BCL Industries Ltd (NSE: BCLIND) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Priya Sen
Kushal Mittal
Analysts:
Unidentified Participant
Dipesh Sancheti — Analyst
Bala Murali Krishna — Analyst
Majid Ahmed — Analyst
Abhishek Khare — Analyst
Vikas Khundeja — Analyst
Saket Kapoor — Analyst
Bhavesh — Analyst
Sarath — Analyst
Vikas Khundeja — Analyst
Rushin Hirpara — Analyst
Harish Poddar — Analyst
Shiwbhagwan Assawa — Analyst
Shiwbhagwan Assawa — Analyst
Rajesh Agarwal — Analyst
Bhavesh — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The BCL Industries Limited Q1FY26 earnings conference call hosted by Goindia Advisors. As a reminder, all participant lines will be in the listen only mode and there will be an. Ladies and gentlemen, good day and welcome to The BCL Industries Limited Q1FY26 earnings conference call hosted by Goindia Advisors. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 10.0on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Ms. Priya Sen from Go India Advisors. Thank you. And over to you, ma’. Am.
Priya Sen
Thank you, Manav. Good afternoon everybody and welcome to BCL Industries Limited Earnings Conference Call to discuss the Q1FY26 results we have on the call. Mr. Kushal Mittal, Joint Managing Director. We must remind you that the discussion on today’s call may include certain forward looking statements and must therefore be viewed in conjunction with the risk that the company may face. May I now request Mr. Kushan Mittal to take us through the company’s business outlook and performance subsequent to which we will open the floor for Q and A. Thank you. And over to you, sir.
Kushal Mittal
Thank you, Priya. Good day everyone and thank you for joining BCL Industries Limited’s Q1FY26 earnings conference call. I trust you had the opportunity to review our financial results and investor presentation now available on the stock exchanges. At the outset I would like to clarify that all financial results reported are on a consolidated basis which includes the performance of our Soksha distillery where BCL holds a 75% stake. Let me begin by first providing a strategic update on the company’s ongoing transformation and growth journey. As part of our long term vision to focus on higher margin and scalable business, we have made significant progress in the phased exit from our edible oil operations.
During Q2, we successfully shut down the oil mill, solvent, rice mill, banaspati and package oil segments all in line with our planned restructuring. A portion of our soft oil refining activities is being consolidated and shifted to our Sangat facility which will cater to the institutional clients and it will continue to operate alongside the biodiesel plant which which is currently in its trial phase and expected to be fully commissioned in early Q2 FY26. We are also focusing on orderly liquidation of remaining edible oil stocks with this process expected to complete by Q3FY26 this exit from the low margin edible oil business is enabling us to redeploy capital and management focus more efficiently towards higher growth opportunities in the distillery business.
In parallel, we are advancing steadily in our core distillery business. We are proud to be one of the India’s largest grain based ethanol producers currently operating with an installed capacity of 700 klpd. Strengthening this leadership, our 150 klpd expansion in Bathinda is progressing well and on track for commissioning by year end. Additionally, our wholly owned subsidy GO Industrial Private Limited has all regulatory clearances in place for setting up a 250klpd ethanol plant. Together these projects will increase our total ethanol capacity, our total distillation capacity to approximately 1100 KLPD over the next 23 years, providing a strong platform for sustained growth.
Our CAPEX pipeline remains robust and on schedule. Beyond the distillery expansions, we are making steady progress on our paddy straw based boiler, biodiesel plant and maize oil extraction units all set to be commissioned by Mid FY26. The maize oil extraction facility was successfully commissioned in Q1 while work on a similar unit in Swaksha is progressing and is expected to be operational by Q3FY26. Additionally, the 75 KLPD plant is under trial and is expected to be commissioned in Q2 FY26 further diversifying the product portfolio and reinforcing value chain integration. The company continues to pursue strategic diversification of its revenue base, strengthening the product mix and enhancing sourcing flexibility and competitiveness in evolving markets.
On the raw material front, the distillery sector experienced encouraging developments with the resumption of FCI rice procurement at rupees 22.5 per kg. This has brought a much needed clarity and stability in the feedstock availability. BCL operates its units with the capability to process both rice and maize, optimizing operations to maintain efficiency and flexibility in raw material utilization. Demand for both ENA and ethanol remains strong, supported by our offtake agreement and a strong consumer base in the ENA sector. The positive momentum comes against the backdrop of India’s remarkable growth in ethanol sector. The country’s annual ethanol production is now reached 1800 crores and notably 42% of the ethanol now is being supplied from maize.
This reflects the government’s strategic push for feedstock diversification to achieve the E20 blending, enhancing energy security, reducing carbon emissions and providing greater support to the farmers, thereby creating income and employment opportunities in the agriculture and biofuel sector. These favorable tailwinds are setting the stage for BCI’s next phase of growth with its expanding capacity and focus on efficiency, the company is well placed to grow revenue and improve margins. By staying disciplined on cost and execution, BCL aims to strengthen its market position and rise steady for long term growth. Let me now move on to the. Financial and operational highlights. For quarter ended June 2025, BCL delivered a total revenue of 823 crores for for Q1 FY26, a robust 25% increase. Year on year, the distillery segment which was the main growth driver were ethanol volumes rising 11% to 55,461 kilo and ENA volume rising to 7,960 kg up by 37% from the corresponding quarter of last financial year. EBITDA for the quarter stood at 56 crores with the distillery segment contributing to 53 crores. Reflecting a steady margin trends and operational discipline, consolidated pad reached to rupees 33 crores up by 32%. Our Imil segment also performed strongly with approximately 4.36 lakh cases sold in the first quarter supported by a sustained demand and robust market share.
Looking ahead, we remain confident about sustaining this growth trajectory in FY26. Our strategy to diversify the portfolio, improve raw material sourcing and optimizing costs will support both the top line expansion and margin improvement. As we evolve, our focus remains firmly on leveraging our grain procurement and processing expertise to create sustainable margins and long term shareholder value. With that, I now open the floor for questions.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touch. Don’t telephone if you wish to remove yourself. You may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have a first question from the line of Dipesh Sancheti from Manya Finance. Please go ahead.
