Modi Naturals has secured an additional ethanol order worth ₹140 crore for 1.98 crore litres from various oil marketing companies (OMCs), as reported by LiveMint. This order, received through the company's wholly owned subsidiary Modi Biotech Private Limited (MBPL), is for ESY 2025-26 with supplies scheduled until October 2026. This new contract adds to the company's existing order of around ₹400 crore for approximately 47.9 KLPD from various OMCs, positioning the company for significant revenue growth in the ethanol segment. The Supreme Court's recent interim order in August 2026 permitting OMCs to procure an additional 149 crore litres of ethanol under the Quarter IV tender of ESY 2025-26 has further expanded the addressable market for ethanol manufacturers. By the end of August 2026, both existing and expanded plants are expected to operate at full capacity, taking total capacity to 282 KLPD.
The company delivered steady performance in Q1FY27 with revenue from operations rising marginally 0.4% year-on-year to ₹155.6 crore, compared with ₹155 crore in Q1 FY26, according to LiveMint reports. At the operating level, EBITDA grew 25.6% YoY to ₹22.2 crore from ₹17.7 crore, with the EBITDA margin improving significantly to 14.2% from 11.4% in the year-ago quarter. The net profit after tax increased 19.1% YoY to ₹12.5 crore from ₹10.5 crore, while the PAT margin expanded to 8% from 6.8%. EPS stood at ₹9.44 in Q1 FY27, compared with ₹7.87 in the corresponding quarter last year. The company's subsidiary Modi Biotech operates a newly expanded grain-based ethanol plant in Raipur, Chhattisgarh with a total capacity of 282 KLPD, following a ₹100 crore capital expenditure program. The ethanol division reported EBITDA margins of 17.1% and 22.2% as disclosed in the presentation, with the company maintaining focus on lower working capital requirements and improved procurement planning.
Modi Naturals shares responded positively to the ethanol contract win, with the stock trading at ₹380.00 on BSE compared to the previous close of ₹400.00, as reported by LiveMint. The stock hit an intraday high of ₹385.00 and intraday low of ₹380.00, with a total turnover of ₹154.98 lakh during the trading session. The stock saw 4,063 shares traded across 44 trades, indicating active investor interest following the significant contract announcement. The positive market response reflects investor confidence in the company's expanding ethanol business and strong order book positioning.
Looking ahead, Modi Naturals has set an FY27 revenue guidance of ₹950-1,100 crore, compared with ₹719 crore in FY26, as reported by LiveMint. The company expects EBITDA to rise to ₹100-105 crore from ₹74 crore, while PAT is projected at ₹66-70 crore, compared with ₹50 crore in FY26. Shares of Modi Naturals are expected to be on investors' radar in Tuesday's trade following this significant ethanol contract win and positive operational outlook. The company's strategic transition from thin-margin bulk edible oil business to higher-margin ethanol manufacturing is rapidly scaling up, with the ethanol business serving as the ultimate growth and margin multiplier while insulating the company from extreme price volatility typical of the bulk edible oil market.
