Kotyark's capacity math doesn't add up, but its expansion plan demands it
Management guided FY27 growth while its own figures on the earnings call contradicted the size of the plant that growth must come from.
The numbers
- FY26 revenue was ₹315 crore, with EBITDA of ₹48 crore and PAT of ₹19 crore.
- The company guided 15-20% revenue growth for FY27.
- Current utilization is 7-8% of a Rajasthan plant it now calls 1,500 KLPD.
- It plans a 400 KLPD capacity addition, which it described as a 75% increase from current levels.
- Two new 200 KLPD facilities in Jhajjar and Kanpur are targeted for commissioning by December 2026.
Management's story
- The company said it expanded Rajasthan capacity from 500 KLPD to 1,500 KLPD in FY26.
- It guided for 15-20% revenue growth in FY27, driven by higher utilization and ARAI certifications.
- Management targets a climb to 60-70% utilization over 4-5 years.
- It said the 400 KLPD expansion is fully funded via internal accruals.
- An export license application is filed, with expected approval in 4-6 months and revenue contribution from FY27.
“That will increase our capacity by 400 KL per day. It will cover North India for us, representing about a 75% increase from our current levels.”
— Kotyark management, Q&A, June 2026
Where they diverge
The company's growth thesis rests on a 1,500 KLPD capacity base. Yet on the call, management described a 400 KLPD addition as a 75% increase from current levels. That implies a baseline of only about 533 KLPD. The arithmetic gap was not addressed and directly undermines the starting point for any utilization target. Before the path to 60-70% utilization can be credible, the company must explain the current capacity it is trying to fill.
The full read
Kotyark Industries guided 15-20% revenue growth for FY27, but the quarter's most important number is not on the income statement. Management said it expanded Rajasthan capacity from 500 KLPD to 1,500 KLPD. It then described a 400 KLPD addition as a 75% increase from current levels, which implies a baseline of only about 533 KLPD. The discrepancy was not explained. This is not a rounding error. The entire utilization thesis, from the current 7-8% to a target of 60-70%, depends on the denominator. The growth drivers themselves are plausible. ARAI certifications should unlock industrial channels. Two new plants are planned, and an export license is pending. But management cannot build a multi-year story on a capacity figure it cannot keep straight. The immediate task is not expansion but arithmetic. Until Kotyark reconciles its own numbers, the gap between its ambition and its credibility will remain its primary business risk.
What we're watching
- Whether Kotyark provides a clear, consistent explanation of its current installed capacity in the next quarter's filing or call.
- The actual revenue contribution from industrial channels in Q1 FY27, following new ARAI certifications.
- Progress on the export license application, with an approval decision expected within 4-6 months.
- Commissioning timelines for the Jhajjar and Kanpur facilities, due by December 2026.