Dipesh Sancheti
Hello Kushalji. How are you? Good. How are you? Fine. My first question is after exiting the edible oil, how will the revenues from ethanol, biodiesel and maize oil extraction evolve over the next two to three years?
Kushal Mittal
With an addition of 150 klpd of ethanol it should give us anywhere from 400 to 450 crores of revenue on a yearly basis. Whereas the oil extraction and the biodiesel sector in Matinda should give us around 250 odd crores in revenue. And this will follow further increase with the expansion coming in at Kharagpur where we’re first installing only the edible oil Sorry. The maize oil extraction unit and then the 250klpd ethanol plant at Gold Distillery will follow afterwards.
Dipesh Sancheti
Okay, and what synergies are expected from combining soft oil refining at Sandak with the biodiesel unit? See, we.
Kushal Mittal
We didn’t have to install very many more additional machineries in installing soft oil refining units at our Sangat unit. And over there, since, you know, all the power and power plant is in house, the production costs will be significantly lower. And we had seen in the past, I’d say, especially six months, that the biodiesel policy from the government of India was not very favorable. There were certain changes that were made in an instant. So keeping that in mind and ensuring that regardless of the biodiesel policy, our unit stays running. And we had a good consumer base for our soft oil refining business.
Also there’s good institutional demand. So we decided to keep that portfolio of the business going. You know, processing cost, overhead cost, manpower cost over there are significantly lower. So to ensure that the revenue streams continue, we decided that we, we should, you know, continue with the software refining business.
Dipesh Sancheti
Okay, and how is BCN managing the transition of this, especially from the cash flows and working capital due to edible oil stock liquidation?
Kushal Mittal
See, we. For the cash flows, we’ve already surrendered our working capital with the bank and we’re liquidating the stock on a monthly basis. And we’re trying to, you know, do it as soon as possible. Then it is taking a longer time than we thought it would since we had about 100 crores of stocks on the books with us. So we’re hoping to do that in the coming quarters.
Dipesh Sancheti
So by next quarter, most of the. Stock will be liquidated?
Kushal Mittal
Yes, we’re trying.
Dipesh Sancheti
Okay. And with edible oil stock liquidation expected by Q3, does the company anticipate any material losses or marginal impact? And how is, how is it managing the risk? Because there might be some price fluctuations or something. Yes.
Kushal Mittal
There could be some losses on dead stock. And also when liquidating the stock, there could be some special. We’re trying to manage it as best as possible to our abilities.
Dipesh Sancheti
Okay, so do you, can you quantify any number right now? Is it possible?
Kushal Mittal
No, I don’t. I. It will not be possible for me at this stage.
Dipesh Sancheti
No problem.
Kushal Mittal
Currently in the process.
Dipesh Sancheti
Okay. Now wanted to understand what is the maize price in this in the quarter which has gone and the last 45 days, which of this quarter? I’d say the.
Kushal Mittal
See, it’s tough to say because there are always some forward contracts that we do. So on an average, I think the maize price last quarter would have been around 24, 25 rupees. And this quarter it’s around 23 to 24 and a half rupees.
Dipesh Sancheti
23 and a half. So I mean I remember from the last con calls that for every one rupee are in drop in maize price, our margins increased to almost four to five rupees a liter.
Kushal Mittal
No, I think I’ve always mentioned around 2.5 to 2.6 rupees.
Dipesh Sancheti
Sorry, 2.5 to 2 point. Yeah, so that. So now since that drop, can we see that Q2 will be much better than the Q1 results?
Kushal Mittal
Also because in terms of the Q2 I think will be better than Q1 when our margins are concerned. Also because of the Maze oil extraction plant now being started. But we’ve seen some correction in the DVGS prices in the past couple of months. Now they’re starting to increase again. So I think margins will improve in Q2 by how much is tough to say as of today.
Dipesh Sancheti
Okay. And just wanted to understand how. How has been the government. Outlook because. Their policy on the biodiesel has been very fluctuating. But the policy on ethanol and has been the same or are you seeing a push from the government? The same kind of push from the government which used to be.
Kushal Mittal
We’ve seen immense encouragement from the government in the past few years where ethanol is concerned and I think it was rightfully done. So you see the farmers income has significantly increased. Crop diversification is happening. So all those, you know, objectives of the government are slowly being achieved. And we, the government has always been supportive of the sector and we hope for the same moving forward as well.
Dipesh Sancheti
Okay, so assuming that biodiesel, there’s no clarity of policy. Still the kind of the maize oil extraction plan which we’re planning at our Goel distillery, will that have enough bias? Yes, maize oil, you know, could be.
Kushal Mittal
There are many industrial uses of this oil and it can go into animal seed industry. So we’re not very concerned about the buyer.
Dipesh Sancheti
Okay. And just a question, last question. On the property and land which we have since now, edible oil, most of it will be cleared. When do we expect that, you know, we will be realizing the potential huge land bank which we have and you know, get. How will we get the revenues and you know, reduce the debt?
Kushal Mittal
See, first we are very focused on liquidating our stock. Currently, you know, the factory is not only just full with the edible oil stock, but it’s also, you know, we’re stocking up a lot of maize for our distillery we had run out of space as we had done a lot of buying during the harvest season. So first you know our focus is in. In lifting up all of the stock and freeing the land. And then we’ll focus on the next step.
Dipesh Sancheti
Okay. Because you recently shifted your corporate office also.
operator
Sorry to interrupt you. Mr. Dipesh made his request. You do follow up.
Dipesh Sancheti
Sure, sure. I’ll call back in line. No problem. All the very best. Thank you.
operator
Thank you. We have a next question from Lino Balaam Murali Krishna from Oman Investment Advisors. Please go ahead.
Bala Murali Krishna
Yeah. Good afternoon Krish. I think this quarter we have some uptick in the volume of distillery. So is there any particular reason? And going forward we can maintain the same volume volumes by plant were running on full capacity. So that’s the primary reason.
