Kotyark Industries Reports Operational Progress, Capacity Expansion in Biodiesel Sector

Kotyark Industries Reports Operational Progress, Capacity Expansion in Biodiesel Sector​

Kotyark Industries Limited, India's biodiesel manufacturer, reported steady operational progress during FY26, strengthening its position within the nation's growing biodiesel and renewable energy ecosystem. The company, which manufactures biodiesel and value-added by-products, has significantly scaled its operations while maintaining a highly flexible, multi-feedstock platform.

During the fiscal year, the company reported a revenue of ₹ 314.9 Cr, an EBITDA of ₹ 48.0 Cr, and a PAT of ₹ 19.4 Cr, despite operating at relatively low-capacity utilization levels of approximately 7-8%.

The company actively expanded its biodiesel production capacity from 500 KLPD to 1,500 KLPD at Rajasthan, a move intended to capitalize on rising biodiesel blending mandates, increased procurement from Oil Marketing Companies (OMCs), and growing industrial demand. Management anticipates that utilization levels will improve gradually over the next 2 to 3 years, potentially reaching 60-70%, supported by greater participation in OMC tenders and expansion across industrial and retail channels.

Operational Scale and Capacity Advantage​

Kotyark Industries, incorporated in 2016, operates with integrated manufacturing facilities in Sirohi (Rajasthan) and Anand (Gujarat). Its core strength lies in its flexible multi-feedstock platform, which can process approximately 10 to 15 raw materials based on seasonal availability and procurement economics.

The company’s total installed capacity is substantial:

• Cumulative Annual Biodiesel Production Capacity: 4,80,000 KL
• Annual Crude Glycerin Production Capacity: ~63,000 KL

The manufacturing infrastructure, conceptualized internally under promoter supervision, supports process customization, higher throughput efficiencies, and optimized operating costs.

The company also boasts a dedicated glycerin processing plant in Sirohi, Rajasthan. Since glycerin is the primary by-product of the biodiesel manufacturing process, it creates a dual-revenue model. For every 100 liters of biodiesel produced, Kotyark yields approximately 14 liters of crude glycerin.

Financial Highlights (In ₹ Cr)​

The company demonstrated steady year-over-year growth in its financial metrics:


Quarterly performance for Q4 also showed significant acceleration:


As of March 31, 2026, the company’s market capitalization stood at ₹ 415.69 Cr, with a share price of ₹ 404.40.

Milestones and Industry Position​

Kotyark Industries has achieved several key milestones since its inception. In 2021, it successfully listed on the NSE Emerge platform, making it India’s first listed pure-play biodiesel manufacturing company. Further establishing its environmental credentials, the company received the Verra carbon certification in 2024, earning 57,874 carbon credits.

The company has continually evolved its model from biodiesel trading to integrated manufacturing. Key operational advances include commissioning the Glycerin Processing Pilot Plant in 2023 and receiving recognition in 2024 for being the world’s first project to produce biodiesel registered under the Voluntary Carbon Mechanism.

The business is strategically positioned across three segments: OMCs, bulk buyers, and industrial use, providing a diversified revenue stream. Major customers include IndianOil, IOCL, BPCL, Modern Insulators Ltd, and HPCL.

Market and Policy Tailwinds​

The industry benefits from strong national policy support. The National Policy on Biofuels targets a 5% biodiesel blending by 2030, backed by mandatory blending targets, OMC procurement programs, and GST reduction to 5% for biodiesel supply.

From a structural standpoint, the company leverages the rising demand for cleaner fuels and the potential of the carbon market. The global carbon credit market is estimated to reach ~USD 49.4 Bn by 2030. Biodiesel production helps mitigate greenhouse gas emissions, allowing the company to monetize carbon reductions through domestic and international markets.

The company's commitment to sustainability is highlighted by several factors:

• Zero Effluent Discharge (ZED): The facility operates without discharging wastewater.
• Circular Economy: Utilizing waste-to-energy inputs like Used Cooking Oil (UCO) and non-edible oils reduces dependence on traditional fossil fuels.
• ESG Impact: The operations support India’s goals to reduce fossil fuel import dependence and provide a sustainable alternative to conventional fuels.

Future Strategy and Expansion​

Kotyark continues to focus on maximizing capacity utilization by improving participation in OMC tenders and expanding distribution channels. The company plans to strengthen its physical presence in North India through upcoming manufacturing facilities:

• Jhajjar (Haryana): Expected capacity of 200 KLPD by December 2026.
• Kanpur (Uttar Pradesh): Expected capacity of 200 KLPD by December 2026.

The management forecasts improvement in the EBITDA margin towards 18-22% within the next three years, driven by better operating efficiencies, improving plant utilization, and higher contributions from value-added by-products like glycerin sold to the pharmaceutical, cosmetics, and paint industries.

KOTYARK Stock Price Movement​

On Wednesday, shares of Kotyark Industries Limited slipped by 2.78% to settle at ₹422.2, marking a notable decline from the previous day’s close of ₹433.05. The stock traded on a volume of 25,189 shares, signaling a bearish close for the energy sector stock.