TRUALT - TruAlt Bioenergy

📊 NSE: TRUALT 🏢 Other Agricultural Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 was INR 418 Cr, a 26% decline from INR 585 Cr in H1 FY25. Ethanol segment revenue declined 28% due to strategic shutdowns. Conversely, the CBG segment grew 65% YoY, with revenue increasing from INR 12.53 Cr to INR 20.71 Cr in H1 FY26.

Geographic Revenue Split

Operations are primarily based in Karnataka and Maharashtra, where seven project locations have been jointly identified for the GAIL JV rollout.

Profitability Margins

Consolidated PAT margin was -7.29% in H1 FY26 compared to -6.52% in H1 FY25. However, the CBG segment achieved a positive PAT margin of 49.85% in Q2 FY26, up from -1.51% in Q2 FY25. Management expects long-term PAT margins to stabilize at 30-35%.

EBITDA Margin

Consolidated EBITDA margin improved despite the revenue drop, driven by the CBG segment which reported a 68.29% EBITDA margin in H1 FY26. Standalone EBITDA margin for Q2 FY26 was -11.29% compared to 4.89% in Q2 FY25.

Capital Expenditure

External term debt exceeded INR 1,500 Cr as of March 2025 to build 2,000 KLPD ethanol capacity. Planned expansion includes 17 additional CBG plants and a Sustainable Aviation Fuel (SAF) plant expected to commission by August/September 2027.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Finance costs increased 13% YoY to INR 38.59 Cr in Q2 FY26. Post-IPO, gearing is expected to improve from 2.5x in FY25 to approximately 1x in FY26.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Bagasse (used for power generation), Multi-grain (maize and rice), and Sugarcane/Molasses. Switching to bagasse-based power saved INR 11 Cr in fuel costs.

Import Sources

Sourced domestically, primarily from Karnataka and Maharashtra, utilizing decentralized sourcing and feedstock assurance frameworks.

Key Suppliers

Feedstock is secured through the MRN Group ecosystem and decentralized sourcing networks; offtake is primarily through OMCs like GAIL, ONGC, and HPCL.

Capacity Expansion

Current installed capacity is 2,000 KLPD, with 1,300 KLPD recently converted to dual-feed (multi-grain) capability. Planned expansion includes 17 more CBG plants and a 310 KLPD SAF plant.

Raw Material Costs

Raw material costs for Q2 FY26 were INR 92.07 Cr, representing 71% of total income. Procurement strategies focus on multi-feed flexibility to mitigate seasonal grain/molasses price volatility.

Manufacturing Efficiency

CBG plants are operating at 80% capacity utilization. Ethanol uptime is projected to increase by 114% to 136% following the multi-feed conversion.

Logistics & Distribution

Saved INR 7-8 Cr by eliminating coal transportation costs through the adoption of bagasse-based power.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

Growth will be driven by increasing ethanol production volume from 41 Cr to 48 Cr liters, scaling the CBG vertical with 17 new plants, and entering the Sustainable Aviation Fuel (SAF) market by FY28 using Honeywell UOP technology.

Products & Services

Ethanol, Compressed Bio-Gas (CBG), Extra Neutral Alcohol (ENA), Distillers Dried Grains with Solubles (DDGS), and Bagasse-based Power.

Brand Portfolio

TruAlt Bioenergy, Leafiniti Bioenergy (subsidiary).

New Products/Services

Sustainable Aviation Fuel (SAF) expected to contribute to revenue starting FY28; DDGS integration provides a new high-protein animal feed revenue stream.

Market Expansion

Downstream retail expansion with 13 outlets going operational in Phase 1 of a 100-outlet rollout plan.

Strategic Alliances

Joint Ventures with GAIL and Sumitomo for CBG rollout; technology transfer agreement with Honeywell UOP for SAF production.

🌍 External Factors

Industry Trends

The industry is shifting toward green energy and diversified feedstocks. TruAlt is positioned as a leader in the transition from seasonal sugar-based ethanol to year-round multi-grain production.

Competitive Landscape

Part of the MRN Group; competes with other large-scale distilleries but differentiates through CBG and SAF diversification.

Competitive Moat

Moat is built on multi-feed flexibility (1,300 KLPD) and strategic JVs with state-run entities (GAIL), providing feedstock security and guaranteed offtake that competitors lack.