Kushal Mittal
Okay. So when it comes to large business and adding this 75k LPD of bio plant and the 150k LPD of patina. So we’re expecting around 700 crores. 700 crores. From this additional capacity. So the margins will be around 10%. And we’ll lose the edible oil revenue revenue as an average of 1000 crores per annum.
Right. I didn’t understand the last part of the question. No. Edible revenue will lose at the rate of. Your voice is quite.
Bala Murali Krishna
Yes. So I’m asking that. Yeah, I’m using 100 only. Yeah, I’m asking that. So we will lose the revenue of thousands. See, we’ll lose.
Kushal Mittal
You will lose. Yes, of course some portion of the edible oil revenue would be lost. But as I already mentioned we’re continuing with the soft oil refining for reasons mentioned earlier. And that could give us some revenue. It will be significantly lower than you know the 900 odd crores that we used to do from this business. But we’re making up for that lost revenue by higher margin businesses in terms of 150k LPD distillery and also the oil extraction and biodiesel plant. Extraction. Biod. Suppose if the government policy is not.
Bala Murali Krishna
Favorable if you are continuing with the only major attraction extraction only even at patina and correct pool. So what would be the raining potential of this?
Kushal Mittal
No see oil extraction can be continued. It can be sold in the market as it is the maize oil. So we’re not very worried about that. We haven’t started any work at the biodiesel facility in Kharagpur only in. But Hinda, we have you know tried. We’ve established one. So before unless and until there’s a long term policy for biodiesel from the government we Will not establish a biodiesel plant in Khalil.
Bala Murali Krishna
Yeah, I understood regarding that only. So if we are continuing with the major extraction only, what is the revenue potential at Batinda from the team?
Kushal Mittal
The revenue potential that depends on the price. Currently it’s around 85 rupees. So the revenue increase will not be there as much because you know the revenue we are gaining from the edible oil, from the maize oil being extracted, some of that is being lost in that DDGS value going down. But it’s a. It’s a higher margin business. So I think we should look at the margins and not just the revenue from the maize oil extraction business.
Bala Murali Krishna
Lastly on the world history. So what is the update on that one? So when we can have the COVID to gain on stream and what is the capex plan for this? See we.
Kushal Mittal
For now. For now the company is planning on commissioning the 150klpd unit at Bathinda first which we’re hoping to do by December of this year and next year to begin work at Gold Distillery.
Bala Murali Krishna
Okay. So for this year we can have 150klpd. That is Q3 and most probably is coming this quarter itself, right? Other than then there is no further capacit. Hello.
Kushal Mittal
Yes. Yeah, I’m telling that trans KD in this quarter will come and 150k but will come in Q3. So that is the additional capacity we planning for this year, right?
Bala Murali Krishna
Sure, sure. Okay. Thank you. Thanks sir. And sorry. Lastly I’m the one part. So I think that the realization of ethanol is dropped. So we would all use the producing ethanol. So what is the breakup between Myers and SCRs? How much? How much percentage of knowledge derived from.
Kushal Mittal
May FCI rice’s prices have increased by 2 and a half rupees per kilogram from what we previously used to work on. So that that is the reason for you know, the decrease in realization. And I’d say about 30 to 35% of our capacity was based out of FCI. The rest was either DFG or maize.
Bala Murali Krishna
Okay. So going forward also we’ll maintain a similar ratio of raw material under dfg. I think there is some changes in policy. So is this anything beneficial to us government has reduce the content to be maintained for essay? Is there any benefit from that?
Kushal Mittal
Yeah, see I think. I think it’s a policy that is. I think that will be a positive in terms of raw material availability. But let’s see how it is executed and whether that is Pan India or region wise. So we’re waiting on that.
Bala Murali Krishna
Okay. That’s all from us. Thank you.
operator
Thank you. We have our next question from Lino Majid Ahmed from Pinpoint Capital. Please go ahead.
Majid Ahmed
I’m audible, sir. Yes. First question I have is, so what has led to the realization dip, Sir? Like would there be any kind of dep in terms of realization and margin? No, I don’t think there was any.
Kushal Mittal
Dip in the margins. I’m not sure what is being mentioned here. Our EBITDA margins have, for our dictionary business has more or less been consistent with even our corresponding quarter and even our previous quarter. So I don’t know where the dip.
Majid Ahmed
Is because there was 80 bits of decrease in margin contraction. I just wanted to know, is it because of an increase of other expenses or the gross margin? I mean FCI prices have increased by.
Kushal Mittal
2 and a half rupees and half. A percent here or 80bps here and there. I don’t think that’s too significant. We have given consistent margins on the business in the past and we’re continuing to do so.
Majid Ahmed
Okay, so going forward in your yesterday.
Kushal Mittal
And yeah, so if you were to look at our EBITDA margin this quarter for BCL only it was at 10.07, whereas for previous quarter it was at 10.5. So that’s a 43 basis point decrease. And if you were to compare that to the corresponding quarter, that is a decrease of just a second 36 basis points. So I mean 36 basis points or 45 basis points here and there, I don’t think that’s too big of a deal.
Majid Ahmed
Okay, got it sir. And secondly sir, going forward, do you see the realization in the distillery business, ethanol, would it remain same or do you expect any increase in going forward? As see. We expect it to increase, yes.
Kushal Mittal
With our maize oil extraction business kicking in properly and also our, you know, hopefully the biodiesel business performing from I think hopefully next year onwards from November when the new tender is expected. So that should definitely help the margins of our business. See, earlier we used to extract this maize oil in two other facilities. So there was a lot of freight involved, a lot of steam and power costs and all of that was involved. Now our overheads, our power costs and everything have been significantly decreased with this facility starting in Ashtangat unit and later this year hopefully in our Kodakpur unit as well.
So that should also bring in a big positive for our margins. Okay, so going forward for ethanol you’re looking to maintain between 9.5 to 10% EBITDA even more due to operational efficiency. We are hoping margins to improve, certainly. But with the incoming of FCI rise, the market has stabilized and I think. It’S, it’s a big positive that, you. Know, the market has stabilized around this EBITDA margins. So I, I honestly don’t see a significant increase in the EBITDA margins from the distillery business. I think there could be a stabilization period as opposed to what we saw earlier when there were huge fluctuations.
