BCL Industries Ltd (NSE: BCLIND) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Kushal Mittal — Joint Managing Director
Analysts:
Priya Sen — Analyst
Varun Thakkar — Analyst
Harshit Nagpal — Analyst
Deepesh Sancheti — Analyst
Saurabh Bansal — Analyst
Anil Kataria — Analyst
Bala Murali — Analyst
Shiv Bhagwan — Analyst
Ankur Agrawal — Analyst
Saket Kapoor — Analyst
Niraj — Analyst
Bhavesh — Analyst
Presentation:
Operator
Thank you ladies and gentlemen, good day, and welcome to the BCL Industries Limited Q4 and FY ’25 Earnings Conference Call hosted by Go India Advisors. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Ms Priya from Go India Advisors. Thank you, and over to you, ma’am.
Priya Sen — Analyst
Thank you, Sajal. Good afternoon, everybody, and welcome to BCL Industries Limited Earnings conference call to discuss the Q4 and FY ’25 results. We have on the call Mr Kushal Mittal, Joint Managing Director. We might — we must remind you that the discussion on today’s call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces.
May I now request Mr Mittal to take us through the company’s business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Kushal Mittal — Joint Managing Director
Thank you,. Good day, everyone, and welcome to the Q4 and FY ’25 earnings conference call of BCL Industries Limited. The financial results and investor presentation have been made available on the exchange, and I trust you’ve had the opportunity to review them. FY ’25 has been a landmark year for BCL Industries Limited, marked by significant progress across our strategic priorities. This year, we are truly humbled to celebrate our 50th year Corporation, a milestone that reflects our resilience, foresight and consistent ability to build a robust business foundation that thrives through all cycles.
Over the years, BCL has evolved its system and processes, enabling the company to navigate business cycles with resilience. Our risk management framework has strengthened considerably, allowing us to make prudent strategic choices in cooling phasing out segments that no longer align with our long-term business priorities.
Simultaneously, we have reinforced our focus on both-oriented business that enhance profitability and deliver sustained value to our shareholders. BCL has grown to become one of India’s largest grain-based ethanol and ENA manufacturers, currently operating a combined distillery capacity of 700 KLPD across Burhinda and. The work for 150 expansion at is progressing well with all clearances in-hand and we’re hoping to commission this plant by December 2025. In addition, the installation Of a 60-ton per hour boiler is in-progress, which is aimed to reduce fuel costs further for our company and improve operational efficiency. We’re expecting to commission this power — this boiler in November 2025. Our 75 KLPD biodiesel plant in Mahinda is at an advanced-stage of development and is expected to be commissioned in July 2025. We have started the final trials for the extraction unit in and are hoping to commission the same along with the biodiesel unit. We are executing a phase exit from the edible oil business, which is progressing as planned. Oil mill, solvent and rice mill units have been shut-down as a part of the planned exit, while the refinery remains operational to liquidate the existing stock. The working capital of INR90 crores, which was utilized for the edible oil business now stands adjusted with the bank. Following the reinstatement of FTI rice for ethanol production at a fixed-price of INR22.5 per kilogram, the industry has welcomed this policy as a positive development that enhances supply-chain efficiency and optimizes circular stock management. Raw-material sourcing has partially shifted to FCI rice with a lower input costs expected due to the incoming FCI rice and maze harvest in the coming quarters. Has been allocated FCI rice for ethanol production and the facility’s flexibility to process multiple feedstocks, including maize and rice, position us strongly to benefit from this change. Our IMIL segment delivered a strong performance this year with approximately 17 lakh cases sold-in FY ’25, supported by healthy demand. We continue to hold a significant market-share in this segment and expect this momentum to sustain in the coming quarters. Let me now move on to Q4 ’25 operational and financial results. DCL reported a total revenue of INR747 crores in Q4 FY ’25, reflecting a 21% increase year-on-year. EBITDA stood at around INR52 crores, representing a 77% margin. With the arrival of FCI rice for the ethanol production and robust may harvest, we expect correction in raw-material costs, which will be reflected in margins going-forward. Our distillery segment showed robust volume growth with ethanol volume rising by 18% to 45,921 KL, while ENA volumes reaching 9,313 KL from 8,185 KL from the previous year. EBITDA for this quarter from the segment stood at INR48 crores. For FY ’25, BCL reported a total revenue of INR2,910 crores, marking a 32% year-on-year growth. PAT came in at INR95.7 crores. Our segment recorded robust volume growth with ethanol volumes rising by 51%. Looking ahead to FY ’26, we expect to sustain strong growth in both revenue and margin. This is supported by our strategic diversification efforts and improvements in raw-material sourcing and cost management. As BCL continues to involve, our focus remains on leveraging our core expertise in grain procurement and processing to drive sustainable margins and long-term shareholder value. Now we open the floor for Q&A. Thank you.
Questions and Answers:
Operator
Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question may press star and one now the first question is from the line of Varun Thakkar from Ferris Asset Management. Please go-ahead.
