Q1 2027 BCL Industries Ltd Earnings Call

August 14, 2026

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Speaker #1: Thank you. Ladies and gentlemen, good day and welcome to the BCL Industries Limited Q1 FY27 Earnings Conference Call, hosted by Incred Equities. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to the BCL Industries Limited Q1 FY27 Earnings Conference Call hosted by InCred Equities. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * then zero on your touchtone phone.

Operator: Ladies and gentlemen, good day and welcome to the BCL Industries Limited Q1 FY 2027 Earnings Conference Call hosted by InCred Equities. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touchscreen phone. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call.

Operator: This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations the company has on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Awasthi. Thank you, and over to you, sir.

Speaker #1: These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Nitin Awasti. Thank you, and over to you, sir.

Speaker #2: Thank you. I would like to thank the management for giving us this opportunity to host their conference call today. From BCL Industries management, we have Mr. Kushal Mittal, GMD; Mr. Varun Gupta, CEO; and from Go India Advisors, their IR representative, Ms. Ritesha. I would now like to invite Mr. Kushal to initiate the proceedings with his opening remarks.

Nitin Awasthi: Thank you. I would like to thank the management for giving us this opportunity to host their conference call today. From BCL Industries management, we have Mr. Kushal Mittal, GMD, Mr. Varun Gupta, CEO. Also from Go India Advisors, their IR, we have Riddhi Shah. I would now like to invite Mr. Kushal to initiate the proceedings with his opening remarks, post which we shall open the floor for a Q&A session. Thank you, and over to you, sir.

Speaker #2: After this, we shall open the floor for a Q&A session. Thank you, and over to you, sir.

Speaker #1: Thank you, Nitin. Good afternoon, everyone, and a warm welcome to the BCL Industries Limited Q1 FY27 earnings conference call. I thank you for joining us today.

Kushal Mittal: Thank you, Nitin. Good afternoon, everyone, and a warm welcome to BCL Industries Limited Q1 FY27 earnings conference call. I thank you for joining us today. I would like to begin by providing some recent updates regarding the company. It is unfortunate to report that on 19 June 2026, a fire incident occurred at one of our ethanol storage tanks at our Bathinda, Punjab distillery. However, on the positive side, there were no injuries to any employees, workers, or personnel, and the fire was fully got under control on the same day. This resulted in a temporary shutdown of our 200 KLPD ethanol plant. I want to reassure investors that based on our assessment, full recovery of the resulting losses through insurance claims is considered virtually certain, and no net financial loss has been recognized in this result. Against this backdrop, BCL Industries has commenced FY27 on a steady note.

Speaker #1: I would like to begin by providing some recent updates regarding the company. It is unfortunate to report that on June 19, 2026, a fire incident occurred at one of our ethanol storage tanks at our Bathinda, Punjab distillery.

Speaker #1: However, on the positive side, there were no injuries to any employees, workers, or personnel, and the fire was fully brought under control on the same day.

Kushal Mittal: However, on the positive side, there were no injuries to any employees, workers, or personnel, and the fire was fully got under control on the same day. This resulted in a temporary shutdown of our 200 KLPD ethanol plant. I want to reassure investors that based on our assessment, full recovery of the resulting losses through insurance claims is considered virtually certain, and no net financial loss has been recognized in this result. Against this backdrop, BCL Industries has commenced FY27 on a steady note.

Speaker #1: This resulted in a temporary shutdown of our 200 KLPD ethanol plant. I want to reassure investors that, based on our assessment, full recovery of the resulting losses through insurance claims is considered virtually certain.

Speaker #1: And no net financial loss has been recognized in this result. Against this backdrop, BCL Industries has commenced FY27 on a steady note. Further strengthening our distillery segment, on 30 June 2026, we completed the acquisition of the remaining 25% stake in Swakesha Distillery Limited.

Kushal Mittal: Further centering our distillery segment on 30 June 2026, we completed the acquisition of the remaining 25% stake in Svaksha Distillery Limited, making the 350 KLPD distillery in Kharagpur, West Bengal, a wholly owned subsidiary of BCL Industries Limited. I am pleased to say that we have concluded this acquisition well within the stipulated time variance. Further, the newly added 150 KLPD unit commercial trials began at the end of June 2026 and was commercially successfully commissioned in the first half of July. The revenue impact arising from the temporary shutdown of the 200 KLPD unit is expected to be substantially mitigated by the ramp-up in production from the newly commissioned 150 KLPD unit at Bathinda.

Speaker #1: Making the 350 KLPD distillery in Kharagpur, West Bengal, a wholly owned subsidiary of BCL Industries Limited. I am pleased to say that we have concluded this acquisition well within the stipulated timeline.

Speaker #1: Further, the newly added 150 KLPD unit commercial trials began at the end of June 2026 and was successfully commissioned in the first half of July.

Kushal Mittal: Further, the newly added 150 KLPD unit commercial trials began at the end of June 2026 and was commercially successfully commissioned in the first half of July. The revenue impact arising from the temporary shutdown of the 200 KLPD unit is expected to be substantially mitigated by the ramp-up in production from the newly commissioned 150 KLPD unit at Bathinda.

Speaker #1: The revenue impact arising from the temporary shutdown of the 200 KLPD unit is expected to be substantially mitigated by the ramp-up in production from the newly commissioned 150 KLPD unit at Bathinda.

Speaker #1: While realizations of E&A and ethanol supplied to private buyers remained under pressure due to oversupply, E&A realizations declined to ₹58 per liter in Q1 FY27, from ₹70 per liter in Q1 FY26.

Kushal Mittal: While realizations of ENA and ethanol supply to private buyers remained under pressure due to oversupply, with ENA realizations declining to INR 58 per liters in Q1 FY27 from INR 70 a liter in Q1 FY26. The company continues to actively compete in the market to secure orders and maintain 100% capacity utilization. Despite the challenging environment, the distillery segment margin improved to 12.4%, supported by the operational efficiencies and the vertical integration that has been due to the maize oil extraction unit and our maize oil refinery. Our 115 TPH paddy straw boiler continues to meet 100% of distillery's steam and power requirements, further supporting cost efficiencies. Our country liquor business continued to deliver strong momentum during the quarter.

Speaker #1: The company continues to actively compete in the market to secure orders and maintain a 100% capacity utilization. Despite the challenging environment, the distillery segment margin improved to 12.4%, supported by the operational efficiencies and the vertical integration that has been due to the maize oil extraction unit and our maize oil refinery.

Kushal Mittal: Despite the challenging environment, the distillery segment margin improved to 12.4%, supported by the operational efficiencies and the vertical integration that has been due to the maize oil extraction unit and our maize oil refinery. Our 115 TPH paddy straw boiler continues to meet 100% of distillery's steam and power requirements, further supporting cost efficiencies. Our country liquor business continued to deliver strong momentum during the quarter.

Speaker #1: Our 115 TPH fatty straw boiler continues to meet 100% of the distillery's steam and power requirements, further supporting cost efficiencies. Our country liquor business continued to deliver strong momentum during the quarter.

Speaker #1: We sold 6,37,993 boxes in Q1, FY27, with a volume increasing 42% quarter on quarter and 46% year on year. The strong growth reflects continued traction of our country liquor portfolio.

Kushal Mittal: We sold 637,993 boxes in Q1 FY27, with our volumes increasing 42% quarter on quarter and 46% year on year. The strong growth reflects our continued traction of our country liquor portfolio. We launched Punjab Raspberry in Q4, which has gained good consumer acceptance. Building on this momentum, we have launched Jamun Vodka in July 2026, further expanding our portfolio and strengthening our presence in the country liquor business. As previously communicated, we have completed our exit from the packaged oil business, including the formal closure of the oil and vanaspati unit at our previous Bathinda location. This quarter results include INR 199.47 lakhs, representing profit on the sale of fixed assets, compromising building materials and scrap from our dismantled unit.

