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1. Opening Hook
A biodiesel maker reported ₹314.9 crore of revenue for FY26 while running its plants at roughly 7–8% of capacity, management said on the June 18 call. That is the entire story compressed into one sentence: a company built mostly of empty tanks.
In the same year it quadrupled the Rajasthan line from 500 to 1500 KLPD, lifting cumulative annual capacity to about 4,80,000 KL. So the utilisation gap did not shrink — it was deliberately widened. Two more plants at Jhajjar and Kanpur are slated for December 2026, adding 400 KLPD more.
Then, on June 25, the company issued a 10:1 bonus, multiplying the share count. The day before this was written, the stock fell 4.98% to ₹41. A lot happened. Not much of it was production.
2. At a Glance
- FY26 revenue ₹315 Cr – Up from ₹288 Cr. A 9% climb that management filed under “transformation.”
- FY26 net profit ₹19 Cr – Recovered from FY25’s ₹14 Cr, still below FY24’s ₹22 Cr.
- OPM 15% – Identical to FY25. The flat line that “transformation year” was decorating.
- Capacity utilisation 7–8% – Management’s own figure. The other 92% waits.
- EPS ₹1.66 – On a P/E of 24.7, against an industry P/E of 5.54.
- Promoter holding 63.84% – Down 3.92% in the quarter; the chairman says every rupee went into the company.
- Inventory days 228 – Stock that takes most of a year to leave the building.
3. Management’s Key Commentary
Six quotes, decoded.
“We are pleased to report another year of steady operating progress… despite operating at relatively low capacity utilization level of around 7 to 8%.”
→ (Pleased, steady, and 92% idle — three things that do not usually share a sentence.)
“FY26 was a transformation year from a capacity creation perspective.”
→ (Revenue grew 9% and margins were flat. The transformation was of the tanks, not the income statement.)
“The projects are being funded through internal accruals reflecting our prudent capital allocation philosophy.”
→ (Prudent — said the year operating cash flow came in at minus ₹4 crore per the cash-flow statement.)
“8 to 10% sir.” (current margins, when asked)
→ (FY26 OPM on the data sheet reads 15%. An analyst noticed the gap on the call; the answer was that it is a commodity.)
“In 2005, two children were born. One was ethanol and the other was biodiesel… biodiesel, after being born, only learned to walk around 2015.”
→ (A twenty-one-year-old that learned to walk at ten. The metaphor is doing more growing than the segment.)
“I am reducing debt. I am taking the company towards a zero-debt position.”
→ (Borrowings stand at ₹65 crore against ₹69 crore the prior year, per the balance sheet. Zero is still some distance
