Summary
TruAlt Bioenergy Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 1:00 P.M. IST
Event Participants
Executives 2 Anand Kishore (CFO), Vijay Kumar Murugesh Nirani (Managing Director)
Analysts 6 Aanchal Jalan (Lotus Wealth), Ankur Gulati (Genuity Capital), Charchit Maloo (Genuity Capital), Deepak Poddar (Sapphire Capital), Piyush Bangar (Vijit Global Securities), Pratham Modi (HPMG Shares and Securities)
Financials & KPIs (Consolidated)
| Metric | Reported | Commentary |
|---|---|---|
| Total Income (9M FY26) | ₹1,187 crores | +13.28% YoY; growth driven by expansion despite Q2/Q3 operational disruptions. |
| Total Income (Q3 FY26) | ₹730.86 crores | +70% YoY; reflects ramping up of capacities and multi-grain operations. |
| COGS (9M FY26) | ₹805 crores | +19.55% YoY; outpaced revenue growth due to fixed cost absorption during partial plant shutdowns. |
| EBITDA (9M FY26) | ₹170.99 crores | +10.01% YoY; margins slightly thinned due to 58 operating days in Q3 and higher grain integration costs. |
| PAT (9M FY26) | ₹35.92 crores | +2.8% YoY; growth modest due to deferred tax (DTA/DTL) impacts and higher depreciation. |
| Finance Cost (9M FY26) | ₹116 crores | +11.38% YoY; attributed to interest on capex for new CBG and grain-feeder plants. |
| Depreciation (9M FY26) | ₹63.28 crores | +28.15% YoY; sharp increase following capitalization of 600 KLPD molasses-based assets. |
| Ethanol Volume (Q3 FY26) | 7.6 crore liters | Impacted by 58 effective operating days due to farmer protests in Karnataka. |
| CBG Revenue (9M FY26) | ₹30.97 crores | +55.68% YoY; segment achieved robust EBITDA margin of 63.34% and PAT margin of 43.38%. |
| Debt/Equity Ratio | 0.65 | Solvency remains stable despite ongoing heavy capital expenditure. |
Geographic & Segment Commentary
- Ethanol Business: Achieved E20 national targets; currently operating at a monthly revenue run rate of ₹350–₹400 crores. Management completed its capex program with four of five plants operational at 95% utilization during operating days; Unit 5 commenced operations in late December 2025.
- Compressed Bio-Gas (CBG): Strategic focus on disciplined scaling with 24 Greenfield units planned over 2-3 years. JV with Sumitomo (12 plants) and GAIL (10 plants) leverages excise duty exemptions and policy tailwinds to improve project economics.
- Sustainable Aviation Fuel (SAF): Proposed 100 million liters per annum facility in Srikakulam, Andhra Pradesh using Alcohol-to-Jet (ATJ) technology. Project is in the engineering design phase with Honeywell UOP as the technology licensor and an estimated capex of ₹2,000+ crores.
- Biofuel Retail: Commissioned seven outlets within six months with a target of 75-80 outlets in the 2026 calendar year. Segment generated ₹48-₹50 crores in 9M revenue, aiming to capture higher margins via direct blending and flex-fuel adoption.
Company-Specific & Strategic Commentary
- Strategic Capacity Stabilization: Management confirmed the completion of the current ethanol capex program with no further capacity additions planned; focus shifts to maximizing the 2,000-2,100 KLPD installed base.
- Policy & Subsidies: SAF project viability is supported by a projected ₹150 crore VGF under PM JI-VAN and potentially ₹450 crore in state capital subsidies (₹1.5 crore/KL) from the Andhra Pradesh government.
- Input Diversification: Integration of grain-based (maize/rice) feeding allows for 300-330 operating days, reducing seasonal dependence on sugarcane molasses.