Speaker #1: We launched Punjab Raspberry in Q4, which has received very good consumer acceptance. Building on this momentum, we have launched Jamun Vodka in July 2026, further expanding our portfolio and strengthening our presence in the country liquor business.

Speaker #1: As previously communicated, we have completed our exit from the packaged oil business, including the formal closure of the Oil and Vanaspati unit at our previous Bathinda location.

Kushal Mittal: As previously communicated, we have completed our exit from the packaged oil business, including the formal closure of the oil and vanaspati unit at our previous Bathinda location. This quarter results include INR 199.47 lakhs, representing profit on the sale of fixed assets, compromising building materials and scrap from our dismantled unit.

Speaker #1: This quarter's results include ₹199.47 lakhs, representing profit on the sale of fixed assets, comprising building materials and scrap from our dismantled unit. We continue to operate our soft oil refinery and trading business, which remains part of our legacy operations.

Kushal Mittal: We continue to operate our soft oil refinery and trading business, which remains part of our legacy operations. We have also commissioned our maize oil extraction unit at Svaksha, a fully backward-integrated facility that enables us to capture greater value across the value chain. Now, moving on to our financial performance for the quarter. Consolidated revenues from operations for Q1 FY27 stood at INR 623 crores compared to INR 820 crores in Q1 FY26. The reduction in revenue is primarily due to the closure of our edible oil unit and exit from the packaged oil business. EBITDA for the quarter stood at INR 66 crores, up 17% year on year, with EBITDA margin improving sharply by 370 basis points to 10.5% from 6.8% in Q1 FY26.

Speaker #1: We have also commissioned our maize oil extraction unit at Swakesha, a fully backward-integrated facility that enables us to capture greater value across the value chain.

Speaker #1: Now, moving on to our financial performance for the quarter. Consolidated revenues from operations for Q1 FY27 stood at ₹623 crore, compared to ₹820 crore in Q1 FY26.

Kushal Mittal: Consolidated revenues from operations for Q1 FY27 stood at INR 623 crores compared to INR 820 crores in Q1 FY26. The reduction in revenue is primarily due to the closure of our edible oil unit and exit from the packaged oil business. EBITDA for the quarter stood at INR 66 crores, up 17% year on year, with EBITDA margin improving sharply by 370 basis points to 10.5% from 6.8% in Q1 FY26.

Speaker #1: The reduction in revenues was primarily due to the closure of our edible oil unit and exit from the packaged oil business. EBITDA for the quarter stood at Rs 66 crore, up 17% year on year, with EBITDA margin improving sharply by 370 basis points from 6.8% in Q1 FY26 to 10.5%.

Speaker #1: PAT for the quarter came at Rs. 36 crore, up 6% year-on-year, with PAT margin improving to 5.7% from 4.1% in Q1 FY26. On a segmental basis, our distillery business reported an EBITDA margin of 12.41% in Q1 FY27, up from 11.8% in Q4 FY26, and 10% in Q1 FY26.

Kushal Mittal: PAT for the quarter came at INR 36, up 6% year on year, with PAT margin improving to 5.7% from 4.1% in Q1 FY26. On a segmental basis, our distillery business reported an EBITDA margin of 12.41% in Q1 FY27, up from 11.8% in Q4 FY26 and 10% in Q1 FY26. ENA volumes grew sharply to 19,376 KL in Q1 from 7,960 KL in Q1 FY26, reflecting continued diversion towards ENA amid the competitive ethanol environment. While the ethanol volumes stood at 37,787 KL for the quarter. To conclude, BCL Industries is strongly positioned to capture growth across our core distillery and refinery divisions.

Speaker #1: E&A volumes grew sharply to 19,376 KL in Q1 from 7,960 KL in Q1 FY26, reflecting continued diversion towards E&A amid the competitive ethanol environment.

Speaker #1: While the ethanol volumes stood at 37,787 KL for the quarter. To conclude, BCL Industries is strongly positioned to capture growth across our core distillery and refinery divisions.

Kushal Mittal: To conclude, BCL Industries is strongly positioned to capture growth across our core distillery and refinery divisions. As we execute our strategic initiatives, we remain fully committed to driving long-term sustainable value for our shareholders. Thank you for your time and continued support. We would now like to open the floor for questions.

Speaker #1: As we execute our strategic initiatives, we remain fully committed to driving long-term, sustainable value for our shareholders. Thank you for your time and continued support.

Kushal Mittal: As we execute our strategic initiatives, we remain fully committed to driving long-term sustainable value for our shareholders. Thank you for your time and continued support. We would now like to open the floor for questions.

Speaker #1: We would now like to open the floor for questions.

Speaker #2: Thank you, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes in the line of Deepesh Sanjivi with Manya Finance. Please go ahead.

Speaker #2: If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question.

Speaker #2: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes in from the base entity with Mania Finance.

Speaker #2: Please go ahead.

Deepesh Sanjivi: Hello, Vishal. Am I audible?

Deepesh Sancheti: Hello, Vishal. Am I audible?

Speaker #1: Hello, Krishal ji. Am I audible?

Speaker #2: Hi, yes. Yes, you are.

Kushal Mittal: Yes. You are.

Speaker #1: Yeah, okay. At what price are we selling ethanol to private players?

Deepesh Sanjivi: Yeah. Okay. At what price are we selling ethanol to private players?

Deepesh Sancheti: Yeah. Okay. At what price are we selling ethanol to private players?

Kushal Mittal: Ethanol to private players is primarily Reliance, I think the average price is INR 68 ex-factory.

Speaker #2: Ethanol to private players is primarily Reliance, and I think the average price is Rs. 58 ex-factory.

Speaker #1: Ex-factory. And that is from FCI, right? So, that is from maize?

Deepesh Sanjivi: Ex-factory. Is that from FCI rice, or is that from maize?

Deepesh Sancheti: Ex-factory. Is that from FCI rice, or is that from maize?

Speaker #2: No, so the private ethanol procurers, they don't have the FCI rights. So that's mostly from damaged food grains.

Kushal Mittal: No, the private ethanol procurers, they do not have the FCI rice, so that is mostly from damaged food grains.

Speaker #1: Okay. And at what price are we getting the damaged food grains? Because then we lose out on that FCI rights advantage, right?

Deepesh Sanjivi: Okay. At what price are we getting the damaged food grains? Because then we lose out that FCI rice advantage, right?

Deepesh Sancheti: Okay. At what price are we getting the damaged food grains? Because then we lose out that FCI rice advantage, right?

Speaker #2: No, see, FCI rights are allocated against the allocation that we receive from the government OMCs. So, 40% of our allocation from the government OMCs, we had to procure from FCI and then supply ethanol against the same.

Kushal Mittal: No. See, FCI rice is allocated against the allocation that we receive from the OMCs. 40% of our allocation from the OMCs, we had to procure FCI and then supply ethanol against the same. For Reliance Industries, we can procure grain from the market. Mostly besides FCI, our plant was running on maize. For previous quarter, I think the procurement cost was around INR 22 to INR 23 a kg.

Speaker #2: So for Reliance, we can procure grain from the market. And mostly, besides FCI, our plant was running on maize. So for the previous quarter, I think the procurement cost was around ₹22 to ₹23 per kg.

Speaker #1: For maize?

Deepesh Sanjivi: For maize?

Deepesh Sancheti: For maize?

Speaker #2: For maize.

Kushal Mittal: For maize.

Deepesh Sanjivi: Okay. Just wanted to see. Okay. What was the reason of the fire? Have we come to know about the reason of the fire, and how are we working on avoiding that in near future for the rest of the plants?

Deepesh Sancheti: Okay. Just wanted to see. Okay. What was the reason of the fire? Have we come to know about the reason of the fire, and how are we working on avoiding that in near future for the rest of the plants?

