Kotyark Industries Limited

Kotyark Industries Limited reported a robust financial performance for FY26, achieving a revenue of ₹314.9 crore, EBITDA of ₹48 crore, and PAT of ₹19.4 crore. This was accomplished despite operating at a relatively low capacity utilization of 7% to 8%. A significant highlight was the proactive expansion of biodiesel production capacity at the Rajasthan facility, increasing it from 500 KLPD to 1500 KLPD, bringing the cumulative annual capacity to approximately 4,80,000 KL.

The company is strategically positioned to capitalize on rising biodiesel blending mandates and industrial demand. It currently holds an executable order book of approximately ₹80 crore, with execution anticipated over the next three months. Additionally, Kotyark is actively pursuing a pipeline of nearly ₹215 crore, providing strong revenue visibility. Management expects capacity utilization to improve gradually towards 60-70% in the coming years, supported by increased participation in OMCs tenders and expansion into industrial and retail channels.

Kotyark is establishing two new biodiesel manufacturing facilities, each with a capacity of 200 KLPD, in Jhajjar (Haryana) and Kanpur (Uttar Pradesh). These facilities, expected to be commissioned by December 2026, will add 400 KLPD to the company's total capacity, strengthening its presence in North India. These projects are being entirely funded through internal accruals, reflecting a prudent capital allocation philosophy.

The company has achieved a significant milestone by becoming the first Indian biodiesel company to receive Vera carbon certification, generating over 57,000 carbon credits. Kotyark's competitive advantage stems from its flexible multi-feedstock platform, capable of processing 10-15 feedstocks, and its ability to build plants at approximately 30% of competitors' investment costs. Furthermore, the company boasts a production yield of over 99%, surpassing the industry average of 97-98%.

Kotyark is actively pursuing a strategy to become debt-free, with 100% of promoter group share sales being reinvested into the company for debt reduction. Management projects a revenue increase of 15-20% for the current year, with overall growth targeted at 60-80% over the next four to five years. The company is also working towards obtaining a license for biodiesel exports, with revenue contributions expected within the current fiscal year.

The company addressed concerns regarding the government's potential consideration of isobutanol blending, with management asserting that isobutanol is significantly more expensive and not viable compared to biodiesel. Updates were provided on ongoing legal cases, including a stay order allowing sales to OMCs and industrial customers, with a next hearing scheduled for the following month, indicating progress towards resolution.