BCL Industries Ltd (NSE: BCLIND) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Kushal Mittal — Joint Managing Director
Varun Gupta — Chief Executive Officer
Analysts:
Unidentified Participant
Nitin Awasthi — Analyst
Bala Murali Krishna — Analyst
Pushkar Jain — Analyst
Dipanshu Pandey — Analyst
Majid Ahamed — Analyst
Rahul S — Analyst
Presentation:
operator
Ladies and gentlemen and welcome to the BCL Industries Earnings call for Q3 and 9 month FY26 hosted by incred Equities. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not a guarantee of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Nitin Avasti from Incred Equities. Thank you. And over to you sir.
Nitin Awasthi — Analyst
Thanks.
operator
Sorry to interrupt. Sir. Your voice is not audible.
Nitin Awasthi — Analyst
Is it audible?
operator
Yes. Please proceed. Your voice is not audible.
Nitin Awasthi — Analyst
Hello. Can you hear us?
operator
Yes.
Nitin Awasthi — Analyst
Okay, so from BCL Industries Management today we have the joint Managing Director Mr. Kushal Mittal. The Chief Executive Officer Mr. Varun Gupta. I would now like to invite Mr. Kushal Mittal to initiate the proceedings with his opening remarks post which we shall. Open the floor for a Q and A session. Thank you. And over to you, sir.
Kushal Mittal — Joint Managing Director
Thank you, Mr. Vasti. Good morning everyone and a warm welcome to BCL Industries Limited’s quarter three and nine month FY26 earnings conference call. Thank you for joining us today. Let me begin with a brief discussion on the prevailing operating environment for ethanol followed by an update on strategic progress across the business and the key drivers for the quarter’s performance. India’s ethanol blended program has reached a defining milestone during ESY 2425. Blending levels have effectively achieved the E20 target. Reported blending at 19.98%. The program is now gradually transitioning to its next phase of evolution. Policy discussions are underway including deliberations by relevant government committees and NITI AAYOG to explore pathways for flex fuel engines and other usages for ethanol beyond E20.
Looking ahead, cycle two tenders are expected in the near term. We are hoping for allocations to improve. There may be a chance that the mix may be skewed towards FCI rise. Volume visibility remains linked to policy clarity. Till then, the company will continue to utilize its capacity through ENA production. The industry has seen a growing shift towards grain based ethanol with sci, rice and maize emerging as Key feedstocks BCL operates a flexible unit capable of processing multiple feedstocks, positioning BCL to insulate its operating performance from industry volatility. During the quarter maize prices have softened to around 20 to 21 rupees a kilogram which allows the company to compete aggressively in the EMA market.
Let me now provide a strategic update on the company’s ongoing transformation and growth and growth journey during the quarter. We also announced to acquire the remaining 25% stake in Swaksha Distillery Limited which is to be completed by 30th of June 2026, after which Swaksha Distillery will be a wholly owned subsidiary of BCL Industries Ltd. The total investment outlay for this acquisition is expected to be around 55 crores. This strategic move will allow us to further consolidate controls, streamline operations and unlock synergies While significantly strengthening BCL’s leadership position in grain based distillery segment. A key differentiator of BCL continues to be our state of our distillery infrastructure which allows us to operate efficiently while seamlessly switching between ENA and ethanol when required.
In an environment where ethanol demand has remained substitute due to industry wide oversupply and OMC allocations being lower than anticipated, this inherent flexibility has enabled us to optimize production balance volumes and maintain stable operations. I would like to highlight that Swaksha District has received all necessary approvals and licenses under the no increase in Pollution Load scheme for its production capacity to be changed from 300klpd to 350klpd. In parallel we continue to progress with our planned 150klpd capacity expansion in Bathinda. Therefore our capacity is set to be increased to 900 klpd by the end of FY26.
ENA continued to deliver good performance supported by healthy offtake from our PNML portfolio and consistent demand from leading bottlers across the country. During the quarter the ENA volumes increased by 60% year on year to 15,330 kg reflecting a sustained demand momentum. PMIL saw a total sales of four 88,000 boxes in Q3 FY24. We have further strengthened our present in the IML segment with the launch of Punjab Special Whiskey in Glass bottles reflecting our intent to elevate brand positioning and improve realizations. This also marks an important step in our phased approach towards entering the IMFL segments supported by structural industry growth and increasing consumer preference for premium offerings.
