True Green Bio Energy, formerly CIL Nova Petrochemicals, abandoned synthetic yarn for a 300 KLPD grain-based ethanol plant. Quarterly revenue jumped from near zero to ₹227.57 crore within a year.
Incorporated in 2003 as Nova Poly Yarn Limited, the company made synthetic yarn. In 2023–24 it pivoted, retrofitting its Ahmedabad plant into a bio-energy complex. The name changed to True Green Bio Energy in December 2024.
India targets 20% ethanol blending, requiring about 1,050–1,100 crore litres yearly. Sugarcane alone cannot meet demand, so policy now incentivizes grain-based distilleries like True Green's facility.
Legacy revenue collapsed from ₹154.20 crore in FY21 to zero for FY22–FY24 as old lines shut. Capital work-in-progress climbed to ₹208.48 crore by March 2025. FY25 ended with a ₹2.19 crore net loss.
Q3 FY26 revenue hit ₹84.20 crore, with ethanol contributing ₹81.66 crore. Q4 FY26 more than doubled to ₹190.28 crore and net profit surged to ₹28.67 crore. Q1 FY27 peaked at ₹227.57 crore.
The plant makes denatured anhydrous ethanol for petrol blending and DDGS animal feed. A 6.42 MW captive power plant cuts energy costs by cogenerating steam and electricity, protecting thin regulated margins.
Full-year FY26 revenue reached about ₹284 crore, with EBITDA around ₹60.7 crore and net profit near ₹31.3 crore—a sharp reversal from FY25's ₹2.19 crore loss.
Trailing twelve-month ROE reached 22.8% and ROCE 13.9%. Yet debtor days rose from 67 to 94.8, and quarterly interest costs of ₹6.3–6.5 crore pressure liquidity as OMC payments take time.
Borrowings rose to ₹253.08 crore. Promoters pledge 57.50% of their 61.27% stake, creating margin-call risk. The plant is one asset; feedstock prices and FCI prepayment rules add pressure.
True Green executed a difficult sectoral shift and now rides India's ethanol mandate. Sustaining it depends on feedstock agility, OMC allocations, and deleveraging. Read the full deep dive for the complete analysis.
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