TruAlt Bioenergy Limited has reported substantial progress in utilizing its Initial Public Offer (IPO) proceeds during the quarter ended December 31, 2025. The company utilized Rs 519.63 crore out of the total gross proceeds of Rs 750.00 crore, with monitoring agency Crisil Ratings Limited confirming no deviations from the stated objectives.

IPO Details and Financial Overview

The company's IPO was conducted from September 25, 2025, to September 29, 2025, raising gross proceeds of Rs 750.00 crore. After deducting issue expenses of Rs 92.96 crore, the net proceeds stood at Rs 657.04 crore.

Utilization Across Key Objectives

The proceeds were allocated across three primary objectives as outlined in the offer document. The largest allocation was towards working capital requirements, followed by capital expenditure for multi-feedstock operations.

Capital Expenditure Progress

For funding capital expenditure towards setting up multi-feedstock operations at TBL Unit 4 of 300 KLPD capacity, the company utilized Rs 140.13 crore out of the allocated Rs 150.68 crore. The proceeds were used for purchasing plant and machinery to enable grain utilization as additional raw material in ethanol production.

Working Capital and Corporate Purposes

The working capital funds were deployed towards vendor payments, while general corporate purposes included meeting company expenses and investment in subsidiary Truault Gas Private Limited.

Deployment of Unutilized Proceeds

The remaining Rs 230.37 crore is strategically deployed across various financial instruments and accounts. The company has invested Rs 150.00 crore in term deposits with Kotak Mahindra Bank, earning returns of 5.00% with maturity on January 14, 2026.

General Corporate Purpose Breakdown

The company provided detailed utilization of Rs 69.99 crore allocated for general corporate purposes, approved by the Board of Directors on February 3, 2026:

• Meeting company expenses: Rs 41.56 crore (including SBI cash credit adjustment and GST payments)
• Acquisition activities: Rs 8.43 crore for acquiring 51% shareholding in Truault Gas Private Limited
• Subsidiary investment: Rs 20.00 crore in Truault Gas Private Limited

Monitoring Agency Assessment

Crisil Ratings Limited confirmed that all utilization aligned with disclosures in the offer document. The monitoring agency reported no material deviations, unfavorable events affecting viability, or delays in implementation of stated objectives. The company maintained proper documentation through peer-reviewed independent chartered accountant certificates and management undertakings.

The monitoring report, reviewed and approved by the company's Audit Committee and Board of Directors on February 2, 2026, and February 3, 2026, respectively, demonstrates TruAlt Bioenergy's systematic approach to IPO proceeds deployment while maintaining regulatory compliance.

TruAlt Bioenergy Limited has delivered exceptional revenue performance for Q3FY26 ended December 31, 2025, achieving significant operational milestones while establishing a foundation for sustained growth. The company's latest results demonstrate successful completion of its capacity expansion program and strategic positioning across multiple bioenergy segments.

Strong Financial Performance with Operational Scale

TruAlt Bioenergy reported robust financial results for Q3FY26, with consolidated revenue reaching ₹713.24 crore compared to ₹415.11 crore in Q3FY25. Total income increased to ₹730.86 crore, representing 69.75% quarter-on-quarter growth driven by higher throughput following commissioning of grain integration capex and expanded plant operations.

Ethanol Business Achieves Full Operational Capacity

The company completed a key phase of operating consolidation in the ethanol segment during Q3FY26, with planned capital expenditure for grain-based integration fully commissioned. Four of the company's five ethanol plants were operational during the quarter, achieving capacity utilisation of over 95% on operating days. Unit 5 received its Consent to Operate on December 17, 2025, following which all ethanol plants are now fully operational.

With approximately 58 effective operating days during the quarter due to sugar crushing season commencing from mid-November, overall utilisation stood at approximately 60% on a gross-quarter basis. The company now operates on a stabilised platform with ability to support monthly ethanol production of approximately 5.5 to 6 crore litres, with no further capacity additions planned across the ethanol business.

Strategic Business Segment Performance

The CBG segment delivered strong performance with operating efficiencies meaningfully exceeding industry benchmarks. For nine months ended December 31, 2025, the business recorded total income of ₹30.97 crore, EBITDA margin of 63% and PAT margin of 43%, reflecting robustness and scalability of the operating model.

Sustainable Aviation Fuel Development Progress

TruAlt Bioenergy progressed significantly in the Sustainable Aviation Fuel segment during the quarter, advancing a technology licensing agreement with Honeywell UOP. Engineering design is underway for a proposed 100 million litres per annum SAF facility in Andhra Pradesh, with discussions being advanced with Sumitomo Corporation for potential equity participation.

The company is at an advanced stage of approvals and expects to receive ₹150 crore of viability gap funding under the PM JI-VAN scheme, which would strengthen project viability and execution readiness. This positions the company to capitalise on aviation industry's critical inflection point toward carbon emission reduction.

Retail Expansion and Future Readiness

In the biofuel retail segment, TruAlt Bioenergy received its oil marketing company licence and commissioned seven retail outlets within six months. Four additional stations are currently under development, with clear visibility to scale approximately 75 outlets from FY27 onwards. This expansion positions the company to be future-ready, aligned with expected adoption of flex-fuel in India and strengthening its presence in the B2C energy segment.

Nine-Month Performance and Outlook

For the nine months ended December 31, 2025, consolidated total income reached ₹1,187.05 crore compared to ₹1,047.85 crore in the previous year, representing 13.28% growth. EBITDA increased to ₹170.99 crore from ₹155.43 crore, up 10.01% year-over-year, while PAT stood at ₹35.92 crore compared to ₹34.94 crore in 9MFY25.

Managing Director Vijay Nirani commented that the quarter reflects meaningful progress in strengthening the company's operating foundation and enhancing earnings quality. The transition towards near year-round operations marks a structural shift for the business, improving operating predictability, efficiency and earnings visibility while maintaining focus on consistent execution and long-term value creation.