Majid Ahmed
Yes, sir. Got it, sir. So regarding grain processing business, are we looking any sort of margin improvement through any operational efficiency or anything?
Kushal Mittal
What is the grain processing business? By that you mean. I’m sorry.
Majid Ahmed
Sorry sir, Sorry sir. Regarding this, real estate businesses.
Kushal Mittal
So real estate, Regarding real estate, what. Do you mean to ask, like would it the revenue be remaining the same or would it increase? We don’t have that much inventory left in real estate, so revenues would be quite minimal moving forward.
Majid Ahmed
Finally, sir, like could you see any competitive pressure or any sort of things, oversupply kind of issue in the market?
Kushal Mittal
See with where ethanol is concerned? Yes, there has been a huge expansion that has taken place in the past couple of years. Unprecedented competition has come. That is, there’s no denying on that. But a lot of these units that. Have come are, you know, of smaller. Capacity and you know, they don’t have the flexibility Most, I’d say 95 of the units now don’t have the flexibility between ENA and ethanol. So that also is a big differentiator, I think. Yes, there is competitive pressure, definitely there is. But in our opinion, units that have scale, units that continue to innovate, units that keep a check on their cost and they will continue to do well. So that’s why bcl, keeping in mind that this competition is coming, we had our paddy straw based boiler installed and commissioned two years ago. So the order was given three years ago.
We’re doing another paddy straw based boiler. Keeping this competition in mind, I think we are the pioneers now in the country. I can confidently say when it comes to maize oil extraction, a lot of our peers are now looking to see how it’s being done and copy us. Looking at this competition in line, we thought of biodiesel and setting up a refinery there. So BCL will continue to innovate and you know, try to remain ahead of its competition when it’s come, when it comes to procurement efficiency and producing efficiency and achieving scale on our units.
So yes, I think this will work to our benefit moving forward as well.
Majid Ahmed
Okay, thank you sir, thanks for the.
operator
Thank you. The next question is from the line of Abhishek Khadi and individual investor, please go ahead.
Abhishek Khare
Hello. Am I audible?
operator
Yes, you’re audible.
Abhishek Khare
Thank you. Yeah. A couple of questions. The expansion that we are doing with the 150k LPD expansion and the World Distillery expansion, what do you expect would be our capacity utilization when these plants are fully operational?
Abhishek Khare
See any expansion that we go for, we, we aim for 100 capacity utilization and we’ll continue to aim for that moving forward as well. And I’m quite confident of achieving 100 capacity utilization. So. So 150 KFPD would be live by 2027 Jan, or we are targeting to. Finish it by year end. Okay. So in December of this year, Goyal Distillery will have a start date of early next year. So I cannot give you a completion date as of today. I think once we’ve started work on site, I’d give you more clarity on that. So. But approximately 18 months from the start date.
Abhishek Khare
Right. And sir, we are halfway into Q2. So when do you expect our biodiesel flying the 75075 KNCD biodiesel plant to start?
Kushal Mittal
See the biodiesel plant, we have done the trials and we’re quite confident of a successful commissioning. The current issue is that there is no new tender from the OMCs to procure biodiesel. So before the tender we have to first register ourselves to be to be a participant in these tenders. And the last time the registration was open the company did not have a consent to operate, so we were not able to register ourselves. Now we have all the necessary permissions in hand. So once the new tender has been released, we will participate in that.
Abhishek Khare
Okay. One more question regarding the pricing of ethanol. I mean as you have seen, the price of maize based or grain based ethanol has not changed. Government hasn’t changed that. And I mean the news, if it is to be believed, currently the petrol prices, which is not mixed with ethanol, right. It is at a lower price than actually the ethanol. Right. So do you foresee a scenario wherein the government takes or the oil companies are forced to take a stance wherein they are actually not procuring ethanol as much and because of the price arbitrage. Do you see where I’m going with this? Do you see foresee a scenario?
Kushal Mittal
See no, I don’t foresee such a scenario. One, because if that scenario is concerned, then ethanol blending should go up when prices have hit hundred dollars a barrel. See, this is not just a policy for the OMCs to be more profitable. The ethnol policy, the ethnol policy is serving a lot of purposes one, you. Have to understand that India has now become a grain surplus country and there. Is no use for this grain. You know, we’re producing much more price than we. We have 36 million tons of surplus rice. The government doesn’t know what to do with it. We’re producing all sugar we are surplus in. So how do you best utilize the this production and ensure that the farmer. Is being paid in a timely manner. At a good, at a good price. For their crop so you to ensure. That industrial demand is created for this crop. And I think that is one of the biggest reasons why ethanol policy was brought into the country.
Abhishek Khare
And it’s, it’s starting to show. Maize prices that were at 1112 rupees a kilogram are now easily at 24.
Kushal Mittal
25 rupees a kilogram the farmer has earned. There’s a lot of crop diversification that has happened towards maize, especially in areas where water trouble was already low. Maize is a crop that requires significantly lower water as opposed to paddy. It is also a policy for India’s energy independence. I give you an example. During COVID when the prices of edible oil prices crashed significantly, countries like Malaysia and Indonesia which were big exporters of these edible oils, instead of decreasing their. Biodiesel mandate, they increased it at a. Time like that because they had to ensure that their farmers produce get sold at a good price and their farmers are not stressed in a difficult time. Similarly, I believe in India, regardless of the petrol price prices, the ethanol policy is a long term policy and not just made so that the OMCs earn more profit.
Abhishek Khare
Right. And my, my reason for asking that question was because you are very closely working with the government. What sense where you getting your answer? Kind of explains that part. One last question if I may squeeze in please. Regarding biodiesel right there. I mean there is some teething problem like we had with ethanol when the blending was just getting started or it was at a very natal stage. Do you have got a sense of what those teaching problems are with biodiesel? And are there, is there anything that we have planned or thought ahead to stay ahead of the game and not have those problems for us?
