TruAlt Bioenergy FY26: Strong EBITDA, but ethanol offtake disruptions hit PAT

TruAlt Bioenergy Limited closed FY26 with resilient operating profitability but a sharp decline in net profit, as the ethanol industry went through an unexpected phase of allocation changes and lower lifting by oil marketing companies (OMCs). For the year ended March 31, 2026, consolidated total income stood at INR 1,813.96 crore, EBITDA at INR 362.35 crore, and PAT at INR 96.87 crore. While EBITDA was broadly stable versus FY25, PAT fell materially, reflecting higher finance costs and depreciation following capacity expansion and capitalisation, and lower utilisation due to reduced offtake.

The company’s investor presentation and earnings call repeatedly point to one dominant operating constraint in FY26: despite adequate feedstock availability and fully operational ethanol capacity, OMC lifting remained significantly lower. Management also highlighted that execution was impacted by a pending ethanol quantity of around 15 crore litres, backed by a Karnataka High Court order dated February 4, 2026, but not implemented during the period discussed. The company quantified the revenue potential of this pending quantity at approximately INR 1,062 crore.

FY26 financial snapshot

The consolidated performance reflected a modest decline in income and EBITDA, but a steep fall in PAT.

On a standalone basis, total income was INR 1,772.94 crore and EBITDA was INR 337.71 crore. Standalone PAT was INR 80.03 crore.

A key point from the CFO’s commentary was that even as EBITDA margin improved (standalone EBITDA margin reported at 19.81% versus 18.98% last year), profit before tax declined due to higher depreciation and finance costs. The company attributed this to capitalisation of new grain-based plant and machinery and the broader dual-feed conversion.

Ethanol: scale in place, but offtake constrained

Ethanol remains the dominant contributor to TruAlt’s income. In the segment disclosure in the investor presentation, the ethanol segment reported FY26 total income of INR 1,669.43 crore and FY26 EBITDA of INR 334.30 crore. For FY26, the ethanol segment EBITDA margin was shown at 20.88%.

Operationally, the company positions itself as India’s largest multi-feed ethanol platform by installed capacity, with five units and 2,000 KLPD capacity. It also stated that around 1,300 KLPD has been integrated into dual-feed operations, intended to support near year-round production by enabling sugar-based and grain-based ethanol.

But the call made it clear that the key variable was not capacity. It was procurement. Management explained that in the relevant ethanol supply year, the company bid for 72 crore litres but received only about 26 crore litres allocation from public sector OMCs. It also cited an additional allocation of 8 crore litres from private companies and plans to sell ENA to the potable alcohol industry. However, private OMC lifting was described as slow, with management stating that only about 1.6 crore litres had been supplied out of the 8 crore litres.

The most material near-term catalyst described by the company is the pending 15 crore litre quantity supported by the Karnataka High Court order. Management stated it expects implementation in H1 FY27, and discussed that delays were linked to parallel litigation related to allocation methodology.

CBG: small base, high margins, large planned expansion

The CBG business, housed in subsidiary Leafiniti Bioenergy, is currently a much smaller revenue contributor but reported high profitability in FY26. The segment page in the investor presentation shows FY26 total income of INR 42.86 crore, EBITDA of INR 23.60 crore, and PAT of INR 18.06 crore, with EBITDA margin shown at 58.38%.

Strategically, the company is scaling this vertical through joint ventures.

• The investor presentation lists one operational CBG unit (10.20 TPD) and four units under construction under TruAlt Gas Pvt. Ltd. with Sumitomo Corporation.
• It also lists six additional locations identified under Leafiniti Bioenergy with GAIL.

The expansion table in the presentation indicates a total planned CBG capacity of 162.2 TPD across these locations. Management stated equity infusions by Sumitomo and GAIL have been completed (49% stakes in their respective JVs). It also indicated a 70:30 debt-equity funding mix for these projects.

Retail fuel network: growing income, thin margins

The retail fuel network is being built as a downstream distribution vertical. The investor presentation states seven outlets are operational and four are under construction. For FY26, the retail fuel network segment reported total income of INR 103.51 crore and PAT of INR 3.41 crore, translating to a PAT margin of 3.29%.

Management described a disciplined approach to expansion given competitive pricing dynamics and crude price volatility. It also stated the outlets are being set up under a franchise model, which management claimed avoids direct capex by the company.

SAF: long-cycle project, early-stage progress

TruAlt described itself as an early mover in Sustainable Aviation Fuel. The investor presentation and call outlined a proposed ethanol-to-SAF project in Andhra Pradesh, with the site stated as Srikakulam, and referenced proximity to refineries, ports, and an airport to support logistics.

Key project details cited include:

• Proposed 310 KLPD ethanol-to-SAF facility
• Proposed investment of INR 2,250 crore
• Technology engagement with Honeywell UOP and progress toward FEED
• Expected commissioning timeline of 24 to 30 months, subject to approvals and financial closure

Management also stated it is exploring support of about INR 150 crore under the PM JI-VAN scheme, clarifying on the call that this would be received post-commissioning as a government grant.

What investors should watch next

TruAlt’s FY26 story is shaped less by a demand collapse and more by a procurement and allocation shock. Management’s stated thesis is that India’s biofuel policy momentum remains strong, pointing to E20 implementation and standards for higher ethanol blends. The company believes deferred ethanol quantities could be absorbed in coming months and that higher blending pathways could add incremental ethanol demand.

Still, the near-term outcome depends on execution and external decisions. Key items to track based on management commentary are:

1. Implementation of the pending 15 crore litre ethanol quantity and normalisation of OMC lifting.
2. Commissioning progress across CBG plants under the Sumitomo and GAIL joint ventures.
3. Clarity and timelines on SAF project approvals, offtake arrangements, and financial closure.
4. The pace and economics of retail fuel expansion in a competitive downstream market.

In summary, TruAlt entered FY26 with scale and ended it with a clear push toward diversification. Ethanol remains the core cash flow engine, but CBG is being positioned as a high-margin growth driver, SAF as a longer-cycle strategic bet, and retail as a downstream integration lever. The next phase will test whether these platforms can reduce dependence on a single offtake channel and convert installed capacity into consistent cash generation.