TruAlt Bioenergy Limited (TRUALT) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Trollt Bioenergy Limited conference call for the quarter and year-ended March 31st, 2026. As a reminder, all participants will be in the lesson-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. Today on call, we have with us Mr. Vijay Kumar Nirani, Managing Director, Mr. Anand Kishore, CFO, and Mr. Monokumar, Company Secretary and Compliance Officer. I now hand the conference over to Mr. Vijay Kumar Nirani, Managing Director of Praud Bioenergy Ltd. Thank you and over to you, sir.

A very good evening to all our stakeholders and enthusiasts of Green Energy Transition.

Welcome to the first investor's call, covering the whole financial year performance for TruVault Bioenergy as a listed entity. Financial Year 2526 has been a year of tremendous transformation for the company. We saw great encouragement from the capital markets in the Green Energy Thank you. During the year, we also completed the commissioning of all our five ethanol plants and also successfully transitioned from being a monofeed operator to dual-feed operations in three out of our five ethanol plants. With this integration, we now have the flexibility for a year-long operation and the opportunity to increase the margin contribution with dynamics in optionality of raw material prices. On a macro level, we have seen the impact on the economy due to the Middle Eastern crisis and how over-dependence on crude impacts the overall economy of countries and companies. Understanding this, the government of India had set in a motion a roadmap to achieve 20% blending of ethanol with petrol and created a roadmap for 2020 to 2025. And to achieve the target of 20% blending. And now that the target for 25 stands achieved, the sector has been waiting for the roadmap for 2025 to 2030. In the recent days, we have seen multiple revisions and gazette notifications from the government of India in the ethanol sector, aviation sector, and in the CBG sector. All the fuels. That will be indigenously made will have the capability to reduce the dependence on imported crude and bridge the gap of trade deficiency for the country. Biofuse not only helps in cutting down dependency of imports, but will also improve the local economy and ecology. Allow me to take you through the performance of the company over the past financial years across the various sectors that we work. First one being ethanol. In the ethanol sector, the ethanol industry runs from under an ethanol supply year starting from November and up until October. ESY 25-26 starting November 2025 up until October 2026 saw a huge shock when the ethanol tender published by the OMC had a very unique allocation methodology. This tender even disregarded the contractual obligation of assured off-take from the long-term off-take agreement holders and instead created a waterfall mechanism for allocation, prioritizing cooperative sugar mills, followed by LTOA holders, followed by sugarcane juice-based ethanol, followed by B-heavy molasses-based ethanol, then FCI rice-based ethanol, etc. This mechanism would still hold good. But the OMCs also created an allocation strategy based on the states. They called surplus states and deficit states and planned to consume the ethanol within the state mechanism, going against the doctrine of equality for this being a government program. This mechanism of allocation was challenged by one of the ethanol producers in Karnataka, in the High Court of Karnataka. The High Court ruled in favor of the ethanol plant and asked the OMCs to stick to uniform allocation methodology and not consider the waterfall mechanism. The OMCs then challenged the matter into higher quotes and the matter is being heard. TruVault Bioenergy has a production capacity of about 55 to 60 crore litres of ethanol on a 300 to 330 operating day cycle. We made a bid of about 72 crore litres considering 365 days of peak production capacity and were allotted only a quantity of about 26 crore litres against a bid of 72 crore litres. Merely about 34% of our Bits that were placed. We also got an additional allocation on top of the 26 crore litres from the public sector ONG, an additional allocation of 8 crore litres from the private operating companies, including Naira. And also had targets to sell about 6 crore litres of extra neutral alcohol to the portable alcohol industry, taking a total production capacity to 41 crore litres, considering 26 crore litres again to the public sector OMCs, 8 crore litres to the private sector OMCs, and about 6 crore litres to the ENA manufacturers. Due to the unfair allocation methodology adopted by the public sector OMCs, there was an oversupply of ethanol available in the country. Looking at the opportunity, the private sector OMCs went back on the already executed purchase orders at a price that TruVault had gotten for 60 rupees and requested TruVault to revise the price and give a lower bid for the allotted quantities. We did not succumb to the pressure. We hold our grounds, and we have been chasing the OMCs to honor the purchase order and lift the quantities. Also, considering the excess production capacity available, the price of ENA, which was estimated to stay at around 62 to 63 rupees a litre, has now fallen down to 55 to 56 rupees a litre. Later, bye. Reducing our obligation or our opportunity to manufacture and sell E.N.A. However, TruVault Bioenergy has a unique advantage. We had an allocation of about 15 crore litre, which was pending to be supplied in Q3 of the last year's ethanol supply tender. During the year 25-26, during the last quarter three of the last financial year, we had taken three out of our five plants under shutdown for the integration of dual feed plants. During the period, we were supposed to supply 15 crore litres, and that carry forward quantity which we did not supply, we requested the OMCs to allocate that quantity and add to the current ethanol supply year for 2025-2026. The OMCs did not heed to the request and sat on our request. We then approached the High Court of Karnataka, and the High Court of Karnataka-wide order dated 4th February has directed the oil marketing companies to consider our request and extend the quantities of an additional 15 per litre. This order remains to be implemented by the government and the oil marketing companies. We have been told that once the LTOA matters, the second court case that is going on against the LTOA holders and the oil marketing companies is fully disposed of, our additional excess quantity of 15 crore litres will be implemented. Once we get the implementation of this additional 15 crore litres, adding to the already 40 crore litres, including the private and the public sector OMCs, we will reach our peak production capacity of 55 crore litres. Minus that, we are sitting with 26 crores litres from the OMC's, private public ones, 8 crores from the private, and 6 crores of EMA. The company is currently on a run rate of 2.2 crores litres of ethanol sales per month, as against a production capacity of 6 crores litres of ethanol production capacity, taking our capacity utilization to less than 35%. And once the private OMCs and the 15-clolitres is implemented, our production capacity will, or the sales run rate, will go up from

