BCL Industries Reports 10% Revenue Growth in H1 FY26 Despite Ethanol Allocation Challenges

BCL Industries , a leading player in the distillery and edible oil sectors, has reported a 10% year-on-year increase in consolidated revenue for the first half of fiscal year 2026, reaching INR 1,544.00 crores. The company's performance demonstrates resilience in the face of challenges, particularly in the ethanol segment.

Financial Highlights

BCL Industries' financial results for H1 FY26 show notable improvements across key metrics:

Metric	H1 FY26	H1 FY25	YoY Growth
Revenue	INR 1,544.00 crores	INR 1,409.00 crores	10%
EBITDA	INR 125.00 crores	INR 113.00 crores	11%
PAT	INR 65.00 crores	INR 54.00 crores	20%

The company's EBITDA grew by 11% to INR 125.00 crores, while Profit After Tax (PAT) saw a significant increase of 20% to INR 65.00 crores compared to the same period last year.

Operational Updates

Despite the overall positive financial performance, BCL Industries faces challenges in its ethanol business due to lower allocations from oil marketing companies (OMCs). In response, the company is strategically shifting focus to increase its Extra Neutral Alcohol (ENA) sales and expand its bottling operations.

Key operational highlights include:

Ethanol Allocation: The company received an ethanol allocation of 107,000 kilolitres for the entire year, which is lower than its production capacity.
ENA Focus: BCL is ramping up its ENA production and sales to compensate for the reduced ethanol allocations. Current ENA prices are around INR 67.00 per litre, though the company anticipates potential downward pressure on prices in the coming months.
Capacity Expansion: The 150 KLPD ethanol expansion project at Bhatinda is progressing well and is expected to be completed in Q4 FY26.
Sustainable Energy: BCL is installing a 55-tonne paddy straw-based boiler, which, along with an existing 60-tonne boiler, will meet the energy requirements for its 550 KLPD plant at Bhatinda.
Product Diversification: The company has launched a premium country liquor product in glass bottles and plans to introduce another country liquor product in the coming weeks.
Biodiesel Project: BCL has put its biodiesel project on hold due to unviable market prices, currently around INR 82.00 per litre.

Strategic Outlook

Joint Managing Director Kushal Mittal commented on the company's strategy: "We are focusing on increasing our ENA sales and not letting any buyer go. We are hoping to increase this in the coming quarters as well. However, there will be some pressure to reduce prices further."

The company is also exploring opportunities in the IMIL (Indian Made Indian Liquor) segment and has plans to enter the IMFL (Indian Made Foreign Liquor) value segment within the next two years.

BCL Industries' ability to switch between ethanol and ENA production, coupled with its cost-saving initiatives like paddy straw-based power generation and maize oil extraction, positions it to navigate the current market challenges effectively.

As the ethanol market faces oversupply issues, BCL's diversified approach and focus on operational efficiency may help it maintain its competitive edge in the evolving market landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.19%	-4.51%	-6.03%	-8.63%	-30.61%	+185.66%

BCL Industries , a prominent player in the Indian industrial sector, has released its financial results for the second quarter, revealing a mixed performance with a slight increase in profits despite a notable decline in revenue.

Financial Highlights

Metric	Q2 Current Year	Q2 Previous Year	Change
Net Profit	₹212.00	₹210.00	0.95%
Revenue	₹4,760.00	₹5,300.00	-10.19%

Profit Growth Amidst Revenue Challenges

BCL Industries managed to report a marginal increase in net profit, which rose to ₹212.00 million in the second quarter, up from ₹210.00 million in the same period last year. This represents a modest growth of 0.95% year-over-year, showcasing the company's ability to maintain profitability despite challenging market conditions.

Revenue Decline

However, the company faced headwinds on the revenue front. BCL Industries saw its revenue decline to ₹4,760.00 million, down from ₹5,300.00 million in the corresponding quarter of the previous year. This 10.19% decrease in revenue indicates potential challenges in market demand or pricing pressures within the industry.

Management's Perspective

The company has not provided specific commentary on the factors driving these results. However, the ability to increase profits marginally in the face of declining revenues suggests potential improvements in operational efficiency or cost management strategies.

Looking Ahead

As per the latest corporate filing, BCL Industries' Board of Directors approved these unaudited financial results for the second quarter and six months ended September 30, in a meeting held on November 12. The company's performance in the coming quarters will be closely watched by investors and analysts to determine if this trend of profit resilience amidst revenue challenges continues.

Stakeholders will likely be keen to understand the company's strategies for addressing the revenue decline while maintaining profitability in future earnings calls and investor communications.

Note: All financial figures are reported in Indian Rupees (₹) and in millions.