BCL Industries Allots Equity Shares On Warrant Conversion, Reports 32% Annual Revenue Growth In FY25

The stock of BCL Industries Limited will be in the spotlight of investors courtesy of the conversion of warrants to equity shares, stellar quarterly and annual results, proposed dividend and sustained growth in contracts for Ethanol supply.

The board has approved the conversion of 30.84 lakh fully convertible warrants into 3,08,42,400 equity shares of face value of Re 1 each. These shares were allotted to New Track Garments Private Ltd, a promoter group entity, at a conversion price of Rs 5.62 per share (including a premium of Rs 4.62) post its 10:1 split effective 16 December 2024. This step increased the paid-up capital from Rs 654.45 crore to Rs 657.54 crore. The increase is said to lift the promoters aggregate holding to 40.08%, which translates into a minuscule decline in public holding to 59.92%.

The company's performance during the fourth quarter and the full fiscal year ending on March 31, 2025 was exceptional. In Q4, net sales also surged by 21% YoY to Rs 743.43 crore, while their net profits grew by 16% to Rs 27.56 crores. Additionally, in FY25, the company's revenue skyrocketed by 32% year-on-year, increasing from Rs 2,200.62 crores in FY24 to Rs 2,909.60 crores. The company's net profit for FY25 was reported at Rs 102.85 crores, which is a 7% increase compared to the previous year's Rs 95.91 crores.

Subject to approval by the shareholders during BCL's 49th annual general meeting, the board of directors proposed an equity dividend of Rs 0.26 per share for FY25. The dividend, if sanctioned, will be payable within 30 days of announcement.

With a current market cap of over Rs 1,160 crores and a PE ratio of 12, which is low compared to the industry's average PE ratio of 31, BCL Industries is in a favourable position. The stock has also remained strong in the market, currently trading at Rs 42 per share, which is a 27.2% increase from their 52-week low of Rs 33 but is close to their 52-week high of Rs 68.83.

A remarkable change was the inclusion of the Indian President's Portfolio, which obtained 2,710,000 shares, accounting for a 0.92% equity stake. Additionally, promoter Kushal Mittal has also increased his stake through market purchases amounting to Rs 3.74 lakh in March 2025.

With further expansion of its ethanol business, BCL Industries and its subsidiary company, Svaksha Distillery Ltd., won new contracts for ethanol worth Rs 134.87 crore through a tender with Oil Marketing Companies (OMCs) in January 2025. The aggregate allocation consists of 23,054 KL of ethanol produced from FCI rice. This order supports the group's pre-existing October 2024 commitment of 182,485 KL, further strengthening the group's position within India's biofuel market supply chain.

BCL Industries, which is part of the Mittal Group and was set up in 1976, is a diversified agro-processing firm involved in the production and marketing of edible oils, rice milling, ethanol production, and real estate activities. The company currently possesses an ethanol production capacity of 1,100 KLPD, allowing it to take advantage of India's ethanol blending mandate.