Speaker #1: Okay. Okay. And what was the reason for the fire? Have we come to know about the reason for the fire? And how are we working on avoiding that in the near future for the rest of the plants?

Speaker #2: See, we were quite grateful that there was no loss of life or even an injury. All the systems were working in place. Since we are dealing with an explosive item like ethanol, I think the cause of fire was maybe a static charge that was created by something—maybe from the cloth of a person working nearby.

Kushal Mittal: We were quite grateful that there was no loss of life or even an injury. All the systems were working in place. Since we are dealing with an explosive item like ethanol, I think the cause of fire was maybe a static charge that was created by something, maybe from the cloths of a person working nearby. Moving forward, the company has set up more facilities to prevent such an accident, but it was an unfortunate incident that occurred, and it is quite rare.

Speaker #2: So, moving forward, the company has set up more facilities to prevent certain accidents. But it was an unfortunate incident that occurred, and it's quite rare.

Speaker #1: True, true. Okay. And post-achievement of the E20 blending target, what is our visibility on demand for grain-based ethanol going forward? And how are we thinking about the pathway beyond E20?

Deepesh Sanjivi: True. Okay. Post achievement of the E20 blending target, what is our visibility on demand of grain-based ethanol going forward, and how are we thinking of the pathway beyond E20?

Deepesh Sancheti: True. Okay. Post achievement of the E20 blending target, what is our visibility on demand of grain-based ethanol going forward, and how are we thinking of the pathway beyond E20?

Speaker #2: See, the demand for grain ethanol next year should improve slightly because sugar ethanol from sugarcane will most likely not be allowed, and only molasses-based ethanol will be there.

Kushal Mittal: See, the demand for grain ethanol next year should improve slightly because the ethanol from sugarcane will most likely not be allowed, and only molasses-based ethanol will be there. You see the growth factors going forward for the ethanol industry are, of course, flex fuel engines, which is a long-term play. Besides this, we are quite hopeful on a good isobutanol policy coming in the near future as well. Sustainable aviation fuel also would be another value addition for the ethanol industry. Also we are seeing from the Government of India that now ethanol could be used as a source of cooking. Because ethanol is a very clean fuel. Even when it burns inside our homes, it is even cleaner than the PNG. It is a very good source for cooking energy as well.

Speaker #2: And see, the growth factors going forward for the ethanol industry are, of course, flex-fuel engines, which is a long-term play. And besides this, we are quite hopeful on a good isobutanol policy coming in the near future as well.

Speaker #2: And sustainable aviation fuel also would be another value addition for the ethanol industry. And also, we are seeing from the Government of India that now ethanol could be used as a source of cooking.

Kushal Mittal: Also we are seeing from the Government of India that now ethanol could be used as a source of cooking. Because ethanol is a very clean fuel. Even when it burns inside our homes, it is even cleaner than the PNG. It is a very good source for cooking energy as well. I think there are many avenues for demand creation in the future, but it will take some time.

Speaker #2: Which is because ethanol is a very clean fuel. Even when it burns inside our homes, it's even cleaner than PNG. So it's a very good source for cooking energy as well.

Speaker #2: So I think there are many avenues for demand creation in the future, but it will take some time.

Kushal Mittal: I think there are many avenues for demand creation in the future, but it will take some time.

Speaker #1: Right. And any update on GOEL Distillery or bio-CNG, or even the biodiesel? Hello? Hello? Operator, am I audible?

Deepesh Sanjivi: Right. Any update on Goyal Distillery, bio-CNG, or even the biodiesel? Hello? Hello? Operator, am I audible?

Deepesh Sancheti: Right. Any update on Goyal Distillery, bio-CNG, or even the biodiesel? Hello? Hello? Operator, am I audible?

Speaker #2: Yes, you are audible.

Operator: Yes, you are audible.

Speaker #1: I think, regarding BIOCNG, there's a very favorable policy that was just announced a few days ago, and the company is actively looking into the sector to invest in.

Deepesh Sanjivi: Yes.

Deepesh Sancheti: Yes.

Kushal Mittal: Bio-CNG, I think there is a very favorable policy that has just been announced a few days ago. The company is actively looking into the sector to invest in. Still, the technology from Paddy Store is a little tricky, mainly the selling of the byproduct that is made in the process. For biodiesel, again, the prices are not as favorable, so the company is not manufacturing any biodiesel.

Speaker #1: Still, the technology from paddy straw is a little tricky, mainly because of the selling of the byproduct that is made in the process. And for biodiesel, again, the prices are not as favorable.

Speaker #1: So the company is not manufacturing any biodiesel. And regarding the GOEL distillery, the 250 KLPD which we plan to install?

Deepesh Sanjivi: About Goyal Distillery, the 250 KLPD which we planned to install.

Deepesh Sancheti: About Goyal Distillery, the 250 KLPD which we planned to install.

Speaker #2: Currently, we are holding onto the project. We want to see how the industry further evolves in the coming months and then make a decision.

Kushal Mittal: The project for now, we are holding on to it. We want to see how the industry further evolves in the coming months and then make a decision.

Speaker #1: Right. So if I could just understand, what are the unit economics? Specifically, what is the selling price and what is the cost price?

Deepesh Sanjivi: Right. If I could just understand what is the unit economics, just as in what is the selling price, what is the cost price, and what is the EBITDA in terms of our ethanol to the Government, ethanol to private players and ENA. Since the ENA prices have reduced and ENA was our biggest go-to market, especially when ethanol from the Government demand was less. What is the unit economics and what is the EBITDA basically on if you can just mention the EBITDA also is fine on each product.

Deepesh Sancheti: Right. If I could just understand what is the unit economics, just as in what is the selling price, what is the cost price, and what is the EBITDA in terms of our ethanol to the Government, ethanol to private players and ENA. Since the ENA prices have reduced and ENA was our biggest go-to market, especially when ethanol from the Government demand was less. What is the unit economics and what is the EBITDA basically on if you can just mention the EBITDA also is fine on each product.

Speaker #1: And what is the EBITDA in terms of our ethanol to the government, ethanol to private players, and ENA? Because since the ENA prices have reduced, and ENA was our biggest go-to-market, especially when ethanol from the government demand was less, what is the unit economics, and what is the EBITDA—basically, if you can just mention the EBITDA also is fine—on each product.

Speaker #2: No, see, it's different. So, what's sold to the government is not very profitable—it's almost at cost. But there's a 40% mandate. But the maize-based ethanol that is sold to the government OMCs is quite profitable.

Kushal Mittal: No, see, it is different. FCI rice, that ethanol that is sold to the Government is not very profitable. It is almost at cost. There is a 40% mandate. But the maize-based ethanol that is sold to the Government OMCs is quite profitable. ENA and ethanol that is sold to private players in the market, they are about the same. The margins on that is about the same. On an average, this is our about 12% is our EBITDA margin on an average.

Speaker #2: And ENA and ethanol that is sold to private players in the market—they're about the same. The margins on that are about the same.

Speaker #2: So on an average, this is our about 12% is our EBITDA margin on an average.

Speaker #1: So per liter, I can assume that on maize-based ethanol as well as on ENA, even at these prices, we are getting about 12 to I mean, what, 9 to 10 rupees per liter?

Deepesh Sanjivi: Per liter, I can assume that on maize-based ethanol as well as on ENA, even at these prices, we are getting about 12 to, I mean, what, 9 to INR 10 per liter?

Deepesh Sancheti: Per liter, I can assume that on maize-based ethanol as well as on ENA, even at these prices, we are getting about 12 to, I mean, what, 9 to INR 10 per liter?

Speaker #2: 9 to 10?

Kushal Mittal: 9 to 10. Yeah, on an average.

Speaker #1: Yeah, on an average, on an average. On an average. I'm not including the FCI-based ethanol. I'm just talking about the maize-based ethanol and ENA.

Deepesh Sanjivi: On an average. I am not including the Food Corporation of India-based ethanol. I am just saying about the maize-based ethanol and ENA.

