BCL Industries Ltd reports increased profitability driven by higher-margin business lines and operational efficiencies, despite a drop in revenue and strategic pauses on expansion projects, signalling a cautious yet profitable pivot in its business model.
BCL Industries Ltd has reported a sharp improvement in profitability even as revenue fell, signalling that the distiller and liquor maker is leaning harder on higher-margin business lines and a tighter operating model.
In the quarter ended June 2026, the company said EBITDA margin rose by 370 basis points from a year earlier to 10.5%, while profit after tax increased 6%. The distillery division performed particularly well, with its EBITDA margin widening to 12.4% from 10% a year earlier, helped by operational efficiencies and vertical integration. Country liquor volumes climbed 46% year on year to 637,993 boxes, supported by new offerings such as Jamun Vodka.
The improvement came despite a 24% fall in consolidated revenue to ₹623 crore, which BCL attributed largely to its exit from the packaged oil business. The company also said it completed the purchase of the remaining 25% stake in Svaksha Distillery, making it a wholly owned subsidiary, and commissioned a new 150 KLPD unit. On the call, Joint Managing Director Kushal Mittal said the firm expects insurance to cover losses from a fire incident, leaving no net financial hit recognised.
The fire at the Bathinda site on June 19 affected a 200 KLPD ethanol plant, which remains shut for repairs, although BCL said production should resume within around 15 days. Mittal also said the company has received an additional 4.5 crore litres following a Supreme Court order allowing oil marketing companies to procure more ethanol, which should keep order books full for the next two to three months. At the same time, ENA realisations fell to ₹58 a litre from ₹70 a year earlier because of oversupply, while maize prices have risen to about ₹25 a kilogram, a development that could weigh on margins.
BCL is taking a cautious line on expansion. Plans for a 250 KLPD grain-based plant at Fatehabad and a biodiesel project are on hold as the company waits for clearer policy direction and better pricing conditions. Mittal said the group is still considering bio-CNG and eventually an IMFL presence, but sees country liquor as the more profitable business for now. Total debt has also fallen to about ₹360 crore from ₹576 crore at the end of the last financial year, and the company plans to cut working capital usage further while holding back on new capital spending until it has greater visibility.
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