India's aviation industry is set to open a significant new market for the country's biofuel companies through the proposed Sustainable Aviation Fuel (SAF) mandate. According to an RSB assessment reported by S&P Global, India's international aviation sector could require around 5.3 crore litres of SAF in 2027, which could increase to 29 crore litres by 2030. Including domestic aviation, the requirement could reach 72 crore litres by 2030. The Ministry of Civil Aviation has circulated the Draft SAF Policy 2026, proposing mandatory SAF blending for international flights from January 2027, with blending targets rising to 5% by 2030 and 20% by 2040. This opportunity extends beyond India, as global SAF consumption is projected to surge 9X to 900 crore litres by 2030, up from 100 crore litres in 2024, with countries including the United Kingdom, Singapore, Japan, Brazil, Indonesia, and the European Union implementing similar mandates.
TruAlt Bioenergy is positioning itself as a major player in India's SAF market through its ₹2,250 crore investment in a commercial-scale ethanol-to-jet facility in Srikakulam, Andhra Pradesh. The facility will have a capacity of 310 kilolitres per day (100 million litres per annum) and is expected to be commissioned within 24 to 30 months following final regulatory clearances. The plant will use Alcohol-to-Jet (ATJ) technology, which converts ethanol into jet fuel meeting international quality standards (ASTM D7566) and can be mixed with up to 50% regular jet fuel. The company reported strong Q2FY27 performance with operating revenue growing 606% to ₹811.1 crore and achieving a positive EBITDA margin of 12.5%. The project has been approved for a ₹150 crore viability gap fund grant under the Pradhan Mantri JI-VAN Yojana and is strategically located near Hindustan Petroleum Corporation's Visakh Refinery and Indian Oil's Paradip Refinery for optimal supply chain access.
Praj Industries operates in the industrial biotechnology sector, holding 24 Indian patents and 60 international patents alongside more than 350 patent filings. The company's bioenergy segment generates 69% of total revenue and operates an integrated SAF demonstration plant at its Praj Matrix R&D centre in Pune. Praj has achieved a global breakthrough by validating a fully integrated Alcohol-to-Jet (AtJ) solution across both Ethanol-to-Jet (EtJ) and Isobutanol-to-Jet pathways, making it the first company globally to validate such a comprehensive solution. The company is currently finishing detailed engineering design packages for an international ethanol-to-SAF plant, with the customer expected to make a final investment decision in Q1FY28.
According to reports from The Financial Express, TruAlt Bioenergy reported strong financial turnaround with EBITDA surging to ₹101.2 crore in Q2FY27 from -₹4.6 crore in the previous year, achieving a positive EBITDA margin of 12.5%. The company generated ₹192 crore in cash from operating activities during H1FY27 and maintains a low debt-to-equity ratio of approximately 0.6x. Praj Industries reported consolidated revenue growth of 0.9% year-on-year to ₹849 crore, with net profit increasing 20.2% to ₹23.2 crore, aided by higher other income and lower interest costs. The company carries zero net debt with a total order backlog of ₹4,455 crore as of September 30, 2026.
From a valuation perspective, TruAlt Bioenergy trades at an EV/EBITDA multiple of 8.4x, significantly below the industry median of 25.2x, while Praj Industries trades at 21.2x, below its 10-year median of 22.8x. TruAlt reported better return ratios with ROE of 8.4% and ROCE of 10.4%, compared to Praj's ROE of 1.5% and ROCE of 6.1%. The proposed SAF policy could create significant growth opportunities for both companies, with TruAlt positioning for direct SAF production and Praj targeting technology and engineering orders. However, these opportunities depend heavily on regulatory implementation and commercial viability of the new mandates, with key business risks including raw material price fluctuations and regulatory dependencies.