Varun Thakkar
Hello. Yeah, I’m audible. Sir, I would request you to please use your handset. Yeah, hi. Am I audible now? Yes, sir. Please proceed. Yeah. Hello, sir. Hi. I had two, three questions. One is, can you take us through a roadmap on how you see this development of the 75 KLPD biodiesel plant, like what will be the capex timeline, revenue and EBITDA margin potential at a steady-state? And how do you see this contributing towards you know the declining segments like all them on a study that you are trying to get-out of and shut-down? So that will be my first question.
Kushal Mittal
Yeah. Thank you. So for the biodiesel business, I think most of the capex has already been incurred. The total project cost is around 140 cr for a 75 KLPD biodiesel plant. As mentioned in my speech, we are expecting to commission this in July of 2025. For the revenue figures, we are working at 100% capacity utilization, a 75 KLPD biodiesel plant should give us around 200 crores to INR225-odd crores in terms of revenue.
For the EBITDA margins, I will stay consistent as my statements that I’ve made in the past. We’re not giving a forecast on that front as of yet. Since it’s a new segment for the company, we have been saying let the company start the business and we’ll give you more clarity as we move forward. So I — unfortunately, I don’t have any forecast on that front for you as of yet.
Varun Thakkar
Thank you. And also how are we planning to offset or bridge this revenue impact that we get from the and the oil business gradually phasing out?
Kushal Mittal
See,, we are increasing our revenue with 150 KLPD of ethanol expansion happening in Bathinda with the biodiesel unit coming, then the next phase would be the 250 ethanol, KLPD ethanol plant that needs to be set-up at distillery. So of course, revenue will increase from that front, but we don’t just want to increase the revenue for sake of increasing the top-line.
Of course, bottom-line is more important and the edible oil business was a low-margin business, which was utilizing a majority of our working capital and so you know, we don’t — not just looking at the top-line with the addition of biodiesel units and more expansion coming in, our overall margins will definitely improve. Our overall debt has come down and our overall profitability for the company would be a lot better. So I don’t see the point of just increasing the revenue for the sake of increasing revenue. The company has to look at businesses that have higher margins with — and work to reduce that?
Varun Thakkar
Okay. All right. Just one last thing, a bookkeeping question. What kind of volume and revenues are we expecting from the ethanol segment? And what will be your capex for this coming year and the next year?
Kushal Mittal
See, the we’ve seen almost 100% capacity utilization from the distillery segment this year. So any further revenue that will be added from the distreet segment will be the 150 KLPD plant that is yet to be commissioned in. So just to be conservative, I’d say around the same numbers are expected from the distillery segment next year as well when I’m talking about the revenue. And for the capex, you know, as I mentioned, 140 KLPD, probably 75 KLPD biodiesel is around INR140 crores, majority of the capex has been done.
And the 150 KLPD ethanol plant, total capex is around INR110 crores. And I think the company has incurred about INR30 odd crores on that count.
Varun Thakkar
Okay. All right. Thank you. Thank you, sir. Thank you for my thank you.
Operator
Thank you. The next question is from the line of Harshit Nagpal from YES Securities. Please go-ahead.
Harshit Nagpal
Yeah. Good afternoon, sir. Am I audible?
Operator
Yes, sir.
Harshit Nagpal
Yeah. So starting with the 700 KLPD that we have now, was it running — is the whole 700 KLPD been running at 100% for the year or we had it coming up during some time in the year and that? And second, what would be the average price for for this quarter and for the year
Kushal Mittal
So the 100 KLPD expansion happened was started in June of 2024. So there There were a couple of months where that didn’t come into full force. And there were a couple of months in Bathinda where we were struggling a little with the boiler, which hampled our production. But for the past two quarters, we have been working at 100% capacity utilization. So these figures are you are pretty much 100% capacity utilization figures because some shutdown needs to take happen for some-odd reason throughout the year. So that is that. And the second part of your question was, I’m sorry,
Harshit Nagpal
Are the average price for maize for the quarter and for the years?
Kushal Mittal
So see, I think for last quarter, the average price of maize was probably around I’d say around 25.5% and I honestly don’t have the average for the entire year, but I expect it to be around that number only.
Harshit Nagpal
Right. And so the rise that we are getting that is at 22.5%, right?
Kushal Mittal
Correct.
Harshit Nagpal
So mix if you could give for the year-on how much ethanol is made from maze and how much is made from rice, like one of the numbers ballpark?
Kushal Mittal
The majority was from maize but I don’t have the exact figures with me right now.
Harshit Nagpal
Okay. The next question is, yeah, yeah. Sir. The next question is on the margin. So we are phasing out the Vanespati business that is one thing and that has about 2% EBITDA margin that we see every year. For this, the margins have been at around 10%, but like you said that we’ll be phasing it out the last quarter you were saying by quarter one FY ’26. So will we be seeing overall EBITDA margins of 7% to nine till we completely phase-out the business or do we see this improving the next financial year?
Because the revenue contribution right now from distillery is almost 66%. So does this go up or does that gradually come down or we still cater to the edible oil business till we have clientele coming in? Some shade on the margins in the overall blended margin for both the businesses going-forward?
Kushal Mittal
See, see, for the distillery business, we are expecting that the margins for the next at least one or two quarters should improve since raw-material prices are starting to soften thanks to the FCI rice and a bumper crop for especially in UP, Punjab and Bihar. So that will help our distility margins. See, for the edible oil business, it — we are trying to take an exit, but it has to be a phased exit since we are sitting on a decent amount of inventory that we need to liquidate.