2.2-clolitres to about 5-clolitres. Again, going back to the macro level, we have seen the government

taking active steps in increasing the blending targets from 20% to 21%. The notification is already in, and also the notification to increase the RON to 95% as a mandate is already implemented. Recently, we have seen the BIS standards change to accommodate fuels of E22, E27, and E30. We have also seen a notification for adoption of E85 and E100. These gazette notifications and tailwinds give a very strong indication for the further roadmap for 2025 to 2030, where consumption or blending of ethanol is scheduled to increase from the 20% level to greater blending targets. We foresee an active and positive change in the demand and supply curve of ethanol for blending of petrol and consumption in the vehicle. Alternatively, the company is also considering to export the additional ethanol that we currently produce and in the near future consume at least about 20 crore litres of our production capacity in the sustainable aviation fuel vertical of ours. Next, going to the compressed biogas with this vertical. In the CBG space, we have seen tremendous improvement in the operations of our first plant. We have seen a steady capacity utilization of 85 plus percentage and a greater revenue and an EBITDA which has improved. Revenue improved by almost about 100%, EBITDA achieved on total revenue is greater than 55%, FAT achieved on revenue is about 45%, thereby proving the feasibility of the CBG sector. Taking the learnings from the first plant, the company has formed two JV companies, TruVault Gas Private Limited and the second one, Lefinity Bioenergy Limited. Okay. In true world, again, submit a move. The Sumitomo Corporation, a Japanese entity which was supposed to infuse equity, has completed the infusion of equity as of April 2026, and Sumitomo is now a 49% JV partner. Under True Old Gas, we have already commenced construction at three locations for 20 tons per day of capacity each. This will improve our current production capacity from 10 tons per day to 70 tons per day. These three plants are scheduled to be commissioned by the quarter three of the current financial year and quarter four of the current financial year, and revenues will be visible in the current financial year. The second JV company, Lefinity Bioenergy, where Gas Authority of India has already infused equity as of March 2026, is now a JV partner and holds 49% stake in Lefinity. We have targets to set up six CBG plants in Lefinity and have already identified six locations. We are in advanced stages of completing the land procurement process. And early in June 2026, we will be floating the tenders for EPC contracts and commissioning the construction work by July of 2026. We target to commission the six plants by Q4 of FY27, wherein by the end of the current financial year, we target to operate seven CBG, in total of three plus six and the current one, in total of 10 CBG plants, taking our gross production capacity from 10 tons per day to 162 tons per day.

This will greatly benefit Truvault in the bottom line growth. In the CBG sector on the macro level, the government of India

is now planning to make some tweaking to the current SATAD program, SATAD policy, and has come forward to create a complete new policy called Sampoon. We are expecting the policy to be announced soon, which has greater benefits to the CBG plant, and these greater benefits will largely impact on a positive manner to the...

On the third business vertical, the Sustainable Aviation Fuel,

TruVault Bioenergy, looking at the recent Gazette notification, To allow for synthesized hydrocarbons to be blended with the air turbine fuel, creating a window for SAF to be implemented or consumed in the air turbine fuel mix, and allowing for SAF to be a mainstream fuel in the air turbine, in the aviation sector, we see great future in the sustainable aviation fuel, and the roadmap is expected to come soon. Truvalt is again ahead of its curve. And has gone ahead and signed an MOU with the government of Andhra Pradesh to set up a 10 crore litre per annum capacity SAF plant in the state of Andhra Pradesh. We have already identified a land parcel, which is just 8 kilometers away from a seaport having liquid terminal, and about 110 kilometers away from an IOCL refinery in the north, that is in Odisha, Paradeep. And about 130 kilometers away from HPCL Vizac Refinery in the south, and just about 60 kilometers away from an international airport in Bogapuram. The location also has access to railway wrecks inside the facility. That is on the geographical location, which greatly benefits the company for off-takes of the sustainable aviation fuel, either for blending in the refinery or for direct consumption in the airports or export to overseas countries. Sustainable aviation fuel is a great opportunity for Truvalt to also operate its current ethanol capacity to full capacity. By being able to divert 20 crore litres out of 60 crore litres of ethanol to the SAF business vertical, thereby having absolute capacity utilization in the ethanol sector and having capacity utilization in the SAF business vertical also. We have already signed a technology transfer agreement with Honeywell UOP. We are now in advanced stages to commission the front-end engineering works with Honeywell UOP. We are also in advanced stages to execute a long-term off-take contract with three baskets of customers, one being airline carriers, second being aircraft manufacturers, third being oil and gas companies. As soon as we achieve a long-term off-take agreement along with the price, we make our final investment decision and start the ground mobilization. And lastly, on the fourth business vertical, that is fuel retail. True World Bioenergy has in a record time already commissioned seven retail outlets under a franchisee model without investing a single rupee of capex. These seven retail outlets are giving us revenue of almost about 100 plus crores and an EBITDA of about 5%. The company is also in active status to commission an additional four plants under a franchisee model, taking our total operating outlets to 11. We have also shortlisted 76 additional locations, and we are taking that construction slow due to the impact of the Middle Eastern crisis on the crude price. Once we have some structural or a stabilization of crude prices, we will fast-track our 76 retail outlets and take our total count to more than 90 retail outlets by the next financial year. As a whole, TruVault has now transitioned from being just an ethanol operator into being a dedicated biofuels platform, having operations in ethanol, CBG, sustainable aviation fuel, and fuel retail outlets. This creates us to not be dependent on only one source of revenue, also not be dependent on just the government policies and government restrictions. But to diversify our revenue base through multiple sectors and through multiple customers, we have seen great challenges in the financial year 25-26 due to the policy flip-flop in the ethanol story, which we now plan to overcome or insulate ourselves through revenue flow from the new four business verticals. I now hand over. To our Chief Financial Officer, Anand Kishore, to take you through the financial performance of the company.

Good evening, all. You are enjoying the meeting. I would like to introduce you to the financial, financial, and financial account of the company on 31st March 26. Classifying on the income side, the company top line as on 21st March 25 was 1880 crore, which is now at 1704 crore, and the total income of the company was 1940 crore, which has come down to 1772 crore. This dip is on the sales, as our MD has already explained, because the tender evaluation was the issue, and we have received the unexpected tender. Still, we have been able to manage the dip only with the 8.64%. The company COX percentage was earlier 67.44%. The company has brought the cost COX percentage to 65.06%, showing the control on the cost front. The employee benefit expenses of the company, which was 37.15 crore, has gone up to 44.94 crore, giving the additional segment of the business vertical in terms of dispensing stations. The finance cost of the company was 141 crore, which has now, on 31st March 26th, looked at 157.85 crore, thereby increasing the finance cost by 11.92%. This increase on finance cost was mainly on account of the conversion of multi-fitter plant, which we have done for three of our needs to the extent of 39 KLP. The depreciation has been mostly gone high. The depreciation, which was 64.95, 59 crore earlier, has turned to 84 crore. So the depreciation cost has looked by 30% up. This up on the depreciation is because we have, with all these multi-fitter plants or setting and KLPD, in three of our units, we have capitalized. This capitalization has been more than 400 crore value. So impacting the proportionally on the depreciation and the use in numbers. The other expenses of the company is in line with the last year, which was 277 crore and has ended with a 267 crore during the 31st March 26. With this, the EBITDA margin of the company, which was in the previous year 18.98 percent, has improved to 19.81 percent. Although EBITDA margin of the company has improved, but there is a dip in the profit before tax of the company. The EBITDA of the company was 152.15 crore on the previous Satipasma 25, which is now standing at 109.47 crore. The reduction in profit before tax is, although EBITDA has improved, but the reduction in EBITDA is mainly on account of the capitalization of assets, what I was telling. The precision cost has increased by 20 crore, and the finance cost has also increased by close to 11 crore, this 19 crore. So these two being the result, even though my EBITDA has improved, margin has improved, but my PBT margin could not be improved. And the company has been validated on the account of deferred tax. So, there was a path which was booked at 140 crores during the previous year of 31Smart 25 has now established at 80.26 crores during 31Smart 26.