Deepesh Sancheti: On an average. I am not including the Food Corporation of India-based ethanol. I am just saying about the maize-based ethanol and ENA.

Speaker #2: Yes, yes, yes. Correct. Correct.

Kushal Mittal: Yes, correct.

Speaker #1: Great, great, great. Congratulations again. And if there are any other questions, I'll join back. Thank you.

Deepesh Sanjivi: Great. Congratulations again. If there are any other questions, I will join back. Thank you.

Deepesh Sancheti: Great. Congratulations again. If there are any other questions, I will join back. Thank you.

Speaker #2: Thank you. Thank you.

Kushal Mittal: Thank you.

Operator: Thank you. The next question comes from the line of Abhishek Kale, an individual investor. Please go ahead.

Speaker #3: Thank you. The next question comes from Abhishek Kale, an individual investor. Please go ahead.

Speaker #1: Who said, "Am I audible?"

Abhishek Kale: Abhishek, am I audible?

Speaker #2: Andy, yes. Good afternoon.

Kushal Mittal: Yes. Good afternoon.

Speaker #1: Good afternoon. Our questions are from four days back. Mr. Suresh Gopi has given a written reply in Parliament that due to ethanol’s lower flash point, they are not considering blending diesel and ethanol.

Abhishek Kale: Good afternoon. Kushal sir, four days back, Mr. Suresh Gopi has given a written reply in the parliament that diesel and ethanol mixing, because of ethanol's lower flash point, they are not considering this blending. I think in one of your updates you said that the isobutanol blending is being actively pursued. You may want to just revisit that. There is an article in The Hindu as well, and there is a-

Speaker #1: So, I think in one of your updates, you said that isobutanyl blending is being actively pursued. So, you may want to just revisit that.

Speaker #1: There's an article in Hindi as well, and there is a return.

Kushal Mittal: No, there is a difference in the two statements.

Speaker #2: No, see, there's a difference. There's a difference in the two statements. One is whether ethanol can directly be blended into diesel, which was rightly clarified—that there's a difference in the flash point.

Abhishek Kale: Okay.

Kushal Mittal: One is whether ethanol can directly be blended into diesel, which-

Abhishek Kale: Right

Kushal Mittal: was rightly clarified that there is a difference in the flash point. Ethanol and isobutanol are two different products. Ethanol can be used to manufacture isobutanol, and I don't think there is any statement that has been made which says that even isobutanol is not-

Speaker #2: Now, ethanol and isobutanyl are two different products. Ethanol can be used to manufacture isobutanyl, and I don't think there's any statement that has been made which says that even isobutanyl—not isobutanyl—can be blended with diesel.

Abhishek Kale: No.

Kushal Mittal: Isobutanol can be blended with diesel.

Speaker #1: Right. You're right. I was just trying to understand whether that is also being shelved or not. So, thanks for clarifying that. Sir, second question.

Abhishek Kale: Right. You are right. I was just trying to understand whether that is also being shelved or not. Thanks for clarifying that. Sir, second question, this whole E20 related problems, right? Which is being widely, I mean, it is all in the media. I do not know how much of it has a meat or whatever, but it seems like the government is on a back foot when it comes to the E22 or E27 kind of mandates which they were pursuing, right? I mean, the reason for my question is, do we see that the ethanol capacity offtake will increase unless and until we have a huge stock of flex fuel vehicles coming into the market? Till that point in time, do you see that the offtake is going to increase any further? Just a visibility kind of a question.

Speaker #1: This whole E20-related problem, right, which is being widely—I mean, it's all in the media. I don't know how much of it has meat or whatever.

Speaker #1: But it seems like the government is on the back foot when it comes to the E22 or E27 kind of mandates which they were pursuing, right?

Speaker #1: So, I mean, the reason for my question is, do we see that the ethanol capacity uptake will increase unless and until we have a huge stock of flex-fuel vehicles coming into the market?

Abhishek Kale: I mean, the reason for my question is, do we see that the ethanol capacity offtake will increase unless and until we have a huge stock of flex fuel vehicles coming into the market? Till that point in time, do you see that the offtake is going to increase any further? Just a visibility kind of a question.

Speaker #1: Till that point in time, do you see that the optic is going to increase any further? Just a visibility kind of question.

Speaker #2: See, firstly, when talking about isobutanyl, I think there are still active trials and testing going on for a policy to be introduced. So I don't think that has been shelved.

Kushal Mittal: See, firstly, when talking about isobutanol, I think there is still active trials and testing going on for a policy to be introduced. I do not think that has been shelved. There is a big difference in these two statements that were made. Again, I say, ethanol in diesel is very different from isobutanol in diesel. Yes. When you talk about government being on the back foot or not, see, that I cannot comment on. I can speak on behalf of my company or even the industry. E20 has been going on for a year and a half. If there was any major damage to vehicles, that would have showed in the 18 months since when E20, or more than 18 months since when E20 has been going to the pumps and to the consumers. Yes, demand creation will happen from a few places.

Speaker #2: There's a big difference in these two statements that were made. Again, I say, ethanol in diesel is very different from isobutanol in diesel. So, yes.

Speaker #2: When you talk about the government being on the back foot or not, see, that I can't comment on. I can speak on behalf of my company, or even the industry.

Kushal Mittal: I can speak on behalf of my company or even the industry. E20 has been going on for a year and a half. If there was any major damage to vehicles, that would have showed in the 18 months since when E20, or more than 18 months since when E20 has been going to the pumps and to the consumers. Yes, demand creation will happen from a few places.

Speaker #2: E20 has been going on for a year and a half. If there was any major damage to vehicles, that would have shown in the 18 months since E20—or more than 18 months since E20 has been going to the pumps and to the consumers.

Speaker #2: Yes, demand creation will happen from a few places. Maybe due to the pushback, further blending could be delayed or shelved. I'm not sure about it.

Kushal Mittal: Maybe due to the pushback, further blending could be delayed or shelved. I am not sure about it. Besides that, I think biofuel industry as a whole has a very good future. India's food grain is still at record amount. We do not have enough space for this year's stock as well. Farmer income is a must for any government. I do not think this is a policy that will be derailed for very long. There will be a demand creation from isobutanol. There will be demand creation from SAF. I think in the coming months, we will see quite a few launches of flex fuel vehicles, and we will see E85 being available at even more pumps. I think demand creation will happen. The pace at which it was happening earlier will slow down. That is realistic, but I think there will be good demand coming in the future times.

Speaker #2: But besides that, I think the biofuel industry as a whole has a very, very good future. India's food grain production is still at a record amount. We don't have enough space for this year's stock as well.

Speaker #2: Biomass income is a must for any government. So I don't think this is a policy that will be derailed for very long. There will be demand creation from isobutanol.

Kushal Mittal: There will be a demand creation from isobutanol. There will be demand creation from SAF. I think in the coming months, we will see quite a few launches of flex fuel vehicles, and we will see E85 being available at even more pumps. I think demand creation will happen. The pace at which it was happening earlier will slow down. That is realistic, but I think there will be good demand coming in the future times.

Speaker #2: There will be demand creation from SAF. And I think in the coming months, we'll see quite a few launches of flexible vehicles, and we'll see E87 being available at even more pumps.

Speaker #2: So, I think demand creation will happen. The pace at which it was happening earlier will slow down—that is realistic. But I think there will be good demand coming in the future.

Speaker #1: Is there one last question on biodiesel, if I may, please?

Abhishek Kale: Sir, one last question on biodiesel, if I may, please.

Speaker #2: Yes, please.

Kushal Mittal: Yes, please.

Speaker #1: Yeah. So, sir, as you have seen with biodiesel, I mean, somehow with the government and the tenders, right now there is not enough biodiesel being blended.

