TRUALT

TruAlt Bioenergy reported a challenging Q2 FY26, with consolidated revenue from operations declining 68.07% YoY to INR 129 crores. The half-year (H1 FY26) revenue also saw a 28.55% YoY decline to INR 418 crores. This muted performance was attributed to a deliberate strategic plant shutdown in Q2 for multi-grain dual-feed integration, transforming the business from seasonal to near-continuous operation. Despite the top-line pressure, H1 FY26 net loss improved to INR 33.27 crores from INR 40.25 crores in H1 FY25, driven by significant cost optimization, particularly a 52.83% QoQ reduction in other expenses in Q2 FY26.

The company has successfully converted 1,300 KLPD, or 65% of its total 2,000 KLPD ethanol capacity, to a multi-grain dual-feed system, allowing for year-round production using syrup, molasses, rice, maize, and damaged food grains. For the November 2025 to October 2026 ethanol supply year, TruAlt targets supplying 47 crores liters, which is considered a 'done deal.' This is an increase from the 26.78 crores liters supplied in FY25. The shift to bagasse-based power generation has significantly reduced power costs for ethanol production to INR 3.5-4 per liter, down from INR 6-8 per liter with coal, saving INR 11 crores in power and INR 7-8 crores in transportation costs.

The CBG segment demonstrated robust growth, with H1 FY26 revenue surging 65.28% YoY to INR 20.71 crores and PAT increasing by 691.4% YoY to INR 10.13 crores. The CBG business boasts an impressive EBITDA margin of 68.29% and a Q2 FY26 PAT margin of 49.85%. TruAlt has partnered with Sumitomo Corporation for a JV to establish 16 CBG plants, with Phase 1 comprising four 20-ton plants at a total capex of INR 350-360 crores. Construction has begun on three plants, expected to be operational by Q2 FY27. The company also has a JV with GAIL for seven additional CBG project locations.

TruAlt is actively pursuing opportunities in Sustainable Aviation Fuel (SAF), aligning with India's mandate for 1% SAF blending by 2027 and 5% by 2030. The company has signed an MOU with the Andhra Pradesh government for an investment of up to INR 2,250 crores for an ethanol-to-SAF plant, targeting commissioning within the next two years and revenue generation by FY28. This project is planned with a 30-70 debt-to-equity funding mix and is projected to yield an IRR of 19% at 85-90% capacity utilization. Discussions are also underway with Sumitomo Corporation for potential SAF synergies.

The company is expanding its retail fuel network through a franchisee model, aiming for a 100-location rollout in Karnataka. Currently, seven outlets are operational, with six more ready to commence, bringing the total to 13 dispensing stations. This expansion strengthens downstream integration and enhances market presence. Management acknowledged challenges in securing approvals and clear land titles for new locations but highlighted the rapid rollout achieved so far, positioning TruAlt as one of the fastest in the sector.

As of September 30, 2025, TruAlt's total balance sheet size stood at INR 3,377 crores. Total equity increased significantly to INR 1401.52 crores from INR 582 crores a year prior, reflecting IPO money infusion and anchor investor rounds. Non-current assets, primarily property, plant, and equipment, grew to INR 1,648.25 crores from INR 1,253.79 crores due to multi-feeder plant introductions. The company's trade payables decreased substantially to INR 68.39 crores from INR 255.23 crores, indicating improved working capital management.