BCL Industries Shares In Focus On Order Win Of Rs 134.87 Cr From OMCs

BCL Industries Ltd share price surged 7% after the company received an ethanol supply order from OMCs for the value of Rs 134.87 crore. The order resulted in a notable price surge and we're in the green for the session.

BCL along with its subsidiary Svaksha Distilled announced in an exchange filing, that they have been granted an additional allocation of ethanol of 23,054 KL. This allocation is provided as part of the food supply to oil marketing companies (OMCs) under the government's ethanol blending policy. The company clarified that BCL will provide ethanol of 14,302 KL at the rate of ₹ 83.67 crore, and Shaksha Distillery will give 8,752 KL of alcohol for the value of ₹ 51.20 crore.

This new allocation comes after BCL Industries' tender participation regarding multiple ethanol supply locations in India was accepted in January 2025. This order adds to the company's previous commitment of 1.82 lakh KL which was allocated in October 2024. The Indian government has been actively pushing for ethanol blending in petrol as an alternative in order to reduce the carbon footprint and crude oil import, creating a conducive environment for players in the ethanol market, such as BCL Industries.

Subsequent to this news, BCL's stock rose by the 7.64% daily limit and closed at ₹37.352. As a result, the stock has managed to stop dipping further and is now sitting at ₹34.50, which is the new 52-week low. The stock surged but continues to sit 55% under their 52-week high of ₹84.20 which was achieved in February 2024.

The company continues to gain traction from notable investors. As of December 2024, ace investor Sangeetha S held a consequent 1.13% stake in BCL Industries while the President of India's portfolio recently purchased 27.1 lakh shares which is equivalent to 0.92% shareholding.

BCL Industries has reported steady growth in its revenue streams despite certain profit margin challenges experienced in the previous quarters. The company had a revenue increase of 18.3% reaching net sales of >₹762 crore during Q3FY25. Their net profit decreased by 36.3% down to ₹21 crore. There has also been an annual increase of 21% in total revenue with BCL Industries netting ₹2,200.62 crore in FY24 and their net profit also increased by 49%, totalling ₹95.92 crore.

In the first nine months of FY25, net sales expanded by 36.4%, attaining a total of ₹2,166 crore, whereas net profits also increased by 4.1% up to ₹75 crore when compared to the same timeframe from the previous year.

That company under the Mittal Group, BCL Industries, is expanding its production capacity for ethanol to cater to the increasing customer base. Driven by the new plant development and subsidiaries' growth, the company's ethanol production capability has now expanded to 1,100 KLPD. Auxiliary projects such as constructing a bio-diesel plant in Kharagpur, an ethanol plant in Bathinda, and an oil extraction facility, are set to be completed soon.

BCL Industries recently won a contract for 60 lakh litres of Extra Neutral Alcohol (ENA), which coincides with the soaring demand for ethanol. This order coupled with the 18.25 crore litres of ethanol allocated to BCL's subsidiary for the year 2024-25 marks a significant increase over last year's allocation.

With the government's continuous ethanol blending strategy, BCL Industries is able to capitalize on its growing production capacity combined with the increasing growth of its order book which puts it in a good position.