On the sustainability front, BCL remains amongst the few distillery players in India to use agricultural waste to meet companies fuel requirement. We currently operate a 60 ton per hour paddy straw based boiler, biomass boiler and plan to Commission an additional 55 ton per hour paddy straw based boiler alongside at our Butinda ethanol plant. With these initiatives, we’re on track to meet 100% of our steam and power requirement through Padi Straw which will provide the company with further cost savings. With respect to our edible oil business, we have fully exited our packaged oil business operations with stock liquidation underway and expected to be completed by the end of financial year.
We continue to import crude edible oil in bulk for soft oil refining as that allows the company to fetch a better price in the global market. However, BCL has now decided to report its oil trading business separately going forward. This will further enhance the transparency in the results and will give more clearer insight to our investor and everyone in the market on the different segments of the company. Our maize oil extraction unit at Soksha Distillery is on track to be commissioned by Q4FY26. Now let me move on to the quarter’s operational and financial results. Our distillery segments delivered a robust volume growth with ENA volumes maintaining strong momentum in both Q3 and 9 months rising 60% and 71% year on year.
Ethanol volumes reached 47420kl in Q3. EBITDA for this quarter from distillery segment stood that 60 crores up by 42% year on year while refinery revenue came at 153 crores for Q3 with EBITDA margins of 5.23%. For Q3. BCL delivered a strong performance with a total revenue of 758 crores EBITDA increasing by 41% year on year to 68 crores with with EBITDA margins expanding at 270bps largely driven by easing raw material prices and flexibility in using sources of energy that increases by 69% year on year at 35 crores. While the industry environment continues to face policy related uncertainties, BCL’s core strength in grain procurement and processing sets it apart.
Although we anticipate tough market conditions in the times to come, we expect BCL to ride the waves confidently given our operational efficiency. Thank you.
operator
So shall we begin the question and answer session? Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, 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 the first question from the line of Bala Murali Krishna from Oman Investment Advisors Please go ahead.
Bala Murali Krishna — Analyst
Good morning Khashiv. The first question is regarding the CAPEX is going on stream. So in this quarter we will commission 150k LPD and also.
Kushal Mittal — Joint Managing Director
Yes.
Bala Murali Krishna — Analyst
Yeah, okay so and pertaining to margin source there is a correction in the nice prices to such a good extent but still there is nothing is reflecting in the what could be the reason for this and going forward how we can see the margins Customized maize prices are at a lower level as of now Also as we speak.
Kushal Mittal — Joint Managing Director
As you may have noticed, the company has tried to increase its ENA sales given the lower allocation of ethanol and since the ENA market has become extremely competitive the company has been very competitive in the market and ENA is now the prices are significantly lower as opposed to ethanol. Hence the company has to compete and therefore ENA currently is has lower margins as to manufacturing economics.
Bala Murali Krishna — Analyst
Okay, so for the next year what would be our capex plans? So 201 detail we can understand. But in that and next year what is the CAPEX plan? And also from the major extraction unit what could be the revenue potential for the next year?
Kushal Mittal — Joint Managing Director
See for now, unless there is a clear policy in regards to the roadmap of ethanol going forward beyond this 150k LPD the company will review its future CAPEX plans again before making any final decisions. So for now our focus is towards the maze oil extraction and the 150k LPD. And sorry, what was the second part of your question?
Bala Murali Krishna — Analyst
What is the revenue potential from this oil extraction?
Kushal Mittal — Joint Managing Director
The maize oil extraction and the refinery business will continue around the similar levels where we are operating at. So we did a revenue of around 150 odd crores this past quarter and the figures will be around that only.
Bala Murali Krishna — Analyst
Okay, understood. So finally on the internal supply part so I think there is a lot of gap between capacity and also the tender switches from OEMs. So even if we divert some capacity to still maybe require some more orders to cater to and this 1 rupee KPD also now getting added. So what could be the gap between the orders and also our capacity and how we’re going to plan to run the land at 100% capacity utilization.
Kushal Mittal — Joint Managing Director
I’m sorry, I couldn’t understand the question.
Bala Murali Krishna — Analyst
Yeah, I’ll rephrase it. So because the OMC allocation is on lower side for all players and and we have a ENA market also so we are diverting some capacity to ENA but still when 150km also get added to our capacity. So there will be huge gap between the demand and capacity. How we are going to plan to mitigate that gap.
Kushal Mittal — Joint Managing Director
See for now company will focus on maximizing ENA sales PML portfolio. Yes, ethanol allocations are lower. We are expecting a C2. Let’s see what that is that brings the company will try to sell more ethanol to private companies being reliant on Naira and see how we can bring our capacity utilization close to 100. It’s an ongoing situation and the company is trying its best for now to you know, maximize its utilization. Okay. Lastly, in maize price, what is the current maize price in the last quarter and the current quarter. So maize prices have been around rupees 20 for. For some time now. So given 5% here and there.
