Nexxus Petro commissions 30 TPD tyre pyrolysis plant in Rajasthan

Nexxus Petro Industries has established a 30 Tons Per Day (TPD) used tyre pyrolysis plant at its wholly owned operational facility in Pali, Rajasthan. Commercial production is scheduled to commence from August 30, 2026. The expansion marks the company’s strategic entry into manufacturing used tyre pyrolysis oil (TPO) and carbon, transitioning from trading to captive production.

The new facility forms part of the company’s downstream integration strategy. Previously, Nexxus traded approximately 250-300 MT per month of oil and 180-200 MT per month of carbon. The captive production unit allows the company to fulfil existing market demand directly, capturing manufacturing value additions. TPO serves as a cost-effective substitute for Light Diesel Oil (LDO) in hot-mix plants for heating bitumen during road construction, enabling cross-selling to existing bitumen clients without additional customer acquisition costs.

Capacity and Expansion Roadmap

The Phase 1 unit operates with an installed capacity of 30 TPD, supported by 500 KL of on-site liquid storage tank capacity. The civil foundations and structural layout at Pali are designed to support a total site capacity of 60 TPD. Following 30 days of successful commercial operations, the company plans to initiate Phase 2 by installing an additional 30 TPD modular unit within a few months, scaling facility output to 60 TPD.

Financial Projections

The new facility is targeted to generate annual revenue of ₹25-30 crore in Phase 1, scaling to ₹50-60 crore upon full deployment of the 60 TPD capacity. The segment carries a net profit (PAT) margin of 8-10%, which is meaningfully higher than the company’s core bitumen business. This expansion is expected to be accretive to consolidated earnings, contributing toward the company’s projected turnover of ₹400 crore for FY27 with a PAT of up to 4%.

Metric	Phase 1 (30 TPD)	Full Capacity (60 TPD)
Annual Revenue Target	₹25-30 crore	₹50-60 crore
Net Profit Margin	8-10%	8-10%
Operational Start	August 30, 2026	Post-Phase 1 success

Funding and Strategic Positioning

The ₹14 crore capex for the facility was funded through internal accruals and term loans. The company benefits from an effective interest subsidy of approximately 5% per annum for seven years, subject to applicable terms and approvals, reducing the effective cost of borrowing.

Nexxus operates three processing facilities across Western and Central India: Pali (Rajasthan - 300 MT/Day), Mundra (Gujarat - 150 MT/Day), and Bhopal (Madhya Pradesh - 100 MT/Day), with a combined capacity of 550 MT/Day. The company holds an exclusive CSIR-CRRI and CSIR-IIP certified licence for KrishiBind™ bio-bitumen technology.

What the Numbers Show

The shift from trading to captive manufacturing is designed to expand margins significantly. While the core bitumen business faces raw material volatility and seasonal demand fluctuations, the new TPO segment targets a net profit margin of 8-10%, compared to the company’s overall projected PAT of up to 4% for FY27. This divergence suggests that the pyrolysis business is expected to drive disproportionate earnings growth relative to its revenue contribution, leveraging existing customer synergies to reduce distribution costs.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	+0.18%	+14.69%	-8.89%	-39.26%	-38.02%

Nexxus Petro Industries Limited reported a revenue of ₹261.87 crore and a Profit After Tax (PAT) of ₹6.39 crore for the financial year ended March 31, 2026. The company's operational performance showed an improvement in EBITDA margin, which rose to 4.61% from 3.69% in the previous fiscal year, while the gross profit margin increased to 12.65%. The financial results were disclosed in an investor presentation submitted to the stock exchanges.

Financial Performance

The company's consolidated financial statements indicate a decline in total revenue from operations to ₹26,187.37 lakh in FY26 from ₹30,493.34 lakh in FY25. However, profitability metrics improved as the PAT margin grew to 2.44% from 2.00% in the prior year. Earnings Per Share (EPS) stood at ₹9.20 for FY26, compared to ₹10.14 in FY25.

Metric	FY25 (₹ Lakhs)	FY26 (₹ Lakhs)
Revenue from Operations	30,493.34	26,187.37
EBITDA	1,124.71	1,206.83
PAT	608.78	639.38
EBITDA Margin (%)	3.69	4.61
PAT Margin (%)	2.00	2.44

Strategic Developments

Nexxus Petro Industries highlighted its competitive advantages, including a port-adjacent facility in Mundra and NABL-accredited laboratories. A significant development is the receipt of a CSIR-CRRI & CSIR-IIP certified licence for KrishiBind™ Bio-Bitumen Technology, valid till January 2031. The company is among only 15 entities in India to hold this licence, positioning it to benefit from government policies promoting import substitution and sustainable road construction materials.

Operational Footprint

The company operates three manufacturing facilities located in Mundra, Pali, and Bhopal, with a total manufacturing area of 20,609 sq. metres. The Mundra facility serves as a primary hub with a capacity of 150 MT/day, while the Pali unit is the largest at 300 MT/day. The product portfolio includes Viscosity Grade Bitumen, Bitumen Emulsion, Polymer Modified Bitumen (PMB), and Crumb Rubber Modified Bitumen (CRMB).

Market Context

The investor presentation noted that India's bitumen consumption has grown at a CAGR of 5.17% from 2014-15 to 2025-26, reaching 8.84 Million Metric Tonnes (MMT). Nexxus focuses on Western India, which is identified as the largest bitumen-consuming region in the country. The company is empanelled with the Rajasthan Public Works Department (PWD), providing direct access to state government road projects.