I will now take the opportunity to present the

ratios of the company, some key companies selling the size of the balance sheet picture to give a better clarity. The company depth equity ratio was standing at 0.61, showing the robust solvency position of the company. The outsider's liability by net worth of the company was 1.52, which is well within the required limit of the company. The company's current ratio is 1.67. This shows the company has a sound liquidity position as of now. The return on capital employed by the company is close to 10%, 9.91%, showing a decent return. A beta margin of the company is 19.81%. The loss profit ratio of the company is only 7.66%. And the net profit ratio of the company is 4.5%. As I have already told, the net profit ratio is It has come down to 4.51%, mainly on account of the costs taken up by the depreciation of the finance costs, which is a one-time bet because we are not going to, there is no plan for the company for any additional capex. This capex is already capitalized and depreciation impact is also given. I will not take the opportunity to present the console finances of the company. Which is including one of the subsidiaries, Lefinity Bioenergy, and other subsidiaries, Truval Gas. So, Truval Gas is not in the existing operation as of now, but the Lefinity has done quite a good improvement. If you see the performance of one of the subsidiaries, Lefinity Bioenergy, the company has done phenomenally well. The top line of the company, which was using the last year, was 28.42 crore has now touched to 42.84 crore. The PVT of the company, which was 7.70 crore, has now touched to 21.84 crore, showing the profit before tax jump by three times. And the PAT, which was 6.33 crore, has again jumped by three times to 18.07 crore. So this impact is also given in the console financials of the company. Good night. For my subsidiary, as you see, the financials are quite good in the number. Some of the key ratios I would like to present for my subsidiary. The debt equity ratio for the lift duty gas, and this company is in JV with a gain. So the debt equity ratio is 0.46. The TOL by TNW is 0.88. The current ratio is 3.37. Return on capital employed is 37%. Depth service coverage ratio is 4.25, EBITDA is 60.75%, gross profit ratio is 77.56% and net profit ratio is 22.13%. Then I will give out finally the consolidation of the financials of 31st March 26 to conclude this financial. The top line is again on the control basis for 1965 on the previous 25, which is now at 1813, which is a slight dip of 7%. The expenses on the expenses front is almost in the line with what we have spoken in the standalone profit and loss account. So, this is the profit before tax. of the previous company was 146.63 crore during the profitable tax was 159.44 crore on the console basis on 31st month 25, which has now reached 129.95 crore. The pack of the company on the console basis was 146.63 crore on the previous year, has now touched to 96.86 crore. Finally, the ratios on the console basis. I would just like to present some key financial ratios on a console basis. The depth equity ratio of the company is 0.63. TNW by TNW is 1.52, both showing the company's sufficient solvency position. The liquidity position is quite strong with current ratio of 1.71. Return on capital employed is 10.25%. EBITDA margin is 20.98%, close to 21%, which was earlier 19%. So we are able to remove on this front also. Lost profit ratio is 28.25%, and net profit ratio is 5.34%.

Thank you.

Should we start Q&A session? Yes, please.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Deepak Podhar from Sapphire Capital. Please go ahead.

Hello.

Have you heard of it, sir? Yes, please go ahead.

Yeah, sir, first up, just on the volume front, so what was the total volume we could achieve in FA26?

So, F526, F526, we had the ESY2526, the total amount of tender allocation given was, 30 crore litre was given to us, of which we have already done that close to 24 crore litre of volume we have already done.

24 crores litre, right? And I mean, when we did a call in the month of February, right, I mean, we were of the view of 37 crores litre that we were targeting in terms of volume. I mean, when did this mechanism change happen? I mean, why was we, I mean, as an investor, it was not informed to us that of this mechanism change.

No, you're absolutely correct. Even now, the mechanism hasn't changed. If you heard what we spoke during my talk, the company has about, during the, we planned to sell 24 crore litres, which we had in our own hand, and an additional 15 crore litres that we already have the allocation through quote, as well as the last year's allocation, which was, which was supposed to be carried on. Now, the implementation of that order has not happened. If you look at our balance sheet, which is uploaded, you will see an inventory of almost about 460, close to 500 crores of inventory that is already built up. If you add that to my revenue, had this quota to be implemented, we stand at the same levels of revenue of about 2,300 crores.

So, sir, just to add on the intimation point of view, this court order of force for body was attributed to that chain. We have uploaded in all the requisite places that are required. And this 15.62 litres, the court has given the minimum in our favour. If we will work out, if we will go to the order, in terms of value, it comes to 1,062 crore. Which is what is the court has given the instructions to OMCs to lift this order within a period of 3 months.

Okay, okay. So this 15 crores later, so within 3 months from when? I mean, by when this 15 crores later will be lifted by OMCs? I mean, what's the timeline?

It was supposed to be from 4th of February, 3 months from there.

Okay, so we are talking about 4th of May. So we are already over 3 months, right?

Exactly. So, they are in contempt of that order right now. Actually, what has happened is there is a parallel court case going on between LTOA holders and OMCs. And this was challenging the allocation methodology itself. Now, the Supreme Court has directed the OMC that unless that matter is fully... heard and disposed of not to do any new allocation. Though our matter has no impact on that other case, the ministry is taking a stand that unless we fully dispose of that case, we are not able to extend the allocation and implement the court order that has been ruled in favor of us.

By when we expect this to get lifted now?

We are chasing them, sir. In fact, we are chasing the OMCs and the ministry, and the second matter where we are not party, it is already reserved for orders, and now that the vacation benches are going on, maybe first week of June or second week of June, we expect that matter, the order to be pronounced, and post that, we should get our implementation of our allocation.

Okay. So, by September, I mean, would that be fair that at least by September you expect this to get executed?

Absolutely, sir. We have high hopes that it should have been done in the last quarter itself, Q4 of last year. But, you know, the entire thing is a mess right now, what OMCs have ended up doing. And our expectation is that within September or H1 of this current financial year, we should get that implemented.

Okay, okay. And how come then, I mean, for FY27, we already have 26 crores of liters of allocation, right, from OMC? That's correct. Okay. That's correct. So, that is the final order, I mean, or is there any changes that can happen in that?

No, that's the final order. So, they cannot go back on the already issued orders. And we also have additional 8 crores liters from the…

Okay, so, so, yeah, so total is around 40 from there and 15 additional. So that's how 55 crore litre target we are looking for FI27.

That is our target. But again, two questions that I would want to give to everybody on a transparent level is the private OMC is 8 crore litre. We have not cancelled that POs. That POs are still on. The lifting has not started. Out of 8 crore litres, we have been only able to sell 1.6 crore litres. And the balance 6 point change crore litres is still pending to be sold. So we are waiting for the indents to be issued.