Kushal Mittal
Biodiesel policy has been a little up and down I think in the recent past. But I think over time there will be a sustainable and long term policy that will come in this sector as well as the government is looking for to promote biofuels in all, in all variations, whether that’s bio, cng, biodiesel and ethanol. So I think over time a good policy will come we are quite confident of that. In the meantime, as I’d already explained, we ensured that that facility, a part of that facility can also be used for stuff, soft oil refining which will be, you know, supplied to our institutional consumers so that the established facility does not remain idle.
Abhishek Khare
So sir, if say for example, my maize oil extraction plant runs at full capacity, I don’t have a tender for biodiesel. Right. Will I be able to recover the cost that I incur? And would I still say positive in terms of margin? Even if I only. Even if we only operate the Maze oil extraction plant instead?
Kushal Mittal
Even if we only operate the Maze on extraction plant, I think it’s still a profitable venture. Because the value addition given from the Maze oil extraction surpasses the the value loss in DDGS price.
Abhishek Khare
Okay. Okay, sir. Thank you. That answers my question. Thank you, sir. Thank you.
operator
Thank you. The next question is from the line of Vikas Kunteta, an individual investor. Please go ahead.
Vikas Khundeja
Can you hear me? Yes. Yeah. Okay. My first question is that you said that around 100 crore stock collapsed in animal oil. So in the last quarter you did almost 300 crore business. So is this 100 crore left after you have already, you know, maybe you already done some business in this itself. So how much business you already done?
Kushal Mittal
I don’t have the exact numbers of this quarter and for quarter two. And I. I don’t wish to share any, you know, exact numbers from quarter two and breaking stage please.
Vikas Khundeja
Okay. And right now there is so much noise on the social media, especially regarding the E20 backcount. You know, many, you know, people complaining the reduced efficiency of the vehicles and they are. It may create some pressure on the government to reduce the blending. So what if the government, you know, reduce the branding probably 22, E15 or maybe 10. So can company handle the situation when the demand reduced?
Kushal Mittal
No, I don’t see such a thing happening. You know, honestly I. I don’t spend time thinking on what ifs and what. So the long. The ethanol policy is a long term policy. And you know, whenever something is. Something new is being done, it will always face positive responses and negative responses. So yes, there is some negative feedback on the blending policy, but I don’t think it’s a. It’s a policy that, you know, that the government will back from. I give you an example. When Bartha Dam was first built, there was, you know, a backlash from the.
Vikas Khundeja
Public that, you know, actually no, but anything. Okay, okay. All you need is to just add that the ethanol is prices and petrol. But you know, Government is continuously increasing the MSD of the day.
operator
Sorry to interrupt you so please request. You to rejoin the queue.
Vikas Khundeja
Okay.
operator
Thank you. We have our next question from the line of Saket Kapoor from Kapur. Go. Please go ahead.
Saket Kapoor
Yeah, Namaskar. Sir, can you provide me how are the difference for EMA being for the state and the average realization for the country for the last quarter and how.
Kushal Mittal
EMA prices DNA prices have been stable around 66 to 67 rupees a liter. I think in most of the states across the nation. And post the June exits, however, the.
Saket Kapoor
Prices trending being generally. Do we have anything effect for. For the ensuing quarter or. They have been.
Kushal Mittal
They have been mostly stable. They have been mostly stable prices have remained stable currently. Yeah yeah. Enter currently for the our ethanol price realization, what are we realizing in terms of the the defunded value for eternal as the contracted value.
Saket Kapoor
So around the, you know, six to seven rupees a liter. This is the margin you are mentioning?
Kushal Mittal
Yes.
Saket Kapoor
Okay. What is the realizable value, sir? At what price are we realizing this in all sales?
Kushal Mittal
See, maize is being supplied at 71 rupees. I think 86 per DFG is around 64 rupees and I think surplus food grain is around 58.50. And you are mentioning about the tendering from the OMC OMG currency. So I think so they come up with their program for a longer period of time. So for. For us how much have we have we locked ourselves with the capability for.
Saket Kapoor
How many years they put the contracted. Value and in number of liters.
Kushal Mittal
No, this is a yearly basis. That was. So we participate in the tender on a yearly basis. So what you are referring to was an LTOA that was bought for some units. Since you know we have ENA plants as well. We did not participate in the ltoa. So we bid for our quantity on a yearly basis.
Saket Kapoor
So what are lto? Sir, I have not a LTOA was.
Kushal Mittal
Long term offtake agreement which was done with some units. But even if a unit was of 200 klpd capacity the LTO was only done for about 50 to 60% of their capacity.
Saket Kapoor
So as of now when is the renewal due? Sorry? As of now when is the new contracts are due?
Kushal Mittal
The fresh tender is expected in October of this year which will be from November of and the event goes from November 1st until October 31st.
Saket Kapoor
Thank you.
operator
Thank you. We have our next question from the line of Bhavesh, an individual investor. Please go ahead.
Bhavesh
Good afternoon, sir. Thank you for the opportunity. First we like to thank you on updating us with the pictures of the biodiesel plant on the website of the company. And my first question is with respect to the acquisition of Pioneer Industries, what is the status and do you plan it? Planning to make a subsidy deal.
Kushal Mittal
Good afternoon. Thank you. Thank you for the question. See Pioneer. Pioneer Industries is a company where the promoters of BCL have held equity since 2005. This used to be earlier at 50% and we had, you know, sold 25% of our stake to our partner who increased their equity from 50 to 75. And I think it was during 2020 of. It was during COVID I don’t remember the exact dates. That was to fund our unit at Suksha distillery because we required capital to set up. So that’s when we decided that the promoters will sell 25% of their stake in Pioneer.
So Pioneer, even if BCL acquires the entire shareholding from the promoters of BCL will only be considered as an associate company and not a subsidiary. Anything I think below 50 is associated and above 50% is. So even if we were to increase our stake to 25% BCL stake, it will remain as an associate company but.
Bhavesh
Still the profits will reflect in the books. So do you plan to do that?
Kushal Mittal
Not as of yet. Maybe in the future, yes, but not in the short term.
Bhavesh
Okay. Because the company does really well. Like the 500, 600 crore of revenue, it will only add on the value in our book. So no plans.
Kushal Mittal
Not in the short term. But of course this move to bring her shareholding where it is, was done in a. In a long term thinking.
