BCL Powers Forward Expanding Capacity Boosting Margins

Ashwin Thakker

— 2 min read
  • Outlook for Sales: The 150 KLPD Bhatinda ethanol expansion is projected to add Rs. 400-450 crores annually. New Bhatinda maize oil extraction and biodiesel operations are expected to add approximately Rs. 250 crores annually, compensating for the phased exit from the edible oil business.
  • Outlook for Margin: Margins are anticipated to improve in Q2 FY 2026, driven by the new maize oil extraction plant and expected recovery in DDGS (Dried Distillers Grains with Solubles) prices. Distillery EBITDA margins are forecast to stabilize, with a strategic focus on higher-margin activities like maize oil extraction.

BCL Industries Limited is strategically repositioning for significant future growth and improved margins. The company is phasing out its low-margin edible oil business, redirecting focus and capital towards its high-growth distillery and biofuel segments. This strategic shift, coupled with ambitious capacity expansions and a diversified product portfolio, aims to enhance profitability and solidify market leadership in the evolving Indian bio-energy sector.

Strategic Capacity Expansion Fuels Growth

BCL Industries is embarking on an aggressive capacity expansion in its core distillery and biofuel sectors, projecting substantial future revenue. The 150 KLPD ethanol expansion in Bhatinda is on target for commissioning by December 2025. Following this, BCL’s wholly-owned Goyal Distillery plans a 250 KLPD ethanol plant, with work beginning next year, aiming for completion in about 18 months. These initiatives will boost total distillery capacity to approximately 1100 KLPD within two to three years. Management anticipates the 150 KLPD ethanol unit alone to contribute

"Rs. 400 crores to Rs. 450 crores of revenue on a yearly basis."

This strategic growth underscores BCL’s commitment to its high-potential segments.

Margin Enhancement and New Ventures

BCL is keenly focused on enhancing margins and diversifying its business. The company expects improved margins in Q2 FY 2026, primarily due to the new maize oil extraction plant and an anticipated uptick in DDGS prices. While overall distillery EBITDA margins are set to stabilize, the strategic shift towards higher-margin operations like maize oil extraction is pivotal. The phased exit from the lower-margin edible oil business, with remaining stock liquidation targeted by Q3 FY 2026, will free up capital. Furthermore, BCL is exploring entry into the IMFL (Indian Made Foreign Liquor) market by April 2026 or early 2027, planning to launch its own brands. Management affirmed,

"we are hoping margins to improve certainly,"

emphasizing efficiency and new market opportunities.

BCL Industries is executing a clear strategic shift towards higher-margin distillery and biofuel businesses, backed by ambitious capacity expansions and a strong focus on operational efficiency. The company’s planned entry into the IMFL market and its raw material flexibility further strengthen its long-term growth trajectory. Despite competitive pressures, BCL is well-positioned to drive sustained profitability and enhance shareholder value through its diversified and high-growth operations.

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