And if we do a sudden exit, then it will be tough to do that. So once the edible oil business is shut, of course, the cumulated margins will go up as distillery and biodiesel will be the primary contributor towards the revenue. So of course, the cumulative margins are set to go up with the shutting down of edible oil business.
Harshit Nagpal
So any particular timeline that you would like to give for that or we’ll have to see how it plays out?
Kushal Mittal
See, we are the — we are trying, you know by June-end, let’s see.
Harshit Nagpal
Okay. And sir, one last question from how much cash would we have on the books right now?
Kushal Mittal
The cash on the books would be in the cash-flow statement? Nothing around INR20 crores.
Harshit Nagpal
And for the debt, we expect it to pay through internal accrual itself over the last next four, five years.
Kushal Mittal
Yeah. So internal approvals only. As I mentioned, you know the INR90 crores of working capital that we had to adjust with the closing down of our edible oil business. We had the time of — of — we had a deadline of 30th June from our bank, but we had done that prior to 31st March only. So the company is actively working to reduce its debt through internal accruals?
Harshit Nagpal
Right. Thank you, sir. That would be awesome now. Congrats on great results.
Operator
Thank you. The next question is from the line of Pritesh Sancheti from Manya Finance. Please go-ahead.
Deepesh Sancheti
Hello, Kishal. Am I audible?
Operator
Yes, sir.
Deepesh Sancheti
Yeah. I hope you and your dad are in great help and congratulations on good set of numbers. My first question was in terms of — in percentage terms, what is — what is the trend which you have been observing on the procurement prices for key raw materials over the last 12 months? And how do you expect these prices to evolve in FY ’26? Thank you for that.
Kushal Mittal
Thank you for your question. So last year was a complete roller-coaster when it came to at the raw-material prices for our distillery segment, we saw maize prices go from INR23 upward to 28.5% also and now they’re starting to decrease again. So my forecast for this year honestly, going by last year, I think it is tough to make a forecast.
But with the relief of surplus side for the ethanol industry, I expect that prices for the entire year should average around INR25 to INR25.5 because as of yesterday, the government — as of yesterday or day before, yesterday the government has also increased the MSP for Mays to INR24 now. So throughout the year, I’d say an estimate of INR25 rupees to INR25.5 is probably a fair estimate.
Operator
Thank you. Before we take the next question, I would like to remind participants that you may just start on one to ask a question. The next question is from the line of Saurabh Bansal from SV Capital. Please go-ahead.
Saurabh Bansal
Yeah. Hi, good evening. Am I audible?
Operator
Yes, sir.
Saurabh Bansal
Yeah. So just wanted to ask few questions about the capacity utilization, right? Okay. So basically you are expected to reach 1,100 KLCD. So what annual revenue you are targeting at the full utilization?
Kushal Mittal
The first stage is INR700 to 850, which we’re expecting before the end of this calendar year. So a conservative figure for 850 capacity is around INR2,100 crores to INR2,200 crores in terms of revenue. And the next-stage would be a would be post that of INR250. So that should give us at least another INR750 crores in revenue, INR700 crores to INR750 crores.
Saurabh Bansal
And okay, okay, fine. And what is expansion focus on? So it is more on ethanol or the EL
Kushal Mittal
All the expansions that are taking place now are on ethanol.
Saurabh Bansal
Okay. And just wanted to check, so how your EBITDA margin is expected to change as compared to the price movement in the market?
Kushal Mittal
See, as mentioned, prices are starting to soften as there is a harvest in many states across India and also with the release of surplus rice that has reduced the burden on the maize crop for ethanol producers. So of course, if raw-material prices are softening, our margins should improve.
Saurabh Bansal
Okay. Okay, fine. And I have one more question. Just the government is targeting to look have a target of 30% lending by the end of year 2030. So how — how feasible is this goal for your company and are we are companies equipped to it at this level of lending?
Kushal Mittal
So see the 30% blending by 2030 an official you know plan or a statement is still awaited we’ve only read this through news just like you so let’s see what you know what plan the government has set for 30% blending but one thing is for certain, the blending that will increase, the primary raw-material would be maize as the government is completely focused on crop diversification, they are focused on increasing the area under maize and they are focused on maize farmers getting MSP through the ethanol industry.
So if you see, even you should look at indications, if you see the recent MSP increases, you’ll see very, very little MSP has been increased for crops like paddy and wheat and there has been a significant increase in MSP for maze. So that is a way for the government to incentivize more crop diversification towards maize as maize does not utilize as much water as compared to paddy and is a crop that can be grown throughout the nation at certain point of time. It is also a crop When your farmer gets MSP for they earn more as opposed to MSP on paddies. So that is in the government’s focus. So any blending increase that happens, I think the ethanol industry will benefit and that is a great opportunity for us.
Saurabh Bansal
Okay. Thank you. Thank you, everyone. Thank you so much.
Operator
Thank you. A reminder to all the participants that you may are unwan to ask a question. The next question is from the line of Anil Kataria, who is an Individual investor. Please go-ahead. MR. Anil.
