Kotyark Industries Limited, a key player in India’s renewable fuel landscape, has secured a significant operational boost with a fresh mandate from the Indian Oil Corporation Limited (IOCL). The micro-cap biofuels manufacturer announced a ₹30.30 crore order for the supply of biodiesel, signaling strong revenue visibility for the remainder of the fiscal year.
The announcement triggered immediate buying action on the bourses, with the stock surging 4.43% to hit an intraday high of ₹274.80, before settling at ₹259.15. With a market capitalization now standing at approximately ₹266 crore, the deal underscores investor confidence in the company’s pivot toward high-volume institutional contracts.
The Deal at a Glance
In a direct issuance that highlights the company’s growing operational efficiency, IOCL has awarded Kotyark a Letter of Intent (LOI) to supply 3,590 Kiloliters (KL) of biodiesel. The supply, earmarked for IOCL’s Gujarat terminals, is scheduled between November 2025 and March 2026.
This “direct issuance” of the LOI is particularly noteworthy as it bypasses lengthier procurement cycles, reflecting a maturing relationship between the Vadodara-based manufacturer and India’s largest oil marketing company.
Company Evolution: From Trading to Manufacturing Powerhouse
Established in 2016, Kotyark Industries has aggressively transitioned from a wholesale trader to a full-stack manufacturer. Headquartered in Vadodara, Gujarat, the company focuses on the circular economy, converting waste oils into biodiesel and value-added by-products like glycerin.
Recent Company Developments:
- Capacity Consolidation: The company recently strengthened its balance sheet and production capabilities through the amalgamation of Yamuna Bio Energy, a move designed to synergize operations and reduce overheads.
- Diversification: Beyond fuel, Kotyark has expanded its value chain by commissioning a 4 MT/day Glycerin Processing Plant. This allows the company to monetize the by-products of biodiesel production, adding a secondary revenue stream that buffers against fuel price volatility.
- New Subsidiaries: The incorporation of Semani Industries and Kotyark Agro signals the firm’s intent to capture a larger slice of the bio-energy feedstock market.
Sector Watch: India’s Biodiesel Landscape (December 2025)
The timing of Kotyark’s win aligns with a broader structural shift in India’s energy policies. As of late 2025, the biodiesel sector is witnessing two major catalysts:
1. The “Green Army” Push In a landmark development just this month, the Indian Army formally inducted biodiesel into its fuel supply chain for logistics and operational vehicles. This move validates the reliability of biodiesel for heavy-duty engines and opens a massive new government procurement channel beyond the traditional Oil Marketing Companies (OMCs).
2. The Blending Imperative India is aggressively pursuing its target of 5% biodiesel blending (B5) in diesel by 2030. With the current national blend rate still trailing targets, OMCs like IOCL are under pressure to maximize procurement from domestic manufacturers. This regulatory tailwind is creating a “seller’s market” for compliant producers like Kotyark, ensuring consistent demand for their expanded capacity.
3. Feedstock Security The government’s Repurpose Used Cooking Oil (RUCO) initiative is gaining traction, formalizing the supply chain for raw materials. This reduces the feedstock risk for organized players, allowing them to scale production without facing the volatility of imported palm stearin prices.
Disclaimer: This rewrite is for informational purposes and does not constitute financial advice. The stock market is volatile; please consult a certified investment advisor before making decisions.
