Rajputana Biodiesel along with its subsidiary Nirvaanraj Energy has received Letters of Intent (LOIs) for 3,543 kilolitres (KL) of biodiesel from two of India’s largest Oil Marketing Companies (OMCs) — Indian Oil Corporation (IOCL) and Hindustan Petroleum Corporation (HPCL). The total value of the order is approximately INR 30 crore and deliveries will be completed in 4 months from April to July 2025.
This is part of a larger tender floated by IOCL, HPCL and Bharat Petroleum Corporation (BPCL) under EOI No. OMC/EOI/NUCO/BD/MAR25 (CYCLE1) dated 13 March 2025 for 2,00,000 KL of biodiesel.
As per the company’s disclosure more LOIs are expected in near term for additional volumes under the same tender. This includes potential allocation from BPCL to both Rajputana Biodiesel and its subsidiary Nirvaanraj Energy. The current LOIs will become operational post completion of formalities like submission of Bank Guarantees, type test certificates and full specification reports as per tender terms.
Rajputana Biodiesel Post-IPO Performance & Market Reaction
Rajputana Biodiesel launched its IPO on 26 November 2024 to raise INR 24.70 crore. The IPO was received massive demand which led subscription to 718X. The IPO delivered ~2X returns on listing day and touched its highest closing price of INR 359.35 per share on 2 Jan 2025, reflecting a multibagger returns of ~176%.
Investors welcomed the news with open arms. On Thursday Rajputana Biodiesel’s stock surged 8.1% and touched an intraday high of INR 235.00 per share compared to previous close of INR 217.30 per share. The market capitalization of the company rose to INR 158 crore. Currently, it is trading around INR 225 per share (a correction of 37% from its highest closing)
Solid Fundamentals and Strong Financials
Rajputana Biodiesel, a Jaipur based company in alternative fuels segment has shown good financial performance recently. Its Q2FY24-25 revenue grew 68% YoY from INR 26.49 crore to INR 44.53 crore. Net profit more than doubled in the same period from INR 1.99 crore to INR 4.86 crore.The stock is trading at P/E of 32.58 which is lower than industry average of 41.45. It has average ROE of 40.30% and ROCE of 18.73% over last 3 years. Promoter holding is strong at over 65%.
Diversification into Compressed Bio Gas
Along with biodiesel Rajputana Biodiesel has also received approval to set up 2 x 5 TPD Compressed Bio Gas (CBG) plants in Ajmer and Nagaur districts of Rajasthan. The projects have been sanctioned by Rajasthan Renewable Energy Corporation Limited (RRECL) under Rajasthan Integrated Clean Energy Policy, 2024.
This is Rajputana’s entry into CBG segment which is gaining momentum as India is shifting towards cleaner and decentralized energy. The company will need additional clearances from PESO and environmental bodies before commercial rollout.
Strategic Outlook
Rajputana Biodiesel’s latest contract win, coupled with its foray into compressed bio gas, places the company squarely in the spotlight of India’s green energy transition. While the current INR 30 crore order is substantial in itself, the anticipated issuance of additional LOIs under the same tender could further bolster revenue visibility for FY25.
With a steadily improving financial base, operational diversification, and positive regulatory tailwinds, Rajputana Biodiesel appears poised for sustained momentum — both in terms of topline growth and market recognition. Long-term investors looking to ride India’s renewable energy wave may find this micro-cap an increasingly attractive prospect.
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