- Offtake Security: Actively negotiating offtake guarantees for SAF with a large domestic oil player and a French airline manufacturer to reduce dependence on domestic policy implementation.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Ethanol Production | 55 crore liters (FY27) | Target focus for the next full fiscal year as assets stabilize. |
| Ethanol Volume | 36-37 crore liters (FY26) | Revised downward from 41cr liters due to integration delays and Q3 disruptions. |
| EBITDA Margin | 20% - 22% (Q4 FY26) | Expected expansion as fixed costs are absorbed and multi-grain plants ramp up. |
| CBG Commissioning | 13-14 plants (By FY27-end) | Includes 4 Sumitomo plants by June 2026 and initial 5 GAIL plants by Jan-Feb 2027. |
| SAF Commercialization | FY 2028 | Revenue expected to commence between July and October 2027. |
Risks & Constraints
| Risk | Context |
|---|---|
| Operational Disruptions | External factors like the Karnataka farmer protests blocked infrastructure, limiting Q3 operating days to just 58. |
| Feedstock Volatility | While DDGS provides a hedge, maize prices and the potential import of 5 lakh MT of DDGS could impact by-product realizations. |
| Technology & Capex | High initial cost for SAF (~₹7-7.5 crore/KLPD) poses a risk; management is mitigating this through government subsidies and VGF. |
| Policy Dependency | While global SAF mandates begin in 2027, the domestic Indian policy framework (carrots vs. sticks) remains under deliberation. |
Q&A Highlights
Sustainable Aviation Fuel (SAF) Economics
- Question: Is the engine compatibility a risk for SAF demand? (Aanchal Jalan)
- Answer: No; ASTM and BIS have already approved up to 50% blending for current turbines via the Alcohol-to-Jet route. (Vijay Nirani)
- Question: Why is the SAF capex so high at ₹2,250 crores? (Piyush Bangar)
- Answer: High costs are due to initial technology transfer fees and project scale; however, capital subsidies and SGST exemptions will eventually knock off a large portion of the debt. (Vijay Nirani)
Ethanol Operations & OMCs
- Question: How confident are you that OMCs will lift the shortfall volumes? (Pratham Modi)
- Answer: Under a High Court “mandamus” order, OMCs are instructed to consider the extension; the relationship is critical as they need the ethanol to meet mandates. (Vijay Nirani/Anand Kishore)
- Question: What is the peak monthly production? (Deepak Poddar)
- Answer: At 100% utilization, we hit 6 crore liters/month; at 90%, it is roughly 5.4-5.5 crore liters. (Vijay Nirani)
By-Products & Retail
- Question: What are the DDGS economics? (Charchit Maloo)
- Answer: One ton of grain yields 18-19% DDGS; realizations fluctuate between ₹16/kg to ₹35/kg, currently averaging in the mid-20s. (Vijay Nirani/Anand Kishore)
- Question: Does the retail segment move the needle? (Ankur Gulati)
- Answer: Not a “big needle mover” in volume (2 crore liters ethanol potential by 2029), but it offers significantly higher margins and prepares us for flex-fuel adoption. (Vijay Nirani)
Key Takeaway
TruAlt Bioenergy delivered a resilient performance in 9M FY2026, with total income rising 13% to ₹1,187 crores despite significant Q3 headwinds. The quarter was defined by the completion of a major ethanol capex cycle, bringing total capacity to 2,000 KLPD and stabilizing the monthly revenue run rate at ₹350-₹400 crores. Strategically, the company is pivoting toward higher-margin segments, evidenced by a 63% EBITDA margin in its CBG business and the licensing of a 100 MLPA SAF facility. While FY2026 ethanol volume guidance was revised slightly downward to 36-37 crore liters due to operational stoppages and integration delays, management targets a ramp-up to 55 crore liters in FY2027. Key watch points include the timely commissioning of 13 additional CBG plants by FY2027-end and the finalization of SAF offtake agreements to mitigate policy implementation risks. TruAlt remains positioned as a primary beneficiary of India’s E20 mandate and emerging transition toward sustainable aviation and bio-gas.
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