Modi Naturals plans to reach ₹950-1,100 crore in revenue for fiscal year 2027, driven by a major ethanol capacity expansion. The company has completed a ₹100 crore investment to boost distillery operations while scaling its Oleev edible oil brand. Investors will watch whether full capacity utilization and stable raw material costs support this ambitious growth goal.
Modi Naturals has set an ambitious revenue goal of ₹950 to ₹1,100 crore for the fiscal year 2027, banking on the performance of its newly expanded ethanol business and its established consumer food brands. This target marks a significant jump from the consolidated revenue of ₹719.2 crore reported for FY26.
The primary driver for this growth is the company’s recent ₹100 crore capital expenditure program, which has significantly increased its grain-based ethanol production capacity. Operating through its subsidiary, Modi Biotech, the company has ramped up production to 282 KLPD at its Raipur facility. With commercial operations from the expanded unit starting in March 2026, the company is now shifting focus toward maximizing capacity utilization. This expansion is currently supported by a notable ₹400 crore order book from oil marketing companies for the ethanol supply year, providing a base for revenue visibility.
While the ethanol business aims to provide scale, the company’s consumer-facing division continues to anchor its market presence. The Oleev brand, known for its premium positioning in olive oil, holds an estimated 16-18% market share in its segment. The strategy involves leveraging the cash generated from the ethanol business to support the expansion of Oleev and other packaged food products, such as pasta and peanut butter, deeper into the retail market. The company currently distributes its products through a network of 450 distributors and over 50,000 retail outlets.
Investors should consider the specific challenges that come with these business models. Both the ethanol and edible oil sectors are highly sensitive to raw material price volatility. The ethanol business relies heavily on grain availability and pricing, which are subject to harvest cycles and climate conditions. Similarly, the edible oil market in India is characterized by intense competition and thin operating margins. Additionally, the ethanol segment is largely dependent on government policies and offtake agreements with oil marketing companies. Any regulatory shifts or changes in biofuel mandates could impact future performance. While the company reported a net profit of ₹50.3 crore in FY26, it is worth noting that this figure included a ₹4.9 crore insurance claim settlement, which is a non-recurring item.
Moving forward, the key factor for investors to track is how effectively the company can run its expanded distillery at full capacity while managing the input costs for both grains and oilseeds. The ability to maintain profit margins amid volatile raw material prices will determine if the company can meet its projected revenue targets for the year.