Trualt Bioenergy
Incorporated in 2021, Trualt Bioenergy is one of India?s largest biofuels producers, having strategically positioned itself as a prominent and diversified player in the biofuels industry, particularly in the Ethanol sector. The company hold the distinction of being the largest ethanol producer in India based on installed capacity, with an aggregate installed capacity of 2,000 kilo litres per day (KLPD) and an operational capacity of 1,800 KLPD, as of March 31, 2025. Its market share is amongst the largest in terms of ethanol production capacity in fiscal 2025, at 3.6%.
The company commenced its primary business of ethanol production pursuant to business transfer agreements dated September 26, 2022 with effect from October 1, 2022 (collectively, the BTAs) with each of the seller companies, who hived off their respective distillery business and co-generation facilities to them.
The company has established five distillery units in Karnataka. As of March 31, 2025, it operated four ethanol production distilleries on molasses and syrup-based feedstocks, with production capacity (installed operational capacity) of 1800 KLPD. In addition, it established TBL Unit 5 with an installed capacity of 200 KLPD as of March 31, 2025. By March 2026, out of the 2,000 KLPD installed capacity, it intend to convert 1,300 KLPD of its current mono feed (sugarcane juice / sugar syrup / molasses) capacity to dual-feed, capable of producing ethanol from grain based feedstocks or grains unfit for human consumption. Progressively, it also intend to increase its operational capacity from 1,800 KLPD as of March 31, 2025 to 2,000 KLPD.
As part of its ethanol production, it also produce extra neutral alcohol (ENA), the primary raw material in the production of alcoholic beverages. The product portfolio also includes dry ice and liquid carbon dioxide (CO2), by-products in the Ethanol production process.
Through its subsidiary Leafiniti, the company is among the first producers of CBG under India?s SATAT scheme and currently operates a 10.20 TPD CBG plant producing solid and liquid FOM. To expand its CBG capabilities, it has signed a share subscription-cum-shareholders? agreement with GAIL on August 11, 2025, to develop CBG units at 20 locations with GAIL holding up to 49%. It also signed an MoU on November 18, 2024, with a leading Japanese trading and gas company for a joint venture to establish 3?5 CBG plants across India and entered agreements with Sumitomo Corporation Asia & Oceania Pte. Ltd. for bioenergy collaboration, beginning with four CBG plants (three in Karnataka and one in Maharashtra) and later expanding into ethanol and sustainable aviation fuel projects.
As of March 31, 2025, the company primarily manufacture 1G Ethanol utilizing sugar syrup and molasses as raw materials. Towards ensuring assured and continuous raw material supply, it has entered into supply agreements with Nirani Sugars Limited (formerly known as MRN Chamundi Canepower and Biorefineries Limited), one of its Promoter Group entities and Group Company, and with MRN Bhima Sugar and Power Private Limited and MRN Canepower and Biorefineries Private Limited to enable uninterrupted access to inter alia, bagasse, sugar syrup/sugarcane juice and molasses for Ethanol production, without any minimum purchase obligations. In fiscal 2025, 78.93% of its molasses requirements and 100.00% of sugar syrup/sugarcane juice requirements, respectively, were sourced from entities which form part of the promoter group.
Going forward, it intend to venture into the following business verticals, which have been approved by its Board of Directors pursuant to resolution dated September 6, 2025 -
Second Generation (2G) Ethanol - As part of its expansion, the company plans to produce Second Generation (2G) Ethanol using surplus bagasse?a sugar manufacturing by-product?as feedstock. It aims to utilize 800,000 MT of bagasse from its Promoter Group companies to produce about 6 crore litres of 2G ethanol annually. It has signed a non-exclusive MoU with Praj Industries Limited for the production of SAF and 2G ethanol and entered a non-binding term sheet with Sumitomo Corporation Asia & Oceania Pte. Ltd. for potential collaboration in the bioenergy sector.
Sustainable Aviation Fuel (SAF) - The company intend to move-up the value chain further by utilizing ethanol to produce SAF. It has also entered into a process license agreement with UOP LLC for Ethanol to Jet process technology to transform Ethanol into high-quality, renewable jet fuel (SAF). It intend to set up a facility to produce 10 crore litres of SAF annually, intended to place it as one of the world?s largest producers of SAF from Ethanol.
Mevalonolactone (MVL) and Allied Biochemicals - MVL can be used to produce various valuable products, for the synthesis of elastomers, specialty fuels, and SAF molecules. It intend to produce MVL and allied biochemicals, during the manufacturing of Ethanol. It has entered into an MOU with Visolis Inc., to enter into a technology collaboration for production of SAF. It intend to undertake feasibility studies to understand the ability to produce MVL in dual purpose designed fermenters, which can produce both ethanol and MVL.