Bala Murali Krishna — Analyst
Okay, thank you. That’s all.
operator
Thank you. We will take the next question from the line of Pushkar Jain from Milli Capital. Please go ahead.
Pushkar Jain — Analyst
Hi sir. Am I audible?
Kushal Mittal — Joint Managing Director
Yeah.
Pushkar Jain — Analyst
Yeah. I wanted to ask about the allocations. So like where, when are the next set of allocations expected to be announced and what is our expectation that about the allocations like how things will move forward in ethanol.
Kushal Mittal — Joint Managing Director
See, I’m not aware when the next cycle will come. It’s. It’s. That depends on when OMCs decide for it to come and exactly what quantity would it be of. So yes, we are expecting some improvement in our allocation post the cycle too. But for now is not wise for me to comment on it with the limited information that I do have.
Pushkar Jain — Analyst
Okay. So it will depend on like OMC whenever they want to do the next allocation. But sir, my. The second question is regarding, because of the. Is there a risk that government would, you know, reduce the price of maize based ethanol from 72 in the next ESY because of the current margins like currently some like layers and rupees ebitda. So do you foresee it as a risk?
Kushal Mittal — Joint Managing Director
Yes, very well. Could be considered by the government. I’m sure they’re aware of the current raw material prices in the market and the prevailing situation of overcapacity in the industry. So yes, maybe they could make a decision on that. But again I’m not in the government so it’s tough for me to comment on it.
Pushkar Jain — Analyst
Right. Thanks a lot.
Kushal Mittal — Joint Managing Director
Thank you.
operator
Thank you. Next question.
Unidentified Participant
Yeah. Hi. Am I audible? Yes.
operator
Yes. Yes.
Unidentified Participant
Yeah. Hello. Kushalji. Congratulations on a good set of numbers. We’ve observed a sharp increase in ENA volumes. Could you elaborate the realization? And the marginal difference margin difference between the ENA and ethanol?
Kushal Mittal — Joint Managing Director
Yes. So for now there’s a significant difference in the prices of ENA and ethanol because as mentioned earlier, we had to sell more ena and we’re now even exploring markets outside of India for the na. Prior to the ethanol policy, a lot of our product used to be exported to Africa. But the Indian market could not post the ethanol policy became too expensive again. Now we’re exploring that market, another industrial uses for the NA in the country. So prices of ENA are currently around 59 to 60 rupees in the market. So quite low as compared to ethanol.
But giving the lower allocations, the company has no choice but to sell more Yena.
Unidentified Participant
And all this ENI has been made from maize itself or are we using FCI rice also?
Kushal Mittal — Joint Managing Director
No, FCI rice is used for ethanol. Maize, maize or damaged rice is being used for ena.
Unidentified Participant
And out of its ENA total ENA capacity, what is the proportion which is utilized for captive consumption by pml?
Kushal Mittal — Joint Managing Director
So PML is quite low as of today. So given my about I’d say 10 to 15% of my butindas capacity is being used for my bottling unit.
Unidentified Participant
Okay, so going ahead, I mean what is the capacity utilization in this quarter and how do you see going forward with the ethanol and I mean what is the future of ethanol according to you? Going ahead?
Kushal Mittal — Joint Managing Director
See for, for this quarter, capacity utilization has been close to 100% and we will try our best to keep it close to 100% in the coming quarters as well. See, the future of ethanol again, I think is a very bright future. E20 is not the end. Ethanol blending policies are being introduced in neighboring nations also as we speak and flex fuel cars will be introduced in India and, and ethanol itself is a good product which can further be converted into sustainable aviation fuel, which I think has a very good future for India because given that we are now operationally very strong as a country in producing ethanol and have a complete ecosystem with a lot of SAF mandates coming into Europe and other nations starting from next year, SAF also, I believe, has a very good future.
So, so overall the ethanol policy has not just benefited companies like us, it has benefited the government in saving forex. It has mostly benefited the farmers as their produce has been selling at a good rate without them having to worry about getting timely remunerations from companies. So ethanol has benefited the Indian economy as a whole. And I think the the future is bright. There are slight hiccups. It might take some time for policy to formalize, but overall we’re optimistic.
Unidentified Participant
The reason I’m asking is because we took the additional stake of Swaksha also. So are we seeing, I mean, green shoots? Are we seeing, I mean, does that, I mean, should it convert to the confidence of the promoters in ethanol business?
