💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for H1FY26 was INR 147.32 Cr, representing a 25% YoY decline compared to INR 196.76 Cr in H1FY25. However, revenue showed a 61% sequential recovery from INR 91.34 Cr in H2FY25, driven by a resurgence in business operations and improved order execution.

Geographic Revenue Split

Not explicitly disclosed in available documents; however, the company operates from Vadodara, Gujarat, and recently expanded its footprint by forming Parth Renewable Energy LLP in Jhajjar, Haryana, in December 2025.

Profitability Margins

Net Profit After Tax (PAT) for H1FY26 was INR 6.65 Cr, a 63% YoY decrease from INR 17.83 Cr in H1FY25. PAT margins contracted to 4.5% in H1FY26 from 9.1% in H1FY25, primarily due to a 15% increase in depreciation and amortization expenses following major capacity expansions.

EBITDA Margin

EBITDA margin stood at 12.7% in H1FY26, a significant compression of 566 BPS compared to 18.3% in H1FY25. EBITDA (excluding other income) fell 48% YoY to INR 18.67 Cr, impacted by transitional factors and the cancellation of a major OMC order in March 2025.

Capital Expenditure

The company undertook significant capital expenditure to triple its plant capacity from 500 KL per day to 1,500 KL per day. Tangible assets grew from INR 6.13 Cr in FY22 to INR 67.18 Cr by FY25, reflecting aggressive investment in manufacturing infrastructure and logistics vehicles.

Credit Rating & Borrowing

Finance costs for H1FY26 were INR 3.43 Cr, a 16% YoY reduction from INR 4.07 Cr in H1FY25, suggesting improved debt management or lower interest rates despite the heavy capital expenditure phase.

⚙️ Operational Drivers

Raw Materials

Biodiesel feedstocks (implied as used cooking oil or vegetable oils) represent the primary cost; operating expenses, which include raw materials, were INR 128.65 Cr in H1FY26, accounting for 87.3% of total revenue.

Capacity Expansion

Current installed capacity is 1,500 KL per day, following a 200% expansion from the previous 500 KL per day capacity. This expansion is intended to capture larger volumes from Oil Marketing Companies (OMCs).

Raw Material Costs

Operating expenses decreased 20% YoY to INR 128.65 Cr in H1FY26, trailing the 25% revenue decline, which indicates a slight increase in the relative cost of production per unit of revenue.

Manufacturing Efficiency

The company is transitioning to a more streamlined procurement mechanism where OMCs issue Letters of Intent (LOIs) directly, which is expected to improve the pace and clarity of order execution and plant utilization.

Logistics & Distribution

The company is investing in its own fleet of commercial vehicles to enhance distribution efficiency and maintain competitive delivery timelines for its biodiesel products.

📈 Strategic Growth

Expected Growth Rate

200%

Growth Strategy

Growth will be achieved through the 3x capacity expansion to 1,500 KL/day, the formation of Parth Renewable Energy LLP for geographic diversification, and capitalising on the formalised OMC procurement process (LOIs) which replaces the less transparent allocation sheet system.

Products & Services

Biodiesel and related biofuels sold primarily to Oil Marketing Companies (OMCs).

Brand Portfolio

Kotyark Industries.

New Products/Services

Formation of Parth Renewable Energy LLP in December 2025 suggests a move into broader renewable energy segments, though specific revenue contribution percentages are not yet disclosed.

Market Expansion

Expansion into Haryana through the Jhajjar-based LLP and targeting increased procurement volumes from national OMCs.

Strategic Alliances

Formed Parth Renewable Energy LLP with other designated partners in December 2025 to expand renewable energy operations.

🌍 External Factors

Industry Trends

The biodiesel industry is shifting toward more transparent procurement, with OMCs replacing allocation sheets with direct Letters of Intent (LOIs). This transition is expected to stabilize order flow for large-scale producers like Kotyark.

Competitive Landscape

The company competes in the biodiesel sector, primarily vying for tenders issued by major Indian Oil Marketing Companies.

Competitive Moat

The company's moat is based on its significant scale (1,500 KL/day capacity) and its established relationship with OMCs. This scale provides a cost advantage in a tender-driven market where volume and execution capability are critical.

Macro Economic Sensitivity

Highly sensitive to government and OMC policies regarding biodiesel blending mandates and procurement transparency.

Consumer Behavior

Demand is driven by regulatory mandates for biofuel blending rather than direct consumer behavior shifts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI Listing Obligations, and OMC procurement policies. The company must adhere to specific biodiesel quality standards for OMC acceptance.

Environmental Compliance

The company maintains a CSR policy focused on sustainable development and environmental positive changes, though specific ESG compliance costs were not disclosed.

Taxation Policy Impact

The effective tax rate for H1FY26 was approximately 25.5%, with a tax provision of INR 2.28 Cr on a PBT of INR 8.92 Cr.

Legal Contingencies

The company reported a compliance deviation regarding SEBI Regulation 29, failing to give a prior intimation of at least two working days for a board meeting. No major pending court cases or case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the consistency of OMC procurement activity; the cancellation of a major order in March 2025 led to a 63% decline in PAT for the following half-year.

Geographic Concentration Risk

Historically concentrated in Gujarat, now diversifying into Haryana through a new LLP.

Third Party Dependencies

High dependency on OMCs for revenue and government policy for biodiesel blending mandates.

Technology Obsolescence Risk

The company is mitigating technology risks by investing in modern plant capacity and logistics to maintain operational efficiency.

Credit & Counterparty Risk

Trade receivables stood at INR 9.62 Cr in FY25, a significant reduction from INR 34.44 Cr in FY24, indicating improved collection efficiency and lower counterparty credit risk.