Okay, I got it. And what's the realisation? I mean, can you throw some light on the realisation? How things are there?

In terms of unit per rupee or gross?

In rupees per litre, yeah.

So we will be looking at 67 rupees per litre as average sales concentration.

67 per litre. Okay, okay. I got it. Just one last couple of things. Now on the CBG side, you mentioned current is 10 tons. We are increasing it to 162 in next what?

In the next nine months, we will commission another nine plants. Three with Sumitomo and six with Gale. And all of them are in advanced stages of construction.

Earlier, I mean, we were planning for 10 plants, right? I mean, four plants of 20 TPD and five plants of 12 TPD to be commissioned by Jan or March FI 27.

That is absolutely correct. Sumitomo, like I said, was supposed to be four. Now it has become three. Because one of the land, there is some legal complication from the seller's side. We are waiting for that land, for that complication to get settled, which is why I am not giving a rosy picture that we will commission all four. I am only giving three locations. But minus that land issue, everything else is aligned for us to start construction on that fourth plant also, taking our total capacity or number of units to 11.

Okay, I got it. I got it. And the margins profile here remains at 50% in CBG.

We foresee it to be the same unless, you know, the government is acting very strange at all times. So, we expect it to be the same.

Okay, okay. That would be it from my side. I wish you all the best. Thank you so much.

Thank you. Thank you. Next question is from the line of Vineet Thakur from Plus91AMC. Please go ahead.

Hi, sir.

Thank you for the opportunity, sir. Sir, could you just give me the economics of the... If I look at the 24 carol litres, we are running at around 44% utilisation for this year, and that would give us around at 67 rupees per utilisation per litre, it should give us around 1600 to 1650 crores of revenue. We are supposed to around 1700, so could you just give me some clarity on that, sir?

You are correct. So if you consider only the public sector OMC, it's 26 croliters. 26 into the 67 realization, if you do, that would be the revenue that we will get. But the private OMC, the 8 crore litres is not going to go away. And also you need to add other income that we have as a company. So gross revenue will be, we have another income of almost?

So the other income is 68.28 crore close to. With this, we have ended with 1772 crore. The other income should again be around 70 crores. Yes, sir. So, this also has to rate the operating income also has to rate the production link incentive. So, which is also added. So, what do you have worked out 600 crores is exactly right. While this, you have to add the PLIN into the intervention.

So, could you explain the PLI scheme and the subvention scheme, like, how would the, how do economics work for that as well? Like, when we get a PLI scheme, how does it work, sir?

If you could explain it to me.

So, the PLI scheme is provided by the state government, connector government. Under this scheme, we are eligible based on their criteria and for which the scheme classifies that 1.75% of the annual turnover shall be given in the form of a production link incentive. So, let's suppose you have done a turnover of 100 crore, 1 crore 75 lakh will be given in the form of a PLI. Second is interest subvention, what you are talking. Interest subvention is in the form of actual interest which you are paying under the subvention scheme on your term wallings, of which 50% maximum to the extent of 6% will be given to the credit. Let's suppose 10% is the bank applicable rate, you will get the 5% from the NABAD in the form of interest subvention.

Okay. And first, the PLA scheme I was assuming would be referred on SGST?

No. There is no SGST benefit here, sir.

Okay, so then the BNS can be able to get the credit amount in our accounts. And so coming to the CBG, could you explain the economics of CBG as well? What would be our future revenue growth and how do we understand the economics of CBG going forward?

So, just to give you the brief, now we have a 10 TPD plant which is generating a revenue of 42 crore. Now, this, we are adding up another three plants with Sumitra, that is 60 crore. Yeah, so 60 TPD. So 60 into, if you multiply the proportionately, you will find out the numbers are in the come of 240 crore close to annually. Now, if we, this quarter, if we are commencing the business, I will take the two quarter revenue. So let it split it to half that comes to 120 crore. So, 120 crore is the revenue which we are looking from the Sumitomo, plus it is separately, simultaneously you have to calculate for the limited bioenergy which is giving with a gain. So, if I am assuming a one-quarter revenue for a gain, that comes to around 6 plants. 6 plants consist of 72 DPD, 12 into 6. So, for 72 DPD, similarly, you will find out the top line of my is added around 400 crore during the year. On this, you can, and given the unit economics, because some, you can take the, presently we are billing at 84 rupees to 85 rupees per kg. So that is the amount we are being billed. So in terms of revenue, you can target 400, and in terms of EBITDA margin, you can, now we have booked that close to 60% plus, but safer side, even you can book it 50% in the diesel operation when the scale is not at full capacity utilization. You see, you can find a number and you can work out. I have just given you the brief numbers.

And, sir, could you give me the split between ENA and ethanol? If for this year, what was the split for ethanol and ENA? Or did we not do any ENA this year?

Our total ENA was around 3 crores litres against 24 crores litres of gross sales.

Sir, what are the regulations of ENA as well, if you can get the number? What was the sale price of it? It was 62 rupees, average. 62 rupees. Okay, sir. And, sir, since as the previous participant also mentioned that we had estimated around 57 crores of order, and we are fulfilling around 54 crores of next year, how confident are we to achieve this number, sir, next year?

So, now we are very confident because the company has the required working capital. We have more than 1,100 crores of capital in hand to secure feedstock. All our plans are fully commissioned. Now, when somebody disregards the contractual obligation and goes and creates a new policy framework, which exactly happened in the current ethanol supplier, I don't have an answer for that. We can only go tap the judicial dose and get some benefits, which we did also. Now, minus any hanky-panky that the oil marketing companies could end up doing, we are very confident to achieve that number.

So, sir, what are the policy frameworks that are affecting us right now to not achieve this number would be my next question, sir.

So, I would say there are some positive benefits that have already come. I'll say why we could achieve first is that you've seen the notification recently from 20 to 21 percent blending have increased by 1 percent. E22, E25, E27, and E30 BIS standards are out. And E85 and E100 has become a mainstream opportunity. There is a huge push for flex-fuel vehicles already. And if you ask me on my individual opinion basis, I can individually say that we are in a curve where even if we are unable to supply, the OMCs will come and try and make us operate the plant and get the ethanol, considering the crude prices. And the crude prices are set to remain at these levels for a long period, right? That's what we have been seeing. So I don't see a great, I mean, a bigger challenge for us now that the OMC will not take this quantity. Also, just to tell you, we are now trying to be less dependent on the Indian government's policy framework and diversify our point of sale. We are, one, exploring export opportunities. We have already written to ministry to open export of ethanol. Once that comes in, we already have standing demand for South Asian countries, including Japan, for their blending targets. That could be a big market for us to increase our capacity utilization. Also, about 30% of our gross or 25% of our gross production capacity can be consumed in the sustainable aviation fuel also that we are planning to set up.

Thank you. So, sir, coming to the ethanol production, since we're diversifying it, we set up a dual feed as well, and DDGS being the byproduct of it, did we utilize any maize or other dual feed plant, and if so, what were the DDGS contributions for this year?