Anil Kataria
Good afternoon. Good afternoon. Am I audible?
Operator
Yes, sir.
Anil Kataria
Thank you. I have two questions. The first is regarding the EBITDA margin of distillery segment for this quarter. And you know, this EBITDA margin probably we were expecting that EBITDA margin is going to be higher in this quarter because the waste prices have scale in this quarter and with INR1 sensitivity of INR1 decrease in waste prices should result in EBITDA of INR25. But with INR2 prices fall, the EBITDA margin should have gone up by more than INR5.
That probably has not happened. So could you throw some light on this at how they acquire this — those EBITDA margins have increased, but it is only a moderate increase. It is not a very significant increase vis-a-vis
Kushal Mittal
The quarter-on-quarter reading quarter. You see for quarter-four, there was not that significant decrease in the raw-material prices for a majority of the quarter. So — and also it is not like if the raw-material prices have softened in a week’s time, it will reflect in our EBITDA, we have outstanding contracts that we need to adhere to, you know, regardless of the market going down enough to respect the sensity of the business.
So and also for a majority of the quarter, the raw-material prices did not soften and they were quite high. So that’s — that’s why the EBITDA margins are where they are. And there are also other factors, DVDS price is also a big contributor towards the margins. And depending on that the demand and the price for DVDS, that too affects our margins.
Anil Kataria
So as the DVD prices are lower in this quarter the last quarter?
Kushal Mittal
Prices, I’d say there has been about INR1 reduction as opposed to two quarters ago.
Anil Kataria
Okay. So my second question was regarding the dividend outgo. You know, considering that this is this being the 50th year of PCL. So we were expecting that there would be a special dividend 625%, but this prices — this dividend has probably been status quo in this year or two. Though we understand that company being in a growth journey, in a growth trajectory internal growth is necessary. But considering that this is 68 years, probably another special dividend of 25% should have been there. That is what — that is what I see.
Kushal Mittal
See, I think you’ve answered the question if the company is in a — is in is in an expansion mode and that’s why the you know the dividend of INR26 as I was announced. And even when the company was growing at a significant — significant speed, we were — when we became from 200 to 700 KLPD company the company always gave out dividends. Even when the promoters had to forego their right to dividend.
They did that to ensure you know that the minority shareholders shareholder gets their dividend annually. So it is a policy that was decided keeping in mind long-term sustainability and growth of the company.
Anil Kataria
Okay. Thank you.
Operator
Thank. Thank you. Ladies and gentlemen, you may press star one to ask a question. The next follow-up question is from the line of Sancheti from Manya Finance. Please go-ahead.
Deepesh Sancheti
Yeah. I hope the operator will allow me to ask questions this time. Okay. Just wanted to understand, Vishal, that in this month, the maize prices have fallen more and I think at this by about INR24, INR24.5. So what do you see that according to your procurement, when will this inventory which you’re buying now will come into effect?
Kushal Mittal
Yes, see, prices have started to reduce, especially in the month of May. So of course, that will come into effect starting same May to 1st May. See, there are some contracts that are outstanding that we have to adhere to, but overall, you were quite right that the current may prices are around INR24 to 24.5 and I think that’s a fair figure to look at.
Deepesh Sancheti
Okay. And what is the total addressable market for bio-CNG and biodiesel? And where does BCL industry intend to position itself within the market over the next five years.
Kushal Mittal
So for the bio-CNG areas of project that is still being evaluated. So I don’t — I don’t wish to give any figures on that. For the biodiesel business, I think the overall requirement by the OMCs for this year was around, I think, 80 crore INR90 crore liters, if I’m correct and out of which they were unable to get anywhere close to that. So of course, there is a big gap in the market that we know that we could definitely cater to in terms of biodiesel.
Deepesh Sancheti
Okay. Just wanted to understand a lot of — a lot of your competitors like or Rajputana biodiesel, they had a problem of a lot of contracts being canceled by the OMCs for biodiesel. Did we have any problem as such from any of the OMCs?
Kushal Mittal
See, we haven’t commissioned our biodiesel unity yet. So I can’t comment on that. But yes, we are aware of the problems being faced by the industry. And keeping that in mind, we have kept a provision in our facility that if biodiesel prices are not viable or there are some issues on the OMC front, then we can process this maize oil and sell it as an industrial oil, whether that is for the animal feed industry or other uses and there is a market for that also. So we have kept that provision inside our unit.
Deepesh Sancheti
Okay. And is there any demand from the private players like Reliance for Biovision?
Kushal Mittal
I haven’t contacted them, so I’m not sure.
Deepesh Sancheti
Okay. And just wanted to know, you know you already mentioned that how much production, okay, the reasons why did exceedingly well in terms of margins in this quarter, if you can just throw some light on that. So, see, sometimes one unit might do well sometimes the other. It all just depends on the raw-material prices prevailing in that
Kushal Mittal
So, see, sometimes one unit might do well sometimes the other. It all just depends on the raw-material prices prevailing in that part of the country. So you know that there is one benefit of a company that we have units on two ends of the country. Sometimes raw-material prices in Punjab are better, sometimes are better in Bengal, sometimes there is a higher demand for E&A in Punjab, sometimes higher demand for ENA in Bengal. So that trend continues. And 1% or 2% of EBITDA margin up-and-down compared by unit to unit, I don’t think that is too big of a deal to really look into.
