MVK Agro’s Rs. 275 Crore Expansion; Company Targets Rs. 650-700 Crore Revenue Run-Rate by FY28 – Angel One

According to the Angel One Management Interaction Report following discussions with the company’s management, MVK Agro is executing a Rs.275 crore integrated sugar, ethanol and compressed biogas (CBG) expansion project that has been accorded “Mega Project” status by the Government of Maharashtra. The report notes that the expansion is expected to significantly diversify the company’s business beyond conventional sugar manufacturing.

As highlighted in the Angel One report, the company has received environmental clearance for setting up a 120 KLPD ethanol distillery along with a 2.5 MW cogeneration power plant. It has also entered into a tripartite agreement with GAIL and Maharashtra Natural Gas Limited (MNGL) for the supply of compressed biogas (CBG), strengthening its presence in India’s rapidly expanding biofuel ecosystem.

The management indicated that around 90% of the ongoing capital expenditure is expected to be deployed by November 2026. The expanded sugar operations are scheduled to commence from November 2026, while ethanol and CBG facilities are expected to begin commercial operations from January 2027 in line with the sugar crushing season.

According to the management interaction covered by Angel One, the company expects these projects to materially improve its revenue profile, with value-added businesses such as ethanol, CBG and cogeneration power gradually contributing a larger share of earnings. Over the medium term, MVK Agro aims to achieve a business mix of nearly 60% sugar and 40% value-added businesses.

The report further states that the management has guided for revenue of around Rs.350 crore in FY27, with annual revenue expected to reach a run-rate of approximately Rs.650-700 crore in FY28, supported by the commissioning and ramp-up of the new facilities. EBITDA margins are also expected to improve following the completion of major capital expenditure.

Beyond its integrated sugar and biofuel expansion, the management also highlighted plans to diversify into soybean processing through a proposed processing facility. The company is simultaneously working towards increasing exports to 10-15% of its output by 2030 while pursuing migration from the NSE Emerge platform to the NSE Mainboard.

The Angel One report notes that supportive government policies on ethanol blending and compressed biogas are expected to provide long-term structural growth opportunities for integrated sugar companies. With multiple projects nearing completion, MVK Agro appears well positioned to benefit from India’s expanding renewable energy and biofuel initiatives while creating diversified revenue streams beyond the traditional sugar business.

About MVK Agro Food Product Ltd.

MVK Agro Food Product Ltd. is an integrated sugar and agro-processing company headquartered in Nanded, Maharashtra. The company operates a sugar manufacturing facility with a licensed sugarcane crushing capacity of 4,000 TCD and produces value-added by-products including molasses, bagasse and press mud. Listed on the NSE Emerge platform since March 2024, MVK Agro is expanding into ethanol, compressed biogas (CBG) and cogeneration through a Rs. 275 crore integrated expansion project. The company is also strengthening its presence in agro-processing through strategic acquisitions and diversification initiatives, positioning itself as an integrated agri-energy company focused on sustainable growth.

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