Kotyark Industries Limited (KOTYARK) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good evening and welcome to Q4 and FY26 Earnings Call of Kotak Industries Limited hosted by Confideleaf Partners. As a reminder, all participant lines will remain in listen-only mode and there will be an opportunity for you to ask questions after the management's opening remark and presentation. Please note that this earnings conference call is recorded. Before we begin, I would like to mention that certain statements made during this conference call may be forward-looking in nature. These statements are based on the current expectations, assumptions, and estimates of the management and are subjected to various risks and uncertainties. Actual results may differ materially from those expressed or implied due to several factors. The company undertakes no obligation to publicly update or revise any forward-looking statements. We present the investor relations for Kotyak Industries Limited, and on behalf of Confideleap Partners, I extend a warm welcome to all the investors, analysts, and participants for joining the earnings call for Q4 and FY26. We have with us Mr. Gorang Shah, who is the Chairman and Managing Director of the company. Gorang, sir, you may now proceed.

Hello. Good evening, everyone.

Am I audible? Am I audible? Hello.

Yes, sir, you are audible.

Good evening, everyone, and warm welcome to Kotiak Industries Limited, earning conference call. We are pleased to report another year of steady operation progress of Kotiak continued strengthening. Its position in India's rapidly growing biodiesel and renewable energy ecosystem during FY26, the company reported revenue of Rs. 314.9 crore, EBITDA of Rs. 48 crore and PET of Rs. 19.4 crore, despite operating At a relatively low capacity utilization level of around 7 to 8 percent, this result reflects the strength of our integrated business model and our ability to build a scalable platform for long-term growth. FY26 was a transformation year from a capacity creation perspective. Productively expand our biodiesel production capacity at our Rajasthan facility from 500K LPD to 1500K LPD, taking our cumulative annual biodiesel production capacity to approximately 4,800,000 K LPD, these positions as well. 2. Capitalize on rising biodiesel blending mandates, increasing procurement by OMCE and growing industrial demand. Management remains confident of improving utilization level gradually over the next few years, towards 60-70%. Support by stronger Participation in OMC tender and expansion across industrial and retail channels, one of the courtyard's key strength continues to be its flexible multi-feedstock platform capable of processing. Nearly 10 to 15 feedstock, depending upon availability and procurement economics, combined with our integrated sourcing capability and integrity

internally

conceptualized manufacturing infrastructure. This provides. Strong supply chain rising, operating effective and cost competitive. Another important period of our business model is value extraction through by-product. Our glycerin business. Re-force our circular economy approach and create additional monetizing opportunity across pharmaceuticals, foods, cosmetics, personal care, and paint industry. In addition, our sustainability initiative have Enable Kotyak to become the first Indian Biodiesel Company to receive Vera Carbon Certification and generate over 57,000 carbon credits, further strengthening our ESG credentials. From a growth standpoint, we currently have an Exclusivable order book of approximately 80 crore, comprising order from OMC and other customers with execution expected over the next three months. In addition, we have to actively pursuing a pipeline of nearly 250 crore. Providing strong revenue, visibility going forward. Looking ahead. We are also setting up two new biodiesel manufacturing facilities at Jajjar in Haryana and Kanpur in Uttar Pradesh, each with a capacity of 200K LPD. This facility expected to be commissioned by December 2026. It will air. 400 KLPT of capacity and further strengthen our presence across North India, while supporting rising OMC and industrial demand. The projects are being funded through internal accruals reflecting our prudent capital allocation philosophy. Supported by strong industrial tailwind winds, improving plants, utilization capacity, additions, increasing customer presentation, and growing contribution from value-added products. We remain committed to building a sustainable, integrated, and scalable green energy platform and contributing Meaningfully to India-scale clean energy transmission. Thank you. We would now be happy to take your questions.

Thank you. Participants who would like to ask questions may raise hands and also may post questions on the Q&A box. I will wait for two minutes for a Q2 form. We have a question from Mr. Himanshu Agarwal. Kindly unmute yourself, unmute and introduce yourself.

Hello, am I audible?

Yes.

Yes. Good afternoon, sir. Sir, I have two questions. Sir, first question is that OMC, sir, has not increased the quantity of tender per month. In the last year, it means 5 crore per month, around a litre. This time, sir, it's only about 15 crore per litre. So, sir, crude oil has increased so much after that. After that, OMC's bio-diesel blending has not increased. What are the reasons for that, sir?