Abhishek Kale: Yeah. So, sir, as you have seen, biodiesel, I mean, somehow the Government, the tenders, right? There is not enough of biodiesel being blended. Is there any specific reason why we are not seeing that happening? Because, I mean, we are also planning for our 75 KLPD unit at Svaksha. Am I right in saying that? If my memory serves me-

Speaker #1: Is there any specific reason why we are not seeing that happening? Because, I mean, we are also planning for a 75 KLPD unit at Swaksha.

Speaker #1: Am I right in saying that? If I'm memorizing.

Speaker #2: No, see, that project has been put on hold for now because biodiesel rates are not as remunerative.

Kushal Mittal: No. See, that project has been brought on hold for now because biodiesel rates are not as remunerative. I think the reason behind that, a lot of the raw materials for the biodiesel industry, their raw material for the raw material is imported.

Speaker #1: And I think the reason behind that, that the a lot of the raw materials for the bio diesel industry they're raw material. Raw material for the raw material is imported.

Abhishek Kale: Right.

Speaker #1: So, the government, I think, may realize that, because the main aim for the biofuel sector is to improve farmers' income, which has been done very successfully in the past few years.

Kushal Mittal: The government, I think, maybe realizes that because the main aim for biofuel sector is to improve farmer's income, which it has done in the past few years very successfully. Since a lot of the raw material to the raw material for biodiesel sector is imported, the government have not focused on it as much, and that's why the isobutanol is being tested, because the government wants to promote indigenous raw materials, which will not only help the industry save the Forex, but most importantly, improve farmer income.

Speaker #1: Now, since a lot of the raw material for the biodiesel sector is imported, the government has not focused on it as much.

Speaker #1: And that's why the isobutanyl is being tested, because the government wants to promote indigenous raw materials, which will not only help the industry save on forex, but most importantly, improve farmer income.

Speaker #1: Right. Sir, if I may continue with this, would it be okay? The way we—if I understand correctly, we extract neem oil, which was our sole purpose for setting up the biodiesel unit, and we had plans to consume it for making biodiesel at—so I mean, that is something, maybe, we are not importing.

Abhishek Kale: Right. Sir, if I may continue with this, would it be okay? If I understand correctly, we extract base oil, which was our sole purpose of setting up the biodiesel unit, and we had plans to consume it for making biodiesel. I mean, that is something maybe we are not importing. It's locally produced. Then why probably we are not getting the tenders? Is that just because of the pricing or what would be the reason? I'm just trying to understand it from our context, not from-

Speaker #1: It's a locally produced. So then, why are we probably not getting the tenders? Is that just because of the pricing, or what would be the reason?

Speaker #1: I'm just trying to understand from our context.

Speaker #2: Prices for biodiesel are very, very low. So that's why.

Kushal Mittal: Prices for biodiesel are very low, so that's why.

Speaker #1: Okay, okay. But sir, if I may, have we re-read this? I mean, you must have surely re-read this to the Ministry or the OMCs or the partners whom we are working with.

Abhishek Kale: Okay. But, sir, if I may, have we raised- I mean, you must have surely raised this to the ministry or the OMCs or the partners whom we are working with. Is there a feedback coming from their side as government is considering upping the price just to ensure- I mean, we are talking about security, right? Energy security. This is something we are not importing. So is that a consideration that is being given?

Speaker #1: Is there any feedback coming from their side, as the government is considering upping the price just to ensure— I mean, we are talking about security, right? Energy security.

Speaker #1: So, this is something we are not importing. Is that a consideration that is being given?

Speaker #2: Yeah, I'm not a part of the government, so I can't comment on that.

Kushal Mittal: I am not a part of the government, so I cannot comment on the

Abhishek Kale: No, I am just saying that, have you raised this to the partners that we are working with in terms of procurement or that we do not have a way of communicating this?

Speaker #1: No, I'm just saying, have you re-read this to the partners that we are working with in terms of procurement? Or is it that we don't have a way of communicating this?

Speaker #2: No, of course. The queries have been raised. The concerns have been raised by the association and different players in the industry. But what is happening inside—how will I be able to tell?

Kushal Mittal: No, of course, queries have been raised, the concerns have been raised by the association and different players in the industry. But what is happening inside, how will I be able to tell?

Abhishek Kale: Right. That is a fair point from your side.

Speaker #1: Right. That's a fair point from you, sir. Thanks for clarifying this. Thanks for clarifying. Yeah.

Kushal Mittal: But-

Abhishek Kale: Thanks for clarifying this.

Kushal Mittal: Yeah.

Abhishek Kale: Thanks for clarifying. Yeah.

Speaker #2: Thank you. Our next question comes from the line of Gautam Karva, an individual investor. Please go ahead.

Operator: Thank you. Our next question comes from the line of Gautam Karwa, an individual investor. Please go ahead.

Speaker #1: Hello?

Gautam Karwa: Hello?

Speaker #2: Yes, are you audible? Please go ahead. Mr. Gautam, your line has been unmuted. Please go ahead with your question.

Operator: Yes, sir. You are audible. Please go ahead.

Operator: Yes, sir. You are audible. Please go ahead. Mr. Gautam, your line has been unmuted. Please go ahead with your question.

Kushal Mittal: Mr. Gautam, your line has been unmuted. Please go ahead with your question.

Speaker #1: Hello? Are we on your voice?

Gautam Karwa: Hello. Are you hearing my voice now?

Speaker #2: Yes, sir. Mr. Gautam, you are not audible. Mr. Gautam, I would request you to please rejoin the queue. The next question comes from the line of Bhavesh, an individual investor.

Kushal Mittal: Yes, sir. Mr. Gautam, you're not audible. Mr. Gautam, I would request you to please rejoin the queue. The next question comes from the line of Bhavesh, an individual investor. Please go ahead.

Operator: Yes, sir. Mr. Gautam, you're not audible. Mr. Gautam, I would request you to please rejoin the queue. The next question comes from the line of Bhavesh, an individual investor. Please go ahead.

Speaker #2: Please go ahead.

[Company Representative]: Good afternoon, Mr. Mittal. Thank you for the opportunity, and good set of results. My first question is regarding the IMFL segment. Regarding the strategic timeline to enter the high margin IMFL segment over the next 2 years, management has previously indicated plans to construct a malt plant. Could you please provide an update on whether this project is on track? When is the construction formally scheduled to begin, and what is the total estimated CapEx for setting up this?

[Shareholder] (Private Investor): Good afternoon, Mr. Mittal. Thank you for the opportunity, and good set of results. My first question is regarding the IMFL segment. Regarding the strategic timeline to enter the high margin IMFL segment over the next 2 years, management has previously indicated plans to construct a malt plant. Could you please provide an update on whether this project is on track? When is the construction formally scheduled to begin, and what is the total estimated CapEx for setting up this?

Speaker #1: Good afternoon, Mr. Chairman. Thank you for the opportunity and for the good set of results. My first question is regarding the IMFL segment. Regarding the strategic timeline to enter the high-margin IMFL segment over the next two years, management has previously indicated plans to construct a malt plant.

Speaker #1: So, could you please provide an update on whether this project is on track? When is the construction formally scheduled to begin, and what is the total estimated capex for setting this up?

Speaker #2: Good afternoon. Yes, thank you. So, the malt unit is still under consideration and conceptualization. I think the first step should be entering the IMFL business, which we are working on, and hopefully next year we will be able to enter that business as well.

Kushal Mittal: Good afternoon. Yes, thank you. The malt unit is still under consideration and conceptualization. I think the first step should be entering the IMFL business, which we are working on, and hopefully next year we will be able to enter that business as well. When you say high profit, personally, I think country liquor for a company like us is always a more profitable business, since IMFL is a very competitive landscape. But yes, that is the natural step for the company. We will go ahead with that. The malt unit, I do not have any set timelines as of today.

Speaker #2: When you say high profit, I think it's personally, I think country liquor for a for a company like us is always a more profitable business since IMFL is a very, very competitive landscape.