Kushal Mittal — Joint Managing Director
We are not the promoters of this company are not in this for two, three years. We’re in this for the long run. So we are quite confident that in the long run the business that within will continue to grow and flourish. And of course, just like any other business, there are cycles that a business goes through of euphoria, then a slowdown and again of stabilization and then again there is a good cycle. So we’re quite hopeful that in the long run, both ENA and ethanol are industries that will continue to grow.
Unidentified Participant
Right. And besides Pernod Record, Amruth Abd, which are the other ENA supply other bottlers which we are supplying ENA to because you mentioned that we are exploring exports.
Kushal Mittal — Joint Managing Director
Yeah. So DRG was also a big buyer from us from Kharagpur and then the various local bottlers from everywhere. Now from Bathinda, we’ve also targeted perfumery companies who require alcohol for perfume manufacturing. And then there are various traders through which we can export this ENA to many African nations.
Unidentified Participant
And ENFIs, you think that they will, they will stabilize here? Only because I remember ENF prices were much higher before. So you think 5960 should be the bottom?
Kushal Mittal — Joint Managing Director
Yes, I believe so. But again, it’s tough to make any comments.
Unidentified Participant
Right. What are the margins on. Margins on ethanol? Okay, I’ll come back in line.
Kushal Mittal — Joint Managing Director
No problem.
operator
Thank you. Thank you. We have the next question from the line of Dipanshu Pandey from Solara Wealth. Please go ahead.
Dipanshu Pandey — Analyst
Hello. Am I audible?
operator
Yes, you’re audible.
Dipanshu Pandey — Analyst
Okay, so my question is regarding the demand for the Punjab Whiskey which you have launched recently in Glass Edition. So how is the consumer response for that whiskey and what are the margin advantages which you are gaining on this Glass Edition comparative to the normal Punjab Whiskey which have launched earlier? Thank you.
Kushal Mittal — Joint Managing Director
See, the market response has been positive so far. Of course, everything takes time for a new product to come into the market. But. But overall the response has been positive and I think we’ll continue with the product going forward when we talk about the margins. Since it’s a new product, we have to price it very aggressively and the packaging needs to look premium. I think the margins are currently lower than our original offerings. But this was a necessary step to increase our portfolio, so we had to make this decision.
Dipanshu Pandey — Analyst
Okay, so do you see margin getting expanding in future? Obviously, as the product will further grow.
Kushal Mittal — Joint Managing Director
Yes, that was the, that was the thought behind it. And also, you know, if we want to increase our volumes and our product portfolio must grow along with it.
Dipanshu Pandey — Analyst
Okay, got it. Thank you. And all the best for future.
Kushal Mittal — Joint Managing Director
Thank you.
operator
Thank you. We’ll take the next question from the line of Saket Kapoor. From Kapoor. Please go ahead.
Unidentified Participant
Yeah, Namaskar. Thank you for the opportunity. Firstly, if you could just explain slightly in detail the dynamics of voice the ENA industry currently and what has led to these. These. These lower trends in the realization. If we remember the averages, the averages for the prevailing few months were in the higher 70s. Correctly there, sir. And your thought process.
Kushal Mittal — Joint Managing Director
Prices of ENA a few months ago were around 69, 70 rupees a liter. But you know, with some companies like ours who have the flexibility between ENA and ethanol also getting lower allocation for ethanol, there has been an increased supply of ENA in the market which was expected. And hence, you know, prices have come down with the increase in supply. So that’s why this current trend is playing out which we, which I had also, I mean my last earnings call three months ago, I had highlighted this fact that moving forward we expect the Yena market to be very competitive and we will have to price our product accordingly.
So the management was aware that this trend will play out.
Unidentified Participant
Just to understand, it is the incremental volume that. That has created the price slump and also the RM falling. That means the. Our conversion margins have improved or have remained.
Kushal Mittal — Joint Managing Director
Yes, of course. With the raw material prices also decreasing, it has helped us to decrease the ENA prices in the market. Otherwise we would have been working at negative margins if the raw material prices had not decreased. But you know, with the raw material prices now going down and the rupee depreciating as opposed to the dollar in the last three, four months, this opens up two markets for us. One of ENA being exported out of India and secondly the potential of replacing the import of industrial alcohol in the country from mainly from USA and Brazil for pharmaceutical companies.
Unidentified Participant
The last point, can you deliberate once again I just missed it. The export of.
Kushal Mittal — Joint Managing Director
No. So with the. Yeah. So India currently imports a significant amount of industrial alcohol for the use of pharma industry. So with the rupee also depreciating and the raw material prices also decreasing, we hope now to start competing with the imported alcohol also.
