Modi Naturals Books ₹495 Crore Ethanol Orders as Capacity Ramps

For the upcoming Ethanol Supply Year, Modi Naturals has secured about ₹495 crore of orders for roughly 7.82 crore litres from oil marketing companies, providing stated revenue visibility as its expanded ethanol plant ramps up. Modi Naturals commissioned phase two in March 2026, taking total ethanol production capacity to 282 kilolitres per day.

How big is Modi Naturals’ ethanol order book?

Modi Naturals has received ethanol orders worth about ₹495 crore for approximately 7.82 crore litres from various oil marketing companies, or OMCs, for the upcoming Ethanol Supply Year, or ESY. Management said the orders provide revenue visibility for Modi Biotech, its wholly owned subsidiary operating the ethanol business, but did not disclose a delivery schedule, pricing structure or individual OMC allocations.

The ₹495 crore order value exceeds the ethanol division’s reported H1FY27 revenue of ₹193.70 crore and consolidated H1FY27 revenue of ₹361.95 crore. However, the orders relate to an upcoming ESY and should not be treated as revenue recognised in the first half. The presentation does not state what proportion of the contracted volume will be supplied in each FY27 quarter.

The order award gives a defined volume measure alongside the production expansion. Management said the expanded facility was progressing well and contributing to revenue growth, while the ethanol division presentation linked higher volumes and operating leverage to the commencement of operations at the expanded facility and improving capacity utilisation.

How much ethanol capacity has Modi Naturals added?

Modi Naturals commissioned the second phase of its ethanol expansion in March 2026, increasing total capacity to 282 kilolitres per day, or KLPD. The presentation identifies phase one as operational and phase two as recently commenced, with the stated next objective being to ramp up utilisation of phase two.

The 282 KLPD figure is the post-expansion production capability disclosed by Modi Naturals, but the presentation does not state the facility’s earlier capacity or project capital expenditure. Consolidated capital work in progress rose to ₹27.68 crore at September 2026 from ₹19.35 crore at March 2026, while property, plant and equipment fell to ₹206.83 crore from ₹213.51 crore.

Management lists the March 2026 commissioning as an FY27 growth driver. A strategy page says Modi Naturals plans to increase phase-two utilisation and pursue value-added product opportunities; it also cites potential support from rising E20 and beyond blending targets, without publishing a company-specific demand forecast.

How is ethanol affecting Modi Naturals’ H1FY27 earnings?

The ethanol division reported H1FY27 revenue of ₹193.70 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, of ₹34.95 crore, compared with ₹165.47 crore and ₹25.67 crore in H1FY26. Revenue rose by ₹28.23 crore and EBITDA increased by ₹9.28 crore during the period in which management said the expanded facility had commenced operations.

At the consolidated level, Modi Naturals reported H1FY27 revenue of ₹361.95 crore, up 19.29% from ₹303.41 crore in H1FY26. EBITDA increased 25.14% to ₹40.79 crore, while profit after tax, or PAT, rose 14.39% to ₹23.53 crore. Management attributed ethanol revenue growth to higher volumes, improving capacity utilisation and operating leverage from the expanded facility.

The earnings mix changed across the three operating divisions in H1FY27. Ethanol was the largest reported revenue contributor at ₹193.70 crore, ahead of consumer revenue of ₹87.44 crore and bulk revenue of ₹80.81 crore. Consumer revenue declined from ₹90.72 crore in H1FY26, while bulk revenue rose from ₹47.22 crore, leaving ethanol expansion and higher bulk realisations as the main reported contributors to consolidated growth.

What pressures remain outside Modi Naturals’ ethanol business?

Modi Naturals’ consumer division reported H1FY27 EBITDA of ₹4.95 crore, down from ₹7.20 crore in H1FY26, as revenue declined by ₹3.28 crore to ₹87.44 crore. Management said raw-material prices increased by about 52% quarter on quarter in Q2FY27 and that corresponding selling-price increases could not be passed through to customers, affecting profitability.

The bulk division showed a different commodity-price effect. Its H1FY27 revenue rose to ₹80.81 crore from ₹47.22 crore, but EBITDA fell to ₹0.74 crore from ₹1.13 crore and EBITDA margin declined to 0.91% from 2.40%. Management said the revenue increase was largely driven by higher realisations following increased raw-material prices and expects realisations to moderate as commodity prices decline.

Group-level margins also reflected the cost pressure. Consolidated H1FY27 gross profit margin was 24.67%, compared with 26.56% in H1FY26, although EBITDA margin rose to 11.27% from 10.74%. In Q2FY27, gross profit margin fell to 20.97% from 27.68% a year earlier and EBITDA margin declined to 9.09% from 10.25%.

Can Modi Naturals meet its FY27 guidance?

Management says Modi Naturals remains confident of achieving FY27 guidance of ₹925 crore to ₹965 crore in revenue, ₹100 crore to ₹105 crore in EBITDA and ₹66 crore to ₹70 crore in PAT. H1FY27 consolidated revenue was ₹361.95 crore, EBITDA was ₹40.79 crore and PAT was ₹23.53 crore; the presentation does not provide a quarterly forecast for the rest of FY27.

The FY26 PAT comparison includes a non-recurring item. FY26 PAT of ₹50.28 crore included a ₹4.86 crore insurance claim for loss of profit arising from business interruption caused by an FY24 machinery breakdown at the ethanol plant. Modi Naturals separately identifies those proceeds in its guidance presentation rather than treating them as operating performance.

Cash conversion and working capital are also relevant to the expansion ramp-up. Consolidated net cash from operating activities fell to ₹8.68 crore in H1FY27 from ₹35.96 crore in H1FY26, following a ₹25.74 crore working-capital outflow against a ₹7.63 crore inflow a year earlier. Trade receivables rose to ₹82.39 crore at September 2026 from ₹47.00 crore at March 2026, while net working-capital days improved to 60 from 62 but remained above 56 in September 2025.

Conclusion

Modi Naturals has paired a stated ₹495 crore ethanol order book with an expansion that raised capacity to 282 KLPD in March 2026. In H1FY27, the ethanol division added ₹28.23 crore of revenue and ₹9.28 crore of EBITDA year on year, while consumer profitability fell under raw-material inflation and bulk revenue growth came with a lower EBITDA margin.

The next measures to watch are management’s progress in ramping phase-two utilisation and delivery against FY27 guidance of ₹925 crore to ₹965 crore in revenue and ₹100 crore to ₹105 crore in EBITDA. The presentation leaves unresolved the timing of order execution, the ethanol facility’s capacity utilisation level and whether lower input costs reverse the consumer division’s H1FY27 EBITDA decline to ₹4.95 crore.