Trualt Bioenergy reported a strong turnaround in Q2 FY27, posting a profit of Rs 35 crore compared to a loss of Rs 38 crore last year. Revenue saw a massive 606% jump to Rs 811 crore, driven by robust ethanol operations and strategic expansion into Compressed Biogas (CBG). While facing raw material cost pressures due to maize price fluctuations, the company is optimizing margins through storage strategies and asset rationalization, including the divestment of its Badami unit to reduce debt and boost working capital.
Trualt Bioenergy Reports Rs 35 Crore Profit in Q2 FY27
Q2 FY27 revenue stands at Rs 811 crore, up from Rs 115 crore in Q2 FY26. PAT reached Rs 35 crore, turning around from a Rs 38 crore loss in the same quarter last year.
Reader Takeaway: Revenue growth is driven by massive ethanol volume gains, though maize price volatility remains a key margin hurdle.
What just happened
Trualt Bioenergy has shifted to profitability, reporting a Profit After Tax (PAT) of Rs 35 crore for the second quarter of FY27. The company’s revenue growth was the highlight, expanding 606% year-on-year to reach Rs 811 crore. This performance follows a strong first half where H1 revenue hit Rs 1,438 crore, a 243% increase over the previous year.
Why this matters
The transition from a loss-making entity to profitability indicates that the company’s focus on ethanol supply volumes and capacity utilization is yielding results. With an EBITDA margin of 14.03% for the quarter, the company is balancing growth with operational efficiency. The management's proactive decision to divest its Badami plant is a critical step, expected to clear Rs 130 crore in debt and provide Rs 40 crore for working capital, resulting in annual interest savings of Rs 22 crore.
The CBG and SAF Strategy
Beyond ethanol, Trualt is diversifying into Compressed Biogas (CBG). Its first plant, a joint venture with Sumitomo Corporation, is now operational. With EBITDA margins in the CBG segment estimated between 60% and 70%, this area represents a high-margin growth lever for the company. Additionally, the company has secured Rs 150 crore in viability gap funding for Sustainable Aviation Fuel (SAF) under the PM JI-VAN Yojana, though it remains in a wait-and-see mode regarding capital expenditure pending government policy clarity.
Risks to watch
Raw material cost volatility is the primary challenge. The company explicitly noted that maize prices have surged 25%-30% due to El Nino-related factors. While they are managing this through strategic procurement and storage, continued inflation in feedstocks could impact future margin stability. Capacity utilization currently sits at 65%-70%, with a target to reach 80%, meaning future profitability is highly sensitive to achieving these higher throughput levels.
What to track next
Investors should monitor the impact of the Badami plant sale on the balance sheet and the progress of the six additional CBG units being developed in partnership with GAIL. Furthermore, management’s ability to navigate ethanol allocations in the coming season will be the defining factor for H2 FY27 performance.