Unidentified Participant
Okay, sir, are these grades different than what we are manufacturing? Since you are telling that a large quantity of industrial alcohol is imported. So manufacturers like us, product profile is.
Kushal Mittal — Joint Managing Director
Different, the product is same for anyone who has the flexibility for an ENA license can supply to these companies. Anyone who just has an ethanol license cannot. But with the increase in prices in the domestic markets, you were not competitive with the import market in the past.
Unidentified Participant
Okay. And sir, secondly, on the purchase of stock in trade, can you explain the nature in the PNL for this quarter? We have found a significant purchase of stock and trade to the tune of 83 crore. What is this attributable to?
Kushal Mittal — Joint Managing Director
No, that is not pml. That is.
Unidentified Participant
I’m talking. I am talking about the profit and loss account.
Kushal Mittal — Joint Managing Director
Okay. Yeah. So I think this figure that you’re referring to is that all trading business, 83 crores revenue. So from now on we’ve decided to list our oil trading business separately. Because we have always imported oils in bulk throughout our past. But earlier our refining capacity was a lot more. So most of that oil used to come for our captive use. But since our refining capacity has now decreased to get good prices in the global market for. For oil, we continue to import in bulk and where it deems fit. We decide to sell this. This product in high seas or bring it to India and sell it from the port.
So for. For greater transparency and to. To show our investors the different verticals, we’ve decided to now list these numbers separately.
Unidentified Participant
Right. A small point. Enjoying the queue. Is it the availability of our raw material that is Maize corn that is leading to these the lower price trends. And there is also a ramp up in capacity across the country. I think so for the ena. Just to understand the dynamics, why have the realization trended downward? Whether this is a growth in market or growth in market along with growth in the output. Or if you just could give final comments on that.
Kushal Mittal — Joint Managing Director
As explained earlier again, Alex, of course maize prices have an impact in US allowing us to reduce the prices of ena. I don’t think there’s significant ENA capacity coming in the country. There has been a significant expansion in the ethanol capacity in the country. But not towards ena. As much as as explained earlier. With a lot of companies getting lower allocations for ethanol, the ENA supply has increased in the market. Hence the decline in prices. That 2C factors that have played this not just one.
Unidentified Participant
Right. And this trend is continuing for the ensuing quarter also nothing. There is no parameter that the realizations will see an uptick.
Kushal Mittal — Joint Managing Director
For now prices are somewhat stabilized. Let’s see what the coming quarters hold.
Unidentified Participant
And we are running at optimum utilization. Yes, thank you sir. All the best.
operator
Thank you. We will take the next question from the line of Hadisha from Arihan Capital. Please go ahead.
Unidentified Participant
Thank you for giving me this opportunity. My first question is what are the key drivers behind the 9% EBITDA margin this quarter and sustainable? Do you believe its margin level is going to be forward?
Kushal Mittal — Joint Managing Director
I think margins have been somewhat consistent given the nature of the business. Raw material prices have decreased but so have VNA prices in the market. The company is running a more efficient business now with the old edible oil unit closing down. So of course all those factors have played played a role in this.
Unidentified Participant
Okay, so my next question is what kind of volume growth are we targeting for FY26 and 27 and do we intend to increase our increase shift towards ENA segment?
Kushal Mittal — Joint Managing Director
Well, the increase shift towards ENA is happening as we speak. Volume growth would be difficult for this financial year because we’re already operating at 100 capacity utilization.
Unidentified Participant
Okay sir, and my last question is could you update on the progress towards entering IMFL segment? Like what are the expected timelines and targeted categories and your outlook on Punjab weaker market?
Kushal Mittal — Joint Managing Director
See, I can’t give a set timeline as of yet. The company is working towards it and this new product in IMIL market is a stepping stone. We’ve added two more products in the IMILE market and we’re focusing on that in the coming financial year aggressively. And also working towards, you know, seeing how to enter the Punjab market. And not just Punjab, if we entered imfl we have to also enter the surrounding states. So currently working on the strategy.
Unidentified Participant
Okay, so that’s it from my side. Thank you. Thank you. We will take the next question from the line of Majid Ahmed from Pinpoint X Capital. Please go ahead.
Majid Ahamed — Analyst
I’m audible. Sir.
Kushal Mittal — Joint Managing Director
Yes, yes, yes.
Majid Ahamed — Analyst
Sir, my first question is especially what were the DD GS prices during the quarter and how has the demand been? Sir.
