True Green Bio Energy Limited reported a standalone net profit of Rs 18.02 crore for the second quarter of FY27, supported by revenue of Rs 234.55 crore and EBITDA of Rs 31.11 crore. The results come as the company’s grain-based ethanol plant at Changodar, near Ahmedabad, operates at more than 85% capacity utilisation, with plans under consideration to increase production capacity by another 150 KLPD.

The company, which belongs to the Chiripal Group, reported its financial performance on 5 November 2026. Its results provide an early indication of the business activity at its Ahmedabad manufacturing facility, which began commercial production in October 2025.

The existing plant has an installed production capacity of 300 kilolitres per day (KLPD). Based on the company’s reported operating level of more than 85-90%, the facility is running at a high proportion of its rated capacity. This gives the proposed expansion added importance as the company considers increasing its manufacturing capability.

The proposed expansion would add 150 KLPD to the existing 300 KLPD capacity, taking the plant’s total planned capacity to 450 KLPD. The estimated investment is Rs 145 crore. True Green Bio Energy has submitted the project proposal to its existing lenders for consideration. The expansion is therefore at the proposal stage, and the company has not announced a final approval or construction schedule.

Jyotiprasad Chiripal, Chairman and Director of True Green Bio Energy Limited, said the company was working to increase production and supplies to oil marketing companies. He said:

“The commencement of commercial production at our Changodar facility marks an important step in our entry into the ethanol manufacturing business. The plant is currently operating at more than 85-90% capacity utilisation, and we are focused on strengthening production and supplies to oil marketing companies. We have also submitted our proposal for a 150 KLPD brownfield expansion to our existing lenders. With this proposed investment, we aim to build additional capacity and strengthen our position in the ethanol sector.”

Chiripal also spoke about the changing requirements of India’s fuel industry and the growing role of grain-based ethanol.

“The ethanol sector is entering a phase where efficient production, feedstock management and reliable supplies to oil marketing companies will be important for sustainable growth. We believe grain-based ethanol will continue to play a significant role in India’s biofuel programme,” Mr Chiripal further went on to say.

The company’s manufacturing activity comes at a time when India has made major changes to its petrol blending programme. The Government of India has set a target of blending 20% ethanol with petrol under the Ethanol Blended Petrol (EBP) Programme. The target was originally set for 2030 but was moved forward to the 2025-26 ethanol supply year under the National Policy on Biofuels, 2018, which was amended in 2022.

India reached the 20% blending level in 2025, five years before the original deadline. Government figures show that average blending increased from around 12% in the 2022-23 ethanol supply year to 14.6% in 2023-24 and 19.24% in 2024-25. The Petroleum Planning and Analysis Cell reported an average blending of 20% between November 2025 and September 2026. This rising demand has increased the need for ethanol production facilities and regular supplies to oil marketing companies.

The EBP Programme involves public sector oil marketing companies, including Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. These companies purchase ethanol from approved producers and blend it with petrol before supplying fuel through retail outlets.

Ethanol is produced from different agricultural materials. These include sugarcane-based products, maize and grains. India’s biofuel policy also allows the use of damaged food grains and grains that are unsuitable for human consumption. This gives manufacturers additional feedstock options and creates another market for certain agricultural products.

True Green Bio Energy’s Changodar plant uses broken rice, maize and other waste or damaged grains to manufacture fuel-grade ethanol. Its production process also generates distillers dried grains with solubles, commonly known as DDGS. This material is sold as an ingredient for animal feed and provides another source of revenue from the manufacturing process.

The use of agricultural grains for ethanol production has also brought greater attention to feedstock availability, crop prices and water consumption. The supply of raw materials needs to remain steady if plants are to operate at high capacity throughout the year. Government policy has therefore allowed several types of feedstock to be used, subject to its rules on availability and suitability.

The Government’s ethanol programme has also supported investment in new manufacturing facilities. The Department of Food and Public Distribution has introduced interest subsidy schemes for setting up new grain-based and sugar-based distilleries and expanding existing plants. Its published data recorded 1,953 crore litres of ethanol production capacity as of 31 October 2025, compared with 215 crore litres in 2013. Gujarat had 27 projects approved under the various interest subsidy schemes listed by the department.

For True Green Bio Energy, the next stage will depend on the lenders’ decision on the proposed Rs 145 crore investment. Approval would allow the company to move ahead with plans to raise its production capacity from 300 KLPD to 450 KLPD. Until then, the existing Changodar facility remains its main manufacturing base.

The company’s Q2 FY27 results place its ethanol business among the developments to watch in Gujarat’s growing biofuel manufacturing sector. Its ability to maintain plant operations, secure grain supplies and meet purchase requirements from oil marketing companies will remain important as it considers the proposed expansion.

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