So, we did operate three of our plants on maize and also on broken rice for a brief period of time. Our base DDJS price we got per kg was almost about 24 rupees, and our gross revenue that we realized now on DDJS alone was somewhere around 78 crore-litre.

78 crore-litre.

Rupees, sorry. 70 crore-litre. Rupees, around 78 crore-litre.

So, that would be included in the ethanol sales, I am assuming? Sorry, sir, 28 crore rupees.

Sorry, 28 crore rupees, 28 crore rupees, my correction.

So, the 28 crore would be, I am assuming, it is already realized in the ethanol segment and not in the, this.

Other, doctor? It is a small segment only, sir.

Pardon, sir?

It is a small segment only, correct, what are you doing, is correct.

Okay, so another question would be, if you want to understand how does a dual feed plant work, my understanding is that during the harvesting of sugarcane, we would switch up, like during the offing of sugarcane, we would be using the maize and broken rice as an alternative. But what would be the runtime of these plants if they run on dual feed, and if so, what would be the production capacity utilization for those plants can be achieved in the next 2-3 years?

Our target is to operate all the five plants on syrup for 100 days in a year. That is during the sugar crushing season. And the residual molasses that we end up achieving in our group company or in the open market, we buy that residual molasses and our group company's molasses, which is almost about 4 lakh metric ton, 3 and a half to 4 lakh metric ton, and store it for two plants, unit 4 and unit 5, which are monofeed. And that also ends up becoming a year-long operating capacity for unit 1, 2, and 3, which are dual feed, here our target is to make the remaining of 200 days in the operating cycle or 230 days. We run it on maize or rice or broken food grains.

Remaining 240 days, if I'm 230 days, if I'm not transferred.

200 to 230 days.

Okay. Sir, I also have some clarity about CBG as well. Since CBG, we are assuming, this one gave the numbers and direction, but what are the sustainable margins we can assume going forward on CBG? We have achieved tremendous margins this year, but would it be a sustainable margin, or if so, what would be the contributing factors for those?

So, as far as the current policy framework is under the SATAT program, where we get market development assistance for sale of fertilizers and price of gas being 85 rupees, I don't see a change in the margin profile for CBG. Now, there are rumors, and we have also attended multiple ministerial industry discussions for a new policy called Sampoorn that is scheduled to come. Under that Sampoon policy, again, the rumors say that the price could be increased from 85 rupees to 100 rupees for gas. And there could also be a production-linked incentive of 5 rupees, which is, again, these are the rumors that we are hearing. And again, I'm expressing this with caution that these are rumors that we are hearing. If that comes in, we could see better margins, but we'll have to wait and watch for the policy to be actually announced.

So, sir, in CBG, my understanding would be CBG is utilized by fertilizers and other as an alternative fuel as well. So, for the JV with Sumitomo, my understanding would be that he would be supplying it for the fertilizer section of Sumitomo, if I'm correct, sir?

No, no, no, no. No, no. See, Sumitomo is a strategic investor. So, they are a, you know, they are a trading company by large and a large investment house. So, Sumitomo has invested into multiple companies like Think Gas and some other companies also. For them, what they say is that it acts as a backward integration for gas sales. But, irrespective of that, Sumitomo is more of a strategic investor for us to participate in the CBG opportunity. And, sir, what about Gail then? Gale, again, they are the whole and soul for gas trades in the country. They are like the nodal body for all gas transactions, and Gale will help us greatly in offtake of gas.

Okay, got it, sir. And my last question would be the retail sales segment. What would be the, how do I understand the retail sales segment contribution towards our revenues going forward? Like margins I understand is more than less than 2% or around 2% hovering around. But how does the contribution of retail sales segment would be going forward?

So, right now, like I said, we will have 11 outlets by the end of in the next three months. Seven is already on operation. It's giving us a revenue of about 105 crores in just the seven retail outlets. So, even if you multiply that by we're targeting to do about 75 retail outlets subject to the crude prices. That come in play, the revenue growth is going to be large. So, it is going to be in terms of, let me not put out the number, but you can do the math.

So, by this hearing, you are saying around 72 plants you want to achieve.

I couldn't hear that, sir.

So, by the end of this hearing, you want to achieve around 72 plants, if I'm not mistaken.

11 plus 76, that would be about 88, 87.

88, 87, 87 plants. Okay, so as I do the numbers calculation, it's around 15 crores for a fuel station we are making. That would assume around that. Zero capix.

Yes, I'll take it 10 crores per acre. 10 to 12 crores with zero capix.

10 to 12 crores with zero capix. So that would be our sustainable revenue per plant going forward.

Sir, it will add to the top line differently.

Yes, not much to the data margin, they are not wrong.

It is the volume which plays here from the EBITDA margin. See, in that vertical, our margins will be better in the ethanol segment where we do the blending with petrol, and that blending is done by TruVault. Our focus to getting into retail is not just to do trading. It is to increase our ethanol margin by blending petrol with ethanol and selling it on our own franchisee.

So, I would assume we will have a greater margin with those, but are we ethanol blending in all of the fuel segments? As of right now? Yes, exactly.

It will be blended only. It will be blended and supplied. Okay.

So, one thing is before supplying, before supplying, one is blending income and post-supply, it is a margin income.

Okay, sir. And sir, as we see a whole lot of inventory as of right now, we assume this inventory should be liquidated by this year's end. And going forward, what would be our working days and inventory days and payable, sustainable payable days and inventory and receivable days? Would it be seeing the old numbers or would it be higher now?

We are supposed to get our money in 21 days with OMCs. So, it's receivable holding. Receivable period is not a challenge because maximum 15 to 17 days is the average which we realize the payment. Payables belongs to both for the group company and for the outsiders. So, when it comes to the outsiders, when we are receiving in 21 days, we try to pay it in 30 days. So, that is a one-month timeline we kept. When it is a group company, it goes on the higher side also. It may go to 2-3 months also. So average of the payable period you can take is at 2.60 days. And the receivable is 21 days, so net working capital will be 40 days.

Okay, and then my last question would be since we source a lot of our raw materials for ethanol from our group companies and outside, could you explain if we reach our peak utilization, how would the split look like from group companies plus from outside? What would your split look like for sourcing raw materials?

Vini Ji, taking this as a last question, group company, our last year's sourcing was less than 55% and we sourced more than 45% from the open market. And going forward, since we have three dual feed plants, that ratio will keep increasing towards non-group company.

Okay. So, thank you so much. Thank you, sir.

Thank you. Next question is from the line of Tanmay Javeri from Pinterest Capital. Please go ahead.

Hello, yes. Hi, sir. Sir, I missed the opening commentary, so I just wanted to understand what was the reason for our revenue mix, and how do we see our volumes for F527?