Biofuel Dispensing Stations - The company operate five dispensing stations in Mudhol, Jamkhandi, Badami, and Kerakalmatti in the Bagalkot district of Karnataka, as of March 31, 2025. With the Government of India?s increased push towards use of non-fossil fuel vehicles and leveraging its ready source of Ethanol and CBG, it intend to further set up biofuel dispensing stations. It will be recognized as a private OMC in India, alongside established players such as Reliance Industries ? BP, Shell and Nayara Energy.
Vijaykumar Murugesh Nirani, Vishal Nirani and Sushmitha Vijaykumar Nirani are promoters of the company.
The Offer and the Objects
The offer comprises of fresh issue of up to 15120968 equity shares at the upper price band of Rs 496 and 15889831 equity shares at the lower price band of Rs 472 aggregating Rs 750 crore and an offer for sale up to 1800000 equity shares aggregating Rs 89 crore at the upper brand of Rs 496 and aggregating Rs 85 crore at the lower brand of Rs 472.
The company proposes to utilize the net proceeds from the issue towards funding capital expenditure towards setting up multi-feed stock operations to pave- way for utilizing grains as an additional raw material in ethanol plants at TBL Unit 4 of 300 KLPD capacity amounting Rs 150.68 crore, funding its working capital requirements amounting Rs 425 crore and the balance towards general corporate purposes.
The production of ethanol requires sugar syrup / juice and molasses, amongst others, as raw material and it source a significant portion of such raw materials from sugar manufacturing facilities owned by an entity forming part of its promoter Group. The company is in the process of converting the mono feed plant at TBL Unit 4 into a multi-feed plant of 300 KLPD capacity which will operate on a multi feed basis, utilizing grains (particularly maize and rice), alternatively in the off-season in order to reduce its dependence and storage cost on sugar syrup / juice and molasses at in TBL Unit 4 which currently has a capacity of 200 KLPD in mono-feed. The total estimated project cost is Rs 172.68 crore and estimates commercial production from January 2026. Net working capital requirement of the company at the end of fiscal 2025 was Rs 307.64 crore.
Promoter Dhraksayani Sanga mesh Nirani post offer shareholding will decrease to 5.1% from pre offer shareholding of 7.46% and Sangamesh Rudrappa Nirani post offer shareholding will decrease to 5.1% from pre offer shareholding of 7.47%. Vijaykumar Murugesh Nirani post offer shareholding remains unchanged at 21.71%, Vishal Nirani at 21.7%, Sushmitha Vijaykumar Nirani at 20.64%, Kamala Murigeppa Nirani at 5.99%, Murugesh Rudrappa Nirani at 1.51% and Nirani Holdings Private Limited at 1.73%.
Strengths
The company is the largest producer of ethanol in India in terms of installed capacity.
The company is able to differentiate itself through its ease of access to raw materials, as the bulk of the sugar syrup/sugarcane juice and molasses that it require for ethanol production are procured from sugar manufacturing facilities owned by entities forming part of its promoter group.
The company owns five distillery units and operates four distillery units in the Bagalkot district of Karnataka, which holds a significant position as part of India?s sugar belt.
The company has received approval from the Ministry of Petroleum and Natural Gas, Government of India, to exercise retail marketing rights to market motor spirit and high-speed diesel and intend to make its dispensing stations to be capable of dispensing motor spirit, high speed diesel, E85 and E93 blended fuel, bio-CNG, and will also have EV charging points, EV battery swapping and create a non-fuel retail division to cater to fast moving consumer goods and automotive products
Ethanol demand in India is expected to grow at a CAGR of 17.7% till fiscal 2026. In fiscal 2023, the overall Ethanol market, including Ethanol for diverse uses, is estimated to be at 828 crore litres and is anticipated to expand significantly, reaching 1,350 crore litres by 2026.
The total biogas demand is globally expected to surge to 404 billion cubic meters equivalent, indicating a CAGR of 9% during 2021 to 2050. This is because of the increased renewable energy requirement globally and increased feasibility of biomethane as an energy source.
The biofuel market in India is majorly divided into ethanol, CBG and biodiesel currently, of which ethanol forms a major chunk. The Indian biogas market is expected to grow up to US$ 2.25 billion in 2029, at a CAGR of 6.3% between 2022 and 2029.
Weaknesses
The company business is currently primarily dependent on the sale of ethanol. Any decline in ethanol sales, production, or selling prices may negatively impact its business, operations, cash flow, and financial condition.
The company face competition with numerous players including sugar mills, distilleries, and ethanol manufacturers in relation to its products.
The company?s business heavily depends on Government of India policies, and any policy changes could affect its revenue, operations, and financial condition.
All production units of the company is located in the Bagalkot district of Karnataka. Any unscheduled, unplanned or prolonged disruption of its units could materially and adversely affect business, financial condition, cash flows and results of operations.
