M.V.K. Agro Food Product Ltd. Targets Significant Growth through Diversification into Ethanol and CBG
MVK Agro Food Product Limited, an integrated agro-allied products company operating since 2018, is undertaking a major transformation from its traditional sugar operations to become a diversified player in the sugar, ethanol, and compressed biogas (CBG) sectors. The management provided commentary detailing ambitious revenue targets and operational milestones as part of its growth strategy.The Nanded based company holds a licensed sugarcane crushing capacity of 4,000 TCD and produces by-products such as molasses and bagasse. MVK Agro Food Product Ltd., which listed on the NSE Emerge platform in March 2024 following a ₹66 crore IPO priced at ₹120 per share, is guided by Managing Director Marotrao Vyankatrao Kawale.
The company’s expansion plan involves strategic acquisitions and capital investments. In addition to its existing operations, MVK Agro Food Product Ltd. has secured environmental clearance for a 120 KLPD ethanol distillery and a 2.5 MW cogeneration plant. Furthermore, it entered into a tripartite agreement with GAIL and MNGL for the supply of CBG.
Growth Outlook and Financial Guidance
Management provided guidance highlighting significant future revenue streams driven by value-added businesses that were not reflected in prior years' financials. The company targets FY27 revenue of around ₹350 crore, escalating to ₹650–700 crore in FY28 at full run rate. EBITDA margins are expected to expand from approximately 25% in FY27 to 26–27% in FY28 as major capital expenditure (capex) is completed and interest costs decline.The growth prospects benefit from favourable government policies, including the Ethanol Blended Petrol programme targeting around 20% ethanol blending and the removal of restrictions on sugar-based ethanol production for integrated sugar mills. The push for compressed biogas through supportive policies also offers long term demand in this sector.
The company received Maharashtra "Mega Project" status (April 2026) for its ₹275 crore integrated sugar, ethanol, and CBG expansion project. Management indicated that around 90% of the capital expenditure will be deployed by November 2026. Phased commissioning is scheduled with sugar operations starting from November 1, 2026, followed by ethanol and CBG operations beginning in January 2027, aligned with the crushing season.
Strategic Focus and Operational Updates
The transformation of MVK Agro Food Product Ltd. includes diversifying its revenue mix toward approximately 60% sugar and 40% by-products (ethanol, CBG, cogeneration power). Management also highlighted a commitment to expanding beyond the traditional sugar business, including a proposed soybean processing plant at its fully automated facility in Latur.The company's consolidated revenue growth is expected to be bolstered by two recently acquired subsidiaries: Dr. Shankarrao Chavan Jaggery & Agro and V.P.K. Agro Food Product. Management guided for an assured revenue contribution of approximately ₹50 crore from these subsidiaries in FY27, alongside ongoing farmer support through Sai Krupa Dairy. The Board has also approved a ₹50 crore rights issue to support the continued capex programme.
Currently, exports account for about 3% of sales, primarily directed to Russia. The company aims to boost its export share to 10–15% of output by 2030 through enhanced international demand and higher realization rates. On the listing front, MVK Agro Food Product Ltd. is targeting migration from the NSE Emerge (SME) platform to the mainboard by next year.
The financial performance metrics for the company over recent years are detailed below:
| Particulars | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue (Rs. Cr) | 93 | 141 | 150 | 320 |
| RevenueGrowth% | 51.6% | 13.4% | 17.0% | |
| EBITDA (Rs.Cr) | 16 | 24 | 18 | 57 |
| EBITDAGrowth% | 47.3% | -23.5% | 214.7% | |
| EBITDAMargin% | 17.2% | 16.8% | 17.8% | 18.2% |
| PAT (Rs. Cr) | 4 | 9 | 9 | 47 |
| ROE% | 28.2% | 10.8% | 10.4% | 10.4% |
| P/E x | 8.9 | 7.7 | 58.7 |
The company is based in Nanded, Maharashtra, and its integrated operations are focused on leveraging the agricultural supply chain through these expanded capabilities.
MVKAGRO Stock Price Movement
On Wednesday, shares of M.V.K. Agro Food Product Limited edged significantly higher to settle at ₹387.40, recording a robust gain of 6.07%. The stock’s trading day saw volumes recorded at 12,300 shares as it moved within the range of ₹364.90 and ₹387.90.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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