So, the revision for the revenue dip was, first of all, the low tender allocation. I will just leave in short. Our MDA has already explained that due to the methodology of allocation in the industry, many players have suffered, including Truvalt has also not remained left. So, one is a low tender allocation, that is the one point. Second point is the 15.62 kWh of lifting, which we expected from the Karnataka, with the order of Karnataka input, could not be worked out. And third is, obviously, it would not have impacted, but we could have recovered it. But it was the Q2 shutdown of plants for the three months also, because if you see the last Q2, we have done the top line of 300 croda all about that year. Had this Q2 also been operational due to non-conversion of multi-feeters, This 300 croda, you will cross the figure of what we have done the last year.

Right. So, F527, we were added in 55 crores, plus this 15 stands. So, I assume it's 70 crores litres?

We cannot tell you the figure of F527. You know, it's about 40 crores litres, again, just for repetition, 26 crores litres allotted by public sector OMC, 8 crores by private sector OMC, 6 crores for ENA. And 15 kL, which is pending to be implemented. So gross goes up to 55 kL. You could do the math on it.

Right. And so one question on the CBG side. Now since we have been planning 9-10 plans which will be live by this year and we have more around 10-15 CBG plans which will be live. So how are we planning on the funding side?

So, this will be both with debt and equity. So, from the true side, we need to invest 51% and 49% from the JV partners, Sumitomo and Gale. We have already provisioned that capital and that capital is infused also into the subsidiaries. And debt has been tied up for the Sumitomo plants with Nabat.

At a rate of 8.65%, you can refer the balance sheet. And for the Lafrini Bioenergy, we have 4-5 Sankers in hand, all in the well lower range than what we have got from the number.

What will be the mix of that district with it?

70-30. 70-30.

Okay. And sir, one request, if the management to do more one-on-one meets during the quarters, then they tend to wait for the counters every quarter.

No, allow me to apologize to all stakeholders on this front. It is a, the management has not been active in the last quarter. Majorly because we've been fighting a lot of battles with ministry and with OMC, trying to revise or rather create a framework for 2025 to 2030 and get our orders implemented and all of that. A lot of time went into Delhi itself. We will take your advice and we will ensure in the next quarter we will have more management interactions with investors.

Okay. Thank you, sir.

Thank you. Next question is from the line of Udit from Pinpoint X Capital. Please go ahead.

Yeah, good evening, sir. Regarding the CBG plants, we have said that we'll procure the raw material through the spend wash and the press mud. So this will be through our own, you know, captive plants or will it be purchased from outside?

Now, for the three plants, or rather four, including the fourth one, if we say, four plants of Sumitomo, entire of the raw material will be sourced from our group companies itself. Let's say TGPL is a wholly owned subsidiary of TrueAlt. Entire spent wash will come from TrueAlt itself. Whenever we make it, we get spent wash, and spent wash is sold as an additional revenue to TGPL. So both TGPL will get a short raw material, and TruVault will also get additional revenue. And the press mart will be coming from our sugar company at market rates. Now for all the plants with Gale, everything is sourced from open market.

So is there that much availability? Because we see a lot of CBG plants talking about sourcing napier grass and doing the plantations. So do we plan to get into, I mean, feedstock seems to be a major issue. So do we have the visibility for procuring the feedstock for all the plants that we are planning?

Your understanding is correct, sir. So, because fresh mud is available at bulk, and whenever a ton of sugarcane is crushed, 4% of fresh mud has to come out. So, what we have done as a strategy is, wherever we have chosen the location, we have at least three times the required raw material within a close vicinity of 20 km a day. So, even if one plant is not able to operate at capacity, we will still have additional sources within 20 km radius. So, we have secured it that way.

And once these plants are operational, do we have any other further plans for CBG plants? Or we will see how this ramps up.

So, we do hold ambition to scale up further from the planned 10 plus 4, but we will do that in phases. Once these are fully commissioned and start yielding us the results as Glyfinity's first plant has given, we hope that we start further capex and further scale up.

Okay, sir. And regarding the ethanol case that we won, even I read it in the news regarding those 15 crore litres, I mean, could you tell us again, you said there's a parallel code case going on, when is that expected to be resolved, and wouldn't it be a problem for the OMCs to allocate quantities to other distilleries as well? I mean, how will they manage their requirements for this year?

So, I'm sharing my understanding. One is that the court case has already been fully heard, and matter is reserved for orders. Now that you know there are vacation benches going on, vacations going on for the courts, 3rd of June is when the courts will resume, and we're hoping that the orders will be pronounced as soon as the courts resume. And we don't know what the outcome would be, but going by the single bench and the double bench order, which ruled in favor of the ethanol manufacturers, I don't know whether I can comment on that or not, but there could be chances that the ethanol players could benefit from that court case. And yes, it could be a challenge for the OMCs, which is why they have already increased the blending targets from 20 to 21, and they've come out with all these notifications for E22, E25, E85, E100, all those.

So, do you have any idea what is the blending target for this year? Because my understanding was that the requirement with E20 was something around 11, 12 crore litres, and the capacity is, I think, 19, 20 crore litres, something like that. Maybe I'm wrong, but you could correct me.

I didn't get that question.

Sir, what is the total ethanol requirement in India with the E20 blending, and what is the production capacity as of today?

Okay. So, realistically speaking, India has an installed capacity, and by installed capacity, I count 365 days of operation of about 1,800 to 1,900 cro-litres as on date. Now, the plants will run only for 300 days and at 90% capacity. So, if you deduct that capacity, India has an operating capacity of about 1,500 to 1,550 crore litres. Now, for 20% blending with petrol, India requires about 1,250 to 1,300 crore litres considering the shortfalls. You know, some companies are not able to supply even though they have orders. Considering all of that, 1,300 crore litres become the requirement. Realistically, 1,100 crore is the demand, but 1,300 including the buffer is the requirement. Now, if that increases to 25%, you could do the math. India consumes close to 5,500 crore litres of petrol, and on that 25% would be the demand that gets created.

You're right, sir, but the government has been making a lot of noise, and like you said, logically, with the petrol prices up, with the international prices up, it would make more logic to blend more ethanol. But that's not actually translating on the ground till now is what your feedback is.

I agree with you, sir. So, you know, we have all been as consumers and as producers. I'm a consumer because I consume petrol. I'm a manufacturer for ethanol. Government has had to reduce the price of petrol blended with ethanol. That did not happen.

At least let's hope in the future it does.

So, this year, sir, do you see the lending rate going up by a percent or two? I mean, from your understanding.

It's already increased by one percent, sir. Okay. And going by rumors on the street, it could go up to 25 percent. Again, cautiously saying, going by the rumors, it could go up to 25 percent.

Okay. Great, sir. One last question, sir, regarding the CPG again, the new policy that you're talking about that it's in the works. I mean, how serious is the government about it, and how is the off-take looking of CBG?