Bhavesh
Okay, understood. My second question, since you already have your own pre. Own IM il. So do you plan to enter into the IMFL business like by launching one brand so that you have a good hold in the business? Like because the market is not giving you a premium. Because since you’re dealing in the IMIL business, so once you enter the imile, I. I guess you will start receiving the premium valuations. So even if it is a one brand, it will add on the value to the BCL’s business.
Kushal Mittal
So yes, next year we’re exploring the possibility of entering the IMFL market in April of 2026. And if not in April 2026, we’re exploding then, you know, either mid of 2026 or next of 2027, April 2027 we will be entering the IMFL market. We just want to ensure that when we, when we enter the IMFL market we do it with thorough research done beforehand with the Right product and right product placement. And also to have, you know, reserved cash that can be spent in proper marketing and launching of the product. So we want to ensure that everything is in order before we enter the IMF market.
Bhavesh
Perfect. So you are going to launch one brand in 2026.
Kushal Mittal
So that’s for sure. We are. We are. We are working towards that. One or two brands.
Bhavesh
Perfect. Perfect. And lastly, what is the current debt? The.
Kushal Mittal
I think the total debt exclude. Including our subsidiary.
Bhavesh
Yeah, everything. All consolidated.
Kushal Mittal
Consolidated would be I think around 450 crores.
Bhavesh
It has reduced.
Kushal Mittal
Yeah, we had reduced by. We had to surrender 90 crores of working capital in BC.
Bhavesh
I remember. Yes. Yeah. So I think it’s around 450. 470 crores. So this will come down to 350 in the next six, eight months.
Kushal Mittal
No, that has already. That has already been done. That has already been. So it won’t reduce further.
Bhavesh
Okay, that’s it from the head. Thank you and looking forward for the IMFL business. Thank you. Thank you.
operator
Thank you. We have our next question from the line of Sarat, an individual investor. Please go ahead.
Sarath
Good afternoon, Kushanju. Hope I’m audible.
Kushal Mittal
Good afternoon. Yes.
Sarath
Yes, sir. My question is on the margin. Sir, please. And we were procuring maize in the range of 27 to 28. I’m talking about the average we procured in Q3, 27 to 28. That time our EBITDA was 43 crores. I’m talking about the distillery margins. 43 crores were our EBITDA. And now in Q1 you said, you know, your average is about, you know, 24 to 24.5. But there is a clear drop of rupees 3 in mint price. But that. That’s not reflecting in the EBITDA at all. So what am I missing? Actually you know, the range of 70 crores.
Kushal Mittal
So there are two reasons for this. One being, you know, the FCI rice at NOR that’s now being supplied. The SCI rice prices earlier used to be at 22 rupees. Now they’re 22.5. But you know, we participate in the FCI rice policy despite the low margins that it gives to ensure that the other raw material prices stabilize because that decreases our reliance on maize that we procure from the open market. And see, whenever I give an average. We always have some forward contracts here and there. So you know, maybe we had some 27 rupee contract that was. That we were fulfilling still. So that could. That is also one of the reasons that you know, the price drop is averaged out. And thirdly, since it was peak summer season, what we always see in the summers is that the DDGS demand significantly decreases. As you know, poultry and cattle demand, feed demand goes down. So there was a, there was a. Correction in the DDGS prices. And beginning August, we’re seeing that DDGS prices have started to improve again. So that will also help.
Sarath
Okay, sir. And so what was the DBGs price in Q1? Was that in the 1230 range or, you know, it went to, you know, 10, 11. Point of a team.
Kushal Mittal
I think for some, I think in a maybe Bengal unit, it was around 12 rupees. And similarly at Bachenda as well.
Sarath
Okay, so you’re saying it’s not much of a drop, you know, because, you know, in the previous quarter also and prior to that also in Q3 also, it was ranging in the 12 to 13 rupee range. No.
Kushal Mittal
No, I, I don’t think. I think this has usually been around 14 rupees. So. Currently also it’s around 14 to 15 rupees.
Sarath
Okay, so still the numbers are not, you know, adding up. Sir, how much of spirit would have come from May in this quarter? You know, 4 crore quarters. In 4 crore liters.
Kushal Mittal
I’m sorry? You know, some, some 30% of the production is from FCI and you know, DFG rice. I’m assuming that, you know, still 4 crore liters is coming from maize. Sure. In Q1, you know, a total of 6.344 liters of spirit was produced and sold. And out of that, four core meters would have come from maize. Yes.
Sarath
So even if I take, you know, core liters, where is the margin increase? Sir, where is the EBITDA increase? Help me understand. You know, and doing.
Kushal Mittal
I think I’ve. I think I’ve given the answer to the best of my capability. I don’t see what more I can say. DDGs prices decreased. We had to supply some ethanol under FCI rice, which, which reduces the margins. And you know, of course when prices go down for any grain, it takes, it takes a while for that to, you know, impact your stock because there’s always some forward contracts that you have to adhere to. So I will stick to that answer.
Sarath
Please help me. I understand because you know, you. Whenever we, we have asked for the prices, you were giving your average price, you know, mandate price to the BCN. So in Q3, you gave your number as 2750.
Kushal Mittal
See, when I gave a price, I.
Sarath
Say, what is the current market price?
Kushal Mittal
When I give an average of the last Quarter. When I said 24.24.5, that was the average market price that was prevailing during these months. I, I, I don’t, I don’t give the average exact of a procurement price.
Sarath
So we were given the impression that, you know, it was the average. Sorry to interrupt.
operator
Mr. May, please request you to join the queue.
Sarath
Yes, sir. It is only one question, sir. The discussion is happening around that one. Please help me finish. You know, it’s not going to take a minute.
Kushal Mittal
I think I’ve already answered the question to the best of my capability. I don’t see what else I can say.
Sarath
Okay, sir, thank you.
operator
Thank you. A reminder to all participants, if you wish to ask any questions, you may press Star and one. Anyone who wishes to ask a question may press Star and one on their touch. Don’t telephone. We have our next question from the line off. Vikas Kun Teta, an individual investor. Please go ahead.