Deepesh Sancheti
Okay. Okay. And just my last question is that you — I mean, in last quarter con-call, you mentioned that once the prices comes to ’24, is it the comparable to the margins of the rice with 22.5, do you still maintain that or things have changed a little better?
Kushal Mittal
See, since that statement was made, rice DDGS prices have significantly decreased you know the price of rice DDGS now is the same as the price of DDGS, which is the first time in the history. I think that has happened so when prices for maize are at 24 rupees I would like to change my statement and say that maize is more profitable as opposed to FCR ice.
Deepesh Sancheti
I even at INR25, it is more profitable as an FCI rice.
Kushal Mittal
At ’25, they’d probably be around the same, around the same.
Deepesh Sancheti
Okay. So at ’24 is more profitable. Great. Congratulations again and hope that you will keep expanding and we are okay with not having a dividend. Thank you so much.
Operator
Thank you. Thank you. The next question is from the line of Bala from Oman Investments Advisory. Please go-ahead.
Bala Murali
Hi, Krishal. So I missed the opening remarks. So I know that the deadline for this 150 KLPD is December 2025, but what we are expecting from the study of 20 KLPD when we can expect it on-stream and also from this biodiesel plant received the in so when we can expect it to be on-stream
Kushal Mittal
For 250 KFD gold distillery, we are you know was planning on starting the work for that once the 150 KLPD plant has been commissioned at Bathinda. As you know, we don’t want to overburden our books and ourselves with the multifold expansions. For the — for the biodiesel unit in — at Distillery at I — I had mentioned earlier also that we’re not — we have taken the permission for an oil extraction unit and a biodiesel unit.
First, we want to commission the biodiesel unit at our Bahinda facility and then start work, then see where we need to improve and then only start work at the 75 KLPD biodiesel unit at Swaksha. Meanwhile, we are setting up oil extraction unit at Distillery and the plan for now is that the maze oil that will be extracted in will be brought to our facility for further processing. We are expecting to commission the maze oil extraction unit at Swaksha by October of this year.
Bala Murali
Okay. And in the raw-material front, I think the government increased the NFC even if we get to the availability. So I don’t think there is no scope to increase further margins really
Kushal Mittal
I’m having trouble understanding, sorry,
Bala Murali
Sir, I would ask you to please use your handset. Yes, okay in just a minute. So in the raw-material front, so even the share prices available for that we are expecting that price would decrease significantly, but I think it is not happening as government increases MSP also. So I think there is no further scope to improve the margins because of the raw-material prices. So what is the earlier we used to get 18% kind of EBIT margin, but still we are expecting 13% 15%, but still I think it would be difficult to achieve those margins in this year.
Kushal Mittal
No, see, it is not that FCI rice will be released and the next day prices of raw materials will go down. Of course, that’s a steady process and raw-material prices have decreased. So yeah, there is room for improvement, but I don’t want to give any exact figure as of now.
Bala Murali
Okay. So what is the current mix of the raw-material in the last quarter Q4, how much is we used and how much is percentage we used to. I don’t have the exact figures, but for Q4, I think most of the processing
Kushal Mittal
I don’t have the exact figures, but for Q4, I think most of the processing was done on Mays. It is mainly for Q1 that we have started to use a little bit of RCIs as well. Okay. About 30% of FCI rice.
Bala Murali
Okay. So — but as the MSPs increase also, do we think that the ethanol price will also increase accordingly or this is the maximum price for this year.
Kushal Mittal
I don’t think I’m the right person to answer that question. The MSP has increased from the tariff cycle so there is a bit of time in that. So let’s see. But I don’t want to make any statements where I don’t have a proper answer.
Bala Murali
Okay. Okay. Okay. That’s all. Thank you.
Operator
Thank you. The next question is from the line of Shish Pagwan, who is an Individual investor. Please go-ahead.
Shiv Bhagwan
Thank you. My question is, is there any inventory loss, notional loss on inventory in March ’25
Kushal Mittal
No,
Shiv Bhagwan
Because since your margin is overall, I’m thinking raw-material sales is around 77 point something percentage. So whatever your inventory purchase cost and prices have been softened, whether there is any valuation loss.
Kushal Mittal
There was no such notional loss, I think with the oil unit shutting down some inventory is being sold at sometimes at a discounted price to liquidate it as soon as possible. But besides that, nothing particular.
Shiv Bhagwan
My follow-up question is, see, if I see your year-end figure of, say, 24 here, raw-material we had in sales was around 72.26% and currently it is 77.21%.
Kushal Mittal
Yeah. So raw-material has — prices have increased mainly in the segment, so maybe that could contribute to that.
Shiv Bhagwan
Okay. Okay. Thank you.
Operator
Thank you. The next question is from the line of Ankur Agrawal from RC Business House Private Limited. Please go-ahead.
Ankur Agrawal
Sir, what is the margin per liter with the current price that is 25.50 with the 25.5
Kushal Mittal
About I’d say about INR5 rupees
Ankur Agrawal
And with the SI rise, how much is the same on some defeat?