So, we have had multiple industry-level discussions with the policymakers, and there they took into consideration all the challenges that multiple others are seeing, and their objective is to try and overcome those challenges for the sector. I really don't know the workings of the policy yet. There are rumors. I don't want to share those rumors on the call. It would be wrong of me. Maybe I expect that the policy should come out maybe in a month or within the month or month and a half. We could get to read more on.

Okay, okay. But, sir, kudos to you. I mean, you are one of the few people who are operating like a CBG plant successfully. I mean, we've been talking a lot of manufacturers, but you're one of the few ones who's doing it successfully at these margins.

Thank you, sir. Thank you so much, sir. We had our losses in the beginning. It's thanks to the investors and the stakeholders for their patience and the continued support to us.

Thank you so much, sir.

Thank you for your time. Thank you. Next question is from the line of Park Shah, who is an individual investor. Please go ahead.

Hi, Doc. I wanted to ask you, last year you closed the book at 1,800 crore. So, on an absolute basis, what can we expect from this year? And second question will be, what can you do more for marketing your company or your products?

So, let me not give a direct answer to how much we could close out for the current financial year, FI27, but you did hear on the volumes and the average sales price that we are realizing. Our efforts, both for us as a company, as for me as an individual promoter and investor, and for all the investor community, we will leave no stone unturned to achieving that number of at least minimum 40 crore litres, and a bonus if we achieve it will be 55 crore litres.

And on advertisement or marketing your company or your products?

That is something that we need to start and you will see a lot of it going forward because we'll have our fuel retail outlets starting to operate. So we will need a lot of marketing done and we will take your advice and we will start creating some capital or rather we will start having some plans or programs for marketing.

Operator? Mr. Pat, does that answer your question?

As there is no response from the current questioner, we'll move to the next question from the line of Charchet from Genuity Capital. Please go ahead.

Hi, sir. Am I audible?

Yes, please go ahead.

Hi. Thanks a lot for the opportunity, sir. My majority of the questions have been answered. Just one question, sir. What was the revenue from the DDGS in FY26 and Q4?

So, it was about 28 crore rupees. We did mention that earlier. Because we operated most of the, during the season, that is QG and Q4, majority of the operations is done on syrup, and it's very little quantity that is done on maize or alternative feedstrap. So, we did about 28 crore rupees only.

Can you explain the economics, how it works, like in the economics of DDGS?

So, you want the unit price?

Yeah, like from ethanol, how much, like, DDGS, we can, you know, extract.

Sorry, I didn't hear.

So you want to know during the production of ethanol, how much DDGS is generated?

Okay. So for every tonne of maize that we crush, we get about 18% of DDGS as by-product. And every tonne of maize gives us 380 litres of ethanol. So, we have a production capacity of 1,300. Kale. And when it comes to rice, we get about 22% of DDGS. And the yield of ethanol is about 480.

Understood, sir. So there's one more thing. Depending on the start, again. Okay, understood. So like as we move towards like E21 and E2070, so what kind of realization increase we can expect going forward?

So, we will expect more of capacity utilization and revenue numbers, but margin increase, we don't foresee a lot of margin increase, because we are already looking at 20% of EBITDA margin. Because our volumes were low, we had a huge depreciation that ate away our... Pat from EBITDA and also finance cost is a little too high because we have a lot of Capex and it's still a young company. We are still doing hyper, we are still at hyper growth phase. So eventually we'll bring down the interest levels that is in the works. Once that happens, you'll see greater margin growth.

And we are trading like close to 6 cents.

It's a lot larger, sir. Per litre, if you see, it's about 10 to 11 rupees now, or about 11 and a half rupees, I could say.

No, I'm asking about ethanol. 670 rupees per litre, right?

Yeah. Actually, you're saying revenue. Yeah, 67 rupees weighted average.

Okay, okay, great, great, sir. Thanks.

Thank you. Next question is from the line of Nathan Avasti from Incrediquity. Please go ahead. Hello, sir.

First question, could you give me the amount of absolute leaders booked for the 10th quarter and the current year?

Yeah, of course. Mitinji, current quarter, that is Q1FI27, from the public sector OMCs, we have about 2.2 crore litres per month. So, for three months, it will be about 6.6 crore litres. From the private OMCs, I still have about 6.2 crore litres available up until September, October end. And if you divide that, actually, they had to do a uniform off-tech. That is not happening. We are still pushing them to lift quantities.

I think there is a misunderstanding of the question. I think the absolute shares that we booked from the ethanol segment in Q4, how many liters of ethanol plus ANA have we booked in that? And for the year, how much have we done? Achha. Apologies.

You want to take that?

So, for the whole year, it was 25-26 crore-litre, and for the particular year, this has been announced 6 crore-litre.

Okay, and is the break-up possible for the 6 crore-litre and the 26 crore-litre from the feedstock we have used, or at least sugar and grain, if you could do that break-up? We'll share it with you offline.

We'll share it with you offline.

Understood, sir. Secondly, something you have mentioned in your opening remarks, something you have seriously contemplated throughout the call, is being the behavior of the private OMC. This seems to be a serious problem, if I may use that word. I mean, disordering a contract... And these are all reputed firms, obviously. There are only a few in India, and they're all reputed firms, and they would probably have contracts like they have with you across India, given that 20% mandate is compulsory even for a private OMC. But given that, disregarding it with you, and you happen to be the largest private player in India, seems to be a serious concern.

I completely agree with you. You know, both public sector OMCs and private sector OMCs are falling back on their contractual obligations, which is why we have to go tap judicial quotes right now. Again, I don't know, it's a mess created by policy makers or the companies, the oil marketing companies, whoever it is that has created this mess. But, you know, a lot of companies are not antagonizing the OMCs because, you know, your point of sales are only two people in the private. Understood. Yeah, that's it. What? You know, it's almost become like an oligarchy there. So, we have to play nice with them to an extent. And if they continue this, then we'll have to find certain ways to get the contractual obligation to be implemented by them.

Understood. The surprising thing was what you mentioned for the private, because the private players would have contracted with you at a much lower rate, closer to 60 rupees.

I will tell you exactly. So, 60 point change rupees was the price that we have offered to them. They have opened a letter of intent, issued us the purchase orders also, issued us indents up until January. We have supplied out of 8 crore litres about 1.6 odd crore litres we have supplied already. And going forward, they have said now we want to do a revision in the price. And, you know, the mail is more like a request for revision in price, but you know how it is, right, if you read between the lines.

Yeah, but I understand what you're saying. I'm just saying that, I'm just highlighting that the concern, given that they already had a substantially discounted price to start with. And I agree that current market dynamic has pulled it down a little, but tomorrow the 21% blending or 25% blending goes into order. Then the prices will again go back to 64% market. Then will you increase the prices?

No, I completely agree with you, Nitinji. So, you know, it's a delay. I will say, if you want my personal opinion, not our company's, but individual opinion is government co, they should have taken the active step to creating a roadmap for beyond 2025. That is, year 2025 and up to 2030. They're doing it now in 2026. I don't know, somewhere things got messed up.