Vikas Khundeja
My question is regarding your stock performance. Because the company is doing so much. Well, the EBITDA margin is well above the industry EBITDA margin. But still a company fails to, you know, please investors, especially FIs and FDI, they are continually exiting the business company.
Kushal Mittal
So how do you think you know about this? I don’t know if I’m, I can comment on this. I think as a management of the company, you know, we, we try our level best to give the best possible results and continue to grow. I think we have done that in the past years and we will continue to do so. So, you know, we’re also working more so towards our corporate governance by, you know, opening up our corporate office in Chandigarh and being more professional in our workings. So I think all I can do and all we can do as a management is to grow, grow sustainably and try to give the best value for our shareholders.
The rest I cannot really comment much upon.
Vikas Khundeja
Okay, so from the last quarter you have CEO in your company. So how, you know, they are helping, you know, in the business.
Kushal Mittal
See, Mr. Varun Gupta comes from a professional background and you know, it’s a new industry for the CEO and he’s, he’s, he will take a few months learning about our workings and of course making the company more efficient and more professional and more, uh, system driven.
Vikas Khundeja
Okay. And do you expect any price hike in ethanol, you know, after the industry hike? You know.
Kushal Mittal
I, I don’t know. Actually, I, I hope for it, but I, I don’t know.
Vikas Khundeja
Okay. Okay, thank you very much.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to take Questions from all participants in the conference. Please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. The next question is from the line of rushing Hippara from Scoop Investment. Please go ahead.
Rushin Hirpara
Yeah, hello sir, Am I audible?
Unidentified Speaker
Yes, hello.
Rushin Hirpara
Yes sir, I joined the call a bit late so I apologize if the question is repeated. But the 20 blended target has been hit. So how are you reevaluating the Goyal dictionary acquisition?
Kushal Mittal
Yeah see the 20 target has been hit but I, I think the government is evaluating maybe increasing the blend or coming up with flex fuel. So demand we think will increase in the coming times as well. Moreover petrol, petrol consumption is increasing on a yearly basis. But yes, for the fact that we have this hit the 20% target as I earlier mentioned as well that gold distillery work will begin next year only. So we will look at all the variables and only then we will make a decision. But we are quite confident that the demand will increase in the coming times.
Rushin Hirpara
But currently the industry is in oversupply. So how would that affect in the short term?
Kushal Mittal
See yes, I’ve given I think quite a comprehensive answer to this. The there has been an increase, much, much increase in competition when it comes to the ethno sector. There has been an exponential growth especially in the last two years. But we have BCL have always tried to, you know, keep on innovating and doing better than our peers to, you know, help in the toughest of times. We had come, we had planned a paddy straw boiler three years ago, two years ago it was commissioned. No one was thinking on that line then NAS oil extraction.
I think I can confidently say we are the pioneers in this business. You know, setting up a biodiesel unit. No one is working around that. So I think the future belongs to. Those who have scale, who can continue. To innovate and who are efficient in their procurement and production. So for, for them future will be good. For a lot of the smaller units I think there could be some difficulties.
Rushin Hirpara
Okay, so just one last question. So would it be a possibility that you would try to increase your DNA and alcohol sales to compensate for the competition in ethanol? No. ENA sales are increasing organically.
Kushal Mittal
So I think ENA is a sector that will continue to perform well.
Rushin Hirpara
So would you be increasing the revenue contribution of ENA alcohol or would it go with as it is so EMA.
Kushal Mittal
Sales I think you know will continue to improve and I had mentioned earlier elsewhere that would exploring entry into imsr. So that should also help and our IMIL business Is also doing well. So if we see significant growth from. That to continue then some ENA will. Be consumed for our own bottling and increase DNA. So I think we’re quite confident with the business.
Rushin Hirpara
Sir, for IMFL would you be open to for partnering with other established brands?
operator
Maybe is request you to rejoin the queue.
Kushal Mittal
So I’ll just answer that Regardless would not actively looking for a bottling kayak with you know, more interested in launching our own product.
Rushin Hirpara
Thank you. So that answers all of my questions. Thank you.
operator
Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. The next question is from the line of Harish Podar an individual investor. Please go ahead.
Harish Poddar
Hello. Good afternoon sir. I am audible to you.
Kushal Mittal
Good afternoon. Yes sir. I just want to continue on the answer of previous to previous question. You said that there was a significant price drop in the maze from around 28 to 24 24.5. But are not able to see the impact in the margin of that because of some forward contract. So do you expect that that will reflect into the this quarter result? I mean going to next result the margins. Margins will improve but there will not be an exponential improvement in the margin because it is. It is a, you know, commodity. At the end of the day DDGs prices are always fluctuating. There’s a fuel price that stays major impact in our production costs that depends on the availability and can grow up and down. So you know, just looking at the maize price and saying, you know, margins should increase by this much per liter and if it’s not being done so then there’s something wrong I think is an incorrect statement that was trying to be implied earlier.
And DDGS is there. And as I also mentioned that you know, STI prices SCI rice prices have increased from 20 rupees to 22.5 rupees whereas there has been no increase in the ethanol price from FCI rise. But we, we have to participate in the FCI rice policy so that you. Know. So that the raw material or the other raw material prices continue to stay stable and there’s not an exponential jump on that front. So regardless of that, I think our company has always strived to give the best possible margins and results and we’ll.
Harish Poddar
Continue to do that. Okay, got your point sir. But my point was that major impact of the cost system is cost. That is if it is reduced by three or four rupees in last one or two quarters. So I don’t think so all the benefit will be absorbed by the only fdi. That is a very limited utilization in your unit and the oil and other cost material.
Harish Poddar
FCI says 30 to 35% of our production. It is quite significant.
Harish Poddar
Okay. Okay. Thank you sir. Got it. And my last question is that as.
operator
Other thing may you please request you. To rejoin the queue. Okay, sure. Thanks. Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. The next question is from Lino from KNCS and Co. Please go ahead.
Unidentified Participant
Am I audible?
operator
Yes.
Unidentified Participant
I have one suggestion, Mr. Mitchell. Why don’t you bring your CFO in Concord so that numbers can be categorically tell by him. Next.
