From Financialexpress · Madhvendra · · 2m
9X global demand by 2030: 2 Indian smallcap stocks targeting green jet fuel
India's two smallcap stocks aim to capture 9X global sustainable aviation fuel demand by 2030.
In brief
India's two smallcap stocks aim to capture 9X global sustainable aviation fuel demand by 2030. TruAlt Bioenergy and Praj Industries target India's emerging green jet fuel market as SAF blending targets rise to 20% by 2040. Originally reported by Financialexpress.
SAF Policy Shift
India's Ministry of Civil Aviation proposed mandatory SAF blending for international flights starting January 2027.
Global SAF Demand
Global SAF consumption projected to surge 9x to 900 crore litres by 2030 from 100 crore litres in 2024.
India's Aviation Demand
India's international aviation sector requires 5.3 crore litres of SAF in 2027, increasing to 29 crore litres by 2030.
TruAlt Bioenergy
TruAlt Bioenergy operates five distillery units with 2,000 kilolitres per day capacity producing 89.4% ethanol revenue.
SAF Production Plan
TruAlt setting up 310 kilolitres per day SAF plant in Srikakulam with ₹2,250 crore investment.
Praj Industries
Praj Industries designs ethanol-to-jet technology with 24 indian patents and 60 international patents.
SAF Technology
Praj's technology converts ethanol into jet fuel meeting international quality standards (ASTM D7566).
Investment Timeline
Praj expects final investment decision for international ethanol-to-SAF plant in Q1FY28.
Financial Performance
TruAlt reported 606% revenue growth to ₹811.1 crore in Q2FY27 with 12.5% positive EBITDA margin.
Working Capital
TruAlt reduced inventory from ₹528 crore to ₹206 crore in h1fy27 with zero net debt.
Praj's Financials
Praj reported 20.2% net profit growth to ₹23.2 crore despite 18.5% engineering revenue decline.
Order Backlog
Praj carries ₹4,455 crore order backlog as of September 30, 2026, 1.4x FY26 revenue.
Valuation Comparison
TruAlt trades at 8.4x EV/EBITDA vs industry median 25.2x while Praj trades at 21.2x below 22.8x median.
Policy Impact
SAF policy success depends on regulatory implementation and project completion timelines.
Investment Outlook
Both companies could benefit from India's SAF blending framework targeting 20% aviation fuel by 2040.
The one thing
TruAlt Bioenergy and Praj Industries target India's emerging green jet fuel market as SAF blending targets rise to 20% by 2040.