Sir, this is the government policy, and the requirements are still there, but they will gradually grow.

Okay, sir. Sir, my second question is, sir, the new, like you said in the tender, the allocation policy, the location-based total quantity-wise, so, sir, the Quotia benefit will get the benefit of our plant in Rajasthan. Good morning, everyone.

Sir, it's obvious that now we have to feel the quantity, we don't have to do that, so the full location, we have to say that before we participated in the X location, but the L1, we didn't do that, so we will give our allocation to some other, so this will be beneficial for us.

Thank you sir for your questions.

Thank you. Participants who would like to ask questions may raise hands and also may post questions on the Q&A box. We have the next question from Mr. Shubham Mehetre. You may unmute and introduce yourself.

Good morning, everyone, and welcome to the call. Good morning, everyone. Thank you. That would be beautiful.

Hello, Mr. Shubham, you are not audible.

Okay, moving on. Participants who would like to ask questions may raise hands and also may post questions on the Q&A box. We have the next question from Mr. Udit Sehgal. You may unmute and introduce yourself.

Yeah, am I audible?

Yes, sir.

Sir, regarding these OMC tenders that the previous participant was talking about, I think the year before the rates were quite high and then I think around 110 or 120 and then the rates came down to 80. And this time the rates will come somewhere around 95 or 100. So what is your feedback on the ground, sir?

Thank you. और आपर लापर क्या थे करने पादा को लुम्डा परक नहीं परता है तो अब उल्ला नुए मार्जिन पर दीचे पर जाएंगे तो लुमाटों के मुपों परता है यहां

जीज़े क्या मार्जिन्ट बना सकते हैं 8 to 10 percent. And but sir, main to this, you have the capacity that you have said, 500 to 1500, which is the demand for consumption, what time will it take to utilize?

No, sir, we are targeting the industry, but we will also see the next result in the company. The industry will also be good, and the company will also be good, and the company will also be good.

So, how much capacity utilization we can do?

This quarter will be bigger.

But for the year, what do you expect? I have a lot of expectations, sir, and what can you do with the revenue potential?

Okay.

Yeah, I'm going to go to the call, I'm going

to go to the call, I'm going to go to the

Okay, sir, one request, I mean, the IR is also on the line, if you have a plant visit, then we will have a better idea of the setup.

Sir, I am telling you one thing, if I can visit from India, if I can visit from the outside, I will not visit from the inside, I will tell you that. The big biodiesel manufacturing plant is not big, but it is small. Good morning, everyone, and welcome to the call.

Thank you, sir.

Thank you. Participants who would like to ask questions may raise hands and also may post questions on the Q&A box. We have the next question from Mr. Raghav Srivastava. You may unmute and introduce yourself.

Hello, am I available? Yes. Yeah, yeah. So I have this question on, so what is the current logistics model for supplying biodiesel? And are you planning to establish additional storage or, you know, deport infrastructure? And what about the logistics model? What is the current logistics model for supplying biodiesel?

We have our own vehicle for supplying raw materials or finished goods.

Okay, so my next question was, so your Sirohi plant, once this reaches normalized utilization levels, what asset turnover can we expect from the facility? Thank you.

It will be 100% of the capacity.

Uh, yeah, I mean, uh, efficient capacity utilization. Optimum.

Optimum hooga toh, meri hesap teh, saadee ding, 4,000 crore ka hooga.

No, no, I'm asking what asset turn hooga. I mean, like, two times, three times.

Sir, do you want to understand what you want to say?

I like asset anova. Like, you know, you take sales and then you divide it by asset. So you get asset anova. So it's a metric to, you know, get how efficient that asset is. Sir, I will tell you about that in the end. Okay, no worries, no worries, no worries, no worries. So, sir, there was one more question. So, how much capex is likely to be incurred after the completion of the Jajjar and Kanpur plants?

Sir, our capacity will increase 400 kel per day. Thank you, everyone, and welcome to the call. It's a 75% increase.

Thank you.

Participants who would like to ask questions may raise hand and also post questions on the Q&A box. We have the next question from Mr. Ashish Thakul. You may unmute and introduce yourself.

Yeah, good evening, sir. So, I wanted to ask, does management see any opportunities for exports in biodiesel or glycerin, and are there any plans to enter international markets as well?