Kushal Mittal
Yeah, it is better because CFO will be probably convergent with numbers. He should have all those things in fingertips. And now my question is what is the rationale behind Promoter selling Premier State to bcl? Premier State, I’m not sure that you are privately shareholding. You are, you have sold to BCL now last quarter. Pioneer. Pioneer, Sorry Premium Pioneer. What is the. Pioneer is a great company and you know, we want to consolidate. The promoters wants to consolidate, you know, their assets also. And it’s, it’s I think good synergy for both Pioneer and bcl. So. BCL holding Pioneers Equity and if that goes up to 25, then Pioneer becomes BCL’s associate company. So that’s also very much beneficial for BCL. So and there could always be synergy between the two companies. So for that reason we decided to go with this. Let me give you my honest feedback on this transaction. Investors. Investors feeling is that since cash is available in BCL books, Promoter had just passed their stake in Pioneer Industries in BCL and taken that cash. I think I’ve also gotten the feedback from some investors that the valuation done for Pioneer was quite low and that it would be very much beneficial for BCL that such a transaction was done. So I think they’re both sides to the same point.
Unidentified Participant
That’s fair enough. But I’m really. I still cannot see. Unless you make Pioneer subsidiary of bcl, that’s it makes sense. You are selling all those stakes to BCL and making Pioneer and subsidiary of bcl.
Kushal Mittal
May I earlier mentioned, Pioneer can only be considered as an associate company even if all the shareholdering is transfer from the promoter to the to BCL and not a. Not a subsidiary.
Unidentified Participant
That’s fair enough. That’s fair enough. And secondly, if you could have utilized your this cash which you have received from BCL to increase Promoters taking BCL could have given a positive Response from investors. Okay. Whether that you thought of or no.
operator
Sorry to interrupt you, sir. May please request you to rejoin the queue.
Unidentified Participant
I have already asked my question. I am waiting for answers.
Kushal Mittal
No, promoter has already bought stake in the past and I’d say even if you look at Kovid, the promoters funded a lot of funds in the company and that has been done twice and thrice since then. So as I had earlier mentioned, promoters used to hold 50% stake in Pioneer. They had sold 25% of their stake during the time of COVID so that they could ensure that Suksha Dictri was set up and they had infused funds in the company even at that time. So the promoters continue to. We as promoters didn’t take dividends for I think three years and have only put in money in the company.
And to make a statement and say that the promoters have taken cash from the company, I think that is. That is incorrect. We have received a lot of positive remarks on. On the acquisition of Pioneer shares by BCL and I don’t have any further comments, to be honest.
operator
Thank you. Thank you. Next time onwards, I hope that CFO will also join the compass.
operator
Thank you. A reminder to all participants, please restrict yourself to only one question per participant. I repeat, please restrict yourself to only one question per participant. The next question is from line of Rajesh Agarwal from proprietary Advisors. Please go ahead.
Rajesh Agarwal
Hello. Am I audible?
operator
Yes.
Rajesh Agarwal
Hi. We have started this con extraction. Could you please tell me what is the percentage of oil which we get from the DDGs?
Kushal Mittal
I. I don’t wish to disclose that to be honest because a lot of our competitors are trying to copy us and I don’t want to give such information in public. This is not a confidential information. Oil extraction, I mean, this is a procedural matter. I mean it could be 1% this side, that side.
Rajesh Agarwal
I mean I. Anybody can get it from the supplier also. But since I am a shareholder, I’m asking you. I mean it’s not something that your. Computer will get to know how much you are oil you are extracting. Already so many computers are doing it. Robust is doing it. So as a genuine shareholder, I’m asking you.
Kushal Mittal
There is a different way of. Of oil extraction. They are doing that is being done through a centrifuge or a decanter. We’re extracting oil in a different way.
Rajesh Agarwal
Agree.
Kushal Mittal
We’re extracting all the oil that is available in the maze. That’s all I can say.
Rajesh Agarwal
Okay, and what is. Can you give me the. What is the present price of oil?
Kushal Mittal
Yes, around 90 to 95 rupees.
Rajesh Agarwal
Pakg. Yes. Because you can always give me a rough figure. I’m not asking you.
operator
May I please request you to rejoin the queue?
Rajesh Agarwal
Oh, thank you.
operator
Next question is from the line of Bhavesh and individual investor. Please go ahead.
operator
A quick follow up, sir. Do you expect revenue to go up in Q2? Since you said that Q2 will be better than Q1 so.
Kushal Mittal
No, no, I don’t expect revenue increase. I expect. Revenue or maybe some deduction in reduction in the revenue when it comes. But overall margins I said should improve.
Bhavesh
Should improve. Okay. And secondly, how do you plan to fund the Go Go industry setup? So is it the full debt or a combination of debt and equity?
Kushal Mittal
Of course it will be a combination of both. And. But we haven’t finalized on a on a ratio as of yet.
Bhavesh
Okay, that’s it from us. Thank you.
operator
Thank you. The next question is from the line of Harish Podar, an individual investor. Please go ahead.
Harish Poddar
Hello sir. Thanks for giving me second time. So I have one question as there is a issue regarding the demand of it all. So do you have a plan to move the plants on EMA more capacity towards the EMA apart from your existing 400 capacity? No.
Kushal Mittal
Even currently our entire 400 capacity is not being utilized fully to make ENA. About 100 KL approx is utilized. So there’s still room for for growth given our current infrastructure and the licenses to grow in the ENA business. So the ethanol businesses, the ethanol facilities that have been set up will not unfortunately cannot be converted into ENA businesses. Because the licenses and everything, even the environmental clearances are all completely separate. So a shift there cannot be made. Even in future. It’s not possible to get the additional approvals on these plants. In the worst case if there is a problem with stalls, so we will be able to move on ema. So if not. No, it is a shift is not possible. All permissions are different and I think that’s a positive sign. Because all units that have been set up, most of them you know, they are ethnol dedicated units. So they cannot shift towards the end.
Harish Poddar
Thank you sir.
operator
Thank you. Ladies and gentlemen, due to time constraint, this would be the last question for today. And on behalf of BCL Industries limited and Go India Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Sat.