Kotyark Indust. Q4 FY26 Earnings Call — Analysis (NSE: KOTYARK)

Kotyark Industries reports FY26 revenue of ₹314.9 Cr with 7-8% capacity utilization; guides 15-20% revenue growth in FY27 led by industrial sales and new capacity

24 Jun 2026 · Analysis by Alpha Inflection

The take

FY26 Revenue ₹314.9 Cr . New guidance — FY27 fy27 revenue growth 15-20% . New story: Industrial sales as near-term growth driver .

Results

FY26 revenue ₹314.9 Cr, EBITDA ₹48 Cr, PAT ₹19.4 Cr; capacity utilization at 7-8%

Financial highlights

Guidance

Revenue growth of 15-20% expected in FY27; new Jhajjar and Kanpur plants to be commissioned by December 2026

What management committed to

• FY27 revenue growth of 15-20% — 15-20%, FY27
• Capacity utilization to improve gradually towards 60-70% over the next few years — 60-70%, next few years
• Jhajjar and Kanpur biodiesel facilities (200 KLPD each) to be commissioned by December 2026 — Q3FY27
• Export biodiesel sales to commence in FY27 after obtaining license in 4-6 months — FY27
• Executable order book of ₹80 Cr to be executed over the next three months — ₹80 Cr, Q2FY27
• Long-term growth target of 60-80% over the next four to five years — 60-80%, FY31
• Margins to improve slightly as capacity utilization increases — slightly improve, as utilization increases
• Industrial sales growth to be visible in Q1FY27 results — Q1FY27
• Company moving towards zero-debt — zero-debt
• Existing pipeline of ₹215 Cr provides strong revenue visibility — ₹215 Cr

Key themes

Capacity expansion and industrial sales diversification

How the narrative shifted

• Biodiesel blending mandate slow but steady: Management expects gradual increase in OMC procurement despite current tender volumes being flat, citing government policy evolution similar to ethanol’s past trajectory.
• Industrial sales as near-term growth driver: Shift towards industrial customers and retail channels to offset slow OMC blending growth; ARAI certifications enabling direct sales to mining and generator operators.
• Massive capacity build ahead of demand: Expanded total capacity to 480,000 KL with two new 200 KLPD plants by Dec 2026, positioning for eventual 60-70% utilization and 60-80% long-term growth.
• Proprietary low-cost manufacturing moat: In-house plant design and fabrication reduces capex to ~30% of peers, with >99% yield; management refuses inside plant visits to protect this advantage.
• Export license unlocking new market: Pursuing ISCC certification and EOU conversion to enable biodiesel exports, expected to begin in FY27, though biodiesel export is currently banned.
• Policy uncertainty around isobutanol: Management downplays government’s isobutanol blending talk as economically unviable vs biodiesel, but refrains from open criticism.
• Balance sheet deleveraging: Promoter sold shares to inject funds into the company for debt reduction, targeting zero-debt; no personal enrichment.

Operational commentary

• Expanded Rajasthan facility capacity from 500 KLPD to 1500 KLPD, taking total annual biodiesel capacity to approx. 480,000 KL
• Executable order book of ₹80 Cr from OMCs and other customers to be executed over next 3 months
• Active pipeline of ₹215 Cr providing strong revenue visibility
• Two new biodiesel plants at Jhajjar (Haryana) and Kanpur (UP) of 200 KLPD each to be commissioned by Dec 2026, funded through internal accruals
• Received Vera carbon certification and generated over 57,000 carbon credits
• ARAI certifications enabling increased industrial sales; flexible multi-feedstock platform handling 10-15 feedstocks
• Pursuing export license (ISCC certification) with expected approval in 4-6 months; export revenue to begin in FY27
• Promoter sale proceeds used to reduce company debt; moving towards zero-debt
• Company’s proprietary in-house plant manufacturing yields capex cost at ~30% of industry peers and biodiesel yield >99%

Analyst Q&A

• Q. Why are OMCs not increasing tender quantities despite higher crude prices?

  It is based on government policy and OMC requirements; they will increase gradually.

• Q. What is the impact of the new tender allocation policy (quantity-based instead of location-based) on Kotyark?

  We only need to fulfill quantity; earlier we couldn't become L1 at some locations, so this will be beneficial.

• Q. What is the current capacity utilization and what growth can be expected?

  It will increase from this quarter onwards. Revenue growth around 15-20% and utilization in line with that.

• Q. Could you arrange a plant visit?

  I can arrange an outside visit but not inside the plant because our investment is one-fourth of peers and we want to protect our proprietary technology.

• Q. What is the asset turnover expected from the Sirohi plant at optimum utilization?

  I will explain that to you later.

• Q. What is the current status of the government’s push for isobutanol blending and its impact on biodiesel?

  Isobutanol is 70-75% more expensive than biodiesel; very few plants exist. I cannot comment further on an open platform.

• Q. How much capex is expected after Jhajjar and Kanpur plants?

  They will increase capacity by 400 KLPD, covering North India; increase of around 75%.

• Q. What is the scope to improve conversion efficiency and yields?

  It will happen; can’t quantify beyond the 15-20% increase already mentioned.

• Q. What employee additions are needed for multiple locations?

  We are working on that.

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