Promoters and members of the Promoter Group had encumbered some of the equity shares held by them in favour of IDBI Trusteeship Services Limited pursuant to loans availed by the company from State Bank of India and Indian Renewable Energy Development Agency by way of pledge, which has subsequently been released and shall be re-pledged after implementation of the statutory lock-in.
The company products are subject to strict quality requirements, and sale of its products is dependent on its quality controls and standards. Any failure to comply with quality standards may adversely affect business prospects and financial performance.
The company business performance is subject to seasonality in its operations, which could result in fluctuations in results of operations.
Competition from cheaper and more established fossil fuels can limit market share and profitability of the biofuel industry.
The use of agricultural feedstocks for biofuel production raises the conflict of food and fuel, potentially leading to conflicts with food supply and affecting public perception and policy support.
Climate variability and extreme weather events can disrupt the availability and reliability of feedstocks, impacting production.
The rapid advancement and adoption of electric vehicles also threaten to reduce demand for liquid fuels, further challenging the biofuel market.
Valuation
For FY2025, sales were up by 56% to Rs 1907.72 crore. OPM rose 80 bps to 16.2% which led to 64% increase in operating profit to Rs 309.14 crore. Other income rose 7% to Rs 60.8 crore and interest cost remained flat at Rs 143.61 crore while depreciation rose 18% to Rs 66.89 crore. PBT increased 255% to Rs 159.44 crore. Tax expenses were 2% lower at Rs 12.8 crore. Net profit increased 361% to Rs 146.84 crore.
FY2025 EPS on post-issue equity works out to Rs 17.1. At the upper price band of Rs 496, P/E works out to be 29
As of 23 September 2025, its listed peers Balrampur Chini Mills trades at FY2025 P/E of 23, Triveni Engineering & Industries trades at FY2025 PE of 32 and Dalmia Bharat Sugar & Industries trades at FY2025 PE of 8.
For FY2025, Trualt Bioenergy Ebitda margin and ROE stood at 16.2% and 28.3% compared to 13.7% and 12.1% for Balrampur Chini Mills, 7% and 7.9% for Triveni Engineering & Industries, 12.5% and 12.5% for Dalmia Bharat Sugar & Industries respectively.
| Trualt Bioenergy:Issue Highlights | |
| Fresh issue (in Rs crore) | 750 |
| For Fresh Issue Offer size (in number of shares ) |
|
| - in Upper price band | 15120968 |
| - in Lower price band | 15889831 |
| Offer for sale (in number of shares) | 1800000 |
| Offer for sale (in Rs crore) |
|
| - in Upper price band | 89 |
| - in Lower price band | 85 |
| Price Band (Rs) | 472-496 |
| Pre issued capital (Rs crore) | 70.63 |
| Post issue capital (Rs crore) | 85.75 |
| Pre issue promoter shareholding (%) | 88.20 |
| Post issue Promoter shareholding | 70.55 |
| Bid Size (in No. of shares) | 30 |
| Issue open date | 25-09-2025 |
| Issue closed date | 29-09-2025 |
| Listing | BSE,NSE |
| Rating | 44/100 |
| Trualt Bioenergy: Consolidated Financials | |||
| Particulars | 2303 (12) | 2403 (12) | 2503 (12) |
| Total Income | 762.38 | 1223.40 | 1907.72 |
| OPM | 13.8 | 15.4 | 16.2 |
| Operating Profits | 105.05 | 188.09 | 309.14 |
| Other Income | 0.00 | 56.78 | 60.80 |
| PBIDT | 105.05 | 244.87 | 369.95 |
| Interest | 35.31 | 143.08 | 143.61 |
| PBDT | 69.74 | 101.79 | 226.34 |
| Depreciation | 20.75 | 56.92 | 66.89 |
| PBT | 48.99 | 44.87 | 159.44 |
| Share of Profit/loss of JV | 0.00 | 0.00 | 0.00 |
| PBT Before EO | 48.99 | 44.87 | 159.44 |
| EO | 0.00 | 0.00 | 0.00 |
| PBT after EO | 48.99 | 44.87 | 159.44 |
| Provision for Tax | 13.53 | 13.07 | 12.80 |
| Profit after Tax | 35.46 | 31.81 | 146.64 |
| PPA | 0.00 | 0.00 | 0.00 |
| Net profit after PPA | 35.46 | 31.81 | 146.64 |
| MI | 0.00 | 0.00 | 0.00 |
| Net profit after MI | 35.46 | 31.81 | 146.64 |
| EPS (Rs)* | 4.1 | 3.7 | 17.1 |
| *EPS annualized on post issue equity capital of Rs 85.75 crore of face value of Rs 10 .each | |||
| # Not annualised due to seasonality of business | |||
| Figures in Rs crore | |||
| Source: Capitaline Corporate Database | |||
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