Avonmore Capital & Management Services Ltd. (AVONMORE) — Tipsheet

India's ethanol blend policy changes remove a cost barrier for Avonmore's SPV

Tipsheet Editorial — Thu, 11 Jun 2026 15:14:08 GMT

The government exempted petrol with 22-30% ethanol from excise duty and launched E85 fuel. Avonmore, through its 49.87% stake in an SPV, runs two grain-based distilleries.

What’s new

India exempted petrol with 22-30% ethanol from excise duty and launched E85 fuel for flex-fuel vehicles.
BIS has notified specifications for E22, E25, E27, and E30 blends, creating a formal path beyond the E20 target.
Avonmore's SPV PGIPL runs a 285 KLPD distillery in Himachal Pradesh and a 200 KLPD plant in Odisha now in commercial production.

Why it matters

The excise duty exemption removes a direct cost hurdle for fuel companies to use higher ethanol blends. For Avonmore's SPV, this expands the addressable market for its distillery output at a time when the parent company's core financial business is posting losses. The policy direction is clear, but the financial impact for Avonmore remains indirect and unquantified.

What we’re watching

How quickly PGIPL's new Odisha plant ramps up to full capacity.
Whether the excise duty break improves distillery realisations or is passed to consumers.
Any concrete capex or expansion plans from Avonmore for its ethanol business.

The full read

India just made higher ethanol blends cheaper to produce. The government's excise duty exemption covers petrol with 22-30% ethanol, and BIS has notified specs for E22, E25, E27, and E30 blends. That removes a cost barrier standing between the current E20 target and E30. Avonmore Capital, a ₹283 crore market-cap financial-services firm, holds a 49.87% stake in Premier Green Innovations, which runs a 285 KLPD distillery in Himachal Pradesh and a 200 KLPD plant in Odisha that has just started commercial output. The company says moving from E20 to E30 could lift ethanol demand by up to 50% per litre of blended petrol. Avonmore's core business is struggling. It reported a ₹6.88 crore consolidated loss in Q4. PGIPL is the one part of the portfolio with a clear policy tailwind now. The open question is whether that tailwind produces revenue or just remains policy on paper.

Primary source: BSE · NSE

Avonmore swings to ₹6.88 cr loss on financial-services mark-to-market hit

Tipsheet Editorial — Tue, 26 May 2026 16:30:32 GMT

A ₹15.28 crore profit in Q3 became a loss in Q4, even as revenue grew. The company says the losses have largely reversed.

What’s new

Avonmore swung to a consolidated net loss of ₹6.88 cr in Q4 from a ₹15.28 cr profit in Q3.
The loss came from mark-to-market hits in financial services; management says those have now largely reversed.
Infrastructure advisory revenue jumped 60% to ₹50.54 cr, and the Odisha biofuel plant is built but awaits a tender.

Why it matters

The swing from profit to loss is driven by a non-operational, market-sensitive component in financial services. The core operational story is stronger: infrastructure advisory is growing quickly and the long-delayed Odisha plant is finally ready, pending one government tender. The near-term read depends on whether the mark-to-market losses truly stay reversed.

What we’re watching

Whether the financial-services mark-to-market reversal holds through Q1.
The June oil-marketing-companies tender for the Odisha biofuel plant.
Execution on the ₹260 crore infrastructure advisory order book.

The full read

Avonmore Capital swung to a ₹6.88 crore net loss in Q4, wiping out the ₹15.28 crore profit it posted in Q3. The culprit: mark-to-market losses in financial services. Management says that hit has largely reversed in the current quarter. Strip out the financial-services noise, and the operational business is on a different trajectory. Infrastructure advisory revenue surged 60% to ₹50.54 crore, supported by a ₹260 crore order book. The long-delayed Odisha biofuel plant is finally built, but it remains idle. It is waiting on a single procurement tender from oil-marketing companies, due in June. The Premier Green Innovations JV saw revenue fall 12% to ₹179.35 crore, but its bottom line improved to ₹12.15 crore on lower input costs. The Q4 loss is noisy. The open question is whether the market-sensitive losses stay reversed and whether the Odisha plant finally moves from 'ready' to 'producing'.

Primary source: BSE · NSE

Avonmore's trading desk swings Q4 to a net loss

Tipsheet Editorial — Tue, 26 May 2026 14:32:27 GMT

A standalone profit turned into a loss. Consolidated results were dragged into the red by a pre-tax loss in the debt and equity market operations segment.

What’s new

Standalone Q4 swung from a Rs 6 lakh profit to a Rs 64 lakh net loss.
Consolidated Q4 net loss of Rs 713 lakh versus a profit of Rs 1,530 lakh in Q3.
Full-year standalone PAT plunged 93.8% to Rs 85 lakh from Rs 1,372 lakh.

Why it matters

A single quarter of trading losses erased most of the annual standalone profit. For a nano-cap, a pre-tax loss of Rs 1,343 lakh from one segment is not a one-off blip—it's the business model showing its teeth.

What we’re watching

Any management comment on trading strategy or risk limits after the Q4 loss.
Whether the standalone business stays profitable in FY25 with an Rs 85 lakh full-year PAT.
The segment's performance next quarter to see if this was a mark-to-market event.

The full read

Avonmore Capital's fourth quarter was a write-off, and the trading desk is the culprit. The debt and equity market operations segment booked a Rs 1,343 lakh pre-tax loss, driven by fair value hits and higher costs. That single segment turned a Rs 1,530 lakh consolidated profit in Q3 into a Rs 713 lakh net loss in Q4. The damage shows up even more starkly on a standalone basis, where the full-year profit fell 93.8% to Rs 85 lakh. Consolidated annual profit fell 42.4% to Rs 2,165 lakh. Revenue was essentially flat. The problem isn't sales; it's a trading book that can swing the entire company's result in a single quarter.

Primary source: BSE · NSE