Kushal Mittal — Joint Managing Director
The demand for DDGs has been good. The prices for maize DDGs for the quarter I think were around 21 rupees on an average. So the demand and the prices both have been good in the market.
Majid Ahamed — Analyst
And sir, what is the plan on the real estate partner?
Kushal Mittal — Joint Managing Director
No, so the real estate business, we’ve got some inventory left and it’s taking its time to sell since it’s plotted inventory. So prices have increased in the market. So we’re seeing slightly lower demand. But we’re not too stressed about it. I think it will sell it in at its own time at a good price. Most of the stock has been liquidated in the past past few years.
Majid Ahamed — Analyst
And sir, what about the oil trading segments? Like what are we planning to do currently like Q4 any what type of revenue are we looking at?
Kushal Mittal — Joint Managing Director
As explained earlier during my call today, oil trading is a part that was always a part of our business. Earlier it was not shown separately because you know to get oil for our refinery we have to buy from overseas. And to get a good price from the overseas market we have to buy in bulk. In the past since our captive consumption was a lot more in our refinery most of the product was used and whatever the excess quantity was there was either sold high seas or once it arrived at port in Kandla. Now since our refinery capacity has decreased we’re continuing to buy oils in bulk.
Oil in bulk in the global market to get good prices. Hence we you know either decide to trade that in ICs or at the port. So it’s the. These numbers are being reported separately from now on for just greater transparency for the market.
Majid Ahamed — Analyst
Research. The swap is unit expected to commission the next quarter. What is the expected revenue and margins and do you have any offset agreement? No.
Kushal Mittal — Joint Managing Director
So this oil can be sold in the market. We don’t expect our revenues to increase significantly because of it. Because you know the oil that we sell in the market leads to a decrease in the price of DDGs. But it has a positive impact in our margins because this is a forward integration and nothing more.
Majid Ahamed — Analyst
And sir you also launch this Punjab special Whiskey like what is the revenue per box and what type of volume growth and trajectory is that?
Kushal Mittal — Joint Managing Director
See for now the volumes are quite low because it’s a new product that has been launched. And the the margins also as compared to our previous brands is lower because you’re pricing it aggressively. So. But deposit heard we’ve gotten a good impact from the good feedback from the market. So we expect both and expect the sales to grow in the coming times.
Majid Ahamed — Analyst
70 crores additional date for 150klpd expansion. What would be your peak date level sir and how much. How comfortable are you with the interest coverage ratio?
Kushal Mittal — Joint Managing Director
I think the company’s interest coverage ratio is very good. Around 6 or even greater. 6.9 as far as I know. And the debt levels are. You know as we speak I would. I think it should with that peak debt and it will only lower. Our working capital utilization as of today is very low. So I think we’re quite comfortable where we are. At the end of quarter three our consolidated debt was. 494 which includes working capital and our long term debt. And I think with the coming quarters it will only come down lower than this.
Majid Ahamed — Analyst
Okay. And what about the working capital cycle, sir? Like what are we expecting going forward? Sir, I’m sorry. About the working capital cycle, sir. Are we planning to improve it or how. How are we Targeting sir, post FY26?
Kushal Mittal — Joint Managing Director
No, I think it will improve with the times to come. Especially with the edible oil business. Major part of it being closed which was very working capital heavy. So I think it will improve. Any.
Majid Ahamed — Analyst
Can you give me any like working capital range that we’re looking to improve? Like that would be.
Kushal Mittal — Joint Managing Director
I’m sorry, what do you mean by working capital range?
Kushal Mittal — Joint Managing Director
The days are like. Like currently we have around working capital days. Around 40 to 50 days. Cash conversion on 70. Like how are we then incrementally reducing it to. Sir, that’s what I’m trying to understand. See, I can’t. I’m sorry but I don’t have an exact target that we set as a company. What we set as a company is, you know utilizing the least amount of working capital possible. So as of today our working capital limits are mostly quite underutilized. So given that they’re underutilized I believe that our ratio will also improve accordingly. But we don’t have a set target.
Majid Ahamed — Analyst
Okay, that’s all from my face. Thank you sir.
operator
Thank you. We will take the next question from the line of bhavish and individual investors. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Good morning. Mr. Mittal. With respect to the proposed sale of the land parcel. To clarify the total area of the land in acres under consideration and additionally how does the management plan to utilize the proceeds from the sale? Would this primarily be directed towards debt reduction. Acquisition of remaining stake in Swaksha distillery. Pouring into the IMFL segment and a distribution in the form of dividends or any other strategic purposes.
