Synopsis: Rajputana Biodiesel has received Letters of Intent (LOIs) from Indian Oil Corporation Limited (IOCL) for the supply of 954 KL of biodiesel worth approximately Rs. 8.90 crore. The company also expects additional LOIs for the remaining bid volumes, which could further strengthen its order pipeline.
Shares of Rajputana Biodiesel Limited are likely to remain in focus after the company announced that it has received Letters of Intent (LOIs) from Indian Oil Corporation Limited (IOCL) for the supply of biodiesel under the OMC biodiesel procurement tender for the June-August 2026 period. The estimated order value stands at approximately Rs. 8.90 crore, including GST.
Rajputana Biodiesel Limited has a total market capitalization of approximately Rs. 137 crore. The company’s shares were trading at Rs. 195.20 apiece on the stock exchange, down by 1.91 percent. The stock has gained 3.28 percent over the last five trading sessions and declined 1.41 percent over the past month. It touched a 52-week high of Rs. 299 and a 52-week low of Rs. 169.
What is the order?
According to the company’s exchange filing, the oil marketing companies (OMCs), comprising Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), had floated a tender for biodiesel procurement for the June-August 2026 period.
Following its successful bid, Rajputana Biodiesel has received LOIs from IOCL for the supply of 954 KL of biodiesel at Bharatpur, Rajasthan. The estimated order value is approximately Rs. 8.90 crore, including GST, and supplies will be executed between June 2026 and August 2026. The company also clarified that the order is from a domestic entity and is not a related-party transaction.
Along with the current LOIs, the company stated that additional Letters of Intent are expected shortly for the remaining biodiesel bid volumes in favour of Rajputana Biodiesel Limited and its subsidiary, Nirvaanraj Energy Private Limited. If awarded, these additional volumes could further improve revenue visibility over the coming months.
Why is this important?
Orders from India’s public sector oil marketing companies are considered significant because they provide assured demand for biodiesel suppliers. These companies regularly procure biodiesel to support the Government of India’s ethanol and biofuel blending programmes aimed at reducing dependence on fossil fuels and lowering carbon emissions.
Winning supply contracts from IOCL also demonstrates Rajputana Biodiesel’s ability to meet the quality and operational requirements of one of India’s largest fuel retailers, which could strengthen its position in future tenders.
Industry outlook
India’s biofuel industry continues to benefit from supportive government policies promoting cleaner fuels, higher biodiesel blending targets and increased use of renewable energy sources. Rising demand for sustainable transportation fuels and ongoing investments in green energy infrastructure are expected to create long-term growth opportunities for biodiesel manufacturers.
As biodiesel adoption increases across the country, companies with established production capabilities and relationships with oil marketing companies are likely to benefit from recurring procurement opportunities.
Founded in 2016, Rajputana Biodiesel Limited is engaged in the manufacturing and supply of biodiesel and its by-products, including glycerine and fatty acids. The company caters to the growing renewable energy and biofuel market by supplying environmentally friendly fuels that support India’s clean energy transition and government-led blending initiatives.
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