Kushal Mittal
FCI rights is slightly lower. Actually, it’s tough to comment since we’re blending both FCIs and maze in our process and DDJS is now combined. So it’s tough to give an exact figure, but around the same, yeah.
Ankur Agrawal
And if the maze price come down to 24, how much effect in the margin per in that case, how much improvement in the margin?
Kushal Mittal
See, then margin should improve by INR2?
Ankur Agrawal
INR2. Okay. INR7 this month business price come down to INR24.
Kushal Mittal
Yeah,
Ankur Agrawal
Okay. And second question regarding your real-estate land-bank that is — that will be free due to your debt solvent plant. How much the value of that land-bank?
Kushal Mittal
On — I — we haven’t evaluated on the value. Our focus for now is to do as soon as possible, shut-down the unit and commission the biodiesel unit. So honestly, we don’t even know. We haven’t inquired.
Ankur Agrawal
Okay. Thank you. That’s all from my side.
Operator
Thank you. The next question is from the line of Sakeet Kapoor from Kapoor; Company. Please go-ahead. T
Saket Kapoor
Thanks. And sir, firstly, if you could give some color on the EMA price trends in the — in the region of Punjab and Bengal and the duty protection, if any, for these two states for intrastate movement on the basis of import and the export duty import on ENA EMA transfer.
Kushal Mittal
Yeah. So the prices for EMA have been around INR68 INR67 in both the states. This is usually a period where demand is not very-high for ENA in the month of April, May and June as it peak summer and also with the new policy in April coming in, most bottlers don’t like to hold any inventory of ENA or liquor on there. So the price trend currently is around INR67 rupees.
Bengal has an import duty of INR5 rupees whereas Punjab does not have an import duty but most of our Punjab ENA is now being transported into Dajasthan since Bahinda is at a location which is at the border of Haryana and Punjab, we were able to get a good allocation of 60 lakh liters of ENA to supply to RSGSN, which is the Rajasthan government undertaking and we have been working to complete those supplies.
Saket Kapoor
So you were mentioning about the new excise policy from April. So what are the key management — which policy are you referring to for which all states
Kushal Mittal
Come up with a new excise policy in every financial year sometimes there not that many major changes, sometimes there are major changes. So keeping that in mind, bottlers usually don’t like to hold-on to inventory in the new financial year — when the new financial year starts. And once a new financial year starts, usually all licenses are renewed and there’s a lot of paperwork. So that tends to slow things down for the month of April and May.
Saket Kapoor
Okay. So any revision we have seen this — I think so this INR5 import was implemented last August for the state of or the import
Kushal Mittal
Yeah, so that is implemented last year. A new excise policy is a routine matter every financial year some of the policy , sometimes it’s the same, sometimes there changes, but that’s just a routine matter.
Saket Kapoor
That is reason. I was just looking whether any revision is there from the state of West Bengal or Punjab in terms of the excise part. So there is no — the status quo on the same.
Kushal Mittal
So we are mostly same, yeah. No major changes.
Saket Kapoor
So you were mentioning that in case — in case you are not able to — in case the do not honor their commitment or there are some changes or adverse condition, you will be shipped to industrial oil. So if you could just elaborate on the same, are the realization, the demand of the same are equivalent to the ethanol pricing means how comfortable
Kushal Mittal
No, no. So firstly, I’d like to clarify, the maize oil was proposed to be used for biodiesel and not for ethanol production. So we should not compare it to ethanol we had proposed that maize oil will be used as a raw-material for biodiesel and someone had asked since there have been some issues with biodiesel contracts from the OMC front, how would you utilize this oil?
I had mentioned that there is also usefulness oil in some industries and some adminal supplement industries also. On the margin front, I have been consistent, see since we are — it’s a form of vertical integration. We are using the byproduct from one of our processes as a raw-material for the other segment. I don’t wish to comment on the margins as of yet. We’re saying let the production begin and we will have more clarity on the margins. But should be good.
Saket Kapoor
My point was industrial oil profitability and the biodiesel profitability, are these comparables in that sense where you can shift and you can create the same margin profile? Are they in the same vicinity, in the same trajectory?
Kushal Mittal
Yeah, they this will be around the same.
Saket Kapoor
Okay. Okay. Sir, last point is on the broken rice part, sir. How — what are — what is the current FCI policy in terms of the release of this rice for the — it’s also Indian made the country liquor part of the story.
Kushal Mittal
SCI, SCI does not give us any rise for ENA or liquor business. FCI gives us a lot’s rice to manufacture ethanol and that is not broken rice, that is you know, PDS rice which is which is proper head rice. So no FCI rice, let me clarify, no FCI rice is given for any ENA or liquor business.
Saket Kapoor
Okay, sir. But do we have any understanding on, sir, how the money, the policy has been earlier? I think so there was some abrupt stoppage of the same from the FCI
Kushal Mittal
Or no, there was never — there was never any policy for FCI rice for the ENA or liquor business. FCI rice was allotted for ethanol business earlier also. There was a halt in the policy and it has now been restarted, but it’s not for EMA or liquor,
Saket Kapoor
Okay. And the price that the price for per kg of rice or what have been the price change.
