revenue loss from edible oil exit.

Asked by Varun Thakkar

Edible Oil Business Exit Timeline & Debt Reduction Direct
See, for the edible oil business, we are trying to take an exit, but it has to be a phased exit since we are sitting on a decent amount of inventory that we need to liquidate. And if we do a sudden exit, then it will be tough to do that. So once the edible oil business is shut, of course, the cumulative margins will go up as distillery and biodiesel will be the primary contributor towards the revenue. So of course, the cumulative margins are set to go up with the shutting down of edible oil business. [...] See, we are trying by June end. Let's see. [...] the INR 90 crores of working capital that we had to adjust with the closing down of our edible oil business, we had a deadline of 30th June from our bank, but we have done that prior to 31st March only. So the company is actively working to reduce its debt through internal accruals..

Clarifies the phased exit strategy for the edible oil business, its impact on margins, and the timeline for completion, along with debt reduction efforts.

Asked by Harshit Nagpal

Raw Material Price Trends & Margin Outlook Direct
So last year was a complete rollercoaster when it came to the raw material prices for our distillery segment. We saw maize prices go from INR 23 upward to INR 28.5 also. And now they're starting to decrease again. So my forecast for this year, honestly, going by last year, I think it is tough to make a forecast. But with the relief of surplus rice for the ethanol industry, I expect that maize prices for the entire year should average around INR 25 to INR 25.5 [...] As mentioned, maize prices are starting to soften as there is a harvest in many states across India. And also with the release of surplus rights that has reduced the burden on the maize crop for ethanol producers. So of course, if the raw material prices are softening, our margins should improve.

Provides management's outlook on maize prices, a key input cost, and its expected positive impact on distillery margins.

Asked by Deepesh Sancheti

Maize vs FCI Rice Profitability Direct
See, since that statement was made, rice DDGS prices have significantly decreased. The price of rice DDGS now is the same as the price of maize DDGS, which is the first time in the history, I think that has happened. So when prices for maize are at INR 24, I would like to change my statement and say that maize is more profitable as opposed to FCI rice.

Reverses previous stance on raw material profitability, indicating maize is now more profitable than FCI rice for ethanol production, which is a key input decision.

Asked by Deepesh Sancheti

Biodiesel OMC Contract Issues & Contingency Direct
See, we haven't commissioned our biodiesel unit yet. So I can't comment on that. But yes, we are aware of the problems being faced by the industry. And keeping that in mind, we have kept the provision in our facility that if biodiesel prices are not viable or there are some issues on the OMC front, then we can process this maize oil and sell it as an industrial oil, whether that is for the animal feed industry or other uses. And there's a market for that also. So we have kept that provision inside our unit.

Acknowledges potential risks with OMC contracts for biodiesel and outlines a contingency plan to use maize oil for other industrial purposes, showing risk mitigation.

Asked by Deepesh Sancheti

CEO Appointment and Role Definition Direct
Yes. So profile will be shared on our website very soon. So Varun ji has joined us with the vast experience, and he will be assisting the company in all matters, whether that is administration, HR, finance, accounts, and overall, helping the company become more efficient, be compliant. And overall, he'll be responsible for the distillery business, the biodiesel business, and all the administrative work.

Clarifies the role of the newly appointed CEO, Varun Gupta, indicating a focus on operational efficiency and compliance across key business segments.

Asked by Neeraj

Edible Oil Division Asset Monetization Partial
See, firstly, we are planning on liquidating our stock, and it's taking a little more time than usual as we don't want to create a panic in the market where payment gets stuck also. So we are doing on that. And post that, we will start to focus on monetizing our assets in terms of plant and machinery and land. So I honestly don't have any exact figures for you as of now.

Provides insight into the company's plan for monetizing assets from the exiting edible oil division, indicating a phased approach starting with stock liquidation.

Asked by Neeraj

Government Policy on Maize/Ethanol Imports Direct
See, I do not have any news for you, but one thing is for sure. We believe that the government of India will not budge on this request to allow the import of ethanol or even maize. Because see, as I have mentioned multiple times, this policy of biofuels in the country, of course, you hear the benefits that it's a green fuel. It decreases the import bill for the country. All those are major, major reasons to promote this industry. But the biggest reason we have to understand is to ensure that the farmers income goes up, and that there is crop diversification that happens in the country, especially in areas of Northwestern states, where there's a major, major issue of groundwater depleting, maize is the best crop.

Management expresses strong confidence in the government's stance against maize/ethanol imports, citing national interest, farmer income, and crop diversification as key reasons, which is crucial for the ethanol business.

Asked by Neeraj

3 min read 7 chapters

Detailed narrative

Strong FY25 Performance and Strategic Shift

BCL Industries achieved a landmark FY25, celebrating its 50th year with a 32% year-on-year revenue growth to INR 2,910 crores. The company is strategically phasing out its low-margin edible oil business to focus on higher-margin segments like distilleries and biodiesel, aiming to improve overall profitability and reduce working capital. This shift reflects a robust risk management framework and a focus on long-term business priorities, including the adjustment of INR 90 crores of working capital with the bank related to the edible oil business.

Q4 FY25 Financials and Distillery Growth

In Q4 FY25, BCL Industries reported total revenue of INR 747 crores, marking a 21% increase year-on-year. EBITDA stood at INR 52 crores, representing a 7% margin, with the distillery segment contributing INR 48 crores. The distillery segment showed robust volume growth, with ethanol volumes rising by 18% to 45,921 KL and ENA volumes reaching 9,313 KL from 8,185 KL in the previous year.

Capacity Expansion and Diversification

The company is aggressively expanding its capacities. The 150 KLPD ethanol expansion at Bathinda is progressing well and is expected to be commissioned by December 2025. Additionally, the 75 KLPD biodiesel plant in Bathinda is in an advanced stage of development, with commissioning anticipated by July 2025, projected to generate INR 200-225 crores in revenue at full utilization. A 60 tonne per hour paddy straw boiler is also being installed to reduce fuel costs and improve operational efficiency, expected by November 2025.

Raw Material Strategy and Margin Outlook

Management expects distillery margins to improve in the next 1-2 quarters due to softening raw material prices, particularly maize, which is forecasted to average INR 25-25.5 per kg for FY26. The reinstatement of FCI rights for ethanol production at a fixed price of INR 22.5 per kilogram is seen as a positive development, enhancing supply chain efficiency. The company noted that maize is now considered more profitable than FCI rice for ethanol production, a shift from previous quarters, due to changes in DDGS prices.

Debt Reduction and Liquidity Management

BCL Industries has actively worked to reduce its debt, adjusting INR 90 crores of working capital related to the edible oil business prior to the March 31st deadline. The company's current cash on books is around INR 20 crores. Total term loans include INR 107 crores outstanding for Bathinda expansion, INR 39 crores for Svaksha, INR 65 crores for Svaksha expansion, and INR 50 crores for biodiesel, with some under interest subvention. The company aims to reduce its debt through internal accruals.

New Leadership and Operational Efficiency

Mr. Varun Gupta has been appointed as CEO, with responsibilities spanning administration, HR, finance, accounts, and overall operational efficiency. His role is expected to help the company become more efficient and compliant, supporting its growth trajectory. Management emphasized that this appointment is part of a strategy to open more avenues and bring in professional help as the company continues to grow.

Government Support for Biofuels

Management expressed strong confidence that the Indian government will not allow maize or ethanol imports, citing the policy's benefits for green fuel, reduced import bills, increased farmer income, and crop diversification, especially in Northwestern states. This stance provides a stable policy environment for the domestic ethanol industry, which is seen as crucial for the farmer-industry ecosystem.

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