Kotyark Industries Limited (NSE:KOTYARK) disclosed on 5 August 2026, under Regulation 30 of SEBI LODR Regulations, that it has received Letters of Intent from Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited for the supply of an aggregate 1,662 KL of biodiesel, at a combined deliverable value of approximately Rs 15.41 crores.
Key Highlights
- BPCL issued an LOI dated 3 August 2026 for 1,287 KL of biodiesel at a total deliverable cost of approximately Rs 11.93 crores, received by the company via email on 4 August 2026.
- HPCL issued an LOI dated 4 August 2026 for 375 KL of biodiesel at a total deliverable cost of approximately Rs 3.48 crores, received via email on 5 August 2026.
- Both LOIs arise from Joint EOI No. OMC/EOI/BD/JUN26 (CYCLE-1), Tender ID 2026_MKTHO_190226_1, covering the supply period from June 2026 to August 2026, with supply location in Gujarat.
- The promoter or promoter group has no interest in BPCL or HPCL, and these transactions do not constitute related-party transactions as disclosed in Annexure A of the filing.
About the Company
Kotyark Industries Limited (NSE:KOTYARK, BSE: 544726), headquartered in Vadodara, Gujarat, is engaged in the production and supply of biodiesel derived from non-edible oils and other feedstocks. The company operates within India's biofuel sector and has an established supply relationship with domestic oil marketing companies, including IOCL, HPCL, and BPCL, participating in their periodic joint tender cycles for biodiesel procurement. Its ISIN is INE0J0B01017.
Announcement in Detail
Kotyark Industries participated in the Joint Expression of Interest floated by Indian Oil Corporation Limited, HPCL, and BPCL under EOI No. OMC/EOI/BD/JUN26 (CYCLE-1) for biodiesel supply during June to August 2026. Following its bid submission, the company received two separate LOIs: one from BPCL for 1,287 KL valued at approximately Rs 11.93 crores, and one from HPCL for 375 KL valued at approximately Rs 3.48 crores.
The filing notes that in this tender cycle, OMCs issued LOIs directly without a separate allotment sheet, a process consistent with the December 2025 and April 2025 tender cycles. According to the disclosure, direct issuance expedited communication of the allocation and facilitated timely release of corresponding purchase orders. The aggregate quantity stands at 1,662 KL with a combined deliverable value of approximately Rs 15.41 crores, with all supply to be executed within Gujarat.
Impact on Investors
Investors will note that these LOIs represent confirmed near-term revenue visibility for Kotyark Industries, though the supply window runs only through August 2026, limiting the duration of this order cycle. The filing shows the transactions involve no related-party element and no promoter interest in the awarding entities, which shareholders will observe removes any conflict-of-interest consideration under SEBI disclosure norms.
The disclosed terms indicate that formal purchase orders are pending issuance following receipt of the LOIs, and execution remains subject to terms and conditions specified within each LOI and the underlying tender documents. The aggregate order value of Rs 15.41 crores, while modest in absolute terms, reflects the company's continued participation in the OMC biodiesel procurement framework across multiple tender cycles.
Sector / Market Context
India's National Biofuel Policy targets blending 5% biodiesel with high-speed diesel, with oil marketing companies serving as the primary procurement channel for domestically produced biodiesel. IOCL, HPCL, and BPCL conduct periodic joint tender cycles to source biodiesel from registered suppliers, a process governed by the Ministry of Petroleum and Natural Gas. The biofuel sector has received continued policy support under India's energy transition agenda, and OMC tender cycles remain the principal route to market for biodiesel producers such as Kotyark Industries.