Kushal Mittal
So see the price is at INR2250 kg. And that is that is at the nearest depot plus freight to bring the same to our factory.
Saket Kapoor
Correct, sir. Thank you for all answering all the questions, sir and all the best, sir. Thank you.
Operator
Thank you. The next question is from the line of Niraj, who is an Individual investor. Please go-ahead.
Niraj
Hello. Yes, sir, you’re audible. Hello. Thank you for the opportunity. So I saw yesterday in your regulatory filings that you have appointed CEO, Mr Varun Gupta. But no profile has been shared by Thing and like I would like to know what would be the division of roles and responsibilities between you and, yeah.
Kushal Mittal
So we — our profile will be shared on our website very soon. So has joined us with a vast experience and he will be assisting the company in all matters, whether that is administration, HR, finance, accounts and overall — overall helping the company become more efficient, being compliant and overall, he’ll be responsible for the distillery business, the biodiesel business and all the administrative work.
Niraj
Okay. So are you planning to take a step-back from day-to-day operations of the company?
Kushal Mittal
No, no, of course not. I will be a — I will be involved too. The company is growing as we know it. And to help open more avenues, of course more professional help is always needed and hence the appointment.
Niraj
Okay. Okay. That is reassuring. Okay. My next question is related to the Edible Oil division. So I saw that division has assets around INR600 crores and liabilities of around INR200 crores. So can we get an idea of once this division is wrapped up and you are able to monetize some assets, what kind of cash-flow infusion can we expect?
Kushal Mittal
See, firstly, we are planning on liquidating our stock and it’s taking a little more time than usual as we don’t want to create a in the market where payment gets stuck also. So we’re doing on that. And post that we’ll start to focus on monetizing our assets in terms of plant and machinery and land. So I honestly don’t have any exact figures for you as of now.
Niraj
Okay. But you had the approval only till end of this quarter, right, to run the edible oil plant or has that been extended?
Kushal Mittal
We apply for an extension.
Niraj
Okay, and this extension is for how long?
Kushal Mittal
We’ve applied for the quarter.
Niraj
Okay. Okay, sir. My next question is related to the news that we heard that the government is considering the request from USA for allowing import of maids and/or ethanol. So do you have any news about what the Indian government may be deciding on this topic?
Kushal Mittal
See, I do not have any news for you, but one thing is for sure, we believe that the government of India will not budge on this request to allow the import of ethanol or even waste because see, as I’ve mentioned multiple times, this is — this policy of biofuels in the country, it — of course, you’ll hear the benefits that the green fuel, it improves — it decreases the import bill for the country. All those are major, major reasons to promote this industry.
But the biggest reason we have to understand is to ensure that the farmers income goes up and that there is crop diversification that happens in the country, especially in areas of northwestern states where there’s a major, major issue of ground water depleting may is the best crop, it is the best alternative for a crop-like paddy. Paddy is not a crop that should be grown in these states anymore.
And the government has realized this and we’re actively working to increase the area of cultivation that is under and the area of cultivation will only increase when the farmer’s income goes up for a crop. See, we are seeing the made crop increase manifold in states like Rajasthan, Punjab, Haryana, UP, where this crop has taken a backseat and this will only happen if the farmers get MSP or close to MSP.
So keeping the farmers income in mind and ensuring that the Indian agriculture produce gets picked-up at a good price, the ethanol industry is a must. See, you have to understand in the Indian agriculture sector, we say MSP has minimum support price, whereas the Indian MSP for majority of the crops is much higher than the global standard.
So to ensure that the farmer gets — gets the right price, you have to create a domestic demand for their produce. And that is why the ethanol industry and the farmer, it’s complete ecosystem. And if you allow the import, then that whole ecosystem collapses, not just the industry. Sir, does that answer your question? Which has been — yeah, it does.
Niraj
Yes, thank you. Thank you.
Operator
Thank you. The next question is from the line of, who is an individual investor. Please go-ahead
Bhavesh
Good afternoon, sir. Congratulations on a good set of numbers. So I noticed a good initiative on the company’s website where stakeholders are kept updated on the progress of the biodiesel plant through a regular photo updates. However, there have been no update since February 2025. So could you please let us know if there will be more pictures uploaded on the website?
Operator
Ladies and gentlemen, we have lost the connection for the management. Please stay connected while we reconnect them. Thank you ladies and gentlemen, thank you for patiently holding. We have the management connection back on.
Kushal Mittal
Yeah. So I had heard the last question. I’m sorry for the — for being disconnected. Firstly, I’d like to thank you for noticing the small details that we are uploading on our website to keep our investors updated on the company progress. Very much appreciated — appreciate the fact that someone is looking at them. You rightly mentioned there has been a — there has been a gap in the updation of the photos and in a couple of days, you’ll see — you will see the updates on the website. We apologize.
Bhavesh
Perfect, perfect. Sir, next question is on the interest cost. So I know that your interest costs have declined both year-on-year and quarter-on-quarter. Do you expect this downtrend to continue? And what is the current consolidated debt level and how much do you plan to repay or reduce in FY ’26?
Kushal Mittal
See, there are a couple of reasons for the interest cost going down this quarter. Number-one being, as I mentioned, INR90 crores of working capital limit that you know was there for edible oil business, we have already surrendered. And secondly, by the end of this quarter, we were holding onto very little inventory of both raw-material and finished goods. We are not holding onto much raw-material inventory as a maze crop had not come in.