We are doing this, and within some time, we will see the result, sir.

Sir, when can we expect the timeline? What would be the ideal timeline, a year or a couple of years?

Actual export of biodiesel is bad. Okay, but we are expecting

that our license will be operational in exports into biodiesel, right?

Yes, yes, yes.

Can we expect to be impacted in FY28 or FY27?

In this year.

Oh, great. So, also, could you explore the downstream, unfortunately?

You are telling me that there are two units in Padgol, Gujarat, and one is in Rajasthan, Shiroi. So, either of one, we will create EOE unit. Then, we can export the bioregons.

Okay, so we are just left with the compliance portion.

And then one another certification, ISTC certification, so OBM later.

Got it. So could you also explore about the downstream opportunities such as specialty biofuels, refined glycerin, or any other value derivatives from our current business opportunities?

And down, pardon sir?

What other alternatives can we expect when it comes to speciality, biofuels, refinery, insurins, or any other value-added derivatives?

We are going to export. We are also approaching the industry. We are also approaching the industry and you will also get the result of this quarter.

Okay, so we are expecting Q1. Q1, right? Correct. So, how much does the scope exist to improve in conversion efficiency and yield through the process optimization and technological advancement? In short, how we are expecting our capacity utilization, that would help us in the efficiency yields?

How much can we expect?

So, quantify how much can we expect?

First of all, I said that it will be greater than 15 to 20 percent.

Oh, that's right. Okay, so this last question from my end. Can management provide some insights into, you know, employee additions and talent requirements or company sales operations across multiple locations?

Sir, we are doing it.

Sorry?

We are doing it.

Okay. See, that's it from my side, though.

Thank you. Participants who would like to ask questions may raise hands and also may post questions on the Q&A box. We have the next question from Mr. Shubham Maitre. You may unmute and introduce yourself.

Yes.

Okay. Sir, first of all, I would like to ask questions about this, which the minister has said that we will blend in diesel, which is very inefficient and good. So, about this, you want to say that you are saying that you are saying that they are saying that they are saying that they are using 15 percent of isobutanol blend. Good morning, everyone, and welcome to the call.

Good morning, everyone. In 2005, there were two children. One was ethanol and the other was bio-discipline. So, ethanol was asked before, and bio-discipline's birth came in 2015. And gradually, ethanol also had 10-10 years of birth. Thank you so much. So, this is for the call.

Sir, but the government is being made with ethanol, so I think it's a vision for them. So, maybe the bio-diesel industry is going to be...

But, sir, but, sir, it is a... My heart is being made with bio-diesel... It's about 70-75% of the people who are doing biodeal, so how do we do isobitteral? And the other thing, in India, there is a, you can't get enough plants. In my opinion, one, two or three plants, there is no more isobitteral.

Yeah, so you think that it will not be successful?

I am saying that it is open platform, so I will not say anything. But I know what happened. I know what happened. I know what happened. I know what happened. I know

what happened. Good morning, everyone, and welcome to the call.

Sir, that's my case. I've ordered a stay order for OMC and industry sales. The process is going on next month. The chance is going on the next month. And a little bit of an initiative that Rajasthan government has also done, so the process of renewing the process is going on in a short time. I'm sorry, everyone, and welcome to the call. Thank you.

Okay, sir. Sir, in your investment presentation, there is an interesting thing that you have two clients named, one Modern Insulator and one E-Diesel Biofuels. So, E-Diesel Biofuels, do you have finished Biodiesel or raw materials?

Modern Insulator, we have Biodiesel and E-Diesel. Go home. Semi-finished, biodiesel-based.

Okay, okay. No, because E-Diesel is also a manufacturer. And it is probably the biggest plant in Gujrat.

Sir, I want to tell you, our strength is that our competitors can be able to supply, semi-finished goods to our capacity.

Thank you, everyone, and welcome to the call. Okay, okay. Sir, and now you have to sell the open market, what are the new plans for the shares market?

Multiple purposes. One, two, a company going for zero defs, a concept, and this is the reason for this.