Speaker #2: But yes, that is the natural step for the company, so we will go ahead with that. And for the malt unit, I don't have any set timelines as of today.

Speaker #1: Got it. And regarding the 250 KLPD greenfield plant at Fatehabad, it was highlighted by Rajendraji in his interview with ET Now in the month of July.

[Company Representative]: Got it. Regarding the 250 KLPD grain-based plant at Fatehabad, it was highlighted by Rajinder Mittal in his interview with ET Now in the month of July that the management is on the verge of finalizing the vendors and technology partners and will begin the construction by August. Is the plant still on, or are you keeping this on hold?

[Shareholder] (Private Investor): Got it. Regarding the 250 KLPD grain-based plant at Fatehabad, it was highlighted by Rajinder Mittal in his interview with ET Now in the month of July that the management is on the verge of finalizing the vendors and technology partners and will begin the construction by August. Is the plant still on, or are you keeping this on hold?

Speaker #1: The management is on the verge of finalizing the vendors and technology partners and will begin the construction by August. So, is the plan still on, or are you keeping this on hold?

Speaker #2: No. So yes, he verified that the statement was made. But only a few days after did we see a huge social media backlash against the ethanol policy.

Kushal Mittal: No. Yes, you are very right, that statement was made. But a few days after only we saw a huge social media backlash against the ethanol policies. The company, we are holding the orders and the advances. We want to wait and see the future roadmap as well. As I mentioned, there are a lot of things that can happen in this industry. Post that, pretty much the machinery orders were finalized and everything. All we have to do is press the start button, but we want to wait and just evaluate for a bit more.

Speaker #2: So, the company is—we're holding the orders and the advances. Let's see, we want to wait and see the future roadmap as well. As I mentioned, there are a lot of things that can happen in this industry.

Speaker #2: And post that, orders—pretty much the machinery orders—were finalized and everything. All we have to do is press the start button, but we want to wait and just evaluate for a bit more.

Speaker #1: Got it. And last question is on the expected sale of land. So, when can we expect the sale of land where the edible oil plant was commissioned?

[Company Representative]: Got it. Last question is on the expected sale of land. When can we expect the sale of land where the edible oil plant was commissioned? Along with this, have we repaid any debt? Because I have seen that there has been a disclosure today from the company regarding the release of pledge of 75 lakh shares, which were earlier pledged with SBICAP. That has been fully released. Could you update on these two things?

[Shareholder] (Private Investor): Got it. Last question is on the expected sale of land. When can we expect the sale of land where the edible oil plant was commissioned? Along with this, have we repaid any debt? Because I have seen that there has been a disclosure today from the company regarding the release of pledge of 75 lakh shares, which were earlier pledged with SBICAP. That has been fully released. Could you update on these two things?

Speaker #1: And along with this, have we reaped any debt? Because I have seen that there has been a disclosure today from the company regarding the release of pledge of 7.5 lakh shares, which were earlier pledged with SBI Cap.

Speaker #1: So, that has been fully released. Could you please provide an update on these two things?

Speaker #2: Yes. As you can see in our numbers as well, the finance cost has decreased for the company. Our working capital utilization is quite low compared to what it was in the past.

Kushal Mittal: Yes. As you can tell in our numbers also, the finance cost has decreased for the company. Our working capital utilization is quite low as opposed to what it was in the past. We have paid off a few small loans. And with the financial health of the company improving, our banks did agree to unpledge our already pledged shares. The company is further reducing our working capital limit by another INR 50 crores in August. So it will be done in the month of August. Yes, we are working on decreasing our debt with better cash flows in the company. For the land sale, I honestly do not have any update as the real estate market where we are in Bathinda is quite slow, so we are also in no rush to sell off the land, and we will wait and see what takes place. Thank you, sir.

Speaker #2: We have paid off a few small loans. And with the financial health of the company improving, our banks did agree to unpledge our already pledged shares.

Speaker #2: And the company is further reducing our working capital limit by another ₹50 crores in August. So it will be done in the month of August.

Kushal Mittal: The company is further reducing our working capital limit by another INR 50 crores in August. So it will be done in the month of August. Yes, we are working on decreasing our debt with better cash flows in the company. For the land sale, I honestly do not have any update as the real estate market where we are in Bathinda is quite slow, so we are also in no rush to sell off the land, and we will wait and see what takes place.

Speaker #2: So yes, we are working on decreasing our debt with better cash flows in the company. For the land sale, I honestly do not have any update, as the real estate market where we are, in Bathinda, is quite slow.

Speaker #2: So, we are also in no rush to sell off the land, and we'll wait and see what takes place.

Speaker #1: Thank you, sir. Mr. Bhavesh, I would request you to please come back in the queue for further questions. Thank you. Participants who wish to ask a question may press star and one.

Operator: Thank you, sir. Mr. Bhavesh, I would request you to please come back in the queue for further questions. Thank you. Participants who wish to ask a question may press star and one. The next question comes from the line of Sri Nagesh with Shubh Capital. Please go ahead.

Operator: Mr. Bhavesh, I would request you to please come back in the queue for further questions. Thank you. Participants who wish to ask a question may press star and one. The next question comes from the line of Sri Nagesh with Shubh Capital. Please go ahead.

Speaker #1: The next question comes from the line of Shreenakesh with Shubh Capital. Please go ahead.

Speaker #3: Good afternoon, and thanks for the opportunity, and congratulations to the team for the good numbers. I just have a couple of questions. What has been the trend in BDGS realization?

Sri Nagesh: Good afternoon, and thanks for the opportunity, and congratulations for the good numbers. Sir, I have just a couple of questions. What has been the trend in DDGS realization?

Shri Nagesh: Good afternoon, and thanks for the opportunity, and congratulations for the good numbers. Sir, I have just a couple of questions. What has been the trend in DDGS realization?

Speaker #2: Yes. Good afternoon. So for the past two to three months, it has been steady, with some decrease—maybe one to two rupees per kg. So, prices of maize-based DDGS are currently hovering around ₹24 to ₹25 per kg.

Kushal Mittal: Yes. Good afternoon. So for the past two, three months, it has been steady with some decrease, maybe one, two rupees a kg. So prices of maize-based DDGS are currently hovering around INR 24 to INR 25 a kg, and rice-based DDGS are about the same.

Speaker #2: And rice-based DDGS are about the same.

Speaker #3: Gotcha. Okay. My next question is, what is the market size of country liquor in Punjab, and how much market share do we currently hold?

Sri Nagesh: Got you. Okay. My next question is, what is the market size of country liquor in Punjab, and how much market share we hold currently?

Shri Nagesh: Got you. Okay. My next question is, what is the market size of country liquor in Punjab, and how much market share we hold currently?

Speaker #2: See, the current market is close to 1.25 crore cases per annum, out of which the company this year is aiming for 30 lakh cases.

Kushal Mittal: See, the current market is close to 1.25 crore cases per annum, out of which the company this year is trying for 30 lakh cases.

Speaker #3: Got it. Okay, I have only one more question. I think you have partly answered that. Actually, are we looking to expand beyond PML into IMFL?

Sri Nagesh: Got you. Okay. I have only one more question. I think you have partly answered on that, actually. Are we looking to expand beyond PML into IMFL?

Shri Nagesh: Got you. Okay. I have only one more question. I think you have partly answered on that, actually. Are we looking to expand beyond PML into IMFL?

Speaker #2: Yes, that is on our mind, and we are working towards it. But we want it to be done in a proper way, and the company realizes that we will need a lot of cash that will be spent on marketing and sales in the first year and a half, or first year and two years.

Kushal Mittal: Yes, that is on our minds, and we are working towards it. But we want it to be done in a proper way. And the company realizes that we will need a lot of cash that will be spent in marketing and sales in the first year and a half, or first year and 2 years. So we want it to be done with a proper team, with a proper strategy. So that's why we want it to be done in the right manner, so we are taking a little bit of time.

