There are companies growing because demand is exploding. Then there are companies growing while tenders get cancelled, inventories pile up, regulators seize raw material, and still profits jump 34%.
Kotyark appears to belong to the second category. That alone deserves attention.

1. At a Glance — This Is Not a Typical “Green Energy” Story

Most renewable stories arrive dressed in PowerPoint optimism. Kotyark arrives carrying biodiesel, litigation notes, tender volatility, and 228 inventory days.

That is much more interesting.

FY26 consolidated revenue rose to about ₹315 crore, while PAT came in around ₹19 crore. Despite OMC tender disruptions, the company still delivered growth. More importantly, Q4 FY26 numbers were startling:

Source table

Metric	Q4 FY26	YoY
Revenue	₹63.7 Cr	+221%
Operating Profit	₹19.2 Cr	Massive jump
OPM	30.1%	vs 28.3%
PAT	₹9.4 Cr	+543%
EPS	₹9.08	Sharp surge

This is not normal recovery. This is operating leverage showing up.

But here is the twist.

This business does not sell shampoo or software subscriptions. It largely depends on government-linked OMC tenders. That makes revenues lumpy, working capital ugly, and visibility imperfect.

That 246-day cash conversion cycle? It is not a typo.
That is a red flag and moat, both at once.

Why moat?

Because many investors see green fuel and stop reading.

But look deeper:

• 480,000 KL biodiesel capacity
• 63,000 KL glycerin capacity
• 25 mobile retail outlets
• Government blending tailwinds
• Active backward integration through oil seed cultivation

Now ask yourself:

If India’s biodiesel blending moves even halfway toward targets, does this asset base look small?

That is the real question.

And then comes the dry joke:

Most companies boast “asset-light.”
Kotyark boasts “inventory-heavy.”

Not quite the same romance.

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2. Introduction — A Company Fighting Physics

Biodiesel is usually discussed as policy. Rarely as business.

Kotyark forces you to study both.

The business looks deceptively simple:

Buy feedstock.
Process biodiesel.
Supply OMCs.
Collect payment.

But every step has moving parts.

Feedstock prices swing.

Tender prices move.

Government policies change.

Working capital gets trapped.

And margins can evaporate if procurement timing slips.

Which happened.

FY25 had cancelled tenders and inventory build-up. Management blamed “internal administrative reasons.” Orders froze.

Normally that wrecks a small company.

Instead FY26 ends with:

• Revenue expansion
• PAT recovery
• Dividend increase (₹5/share proposed)
• Credit rating at IND BBB/Stable

Interesting.

Management had earlier said new LOIs worth ₹110 crore could restart momentum.

Did they walk the talk?

Partially yes.

Revenue did not explode dramatically, but margins improved and profitability rebounded sharply.

That matters.

Because many management teams narrate recoveries.

Few report them.

Still, do not romanticize.

This is a tender-dependent commodity processor with policy risk.

Not a SaaS compounder wearing ESG makeup.

Would you pay premium multiples for that?

Hold that thought.

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3. Business Model — What Do They Actually Do?

In simple English:

They convert non-edible oils into biodiesel and sell it.

That’s the business.

But there are three revenue engines:

A) OMC Supplies (Main Engine)

Indian Oil Corporation
Bharat Petroleum
Hindustan Petroleum

Tender wins drive bulk revenue.

This is where scale sits.

Also where drama lives.

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B) Bulk Buyers

Transporters, mining, industrial.

Lower glamour.

Often steadier.

Sometimes better.

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C) Green