Desco Infratech kicks off biogas production at Bulandshahr plant
Through its subsidiary, Desco enters renewable fuels with Phase-1 of a 5 TPD CBG plant, starting at 1 TPD. Commercial sales are imminent.
— 4 earlier stories on Desco Infratech Ltd. →What's new
- Subsidiary Shri Green Agro commissioned Phase-1 of a 5 TPD CBG plant in Bulandshahr, UP.
- Initial output of 1 TPD with commercial sales starting shortly.
- Desco Group enters the renewable energy sector, converting agri residue into clean fuel.
Why this matters
For a nano-cap EPC firm with ₹164 cr market cap, diversifying into bio-energy is a strategic shift that taps into a high-growth segment supported by the SATAT initiative. The initial 1 TPD capacity is tiny compared to Desco's quarterly sales of ₹77 cr, but the scalability of CBG could create a meaningful new revenue stream over time.
What we're watching
- Timeline for scaling to full 5 TPD capacity.
- Revenue contribution from CBG sales in upcoming quarters.
- Any new renewable energy orders or partnerships.
The full read
Desco Infratech is no longer just a pipeline contractor. Through its subsidiary Shri Green Agro Energies, it has commissioned Phase-1 of a 5 TPD compressed bio‑gas plant in Bulandshahr, starting at 1 TPD. Commercial sales are expected shortly. The move, flagged in a May 2026 investor call, marks Desco's entry into renewable fuels, converting agricultural residue into clean gas under the SATAT initiative. For a ₹164 cr market‑cap company with trailing revenue of ₹77 cr per quarter and a clean balance sheet (D/E 0.19), this is a small but strategic pivot. The initial 1 TPD capacity won't move the needle, but the plant is designed to scale to 5 TPD. What matters is whether Desco can replicate this model, turning a pilot into a scalable second revenue line alongside its EPC orders.
Questions answered
- What is the financial impact of this plant on Desco's revenue?
- Desco has not disclosed any projected revenue. At 1 TPD initial capacity, the contribution will be negligible compared to its ₹77 cr quarterly EPC revenue, but scaling to 5 TPD could add a few crores annually.
- What is the SATAT initiative?
- SATAT (Sustainable Alternative Towards Affordable Transportation) is a government scheme promoting CBG as a green fuel. The plant aligns with this initiative, which offers policy support and offtake assurances.
- How does this fit with Desco's core EPC business?
- Desco primarily does engineering and construction for gas pipelines and infrastructure. The CBG plant represents vertical diversification into renewable energy, leveraging its project execution skills.
- When will the plant reach full capacity?
- Only Phase-1 (1 TPD) is commissioned. Management has not provided a timeline for Phase-2 to reach 5 TPD.
- Is this Desco's first renewable energy project?
- Yes. The company previously focused on EPC for gas utilities. This is its first foray into bio-energy.
Desco Infratech Ltd.
Latest quarter · Mar 2026
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All notes on DESCO →- 24 Jun 2026 · 12:40 PM IST Desco Infratech kicks off biogas production at Bulandshahr plant
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