Avonmore Capital & Management Services Limited is positioned to benefit from the Government of India's decision to exempt petrol blended with 22%–30% ethanol from excise duty, alongside the launch of E85 fuel for flex-fuel vehicles. These policy measures are expected to significantly increase ethanol consumption across the country, creating a structural shift in India's energy landscape. The company's strategic participation in the green fuel sector is executed through its Special Purpose Vehicle (SPV), Premier Green Innovations Private Limited (PGIPL).

The Bureau of Indian Standards (BIS) has notified specifications for E22, E25, E27 and E30 fuel blends, facilitating higher ethanol usage in the transportation sector. The exemption of E22–E30 blends from excise duty removes a key cost barrier, making higher ethanol blends more economically attractive. This policy push is anticipated to create a powerful long-term demand driver for the ethanol industry by increasing procurement requirements for Oil Marketing Companies (OMCs).

Strategic Manufacturing Footprint

PGIPL, formerly known as Premier Alcobev Private Limited, was established as a dedicated SPV for the production of grain-based fuel ethanol. It has emerged as one of the leading ethanol producers in northern India. Avonmore Capital & Management Services Limited holds an 8.88% equity stake in PGIPL, while Almondz Global Securities Limited, a subsidiary of ACMS, holds an additional 40.99% stake. The Group exercises significant influence over PGIPL's strategic direction.

PGIPL operates a grain-based distillery at Sansarpur Terrace Industrial Area, District Kangra, Himachal Pradesh, with a total installed capacity of 285 KLPD. The company's facility in Sambalpur, Odisha, having a capacity of 200 KLPD, has started commercial production. Both plants are equipped with Zero Liquid Discharge (ZLD) infrastructure.

Growth Opportunities and Outlook

The progression from E20 to E30 blending levels could potentially increase ethanol requirements by up to 50% per litre of blended petrol. This creates a substantial incremental demand pool for ethanol manufacturers with existing production capacity and established OMC relationships. PGIPL is the largest ethanol supplier in Himachal Pradesh and is empanelled with OMCs under the Government of India's Ethanol Blended Petrol (EBP) Programme.

Management stated that the introduction of excise duty incentives for higher ethanol blends and the rollout of E85 fuel are expected to accelerate ethanol adoption. The combination of BIS standards, blending targets, fiscal incentives and OMC procurement programmes provides long-term policy certainty and demand visibility. Higher production volumes are expected to allow fixed operating costs to be spread across larger output levels, potentially improving operating efficiencies and profitability.

Avonmore Capital & Management Services Limited reported a consolidated net profit of ₹21.65 crore for the financial year ended March 31, 2026, a decrease of 72% from ₹37.58 crore in the previous year. For the fourth quarter (Q4) of FY26, the company recorded a consolidated loss of ₹9.52 crore, compared to a profit of ₹9.17 crore in the third quarter (Q3). The board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a meeting held on May 26, 2026.

The standalone financial results showed a net profit of ₹0.85 crore for FY26, significantly lower than the ₹13.72 crore reported in FY25. Total revenue from operations for the standalone entity stood at ₹10.70 crore for the year, compared to ₹24.25 crore in the prior year. On a consolidated basis, total revenue from operations increased to ₹190.63 crore in FY26 from ₹180.83 crore in FY25. The statutory auditors, M/s Mohan Gupta & Co., issued an unmodified opinion on the results.

Key Financial Metrics (Consolidated)

Key Financial Metrics (Standalone)

Segment Performance

The company operates through financial services, green fuel, infrastructure advisory, and NBFC activities. The financial services segment reported a loss of ₹13.05 crore in Q4 FY26 due to mark-to-market losses in debt and equity operations, compared to a profit of ₹8.96 crore in Q3 FY26. The green fuel business, operated through joint venture Premier Green Innovations Private Limited (PGIPL), reported a profit of ₹12.15 crore in Q4 FY26. PGIPL's Odisha plant is fully ready for commercial operations, pending a procurement agreement with Oil Marketing Companies expected in June 2026.

The infrastructure advisory business achieved a revenue of ₹50.54 crore in Q4 FY26, with a profit of ₹1.54 crore, driven by an increase in the order book which stood at ₹260 crore as of March 31, 2026. The NBFC activities reported a loss of ₹0.12 crore in Q4 FY26. The board re-appointed M/s Batra Neeraj & Associates, Chartered Accountants, as internal auditors for the financial year 2026-27.