BCL H1 EBITDA rises 6% as margin expands despite revenue fall

BCL Industries Limited reported H1FY27 EBITDA of Rs 132 crore, up 5.9% year on year, as its EBITDA margin expanded 191 basis points to 10.0% even though total revenue fell 14.0% to Rs 1,327 crore. Profit after tax remained broadly unchanged at Rs 65 crore, as higher tax expense offset a rise in pre-tax profit.

Why did BCL's H1 EBITDA rise while revenue fell?

BCL's H1FY27 EBITDA increased because total expenses declined 15.8% to Rs 1,195 crore, faster than the 14.0% fall in total revenue to Rs 1,327 crore. Other income also rose to Rs 9 crore from Rs 4 crore. EBITDA increased by Rs 7 crore to Rs 132 crore, while the EBITDA margin reached 10.0% from 8.1%.

The first-half margin expansion was not repeated in Q2FY27 alone. Q2 total revenue was Rs 699 crore, down 3.0% from Rs 721 crore in Q2FY26, and EBITDA was Rs 66 crore, down 3.3% from Rs 69 crore. The quarterly EBITDA margin was unchanged at 9.5% year on year and stood 100 basis points below Q1FY27's 10.5%.

How did BCL's distillery mix change in H1FY27?

BCL's distillery business recorded higher extra neutral alcohol, or ENA, revenue and lower ethanol revenue in H1FY27. ENA revenue rose by Rs 104 crore to Rs 243 crore from Rs 139 crore, while ethanol revenue declined by Rs 221 crore to Rs 506 crore from Rs 727 crore. Distillery EBITDA nevertheless increased to Rs 117 crore from Rs 113 crore, and its margin rose to 12.1% from 10.5%.

The volume data showed the same change in product mix. H1FY27 ENA volume rose to 41,890 kilolitres, or KL, from 20,089 KL, while ethanol volume declined to 77,288 KL from 107,211 KL. In Q2FY27, ENA volume increased 85.6% to 22,514 KL, while ethanol volume fell to 39,501 KL from 51,750 KL in Q2FY26.

Q2FY27 distillery revenue reflected the volume movement. ENA revenue increased to Rs 132 crore from Rs 83 crore, whereas ethanol revenue fell to Rs 265 crore from Rs 367 crore. Quarterly distillery EBITDA was Rs 59 crore compared with Rs 60 crore a year earlier, but the segment EBITDA margin increased to 11.9% from 11.0%.

Why was BCL's H1FY27 PAT broadly flat?

BCL's H1FY27 profit after tax, or PAT, was Rs 65 crore against Rs 65 crore in H1FY26 because a Rs 5 crore increase in tax expense offset the increase in profit before tax. Profit before tax rose to Rs 88 crore from Rs 83 crore, while tax expense increased to Rs 23 crore from Rs 18 crore. The reported PAT comparison was a decline of 0.5%.

PAT margin increased to 4.9% from 4.2%, a rise of 69 basis points, because revenue declined to Rs 1,327 crore. Depreciation increased 18.1% to Rs 29 crore from Rs 25 crore, while finance cost declined to Rs 15 crore from Rs 17 crore. Diluted earnings per share increased 3.0% to Rs 2.08 from Rs 2.02.

Quarterly profit was lower both year on year and sequentially. Q2FY27 PAT was Rs 29 crore, compared with Rs 32 crore in Q2FY26 and Rs 36 crore in Q1FY27. Q2 profit before tax was Rs 41 crore, down from Rs 45 crore a year earlier, and the PAT margin was 4.2%, compared with 4.4% in Q2FY26 and 5.7% in Q1FY27.

What should BCL investors watch after H1FY27?

BCL's 200 kilolitres-per-day, or KLPD, ethanol plant was shut after a fire at an ethanol receiver tank on 19 June 2026 and was reinstated on 28 August 2026. A new 150 KLPD unit at Bathinda, commissioned in July 2026, partly offset lost production. Management said the insurance claim had been lodged and was expected to be settled in Q3FY27.

BCL also received 23,500 KL of additional ethanol allocation for Q4 of ethanol supply year, or ESY, 2025-26. Svaksha Distillery received a further 20,200 KL, taking the combined allocation to 43,700 KL, or 4.37 crore litres. BCL said the additional allocation raised the combined ESY 2025-26 order book by 41% to 15.11 crore litres.

ESY 2025-26 runs from November 2025 to October 2026, and its fourth quarter runs from August to October 2026. Oil marketing companies added 149 crore litres to their Q4 allocation pool, and BCL said BCL and Svaksha secured close to 3% of that volume. The presentation did not disclose a full-year financial target.

Conclusion

BCL's H1FY27 results showed higher operating profit despite a Rs 217 crore reduction in total revenue. Expenses declined faster than revenue, enabling EBITDA to rise to Rs 132 crore and EBITDA margin to reach 10.0%, while the distillery business shifted toward ENA revenue and volumes. PAT remained at Rs 65 crore because tax expense rose to Rs 23 crore.

The next disclosed items to watch are the expected Q3FY27 insurance-claim settlement, production after reinstatement of the 200 KLPD ethanol plant, and the contribution from the 150 KLPD Bathinda unit. Execution against the 15.11 crore-litre ESY 2025-26 order book, including the additional 43,700 KL allocation, is also a stated operational milestone.