Kushal Mittal — Joint Managing Director
Good morning. Thank you for that. So the land with the company was close to 16 acres and some portion of it was from lease from the WAQF board. So the proceeds from the sale of this land will mainly go towards the acquisition of the 25%. That’s Fuksha Distillery.
Unidentified Participant
But it’s. The area is around 16 acres. So if I calculate the cost of the land value should be around 200, 250 crores.
Kushal Mittal — Joint Managing Director
No, no, no, no. I don’t think it’s anywhere close to that in the market we’re sitting. Maybe in Bombay it is. But not in. But Hinda Punjab. I think it’s. The realistic value in today’s market I think is anywhere close to. The realistic value is 45 crores.
Varun Gupta — Chief Executive Officer
That’s very low. Like it’s a. It’s a 16 acre land parcel. So even if I calculate the lowest amount it should be around 10010010 crores.
Unidentified Participant
So what is the lowest amount were you taking per acre?
Kushal Mittal — Joint Managing Director
Per acre I was taking around 3. 3 to 3,000. 3,000. 3,000 to 4,000 per square feet. Sorry.
Varun Gupta — Chief Executive Officer
Prices here are nowhere close to that unfortunately. I wish they were but.
Unidentified Participant
But is it a redevelopment lands? Is it a industrial land? What exactly it is like if the developer of the company purchases it would. Would it be used for. For construction of residential property or some other property?
Kushal Mittal — Joint Managing Director
Currently it’s passed as an industrial land. But whoever wishes to put. Whoever purchases this will develop a residential project there. So the CLU can be changed. But that’s not an issue.
Unidentified Participant
Okay, so my next question is with respect to the 150klbd capacity coming operational this quarter. What kind of incremental revenue contribution should we expect on a steady state basis?
Kushal Mittal — Joint Managing Director
See that mainly depends on if we are getting any further ethanol allocation and what kind of numbers we get from there. So currently as everyone is aware the allocations are lower than expectation and depending on the next cycle by the OMCs and what allocations are given. It really depends on that.
Unidentified Participant
But we will achieve the 3000 crore mark this. This financial year and with the pack growing 35 40%. Because we have already achieved around 23, 222300 crores in the nine months. So. And. And the pack has grown to 100 crores in the nine months. So looking forward we can see 3000 crore and 140 crore mark. That’s a 40% growth year on year.
Kushal Mittal — Joint Managing Director
See we are. We are trying for the same and working for it. But as explained, you know we have had to increase our EMA sales given the current market situation and prices there have been very competitive. So yes, although the management is trying to reach the magical 3000 crore figure and I think we will be.
Unidentified Participant
Biodiesel also should contribute to this because you have already completed the 75 KL construction. So when do you see the revenue flowing in?
Kushal Mittal — Joint Managing Director
The biodiesel prices offered by the OMCs were not viable. So hence the company did not partake in the tender. So unless there is any revision in the prices of biodiesel, it will be very difficult to participate in the current tenders.
Unidentified Participant
The prices will fluctuate between 80 to 90. Only that. That’s the trend going forward. I can see. So the company won’t participate. So then why will you like what will you do with the plant then? Like 75 kilo how would you use it?
Kushal Mittal — Joint Managing Director
It’s very difficult for to make a forward statement saying that the prices will remain at 80 to 90. Prices were much higher before that. Just last year the prices were around 124 rupees. So it’s. I think it’s a difficult call to make. Give a forward statement that the prices will remain around 80 to 90. The biodiesel sector across India is struggling and I believe the government is aware of that. So we expect in the coming times, on the contrary, that the policy will be improved so that the biodiesel sector again becomes viable.
Unidentified Participant
Just two suggestions. No more questions. So first is regarding the your website. So if you could update the biodiesel section with the latest pictures of the plant and replace the edible oil section with maize oil refinery and oil trading business. This will be one suggestion. And the other one. If you’re seeing good response to the launch of Punjab Special Whiskey in premium glass bottles, I suggest launching Green Apple Vodka in premium glass bottles as well with a bit of rebranding. So this could help elevate the brands and provide insight into the areas for the improvement in future whiskey and vodka launches within the IMFL segment.
Once you have done that, dedicate a separate slide of premium offerings in your investor presentation and a separate page on your website to showcase the company’s premium offerings. So this could help attract both current and potential investors. That’s my two suggestions.
Kushal Mittal — Joint Managing Director
Thank you. Thank you a lot. Suggestions taken very positively and we will work on it. But just thank you again for your suggestions. I think they were very good. Just the market demand for IM IL glass bottle and vodka is not there. So in glass bottle in iml. See there’s only demand for whiskey but okay, but we are working towards increasing the volume of our Green Apple Vodka in pml. But other suggestions are all very good and we’ll work towards them.
