BCL Industries has resumed operations at its 200 KLPD ethanol unit in Bathinda, Punjab, following a fire incident on June 19, 2026. The company confirmed that all statutory approvals have been received and production activities have restarted.

Operational update

The temporary disruption at the facility, caused by a fire in one of the ethanol tankers, has been fully overcome. BCL Industries stated that operations at the unit commenced on August 26, 2026. Due to the multi-stage nature of the production process, commercial output is expected to begin within approximately three to four days.

The company informed both the National Stock Exchange of India Limited and BSE Limited of the normalization of operations. This update addresses the disruption reported earlier this year, confirming that the plant is back online and moving towards full commercial capacity.

BCL Industries reported a net profit of ₹36 crore for the quarter ended June 30, 2026, representing a 6% year-on-year increase. Consolidated revenues from operations declined to ₹623 crore from ₹820 crore in the corresponding quarter of FY26. The revenue contraction was primarily attributed to the closure of the edible oil unit and the company’s exit from the packaged oil business.

Despite the lower topline, earnings before interest and taxes (EBITDA) rose 17% year-on-year to ₹66 crore. The EBITDA margin expanded sharply by 370 basis points to 10.5% from 6.8% in Q1 FY26. Net profit margins also improved to 5.7% from 4.1% in the prior year period.

Operational Updates

The company faced a temporary disruption when a fire incident occurred at one of its ethanol storage tanks in Bathinda on June 19, 2026. This resulted in the shutdown of the 200 KLPD ethanol plant. Management stated that full recovery of losses through insurance claims is virtually certain, with no net financial loss recognized in the quarter. The new 150 KLPD unit at Bathinda commenced commercial trials in late June and was successfully commissioned in July, helping mitigate the production impact.

Strategic consolidation continued with the acquisition of the remaining 25% stake in Svaksha Distillery Limited on June 30, 2026, making the 350 KLPD facility in West Bengal a wholly-owned subsidiary.

Segment Performance

The distillery segment reported an EBITDA margin of 12.41%, up from 11.8% in Q4 FY26 and 10% in Q1 FY26. Ethanol sales volumes showed significant growth:

Country liquor volumes increased 46% year-on-year to 6,37,993 boxes. The segment benefited from the launch of Punjab Raspberry in Q4 FY26 and Jamun Vodka in July 2026. Realizations for ethanol supplies to private buyers remained under pressure, with prices declining to ₹58 per liter in Q1 FY27 from ₹70 per liter in Q1 FY26.

What the Numbers Show

The divergence between revenue decline and profit growth highlights the impact of portfolio restructuring. While the exit from the packaged oil business reduced consolidated revenue by approximately ₹197 crore, it removed lower-margin operations, allowing the higher-margin distillery and country liquor segments to drive overall profitability. Additionally, other income contributed ₹199.47 lakhs from the sale of fixed assets related to the closed oil unit, supporting the bottom line despite operational headwinds in ethanol pricing.

Balance Sheet and Outlook

Total debt stood at approximately ₹360 crore, including working capital utilization of around ₹60 crore. Management indicated a reduction in working capital limits by another ₹50 crore in August 2026. The company has put plans for a 250 KLPD grain-based plant at Fatehabad and a biodiesel unit on hold pending clarity on policy frameworks and market conditions. Future demand drivers cited include flex fuel vehicles, isobutanol policies, and sustainable aviation fuel.