TruAlt secures High Court relief in Rs 1,075-cr ethanol supply dispute

The Karnataka High Court has given a ruling in favour of TruAlt Bioenergy Ltd, paving the way for the potential realisation of significant revenue linked to ethanol supply contracts. In an order, the high court allowed the writ petition of TruAlt concerning a shortfall in ethanol allocation amounting to 1,56,292 kilolitres (KL) for the third and fourth quarters of the Ethanol Supply Year (ESY) 2024–25.

The disputed volume carries an estimated value of approximately ₹1,075 crore. The court issued a writ of mandamus directing major Oil Marketing Companies (OMCs)—Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—along with the Union of India and the Ministry of Petroleum and Natural Gas. The direction is to consider representation of TruAlt Bioenergy dated October 23, 2025.

The petition was filed after TruAlt Bioenergy faced challenges in supplying ethanol against allocated quantities during Q3 and Q4 of ESY 2024–25.

The ruling addresses a key supply-side constraint that had delayed execution of the contracted volumes. With the court’s intervention, TruAlt Bioenergy may now be able to supply the pending quantities, potentially over an extended or revised timeline, subject to decisions taken by the OMCs in compliance with the order.

While the company has not disclosed specific financial guidance or timelines for revenue recognition, the value of the underlying ethanol supply remains substantial. The actual financial impact will depend on the speed of implementation by the OMCs and TruAlt Bioenergy’s operational readiness to fulfil the supply obligations.

TruAlt has recently collaborated with tech major Honeywell to produce 80,000 tons per annum (TPA) of sustainable aviation fuel (SAF) in India together.