Understood.

Understood. And make sense. So, yeah. So, again, yes, it makes sense. So, what you're saying is absolutely correct. I think there was a brief period of hearsay. And if the policy roadmap is clear again, I think we'll be back on track. I agree with you. Okay, sir. That's it for me. Thank you.

Thank you so much. Thank you.

Next question is from the line of Vedant Sardar. From Nirmal Bank, please go ahead. Am I audible? Yes, please go ahead.

So my question is, in the last call, we have said that we have stabilized our ethanol run rate at around 50 to 400 crores per month of revenue. And in this quarter, we cannot see anything like that.

No, I complete. So, last quarter, if you go back, we said that our potential revenue run rate is stabilized at, I mean, production capacity is 5.5 to 6 cro litre. And considering 67 rupees as average yield, you arrive at 350 to 400 cro rupees. Now, We could not do that because of the allocation methodology that we just spoke of entirely. So in November, they came around and decreased the allocation. We were expecting that 15 crore litres of quantity to be implemented. That implementation has taken time. Had they implemented it, we would have achieved that. Consider Jan, Feb and March, three months of... 6 crore litre plus 15 crore litre, that's 21 crore litre. 21 crore litre divided by 3 months, I would still be greater than 450 crore of revenue run rate.

We have a con call on 9 Feb, 126, and we won't be telling like that. So, if 2 months of revenue, 5 months of revenue, we can see. So, it should be around 700 crores. And we have reported a half for full quarter 595 crores of revenue. So, Absolutely correct.

I'll just take you through, sir.

So 9th of Feb, why we made that comment is because 4th of February, we have received the court order. And the very same day, 4th of February, we have uploaded to SEBI as well as to stock exchanges that we have won this court matter and we will get an additional revenue of 1065 crores. If you recall that, if you go back to our disclosures, you can find that. And we had an inventory build up on that day. Even today, if you look at our revenues, I'm still sitting at 500 pros of inventory. If you add my 500 and 500, you can do the math and you can see what I told on 9th of February makes sense even today.

So according to the order, that 15 crore leaders should be executed in the current year? Is it compulsory from the OMCs to buy from us?

The order actually reads that within 10 days of the order, They have to implement the order and give time for 90 days to complete the off-takes. But it's already been three and a half months, February, May. It's already been about three plus months that they've not implemented the order. They're taking shelter under that LTOA matter that we just spoke of earlier. I understand your frustration, Vedanji. Trust me, it's the same with me. Having invested, having the capacity, having the money to buy raw material, and having the inventory we're unable to sell.

Okay, thank you for the explanation, sir.

Thank you. Next question is from the line of Sakshi Sharma from Plus91 Asset Management. Please go ahead.

Hello, am I audible?

Your voice is a bit low. Yes, ma'am.

Hello, am I audible?

Yes, please go ahead.

Okay. Sir, I would like to ask the future realization of ethanol with OMC. Would it be 67 or it will increase to more?

It will be 67 unless we see an increase in the price of off-takes. You know, the price change has not happened for the last three years. And we've all been writing to the departments to increase the price. But if you ask my individual opinion, it looks unlikely because when there is already oversupply, one fight is to increase the allocation. At that time, if you go and say increase the price, it might seem difficult for the OMC. But, however, if you look at the raw material prices, they have fallen also. If you look at maize and rice, maize price used to be 24-25 rupees. Today, it's at 18-19 rupees. So, our margins are healthy anyway.

Okay. Sir, also, can you please explain how the contracts are priced?

So, there are five different pricing prices for the public sector OMC. Ethanol derived from maize is at 71 rupees change. Ethanol derived from syrup is 65 rupees and change. Ethanol derived from damaged food grains is 64 rupees. From B heavy molasses, it is 60 rupees. From FCI rice, it is 58 rupees. And from C heavy molasses, again, it's 58 rupees.

Okay. Okay, sir. Also, sir, what's the delta of each increase of percentage of blending? So, if the blending is increased by 1%, how much crore litre demand is generated?

So, India consumes about 5,500 crore litres of petrol per year, and 1% of 5,500 crore litres would be about 55 crore litres. So, each 1% increase in blending would create a 55 to 56 quiliters of demand.

Okay. Okay, sir. Okay, done with the question. Thank you.

Thank you.

We'll take our last question from the line of Bavish, an individual investor. Please go ahead.

Bavish, your mind is unmuted.

Yes, please go ahead.

Okay. My question is, there's 150 crore subsidy under a PMG1 scheme. So, what's the status on that?

Thank you for that, Aikup. I may have missed out on sharing that during my presentation. There are four committees. There is Center for Higher Technology, CHP, and a committee led by Joint Secretary. Then it goes to the committee led by Secretary, which is the final approved authority. Our proposal is already approved by two committees. We have already received emails from two committees. And the final committee is with the Secretary. And that meeting was supposed to happen in the month of April. But because of the Middle Eastern crisis, that meeting is continuously being postponed. The Secretary is tied up is what we keep hearing. I don't see any challenges for us to realize that approval.

Okay. And in terms of accounting, would that be a credit to P&L or it would be offset CapEx?

That 150 crores will be coming in once we commission the plant. And that money is utilized to pay or reduce the interest cost on the project. It will come in as a government grant as a one-time other income.

Yeah, it will be part of the other income, but not just below the total operating income. It will be other income, that's it.

Yeah, it's a TNL credit in whatever form.

Yeah, definitely. So we are expecting that in Q2. Q1 of Q7?

No, no, no, no, no, no. That will be once we commission the plant, sir. We will still take at least 24 months to commission the plant.

Okay, it will be staggered.

No, it is a one-shot payment, but the payment will come once we commission the plant and operate the plant.

And when that is expected?

Let's say 24 months is, 24 to 30 months is the target we hold to commission the plant. That's 20, 20, FY29. Oh, wow.

Okay, thanks. I have invited you, sir.

Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for the day. I now hand the conference over to Mr. Vijay Kumar Nirani for his closing remarks. Over to you, sir.

On behalf of FluVault Bioenergy, I extend my deepest thanks and gratitude to the stakeholders for having the faith and the interest in the green energy transition and in our company. And I also extend my apologies as management of the company that we could not get the 15 kL implemented and demonstrate the growth that we had already promised. But trust me, we are leaving no stones unturned. We are running pillar to post to getting all of that done and to create investor value. And also going forward, our objective is to not be only dependent on the government policy, but we are also finding alternative use case through sustainable aviation fuel or through export of ethanol so that our capacity in the ethanol business is fully utilized. Sustainable aviation fuel creates an other revenue line. CBG will create growth opportunity and fuel retail vertical will create further revenue growth opportunity. So we are creating, we are trying to do all that we can to create value to the shareholder. Thank you so much.

Thank you, sir. On behalf of Proalt Bioenergy Limited, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.