TruAlt Bioenergy Limited

TruAlt Bioenergy reported a significant increase in total income for Q3 FY26, rising 69.77% QoQ to INR730.86 crores. For the nine months ended December 31, 2025, total income grew by 13.37% YoY to INR1,187 crores. Despite this, 9-month PBT saw a marginal dip of 4.71% to INR46.25 crores, primarily due to full fixed cost absorption during a period of partial plant shutdowns (48-50 operating days in Q3). PAT for the 9-month period increased by 2.80% to INR35.92 crores, while EBITDA grew by 9.99% to INR170.99 crores.

The company's five ethanol plants are now fully operational, with four achieving over 95% capacity utilization on operating days in Q3 FY26. Unit 5 received its consent to operate on December 17, 2025. The ethanol segment now has a monthly revenue run rate of approximately INR350-400 crores, corresponding to 5.5-6 crore liters of gross production per month. For FY26, the company projects a revised production of 36-37 crore liters (down from an earlier 41 crores) and targets 55 crore liters for FY27. Q4 FY26 EBITDA margin is expected to be 20-22% with 90-95% capacity utilization.

The CBG business demonstrated strong financial performance, with its revenue contribution for the 9 months ended December 31, 2025, growing 55.70% to INR30.97 crores, achieving an EBITDA margin of 63.34% and a PAT margin of 43.38%. TruAlt plans to develop 24 Greenfield CBG units over the next 2-3 years through joint ventures with Sumitomo Corporation and GAIL. The GAIL JV (10 plants, 12 TPD each) involves a capex of approximately INR650 crores, with 5 plants expected to commission by Jan-Feb 2027. The Sumitomo JV (12 plants, with first 4 being 20 TPD each) has a capex of approximately INR1000 crores, with the first 4 plants expected to complete by June 2026.

TruAlt Bioenergy is progressing with a proposed 100 million liters per annum SAF facility in Andhra Pradesh, targeting completion by July-October 2027 and revenue generation by FY28. The project involves a capex upwards of INR2,000 crores, with an expected sale price of INR180-200 per liter and an EBITDA target of 20-25%. The company is positive about receiving INR150 crores in Viability Gap Funding under the PM JI-VAN scheme and is negotiating for an additional INR1.5 crores per KL capital subsidy from the Andhra Pradesh government.

In its retail business, TruAlt has commissioned seven biofuel retail outlets and plans to scale to approximately 75 outlets in the calendar year FY26. The company aims to complete 75-80 dispensing stations by March 31 (calendar year). Current sales from the retail stations contribute INR48-50 crores to total revenue, with a margin of 2%. The long-term vision is to establish 250 retail outlets by 2029, projecting gross fuel sales of about 30 crore liters.

DDGS (Distillers' Dried Grains with Solubles) revenue for Q3 FY26 was approximately INR18 crores, with expectations to grow significantly to INR70-80 crores in Q4 FY26 as more grain-based plants operate. DDGS yield is typically 18-19% of grain input, and prices hover between INR15-35 per kg. Management noted that recent US trade deals allowing DDGS imports could stabilize average prices around INR22-26 per kg.

Management emphasized the central role of biofuels in India's energy security and independence, highlighting the E20 target achievement and ongoing policy discussions for higher blending levels (E27, SAF). Beyond ethanol, the company is exploring advanced biofuels and chemicals like green methanol, green ammonia, and green hydrogen, leveraging its CO2 by-product from ethanol production. This positions TruAlt to capitalize on the broader energy transition opportunity.