TruAlt Bioenergy Limited, a leading player in India's biofuel sector, reported a 26% year-on-year revenue decline to INR 418.00 crores in H1 FY26. The company attributes this drop to deliberate plant shutdowns for converting 1,300 KLPD capacity to dual-feed operations, a move aimed at enhancing operational flexibility and year-round production capabilities.

Financial Highlights

Despite the revenue dip, TruAlt Bioenergy saw improvements in its EBITDA margins through cost control measures. The company's strategic shift from a seasonal business model to a near-continuous operation is expected to drive stronger performance in the coming quarters.

Operational Updates

• The company targets 47.00 crore liters of ethanol supply for the current year.
• TruAlt expects a strong recovery in H2 FY26, with ethanol volumes normalizing as multi-feed operations stabilize.
• The Compressed Biogas (CBG) business showed impressive growth of 65% year-on-year.

Strategic Partnerships and Expansion

TruAlt Bioenergy is making significant strides in diversifying its business:

1. Sumitomo Corporation Partnership: Construction has begun on three CBG plants under this collaboration, expected to be operational by the end of Q2 FY27.

2. GAIL Partnership: The company has approved seven project locations between Karnataka and Maharashtra for CBG plant rollout.

3. Retail Fuel Network: Seven outlets are operational, with six more ready to commence shortly, as part of a 100-location rollout plan.

4. Sustainable Aviation Fuel (SAF): TruAlt is entering into an MOU with the Andhra Pradesh government for an investment of up to INR 2,250.00 crores for an ethanol-to-SAF plant.

Future Outlook

Vijaykumar Murugesh Nirani, Managing Director of TruAlt Bioenergy, expressed optimism about the company's future: "We anticipate a sustained growth trajectory aligned with past performance trends. Our diversified portfolio across ethanol, CBG, retail fuel, and the upcoming SAF verticals provides a strong base for resilient multi-vertical growth and consistent value creation for all stakeholders."

The company expects to see improved performance in H2 FY26, with ethanol production potentially reaching 31-32 crore liters in the second half of the fiscal year.

As TruAlt Bioenergy continues to expand its operations and diversify its product portfolio, it aims to strengthen its position in India's clean energy value chain and contribute significantly to the country's low-carbon, self-reliant future.

TruAlt Bioenergy Limited, India's largest ethanol producer by installed capacity, reported a consolidated net loss of ₹3,793.98 crore for the quarter ended September 30, 2025, compared to a loss of ₹1,865.65 crore in the same period last year. The company's revenue from operations declined to ₹11,485.77 crore from ₹38,822.20 crore year-over-year.

Transition to Year-Round Operations

The subdued financial performance reflects TruAlt's strategic shift from a seasonal business model to a near-continuous operations enterprise. The company has integrated 1,300 KLPD of dual-feed capacity out of its 2,000 KLPD installed capacity, marking a fundamental change in its operating approach.

Vijaykumar Murugesh Nirani, Managing Director of TruAlt Bioenergy, stated, "While this quarter's results may appear muted, they reflect deliberate choices to reshape our business model for long-term growth and all-year resilience."

Operational Highlights

• Only Unit 3 was operational during the quarter, as Units 1, 2, and 4 were undergoing conversion to dual-feed plants.
• Units 1, 2, and 4 have become fully operational from October 2025 and are expected to operate at full capacity going forward.
• Unit 5 remains non-operational pending receipt of Consent to Operate (CTO).

Joint Venture with Sumitomo Corporation

TruAlt Bioenergy has entered into a Joint Venture Agreement with Sumitomo Corporation of Japan for the development of Compressed Biogas (CBG) plants. Under the agreement:

• TruAlt will hold a 51% stake in Trualt Gas Private Limited (TGPL), while Sumitomo will hold 49%.
• The JV will initially set up four CBG plants, with construction already commenced for three plants.
• The plants are expected to be commissioned by Q2 of 2027.

Other Strategic Developments

1. Sustainable Aviation Fuel (SAF) Project: TruAlt is in the process of entering into an MOU with the Andhra Pradesh Economic Development Board for setting up an ethanol to SAF plant with an investment of ₹2,250 crore.

2. Retail Fuel Network Expansion: Seven retail fuel outlets are operational, with six more ready to commence shortly, taking the network to 13 dispensing stations across Karnataka.

3. IPO Success: The company's IPO was oversubscribed by 75.02 times, with shares listed on NSE and BSE on October 3, 2025.

Financial Position

As of September 30, 2025:

Future Outlook

Despite the current challenges, TruAlt Bioenergy remains optimistic about its future prospects. The company anticipates a sustained growth trajectory aligned with past performance trends, supported by its diversified portfolio across ethanol, CBG, retail fuel, and the upcoming SAF vertical.

Mr. Nirani concluded, "This temporary moderation marks the final phase of recalibration before TruAlt shifts into steady utilization, consistent revenues, and stronger margins."

Investors and stakeholders are advised to consider the ongoing transition phase while assessing the company's short-term performance, as the full benefits of the operational changes are expected to materialize in the coming quarters.