Speaker #2: So we want it to be done with a proper team, with a proper strategy. That's why we still want it to be done in the right manner.

Speaker #2: So, we're taking a little bit of time.

Speaker #3: Okay. So, likely it would be likely to come in?

Sri Nagesh: Okay. So it would be likely to come in?

Shri Nagesh: Okay. So it would be likely to come in?

Speaker #2: Yes, we will move in that direction.

Kushal Mittal: Yes, we will move towards that direction.

Speaker #3: Okay. Okay. Thank you so much.

Sri Nagesh: Okay. Thank you so much.

Shri Nagesh: Okay. Thank you so much.

Speaker #2: Thank you.

Kushal Mittal: Thank you.

Speaker #1: The next question comes from the line of Navneet Bhaya, an individual investor. Please go ahead.

Operator: The next question comes from the line of Navneet Bhaya, an individual investor. Please go ahead.

Speaker #2: Hello. Hi, Kushal. Okay, I have a few questions this time. Our volumes have increased a bit from the previous quarter, Q4. Regarding these volumes, are we looking to maintain them, or will there still be headwinds to maintaining these kinds of volumes?

Navneet Bhaya: Hello. Hi, Kushal. I have a few questions. This time our volumes have increased a bit from the previous quarter, Q4. These volumes, are we looking to maintain it or there would still be headwinds to maintain these kind of volumes? 57,000, I think, is what we achieved.

Speaker #2: 57,000, I think, is what we achieved.

Speaker #3: Volumes in which segment?

Kushal Mittal: Volumes in which segment?

Speaker #2: Both combined, actually—ethanol and EMF.

Navneet Bhaya: Both combined, actually, ethanol and ENA.

Kushal Mittal: Ethanol and ENA might increase a little. Might increase when the 200 KLPD unit, which has been shut down due to the fires, once it comes into operation. Hopefully, in the next 15 days, we will be able to bring that into operation. Only that can be helpful in increasing the volume. Until then, I think it will stay about the same.

Speaker #3: Ethanol and ENA might increase a little. One might increase when our 200 KLPD unit, which has been shut down due to the fire, comes back into operation.

Speaker #3: So, hopefully in the next 15 days, we'll be able to bring that into operation. Only then can it be helpful in increasing the volume.

Speaker #3: Until then, I think it will stay about the same.

Speaker #2: Okay. What is your current debt level?

Navneet Bhaya: What is your current debt level?

Speaker #3: I think around 300, 20 crores.

Kushal Mittal: I think including the working capital, around INR 320 crores. No, sorry, working capital is separate and I think we are utilizing about INR 60 odd crores in working capital. So INR 360 crores.

Speaker #2: No, sorry. Working capital is separate, and I think we are utilizing about 60-odd crores in working capital. So, 360 crores.

Speaker #3: At the year-end, I think the total debt was ₹576 crore. So you've repaid about ₹200 crore—am I right?

Navneet Bhaya: In the year-end, I think the total debt was INR 576. So you have repaid about INR 200 crores. Am I right?

Speaker #2: So, our working capital utilization has significantly decreased since.

Kushal Mittal: Our working capital utilization has significantly decreased since.

Speaker #3: Understood. Okay. And is this likely to be maintained, or do you see it going back up again?

Navneet Bhaya: Understood. Okay. Is this likely to be maintained, or do you see it going back up again?

Kushal Mittal: It will only go up if we go for another CapEx related project. For now, we don't have any set timeline for any of those projects, so I don't see it going up until then.

Speaker #2: It will only go up if we go for another capex-related project. So, for now, we don't have any set timeline for any of those projects.

Speaker #2: So, I don't see it going up until then.

Speaker #3: Understood. And with respect to your capital allocation, in the time you have clarity on building up your new projects, what would be your plan B in terms of capital allocation?

Navneet Bhaya: Understood. With respect to your capital allocation, till the time you have clarity on building up your new projects, what would your plan be in terms of capital allocation?

Speaker #2: So, I think the plan until then is to utilize the working capital to the minimum. Ideally, you would bring that down to zero.

Kushal Mittal: I think the plan until then is utilizing the working capital to the minimum. Ideally, we would bring that down to zero.

Navneet Bhaya: Okay. Which maybe you can achieve in a year and a half, roughly, and by then you are hoping there would be more clarity in terms of the policies and everything.

Speaker #3: In a year and a half, roughly. And by then, you're hoping there will be more clarity in terms of key policies and everything.

Speaker #2: Yes. Yes.

Kushal Mittal: Yes.

Navneet Bhaya: Understood. You do not have any plans for a share buyback or something, given your balance sheet and everything?

Speaker #3: Understood. You don’t have any plans for a share buyback or something, given your balance sheet and everything?

Speaker #2: No, that's not on our agenda right now.

Kushal Mittal: No, not on our agenda right now.

Speaker #3: Okay. Understood. Thank you so much.

Navneet Bhaya: Okay. Understood. Thank you so much.

Speaker #2: Thank you.

Kushal Mittal: Thank you.

Speaker #1: Thank you. The next question comes from the line of Gautam Karwa, an individual investor. Please go ahead. Mr. Gautam, your line has been unmuted.

Operator: Thank you. The next question comes from the line of Gautam Karwa, an individual investor. Please go ahead. Mr. Gautam, your line has been unmuted. Please go ahead with your question. As there is no response, we will move on to the next question. It is on the line of Bhavesh, an individual investor. Please go ahead.

Speaker #1: Please go ahead with your question. As this response concludes, we'll move on to the next question, which is from Bhavesh, an individual investor.

Speaker #1: Please go ahead.

Speaker #2: Thank you for the follow-up. Could management share how much ethanol was actually inside the 200 KL tank when it caught fire, and how long that tank had to stay shut?

[Company Representative]: Thank you for the follow-up. Could management share how much ethanol was actually inside the 200 KL tank when it caught fire, and how long that tank had to stay shut? Also, since the presentation mentions that insurance will cover the losses and that the means to 150 KLPD unit at Bathinda helped make up for the lost production, I would like to understand the net impact on our time and operations.

[Shareholder] (Private Investor): Thank you for the follow-up. Could management share how much ethanol was actually inside the 200 KL tank when it caught fire, and how long that tank had to stay shut? Also, since the presentation mentions that insurance will cover the losses and that the means to 150 KLPD unit at Bathinda helped make up for the lost production, I would like to understand the net impact on our time and operations.

Speaker #2: Also, since the presentation mentions that insurance will cover the losses, and that the 150 KLPD unit at Bathinda helped make up for the lost production, I would like to understand the net impact on our time and operations.

Speaker #3: See, the stock in the tank was 90,000 liters during the accident. The plant is still shut. The tank is being repaired. So I think in the next 15-odd days, hopefully, we'll bring that plant into production again.

Kushal Mittal: See, the stock in the tank was 90,000 liters during the accident. The plant is still shut. The tank is being repaired. I think in the next 15 odd days, hopefully we will bring that plant into production again. Not only stock loss is covered in our insurance, profit and loss is also covered in our insurance policy. The P&L is being evaluated, and will continue to be evaluated until the plant is into production. For now, that's the only update I have.

Speaker #3: Not only stock loss is covered in our insurance; profit and loss is also covered in our insurance policies. So the P&L is being evaluated and will continue to be evaluated until the plant is into production.

Speaker #3: So for now, I can say that's the only update I have.

Speaker #2: That's good to know. One last question. So, given the Supreme Court's recent allowance for ONCs to procure an additional 1.49 billion liters for Q4 of ESY 2526, can we expect an incremental volume-like share of demand for our company as well?

