Modi Naturals Subsidiary Secures ₹495 Crore Ethanol Supply Order from OMCs

Key numbers

Market Cap	₹435.85 CrSmall Cap
P/E TTM	8.19xSector: 29.01x
RSI	47.73Neutral Zone
Order from	Various Oil Marketing Companies (OMCs)
Execution period	Ethanol Supply Year (ESY) 2026-27, November 2026 to October 2027
Deal value	₹495 Cr
Share of market cap	113.6%
Share of annual revenue	63.7%

Key highlights

• Total order value estimated at approximately ₹495 crore from various Oil Marketing Companies
• Contract involves the supply of 7.82 crore litres of ethanol for the ESY 2026-27 period
• The deal value exceeds the company's current market capitalization of ₹435.85 crore
• Order execution is scheduled to begin in November 2026 and conclude by October 2027
• Manufacturing process is expected to yield additional revenue through the sale of by-products

Order Inflow Dwarfs Market Capitalization

The ₹495 crore ethanol supply order marks a transformative milestone for Modi Naturals, as the contract value significantly exceeds the company's total market capitalization of ₹435.85 crore. This allocation represents roughly 63.7% of the company's trailing twelve-month revenue of ₹777.67 crore. Secured via its wholly owned subsidiary, Modi Biotech Private Limited, the deal for 7.82 crore litres of ethanol follows an earlier ₹140 crore allocation received in August 2026.

This sharp increase in order size underscores the successful ramp-up of the company's bio-energy operations and its growing significance as a supplier to major Oil Marketing Companies.

Operational Details and Supply Timeline

• Allocated Volume: 7.82 crore litres of ethanol for the upcoming cycle
• Client Base: Multiple government-owned Oil Marketing Companies (OMCs)
• Execution Window: Ethanol Supply Year (ESY) 2026-27, spanning November to October
• Subsidiary Involvement: Order awarded specifically to Modi Biotech Private Limited (MBPL)
• Revenue Drivers: Core ethanol sales supplemented by separate sales of manufacturing by-products

Strategic Alignment with Capacity Expansion

This massive order comes shortly after Modi Naturals' expanded 282 KLPD Raipur ethanol plant reached full operational capacity in late August 2026. The timing aligns with management's earlier guidance aimed at a FY27 consolidated revenue target of ₹925–965 crore and a PAT target of ₹66–70 crore. By securing a contract larger than the ₹400 crore allocation from October 2025, the company is demonstrating its ability to utilize its expanded capacity effectively.

The shift toward higher-volume ethanol supply reflects a strategic pivot towards the bio-energy sector, leveraging government mandates for ethanol blending in fuel.

Financial Performance and Valuation Context

• Revenue Growth: 39.4% year-on-year increase in the quarter ended September 2026
• Valuation: Trading at a TTM P/E of 8.19x compared to the broader sector average of 29.01x
• Ownership: Promoter holding remains strong at 69.09% with no pledged shares reported
• Profitability: Reported a net profit of ₹11.02 crore for the latest quarter
• Historical Returns: Annual net profit grew by 62.07% in the previous fiscal year

What to watch next

• Commencement of ethanol deliveries for the ESY 2026-27 cycle in November 2026
• Quarterly financial results for the period ending December 31, 2026
• Progress report on the sale of by-products and their contribution to EBITDA margins
• Achievement of the FY27 consolidated revenue target of ₹925–965 crore

Modi Naturals · financial snapshot

Share price	₹327.55
Market capitalisation	₹435.85 Cr
Revenue (annual)	₹719.18 Cr
Net profit (annual)	₹50.28 Cr
Revenue (latest quarter)	₹204.90 Cr+31.68% vs previous quarter
Net profit (latest quarter)	₹11.02 Cr-11.81% vs previous quarter
P/E (TTM)	8.19×Sector 29.01×
Promoter holding	69.09%0.00% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.