Kotyark guides 15-20% revenue growth in FY27, plans 75% capacity expansion
Operating at just 7-8% of its 1,500 KLPD Rajasthan plant, the company eyes gradual utilization improvement and entry into export markets.
What's new
- FY27 revenue growth guided at 15-20%, driven by higher utilization and ARAI certifications.
- Two new 200 KLPD facilities in Jhajjar and Kanpur to be commissioned by Dec 2026, funded via internal accruals.
- Export license application filed; approval expected in 4-6 months with revenue contribution from FY27.
Why this matters
Kotyark's current utilization of 7-8% is extremely low for a 1,500 KLPD plant, but the company is now laying out a concrete path to fill it. The 15-20% near-term growth is modest, but the planned 75% capacity expansion signals management's confidence in long-term demand. The real test will be whether utilization can reach the targeted 60-70% over 4-5 years.
What we're watching
- Capacity utilization ramp in FY27 and acceleration in industrial/retail channels.
- Export license timeline and initial export order wins.
- Policy clarity on blending mandates that could unlock faster demand growth.
The full read
Kotyark Industries ended FY26 with ₹315 crore revenue, ₹48 crore EBITDA, and ₹19 crore PAT — but that was while running just 7-8% of its 1,500 KLPD Rajasthan capacity. The company now expects 15-20% revenue growth in FY27 as utilization ticks up, aided by recent ARAI certifications in industrial and retail channels. More striking is the capacity roadmap: two new 200 KLPD plants in Jhajjar and Kanpur by December 2026, a 75% capacity increase funded entirely from internal accruals. An export license application is underway with approval in 4-6 months, and exports will contribute to FY27 revenue. The OMC business remains a steady contributor with 15 crore litres every three months at 8-10% margins. The near-term growth is modest, but the medium-term target of 60-70% utilization and 60-80% revenue growth over 4-5 years is ambitious. The bet hinges on policy clarity and execution.
Questions answered
- What is Kotyark's current capacity and utilization rate?
- The company has a 1,500 KLPD plant in Rajasthan but is operating at only 7-8% utilization, as per FY26 figures.
- What is the revenue guidance for FY27?
- Kotyark guided for 15-20% revenue growth in FY27, driven by gradual capacity utilization improvement and new ARAI certifications.
- When will the new capacity be operational?
- Two new 200 KLPD facilities in Jhajjar and Kanpur are planned to be commissioned by December 2026, fully funded through internal accruals.
- What is the status of the export license?
- An export license application has been filed, with approval expected within 4-6 months. Revenue contribution from exports is anticipated in FY27.
- How does the OMC business contribute?
- The existing OMC business has flat tender volumes of 15 crore liters per three months at 8-10% margins, insulated by commodity-linked pricing.
- What are the key risks to the outlook?
- Legal challenges and policy uncertainty around blending mandates remain headwinds, though management expressed cautious optimism on medium-term trajectory.