[Company Representative]: That's good to know. One last question. Given the Supreme Court's recent allowance for OMCs to procure an additional 1.49 billion liters for Q4 of ESY 2025, 2026, can we expect incremental volume, like shares for demand for our company as well? We can expect some-

[Shareholder] (Private Investor): That's good to know. One last question. Given the Supreme Court's recent allowance for OMCs to procure an additional 1.49 billion liters for Q4 of ESY 2025, 2026, can we expect incremental volume, like shares for demand for our company as well? We can expect some-

Speaker #2: We can expect some part of it.

Kushal Mittal: Yes.

[Company Representative]: -part of the-

[Shareholder] (Private Investor): -part of the-

Speaker #3: Yes, yes, we are a part of that list. And I think we are one of the biggest gainers from that order by the Supreme Court.

Kushal Mittal: Yes, we are a part of that list, and I think we are one of the biggest gainers from that order by the Supreme Court. If I am correct, it's around 4.5 crore liters that we get from that order. For the next two, three months, I think we will have a good order book.

Speaker #3: So, if I'm correct, it's around 4.5 crore liters that we get from that order. So, for the next two to three months, I think we'll have a good order book.

Speaker #2: 4.5 crore liters.

[Company Representative]: 4.5 crore liters?

[Shareholder] (Private Investor): 4.5 crore liters?

Speaker #3: Yes, I think it's around that figure.

Kushal Mittal: Yes, I think it is around that figure.

Speaker #2: That's great. So.

[Company Representative]: That is great.

[Shareholder] (Private Investor): That is great.

Speaker #3: From both the units.

Kushal Mittal: From both the units.

Speaker #2: Yeah, so that's a good number to hear. So the order book will be full at the end of the year, and the start of the Q1 of FY 2026-27 will be a good start for the company from November.

[Company Representative]: Yeah. That is a good number to hear. The order book will be full at the end of the year and the start of the ESY 2026, 2027 will be a good start for the company from November.

[Shareholder] (Private Investor): Yeah. That is a good number to hear. The order book will be full at the end of the year and the start of the ESY 2026, 2027 will be a good start for the company from November.

Speaker #3: No, this is up until November.

Kushal Mittal: No, this is up until November.

Speaker #2: Yeah, correct. This is the end of the ESY 2526 part. The end will be good, and the start of the next ESY should be even better.

[Company Representative]: Yeah, correct. This is the end of the ESY 2025, 2026, but the end will be good and the start of the next ESY should be even better after this order. I feel they are coming with E85 and E100 getting dispensed at 5,000 fuel pumps, so we can expect the current demand from-

[Shareholder] (Private Investor): Yeah, correct. This is the end of the ESY 2025, 2026, but the end will be good and the start of the next ESY should be even better after this order. I feel they are coming with E85 and E100 getting dispensed at 5,000 fuel pumps, so we can expect the current demand from-

Speaker #2: After this order, I feel they are coming with E85 and E100 getting dispensed at 5,000 fuel pumps. So we can expect the current demand from there.

Kushal Mittal: No, I do not want to create any false hope for you. See, yes, E85 and E100 is the future. As of now, flex fuel vehicle availability is very minimal in the country. There is only one model for sale. Until there are new models introduced and bought by consumers, the E85 and E100 will not be a growth driver for demand. Yes, for the next three months, the order book is more than full. Next year also, we hope to keep our operations at 100%, but the demand creation from flex fuel will take time.

Speaker #3: No, no, no. I don't want to—I don't want to create any false hope for you. See, yes, E85 and E100 are the future.

Speaker #3: As of now, flex fuel availability and flex fuel vehicle availability are very minimal in the country. There's only one model for sale. So, until there are new models introduced and bought by consumers, E85 and E100 will not be a growth driver for demand.

Speaker #3: Yes, for the next three months, the order book is more than full. And next year also, we hope to keep our operations at 100%.

Speaker #3: But the demand creation from flex fuel will take time.

Speaker #1: Thank you, sir. Mr. Bhavesh, I would request you to please come back in the queue for further questions. The next question comes from the line of Manish Gupta.

Operator: Thank you, sir. Mr. Bhavesh, I would request you to please come back in the queue for further questions. The next question comes from the line of Manish Gupta, an individual investor. Please go ahead.

Speaker #1: An individual investor. Please go ahead.

Speaker #2: Hi, Gupta ji. How are you? Hello. I'm all good.

Manish Gupta: Hi, Kushalji. How are you? Hello.

Kushal Mittal: Good afternoon.

Manish Gupta: Am I audible?

Speaker #3: Good. How are you? Yes, yes. You're all good. Good afternoon.

Kushal Mittal: Good. How are you? Yes.

Manish Gupta: Okay.

Kushal Mittal: You are audible. Good afternoon.

Speaker #2: Gupta ji, can you tell me about the current price of maize as of now?

Manish Gupta: Kushal ji, can you tell me about the current price of maize as of now?

Speaker #3: Current prices of maize have been increasing, so they're about 25 rupees per kg now.

Kushal Mittal: Current prices of maize have been increasing, so they are about INR 25 a kg now.

Speaker #2: Okay. So, I think maintaining the previous quarter's margin would be difficult in that case. Will that be good?

Manish Gupta: Okay. I think that maintaining the previous quarter margin would be difficult in that case. Will that be the case?

Speaker #3: No, DNA prices have accordingly been revised upwards. But yes, the raw material prices have increased, and even prices of fuel are increasing. So let's see. It's too early to comment.

Kushal Mittal: No. ENA prices have accordingly been revised upwards. But yes, the raw material prices have increased and even prices of fuel are increasing. Let's see. It is too early to comment.

Speaker #2: So can you guide me on a steady-state margin for this year? Like 10%, 12% of the average, probably will work.

Manish Gupta: Can you guide me on the steady-state margin for this year? Like 10%, 12% or average probably will work.

Speaker #3: See, I think you can track our company's past record. It has been around that, with changes in price of raw material, by-product, or finished goods.

Kushal Mittal: I think you can track our company's past record. It has been around that, with changes in price, say in raw material or byproduct of finished goods, it tends to vary a little. But overall, I think our margins remain around 10%, 12%.

Speaker #3: It tends to vary a little, but overall, I think our margins remain around 10 to 12 percent.

Speaker #2: Or any plan for CBG plant? Or have you worked out on that, or is it still in the pipeline?

Manish Gupta: Any plan for CBG plant or have you worked out on that or it is still in the pipeline?

Speaker #3: It is being actively evaluated. We want to study all aspects because paddy straw for CBG is a relatively tricky raw material, and we want all our bases covered before we begin execution.

Kushal Mittal: It is being actively evaluated. We want to study all aspects because paddy straw for CBG is a relatively tricky raw material, and we want all our bases covered before we begin to execution.

Speaker #2: Is there any state-level subsidy on that CBG plant?

Manish Gupta: Is there any state-level subsidy on that CBG plant?

Speaker #3: On the CBG plant, depending on the state, there is—yes, Haryana has some policy. I haven't read it very thoroughly. But now from the Center, there has been a very good policy.

Kushal Mittal: On the CBG plant, depending on the state, there is, yes. Haryana has some policy. I have not read it very thoroughly. But now from the center, there has been a very good policy.

Speaker #2: Yes, that's all from my side. Thanks. Thanks for the opportunity.

Manish Gupta: Okay. That is all from my side. Thanks for your opportunity.

Speaker #1: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star one. Participants who wish to ask a question to the management may press star one.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. Participants who wish to ask a question to the management may press star and one. Thank you. There are no further questions at this time. I would like to hand the conference over to the management for closing comments.

Speaker #1: Thank you. There are no further questions at this time. I would like to hand the conference over to the management for closing comments.

Kushal Mittal: Yes. Thank you everyone for joining the call. No further comments from my side.

Speaker #3: Yes, thank you everyone for joining the call. No further comments from my side.

Speaker #1: Thank you, sir. On behalf of NCRED Equities, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.

Operator: Thank you, sir. On behalf of InCred Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 BCL Industries Ltd Earnings Call

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