1. At a Glance
TruAlt Bioenergy Ltd is what happens when ethanol, ambition, and leverage walk into the same bar and order tequila shots. Listed barely four months ago, this biofuel heavyweight is already flexing hard: ₹3,294 Cr market cap, ₹384 stock price, ₹713 Cr quarterly revenue, and a headline-grabbing 71.8% YoY sales growth in the latest quarter. Sounds spicy? Wait till you see the balance sheet doing bhangra with ₹1,546 Cr debt.
This is India’s largest ethanol manufacturer by capacity, running 1,800 KLPD operational capacity and targeting 2,000 KLPD soon. Ethanol alone contributes 75% of revenues, with ENA doing a respectable 15%. ROE is a juicy 28.4%, but ROCE lags at 14.2%, hinting that capital efficiency is still catching its breath after IPO-induced cardio.
Quarterly PAT came in at ₹69.3 Cr, slightly down YoY (-7.8%), despite revenues exploding. Translation: volumes are flying, margins are sweating. Promoters still control 70.6%, though 36.8% of that is pledged, which is not exactly soothing lavender oil for investors.
So is TruAlt the ethanol emperor-in-waiting or just a highly leveraged sugar rush? Let’s open the ledger.
2. Introduction
India wants ethanol. Like, really wants ethanol. Blending targets, farmer appeasement, crude oil import reduction, green credentials—ethanol is the Swiss Army knife of Indian energy policy. And TruAlt Bioenergy is standing right in the middle of this policy buffet with a very large plate.
Freshly listed in October 2025, TruAlt raised ₹840 Cr via IPO, promising capacity expansion, multi-feed flexibility, and a glorious green future. The timing was perfect—ethanol prices stable, government supportive, and sugar companies eager to offload molasses like last season’s jeans.
But markets don’t just clap for vision decks. They ask irritating questions like: Can you convert revenue into cash? Can you service debt? And why is your promoter pledge higher than my EMI stress?
Q3 FY26 results gave mixed signals. Revenues jumped massively, operating margins recovered from the Q2 disaster (-4%), but interest costs remain heavy, and profits still wobble quarter to quarter.
Before we decide whether TruAlt is a long-term biofuel compounder
or a short-term policy darling, we need to understand what they actually do—and how well they do it.
3. Business Model – WTF Do They Even Do?
At its core, TruAlt converts sugarcane leftovers into liquid optimism.
The company primarily produces 1G ethanol using molasses, sugar syrup, and sugarcane juice. This ethanol is sold mostly to oil marketing companies under government-administered blending programs. It’s boring, regulated, predictable—and that’s exactly why bankers love it.
Beyond ethanol, TruAlt also makes:
- Extra Neutral Alcohol (ENA) for liquor companies (because sustainability is optional after 9 PM),
- Liquid CO₂ and dry ice (industrial party poppers),
- A tiny but growing Compressed Bio Gas (CBG) business through subsidiaries and JVs.
The real cheat code? 79% of molasses and 100% of syrup/juice comes from promoter-owned sugar mills. That’s vertical integration with family WhatsApp coordination. Supply risk? Reduced. Minority shareholder risk? Well… we’ll come to that.
Five manufacturing units in Karnataka give TruAlt scale, while future plans include:
- Dual-feed flexibility (grain + sugarcane),
- 2G ethanol from bagasse,
- Sustainable Aviation Fuel (SAF) that could put them on the global map,
- And even biofuel retail pumps, because why not cosplay as an oil company?
The ambition is massive. The execution risk? Equally massive.
4. Financials Overview
Quarterly Performance Table (Q3 FY26 – Consolidated, ₹ Crores)
| Metric | Latest Quarter (Dec 2025) | YoY Qtr (Dec 2024) | Prev Qtr (Sep 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 713 | 415 | 115 | 71.8% | 519% |
| EBITDA | 134 | 125 | -5 | 7.2% | NA |
| PAT | 69 | 75 | -38 | -7.8% | NA |
| EPS (₹) | 8.08 | 10.65 | -4.42 | -24.1% | NA |
