| Experienced Management
The company is promoted and managed by experienced professionals with diverse expertise across multiple industrial sectors. The promoter group comprises Mr. Anil Kumar Chaurasia, with over 25 years of experience in power co-generation and energy solutions; Mr. Sunil Kumar Mittal, with nearly three decades of experience across manufacturing, energy, and infrastructure sectors; Mr. Anshul Jain, a Chartered Accountant with over 15 years of experience in corporate finance and project financing; and Mr. Vikas Kumar, a Marine Engineer with over 18 years of technical and operational experience. Acuite believes that the promoters' established industry track record and execution capabilities will continue to support the company's operational performance and growth prospects going forward.
Scale of Operations & Profitability
The company reported a net revenue of Rs. 76.17 crore achieved in first year of operations i.e. FY 26 (prov.) with an EBITDA of Rs. 20.38 crore, translating into a healthy EBITDA margin of 26.75%, while PAT stood at Rs. 2.58 crore, resulting in a PAT margin of 3.38%. As of June 30, 2026, the company had recorded net revenue of Rs. 34.05 crore and had a confirmed order book of Rs. 22.39 crore, which is scheduled to be executed by September 2026. Acuite believes that the company is well positioned to benefit from the increasing demand for ethanol, supported by the Government of India's ethanol blending programme and favourable industry outlook.
Locational Advantage
The plant is located at Kudra in Kaimur district, Bihar, which benefits from its presence in an agriculturally rich region with ample availability of grain-based feedstocks such as maize and paddy sourced from Bihar and adjoining states. The location provides access to a large agricultural hinterland, ensuring steady raw material procurement at competitive logistics costs. Further, the region offers adequate availability of water resources and a sizeable semi-skilled and unskilled labour pool, supporting efficient plant operations. Its proximity to key road and rail networks facilitates smooth inward movement of feedstock and outward dispatch of ethanol and by-products, while also enabling access to major oil marketing company (OMC) depots. Acuite believes that overall, the strategic location strengthens supply chain efficiencies, reduces transportation costs, and supports sustainable operations.
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| Moderate Financial Risk Profile
The financial risk profile of the company is moderate owing to the significant debt-funded capital expenditure incurred for setting up the 60 KLPD ethanol manufacturing facility. As on March 31, 2026 (Prov.), the company’s tangible net worth improved significantly to Rs. 25.17 crore as on March 31, 2026 (Prov.) from Rs. 3.96 crore as on March 31, 2025. The substantial improvement was driven by the accretion of profits to reserves, conversion of a portion of unsecured loans into equity and share premium, and the consideration of the remaining unsecured loans as quasi-equity. The gearing ratio & TOL/TNW remain moderate at 3.22 & 3.81 times for FY 26 (Prov.). The debt coverage indicators marked by ISCR & DSCR stood comfortable at 3.09 & 1.49 times for Fy 26 (Prov.) respectively. Acuite believes that, going forward, the financial risk profile of the company will improve in near to medium term on the account of steady accruals and no major debt funded capex plans.
Intensive Working Capital Operations
The company’s working capital operations are intensive, as reflected by Gross Current Asset (GCA) days of 221 for FY 26 (Prov.). The intensiveness is mainly due to high inventory holding period of 170 days as company needs to maintain adequate feedstock stockpiles, particularly maize and other grains, to ensure uninterrupted operations and mitigate raw material price volatility. The debtor realization days are efficient as 47 days for FY 26 (Prov.) since OMC’s realize bills within 21 days post the receipt & acceptance of the material. Acuite believes that timely realization of receivables from OMCs will support the company in managing its working capital requirements more efficiently over the medium to long term. However, inventory levels are expected to remain relatively high due to the inherent nature of ethanol manufacturing operations.
Susceptibility to Raw Material Price Volatility
The company remains exposed to fluctuations in the availability and prices of key raw materials, namely rice and maize, which are seasonal and dependent on agricultural output. Adverse climatic conditions may impact crop yields, thereby affecting input costs and leading to volatility in EBITDA margins in the ethanol segment. The impact is partly mitigated by supportive government policies, including periodic revisions in ethanol prices, differential pricing for maize-based ethanol, and various incentives for distillery projects. However, any adverse change in regulatory support or pricing framework remains a key monitorable.
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