Modi Naturals Limited has secured an ethanol supply allocation worth approximately Rs 495 crore for the Ethanol Supply Year (ESY) 2026-27, strengthening its presence in India's expanding ethanol industry. The company announced on November 12, 2026, that its wholly owned subsidiary, Modi Biotech Private Limited, has received allocations from domestic Oil Marketing Companies (OMCs) to supply approximately 7.82 crore litres of ethanol during the upcoming supply cycle.
The allocation covers the November 2026 to October 2027 period and represents an estimated aggregate consideration of Rs 495 crore. The company disclosed the development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. However, it has not specified the individual OMCs awarding the allocations or provided a customer-wise breakdown of the total volume.
The ethanol supply arrangement is expected to contribute significantly to Modi Naturals' business during FY2026-27 and the subsequent months. The company has not disclosed detailed delivery schedules, monthly supply commitments, production locations or the per-litre realisation associated with the allocation. The announced value represents estimated revenue consideration for the allocated ethanol volume and should not be interpreted as profit or confirmed revenue already recognised.
In addition to ethanol supplies, Modi Naturals expects its manufacturing operations to generate various by-products that will be sold separately, creating an additional potential revenue stream. However, the company has not disclosed the types, quantities or estimated sales value of these by-products. Their contribution will therefore depend on production volumes and market realisations during the supply period.
The latest allocation highlights the continuing business opportunities emerging from India's ethanol blending programme, which relies on domestic producers to supply ethanol to OMCs for blending with petrol. Regular supply allocations provide manufacturers with greater visibility of potential demand and opportunities to utilise their production infrastructure.
With an allocation of 7.82 crore litres and estimated consideration of Rs 495 crore, Modi Naturals is positioned to strengthen its participation in the country's ethanol supply chain. Investors and industry stakeholders will be watching the company's execution of the allocation through October 2027, along with any further disclosures on production, deliveries and additional revenue from manufacturing by-products.
