TruAlt Bioenergy Limited receives Rs 1,715.27 crore OMC allocation

TruAlt Bioenergy Limited has received a 274,832-kilolitre (KL) ethanol allocation for Ethanol Supply Year (ESY) 2026-27, worth approximately Rs 1,715.27 crore from four public-sector oil marketing companies (OMCs). The allocation covers 27.48 crore litres and is scheduled for supply from November 1, 2026 to October 31, 2027, subject to extension.

What ethanol allocation has TruAlt received for ESY 2026-27?

TruAlt has been allocated 274,832 KL, or 27.48 crore litres, of ethanol under CRFQ No. 1000466894(C-1) and E-Tender No. 26985 for ESY 2026-27. In its November 12, 2026 announcement, TruAlt named Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited and Mangalore Refinery and Petrochemicals Limited as the OMCs receiving the ethanol.

At applicable tender rates, TruAlt values the public-sector OMC allocation at approximately Rs 1,715.27 crore. The stated value excludes freight and applicable taxes, which the filing says are payable separately, so it is not presented as a final net revenue or cash-collection amount.

The supply period for ESY 2026-27 runs from November 1, 2026 to October 31, 2027, subject to extension. The new 274,832-KL allocation is 204,832 KL higher than the 70,000 KL of pending ethanol supplies carried forward from ESY 2025-26, although the two figures relate to different supply periods.

Which feedstocks account for TruAlt's allocated ethanol volume?

SFG accounts for TruAlt's largest disclosed feedstock allocation at 152,144 KL, or 15.21 crore litres, with a value of Rs 917.732608 crore. It represents more than half of the total 274,832-KL allocation and exceeds each of the other three feedstock categories in both volume and stated value.

Maize is the second-largest category at 88,740 KL, equal to 8.87 crore litres, and carries an allocation value of Rs 586.30518 crore. SFG exceeds maize by 63,404 KL, showing that the SFG category is the larger contributor to the ESY 2026-27 allocation.

DFG contributes 23,947 KL, or 2.39 crore litres, valued at Rs 153.2608 crore. CHM is the smallest listed category at 10,001 KL, equal to 1.00 crore litres, with a value of Rs 57.975797 crore; TruAlt did not expand the CHM, DFG or SFG labels in the announcement.

What other supply and by-product revenue has TruAlt identified?

TruAlt has identified approximately Rs 1,667.02 crore beyond the public-sector OMC allocation through Nayara Energy supplies, pending ESY 2025-26 ethanol supplies, by-products and Extra Neutral Alcohol (ENA). Together with the approximately Rs 1,715.27 crore OMC allocation, these components total approximately Rs 3,382.29 crore, while any supplies to other private OMCs would be additional.

TruAlt said it will supply 30,000 KL, or 3 crore litres, of ethanol to Nayara Energy at Rs 63 per litre, valuing that stream at Rs 189.00 crore. Adding this supply to the public-sector OMC allocation gives a combined ethanol-supply value of approximately Rs 1,904.27 crore before pending prior-year supplies, by-products and ENA.

Pending supplies from ESY 2025-26 total 70,000 KL, or 7 crore litres, and have a stated value of Rs 503.02 crore at Rs 71.86 per litre. That rate is Rs 8.86 per litre higher than the Rs 63 per litre stated for the 30,000-KL Nayara Energy supply and the planned 100,000-KL ENA sale; the filing does not explain the difference.

TruAlt expects approximately Rs 345.00 crore in revenue from Distillers Dried Grains with Solubles (DDGS) and Distillers Wet Grains with Solubles (DWGS). Separately, it expects about Rs 630.00 crore from selling 100,000 KL, or 10 crore litres, of ENA at Rs 63 per litre, neither of which forms part of the 274,832-KL public-sector OMC allocation.

What supply, payment and performance terms apply to the OMC allocation?

TruAlt must supply the ethanol on a delivered basis through dedicated, calibrated and vehicle-tracking-system-fitted tank trucks, and must provide a security deposit equal to 3% of the basic letter-of-award value. The deposit is due within 10 days of the letter of award and can be furnished as a bank guarantee or recovered through deductions from initial invoices.

The ethanol must meet IS 15464:2022, including total chloride below 3 milligrams per kilogram, according to the disclosed contract terms. Each load must also carry feedstock certification under the Department of Food and Public Distribution mechanism for the ESY 2026-27 supply programme.

The OMCs are to make 100% payment within 21 days after receipt of material at their locations and submission of the original invoice, subject to deductions. If TruAlt uses a bank guarantee for the security deposit, it must remain valid until November 30, 2027, with a claim period through May 31, 2028.

The contract provides for a 3% price-reduction clause on the ex-mill price for shortfall quantities. It is assessed monthly against 95% of the pro-rated purchase-order or indent quantity and reconciled quarterly with a 34-KL tolerance; supplying less than 50% of contracted volume in a quarter constitutes non-performance, and the OMCs retain risk-purchase and cancellation rights.

Conclusion

The ESY 2026-27 allocation gives TruAlt a 274,832-KL public-sector OMC ethanol supply programme valued at approximately Rs 1,715.27 crore, led by the 152,144-KL SFG category and followed by 88,740 KL of maize. The approximately Rs 3,382.29 crore aggregate disclosed by TruAlt combines the OMC allocation with Nayara Energy supply, carried-forward ESY 2025-26 volume, expected DDGS and DWGS revenue, and planned ENA sales.

The next disclosed point to watch is execution through the November 1, 2026 to October 31, 2027 supply period, including the monthly 95% performance measure and quarterly shortfall tests. TruAlt also plans to execute 70,000 KL of pending ESY 2025-26 supplies, 30,000 KL for Nayara Energy and 100,000 KL of ENA sales at the rates stated in its filing.