Unidentified Participant
But you said that you have a couple of launches coming in the next financial year. Like somewhat I couldn’t hear that. Apart from this one glass bottle you have launched or you’re launching other two brands?
Kushal Mittal — Joint Managing Director
We’ve launched two more products in the country liquor market but they’re not in glass bottles. They are in bottles.
Unidentified Participant
Okay, so could you upload that as well in the updated presentation? If not in this presentation but in the Q4 presentation?
Kushal Mittal — Joint Managing Director
Sure, will do.
operator
Thank you. We will take the next question from the line of Rahul S from Sapphire Capital. Please go ahead.
Rahul S — Analyst
Good morning sir. So have we sort of given any sort of guidance for you know, EBITDA margins going Forward at what rate will. Sustain in coming quarters.
Kushal Mittal — Joint Managing Director
I don’t wish to give any forecasts on EBITDA margins because our industry is going through a transitioning phase and same with our company. So all the raw material prices are at a good range, so is the prices of VNA has decreased. So it would be very difficult for me to give any forecast. But yes, the company is trying to sustain good margins as we have done so in the past.
Rahul S — Analyst
And with the new sort of capacities coming in, when will we see the optimum benefit of it on our volumes and revenues.
Kushal Mittal — Joint Managing Director
Is just explained to the last, last few questions. In the last two, three questions I’ve just explained this. The the revenue optimization from this added capacity depends on you know, the next cycle from the OMCs and what kind of allocations that we get. So currently the allocations are lower than expectation and only if they increase will we expect volume or revenue addition from this added capacity.
Rahul S — Analyst
Okay sir, thank you. All the best.
operator
Thank you. We have the next follow up question from the line of data Sancheti from Manya Finance. Please go ahead.
Unidentified Participant
Yes sir. Just wanted an update on the Goyal distillery. What is our plan on the 250k LPD and going ahead for the next few years. What is how is our capex lined up?
Kushal Mittal — Joint Managing Director
So for now we’ve decided to hold on hold to the gold history, capacity expansion and you know, any further expansions into the ethanol business. Unless there is a clear set policy on the path forward. The company, you know is now seeing that there will be some policy changes and needs to have cash and and resources in hand for any further investments. You know, one being sustainable aviation fuel. That would be a capex heavy project. When there is a policy and the company needs to be prepared for that. There are other products also that the company can look to invest in whether that is isobutanol or.
The company is also, you know actively looking and considering an investment in setting up a malt plant which would be vertical addition to our distillery business. So for now we’re taking a pause on any further ethanol capacity expansion which will depend on the future policies. But the company is you know at the meantime looking for various other avenues and where to invest and when the time is right to move fast on that front.
Unidentified Participant
Right. And what is the average cost of debt if you can mention and is there any interest subvention which we have got in this quarter?
Kushal Mittal — Joint Managing Director
Oh yes, of course for our but units in the long term debt about 90 crores is under interest of pension where the average interest cost is around 4.5%. And even at the Swaksha district, one of our loans of around I think 50 odd crores is under. Under subvention. Besides that, I think the average cost of debt would be anywhere around I think 8% or even lower. I think 7.5.
Unidentified Participant
That is including all the subvention. Everything. I think last time it was announced.
Kushal Mittal — Joint Managing Director
No, no, that’s excluding, that’s excluding the. Excluding the intervention. Okay, okay, that’s excluding. Right.
Unidentified Participant
So just wanted to understand total of our total capacity which we are having of ethanol and ena, how much is dedicated ethanol? Because that is what we have taken the loan on subvention. So how much of it is that? We cannot touch that and we cannot, you know, produce any enfrom there.
Kushal Mittal — Joint Managing Director
So for Batinda that’s 350 now with the added addition and for Khadakpur that’s 150.
Unidentified Participant
So total in 500klbt we have to produce ethanol only.
Kushal Mittal — Joint Managing Director
Yeah.
Unidentified Participant
And rest of the capacity we can use it as ENA dedicated DNA.
Unidentified Participant
Yeah, yeah. Great, great. That gives a lot of clarity, sir. Thank you so much.
Kushal Mittal — Joint Managing Director
Thank you.
operator
Thank you very much. Ladies and gentlemen, due to time constraint we will take that as a last question for today’s conference and with that concludes the question and answer session. Thank you members of the management, on behalf of BCL Industries. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.