Modi Naturals Limited wins Rs 495 crore ethanol allocation

Modi Naturals said on 12 November 2026 that its wholly owned subsidiary received an approximately Rs 495 crore allocation to supply 7.82 crore litres of ethanol in ESY 2026-27, the November 2026 to October 2027 supply cycle. The allocation came from various domestic Oil Marketing Companies, while separately sold manufacturing by-products may generate additional, unquantified revenue.

What ethanol allocation has Modi Naturals received?

Modi Naturals has received allocations through its wholly owned subsidiary, Modi Biotech Private Limited, to supply approximately 7.82 crore litres of ethanol to various Oil Marketing Companies, or OMCs. The 12 November 2026 disclosure puts the estimated aggregate consideration for the ESY 2026-27 allocation at approximately Rs 495 crore.

The filing describes the arrangement as an allocation for ethanol supplies rather than identifying a single contract with one named buyer. It classifies the awarding entities as domestic OMCs, but does not name them or state how the 7.82 crore litres are split between individual customers.

The volume and value are both described as approximate in the main announcement, while the annexure lists 7.82 crore litres and an estimated value of Rs 495 crore. Modi Naturals did not disclose a per-litre price, delivery-wise pricing, taxes, freight terms or the basis used to calculate the estimated consideration.

When will Modi Naturals supply the ethanol?

Modi Naturals will execute the 7.82 crore-litre allocation during ESY 2026-27, running from November 2026 to October 2027. The filing calls ESY an Ethanol Supply Year in the announcement, while the annexure describes it as an Ethanol Sugar Year following the November-to-October period.

The filing date of 12 November 2026 falls at the start of the stated November 2026 to October 2027 execution window. The announcement therefore discloses an allocation for that supply cycle, rather than ethanol already supplied, revenue booked or payments received by the filing date.

Modi Naturals has not set out monthly lifting quantities, dispatch milestones, delivery destinations or customer-specific deadlines for the Rs 495 crore allocation. It also does not identify the production location or manufacturing capacity that will be used to supply the 7.82 crore litres during ESY 2026-27.

How is the Rs 495 crore value different from by-product revenue?

The approximately Rs 495 crore estimate applies to the allocated ethanol supply of 7.82 crore litres for ESY 2026-27. Modi Naturals said its ethanol manufacturing process is also expected to generate various by-products that will be sold separately and contribute additional revenue.

The filing gives a quantified volume and estimated value for ethanol, but gives no product names, volumes, prices or expected proceeds for by-products. Across the two disclosed revenue streams, the announcement moves from defined commercial terms for ethanol to unquantified potential sales for manufacturing by-products.

Modi Naturals has not said that any by-product proceeds are included in the Rs 495 crore estimate. The separately mentioned by-product sales should therefore not be added to the ethanol allocation value on the basis of the 12 November 2026 announcement.

The company also did not disclose production costs, feedstock, margins or profitability for either the ethanol allocation or the by-products. The Rs 495 crore figure is consequently the broad estimated consideration stated for supply, not a disclosed profit or earnings measure.

Are the OMC allocations related-party transactions?

Modi Naturals stated that its promoters, promoter group and group companies have no interest in the entities awarding the ethanol allocation. The annexure marks the related-party transaction field as not applicable for the domestic OMC supply arrangement covering 7.82 crore litres in ESY 2026-27.

The announcement was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, with reference to the applicable provisions of Part A of Schedule III. The company also said the annexure was provided in line with a SEBI Master Circular dated 30 January 2026.

Akshay Modi, Joint Managing Director, signed the 12 November 2026 filing for Modi Naturals. Beyond identifying Modi Biotech Private Limited as wholly owned and the OMC awards as domestic, the disclosure does not provide tender terms, OMC-wise allocations or contractual adjustment mechanisms for the Rs 495 crore estimate.

Conclusion

The filing gives Modi Naturals a defined ethanol supply allocation of approximately 7.82 crore litres, with estimated consideration of approximately Rs 495 crore for ESY 2026-27. Its commercial scope is clear for ethanol, while the expected revenue contribution from separately sold by-products remains unspecified.

The stated execution period ends in October 2027, following its start in November 2026. The next items to watch are any company disclosures on supply execution during ESY 2026-27 and whether Modi Naturals later quantifies the separately expected by-product revenue.