Sir, you have a very big holding, like in the past few months, the promoter group has also been selling. So, this plant is probably for you, which you have put two new plants, which are for you. इसके कि नहीं कर्या कम कर रहा हुँ ? ओके ओके मैं वही कुश्य कर दिलोगे करना है।

इसके में परमोटर जैन हुआ है उन्द्रड परसंट पैसा कोट्याक इंड्रस्स्य में आई है कोट्याक आशा है.. Good morning, everyone,

and welcome to the call. So, this is the industrial bio diesel 140 rupae, as you know, and diesel has a lot of scarcity. It's a bit cold, but now, you can buy a private player, because the industrial diesel has 140 rupae. But the margin is huge,

I don't know, the margin is good.

Good morning, everyone, and welcome to the call, and welcome to the call.

Sir, I am going to export, industrial sales, so many opportunities have come to us, and we are going to increase our progress.

Okay, okay, okay, let's go, sir, this is the only thing, the rest of the FMCG is going on, the last half has launched some FMCG products.

Yes, exactly, everything is going on.

Thank you.

Participants who would like to ask questions may raise hands and also may post questions on the Q&A box. We have the next question from Mr. Anshul Sharma. You may unmute and introduce yourself.

Hello, I'm Aadul.

Yes.

Hi, sir. First question is, what differentiates Kotiag from other biodiesel manufacturers? So, is it like apart from scale or does the company enjoy any cost advantage, say, on a 4-liter basis?

Sir.

Can you throw some light on this, please?

My forefather's business was non-edible oil. I didn't teach any bio-dizzles. I started manufacturing in 2007. I started manufacturing in 2007. I started to make bio-dizzles. I started to make bio-dizzles. I started to make bio-dizzles. I started to make bio-dizzles. Okay, I am making myself and I am making myself, so both sides are my advantage that my investment for biodiesel manufacturing, which is from the other units in India, I will make a 30% of my plants, and that is my biggest strength.

Okay, that's very great to know. So, and...

It's another one. I'm coming to the call. । परस्ट करोंगे. What is yield of? उनकी प्रोड़क्त की yield क्या है? तो वो 98%, 97% होगी. कोटियाक इंडेस्टी 99% से उपर का yield लाती है. तो ये भी मेरा एक strength है.

Hmm. Okay. And secondly, I wanted to ask regarding the capacity utilization. So let's say if it increases. So what percentage of incremental revenues is expected to flow to EBITDA? So let's say, can we?

Sir, I'm gradually growing. First of all, my expectation is that I'll increase 15-20%, 30%, but I'll increase 15% minimum.

Okay, so we can, is it safe to say 10 to 15 percent?

Yes.

Okay.

Above 15 percent.

Okay, okay. And so next, what percentage of wheat stock procurement currently comes from used cooking oil? And can we like know if there is a change in this mix going forward?

We have multiple non-edible registrations.

Okay.

Because it is a very costlier one, and it will be a lot of cost. And there are a lot of things that I can't explain to you.

Okay, okay. Understandable. And so lastly, I just wanted to get an overview of what is the future outlook for the company. So let's say in two to three years, what are the verticals that we plan to pour into?

Sir, we are thinking about growth in the next 5-4-7-80% to 80% and it is a clean, clean and renewable product. So, this product is going to be increasing. If it is the need of the sensor, it will be increasing again.

Right, right. And sir, lastly, I wanted to ask, is there any sustainability initiatives that we are taking currently? All right, all right. Great to know. All right, that's it from my side. Thank you so much, sir. And wishing the best to whole team of Kotyak Industries.

Thank you, sir.

Thank you. Participants who would like to ask questions may raise hands and may post questions on the Q&A box. We have a follow-up question from Mr. Shubham Maitre.

So, yes, all areas are ready. Hello, am I out even? Yes. Sir, I was asked, last time you received two certification from AR and AI, so do we have the mining industry and generators, do we have to provide biodiesel to that?

So, the industrial sales of the industry has increased.

Okay, okay. Sir, what do you plan to go to South, and go to Karnata? Because there are two big players in M11 industries. And there are no other players. So what do you plan to go to Chennai? Because there is a lot of competition. There is a lot of good tender allocation.

I think North India is probably going to go to Morris.

Okay, okay. Thank you, sir.

Thank you. Participants who would like to ask questions may raise hands and may also post questions on the Q&A box. We have no further questions, so I would like Mr. Gorongji to give the closing remarks.

Thank you very much.

Thank you, sir.

Ladies and gentlemen, thank you for attending Kotyak Industries Ltd. Q4 and FY26 earnings call, which was hosted by Confideleaf Partners. You may now kindly sign off.