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NAMBERDAR BIO FUELS LIMITED

Namberdar Bio Fuels Limited - Related Party Transactions

Introduction

Based on the DRHP (Draft Red Herring Prospectus) dated August 3, 2026, and subsequent filings, here are the “Related Party Transactions” (RPT) details of Namberdar Bio Fuels Limited.

Business Model Operations

Business Model: The company procures feedstock (used cooking oil, animal fats, non-edible oils), processes them through transesterification to manufacture Biodiesel (B100), and sells it alongside by-products like crude glycerine and fatty acids. It also engages in trading similar products.


Advances from Customers: As of March 31, 2026, the company held â‚ą0.64 lakhs in advances from customers.


Comparable Peers: Listed peers include Rajputana Biodiesel Ltd and Kotyark Industries Ltd.


Raw Materials: Consumes waste vegetable oil, used cooking oil, animal tallow (fats), and non-edible oils.


Sourcing: Raw materials are sourced domestically from various regions across India.


Price Volatility: Feedstock prices are subject to high volatility due to supply chain disruptions, competition for waste-based inputs, and global commodity price trends.


Key Raw Material Vendors: The company is heavily dependent on its top 10 suppliers, who accounted for 80.65% of total purchases in FY 2025-26.


Key Factors Affecting Business: Geographic concentration in Uttar Pradesh, reliance on Oil Marketing Companies (OMCs), tender-based procurement, and feedstock availability.


Competitive & Regulatory Landscape: The industry is governed by the National Policy on Biofuels and blending mandates. Competition is based on pricing, product quality (BIS standards), and reliability of supply.


Legal Cases: There are no criminal or civil cases against the company or promoters; however, the company has 2 pending tax proceedings involving a small amount of â‚ą0.06 lakhs.


Total Addressable Market (TAM): While not explicitly quantified in a single figure, the report notes a promising outlook driven by India's goal to reduce crude oil imports and increasing adoption across transportation and logistics.


Key Competitors: Domestic players like Rajputana Biodiesel and Kotyark Industries.


Order Book: As of July 30, 2026, the company had pending orders worth â‚ą618.64 lakhs from two major customers for Bio-Diesel.

Financial Performance Health

Balance Sheet Health: Total assets grew from â‚ą1,070.75 lakhs in FY24 to â‚ą3,365.00 lakhs in FY26. The Debt-Equity ratio has improved from 7.35 in FY24 to 2.34 in FY26.


Operating Cash Flows: The company has faced instability here, with negative cash flows in FY26 (-â‚ą92.60 lakhs) and FY24 (-â‚ą476.24 lakhs), though FY25 was positive at â‚ą124.82 lakhs.


Customer Concentration: Extremely high; 95.18% of revenue came from the top 10 customers in FY 2025-26.


Revenue Mix: The business is entirely domestic, with 98.69% of revenue originating from Uttar Pradesh alone.


Debt Raised: Total borrowings as of March 31, 2026, were â‚ą1,933.64 lakhs, primarily comprising cash credit and term loans.


Capital Expenditure (Capex): Incurred â‚ą186.18 lakhs in FY26, â‚ą38.99 lakhs in FY25, and â‚ą66.04 lakhs in FY24.


Return on Capital (RoCE): Increasing trend: 23.63% (FY26), 20.15% (FY25), and 2.24% (FY24).


Asset Turnover: Based on FY26 consolidated revenue (â‚ą5,038.75) and total assets (â‚ą3,365.00), the turnover ratio is approximately 1.49x.


Sales/EBITDA/PAT Trends: All are increasing. Sales rose from â‚ą730.84 lakhs (FY24) to â‚ą5,038.75 lakhs (FY26). EBITDA grew from â‚ą76.44 lakhs to â‚ą762.98 lakhs. PAT moved from a loss of â‚ą7.02 lakhs to a profit of â‚ą454.72 lakhs.


Margin Analysis: Both EBITDA margins (14.90% in FY26 vs 10.35% in FY24) and Net Profit margins (9.02% in FY26 vs -0.96% in FY24) are increasing. This is attributed to better cost absorption, benefits of scale, and inclusion of higher-margin technical services.


Free Cash Flow (FCF) & EBITDA Conversion Table:


Conversion Trend: The conversion is not increasing consistently. It improved significantly in FY25 but turned negative again in FY26 due to higher working capital requirements (inventory and receivables).


Red Flags:

  1. Geographic Risk: 98%+ revenue from a single state (UP).
  2. Customer Concentration: 95% revenue from top 10 customers.
  3. Cash Flow: Negative operating cash flows in 2 of the last 3 years.
  4. Compliance: History of delays in ESIC, TDS, GST, and MCA filings.

Risks Management Outlook

Growth Plans: The company intends to use IPO proceeds for repaying â‚ą520 lakhs in debt, funding â‚ą700 lakhs in working capital, and pursuing unidentified inorganic acquisitions.


Government Intervention: Highly visible through blending mandates, the National Policy on Biofuels, and the tender-based procurement systems of OMCs.


Management Commentary on Trends: Management views the shift toward biodiesel as a structural trend linked to global sustainability goals, India's energy transition, and long-term efforts to reduce fossil fuel dependence.

Disclaimer

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