But with the arrival of maze crop in states like Bihar and UP and Punjab, now we will be stocking up on raw-material, so we will be again utilizing our limit further. So in terms of, you know, working capital, the company has a sanctioned limit of INR135 crores of working capital for BCL and INR55 crores for. The company has a term-loan of INR120 crores for the expansion that took place in and has — so the INR120 crore term-loan has an outstanding of INR107 now and it’s under interest.
The company has had taken a INR51 crore loan for Swoksha. Current outstanding is INR39 crores. The company had taken INR65 crore again term-loan for Swaksha expansion, which is under interest mention which has an outstanding of INR65 crores. Besides this, the company had taken a INR50 crore loan for biodiesel, which has an outstanding of INR50 50 crores. And there are a couple of lease — lease, leads discounting that besides that the company is working on reducing debt in the long-term.
Bhavesh
Perfect. Thank you so much for the detailed reply. One more question. So the volumes in Q4 were lower than the Q3. So why did this happen? Because I was on the investor con-calls of your peers and they said that the OMCs already had the order books full with the sugar company supplying ethanol to them, so and they couldn’t accept more from grain-based ethanol companies. So is that correct?
Kushal Mittal
No, there was a slight slowdown in the ethanol procurement for the — for the quarter, yeah, that is — that was there. But wasn’t that significant also, you know whatever the slowdown we can cater to with the EMA market. I think there’s not that big of a difference in our volume levels, if I look at them closely sometimes there is a 15-day shutdown that takes place. So maybe that probably is the reason. But nothing to — nothing of major concern.
Bhavesh
So Q1 will be better than Q4 because your — if I look at the financials of all the previous June quarters, it shows that June is better than the March quarter. So is that what you’re looking at? Like it’s been almost two months. So how has the quarter been so-far?
Kushal Mittal
A quarter has been good, but you know it’s not over yet. So I don’t want to comment too much, but yes, quarter has been going well.
Bhavesh
So input cost has reduced significantly.
Kushal Mittal
I wouldn’t say significantly, but yes, raw-material prices have softened.
Bhavesh
Okay. One last question. So this maize oil extraction plant you’re building, so how will it — how will it help in the business? Like what kind of revenues or like how will it will help in producing bio — biodiesel and reducing cost, input cost. So just wanted to know that.
Kushal Mittal
So of course, it’s a perfectly good raw-material for our bio for a biodiesel sector. And this maze oil that we are extracting, it should not hamper our ethanol or ENA yields, it’s only a value addition. So it’s in a form of backward and forward vertical integration for the company. And overall, it should help us get better margins and become more efficient going-forward. And the utilities are mostly common with our distillery units. So the utility cost will be very less.
Bhavesh
Understood. Thank you so much and all the best. Thank you.
Operator
Thank you. The next follow-up question is from the line of Harshit Nagpal from YES Securities. Please go-ahead.
Harshit Nagpal
Yeah. Hi, sir. A couple of more questions. One on how much of the power or steam that we use this year, how much of it or the quarter was it from store and how much of it was from us? One that? And second, the E&A plan that we have to shut-down eventually. Are we planning to do it or do we still see strong demand and we do it later, the one that is old and has to be shut-down eventually in a year or so?
Kushal Mittal
Yeah. So firstly, for the fuel — so for the Bathinda unit, about 60% of our fuel demand currently is being met by straw and about 40% from rice. By October or November of this year, we are hoping that we will be 100% reliant on straw with the commissioning of our new boiler. And the second part of your question regarding the upgradation that need to happen in our ENA plan we do not have a date yet.
The plant is still running at 100% capacity utilization. So we’re trying to delay that as much as possible. And a lot of the machinery that had come for the upgradation of that plant, we have decided to use for 150 KLPD ethanol expansion.
Harshit Nagpal
Okay. One small question follow-up on it. After we reach 100% straw, how much margin improvement do we see at the EBITDA level for the overall distillery business?
Kushal Mittal
See, it’s tough to say because right now the ice hot prices are at an all-time low, so as of today, you know, maybe the benefit is not more than INR1 to INR2 per liter of using paddy straw against. But the benefit will be there when — when and if rice has prices again increase, which they’re bound to go up because it is cyclical just like everything else. But paddy straw, since we buy for the entire year will have a fixed fuel price for us. So that will benefit them.
Harshit Nagpal
Right. And in Bengal, we use rice only, right? We don’t use paddy staw at all. We don’t have paddy for there or do we
Kushal Mittal
Have to use that
Harshit Nagpal
Thank you. Thank you, sir. Thanks a lot. Congrats.
Operator
Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Mr Mittal for closing comments.
Kushal Mittal
Thank you. You. I thank all of you for your active participation in the call. I hope I was able to answer your questions to your satisfaction. If there are any further questions, you’re always welcome to right to Go India Advisors, our Investor Relations team, and I hope they will be answered to your satisfaction. Thank you again.
Operator
Thank you. On behalf of Go India Advisors , that concludes this conference. Thank you for joining us and you may now disconnect your lines.