Nexxus Petro Industries Ltd

Clarification on price movement

• Price movement in the scrip is market-driven and outside management control.
• Company will continue to make all disclosures as per Regulation 30 of SEBI LODR.
• Management has no knowledge of the reasons behind significant price movements.
• The update reaffirms ongoing compliance with stock exchange agreements.

Plant expansion and production timeline

• Plant capacity of 30 TPD at a wholly owned facility in Pali, Rajasthan.
• Commercial production to commence from August 30, 2026.
• Phase 2 expansion to add 30 TPD within months, reaching 60 TPD total.
• Capex ₹14 crore funded entirely by internal accruals.
• Phase 1 revenue ₹25-30 crore; full 60 TPD could reach ₹50-60 crore.
• Net margin 8-10%; projected turnover ₹400 crore for FY2026-27 with PAT up to 4%.
• Funding via internal accruals and term loan with ~5% p.a. subsidy for 7 years.
• On-site liquid storage capacity of 500 KL.

Business

• Manufacturer, processor, importer and distributor of bitumen, emulsions, PMB, CRMB and bio-bitumen.
• Operates three facilities in Mundra, Pali and Bhopal, serving infrastructure contractors and government agencies.

Operations

• Value-added products contribute about 15% of revenue.
• Holds Rajasthan PWD empanelment and CSIR-CRRI/CSIR-IIP licence for KrishiBind™ bio-bitumen.
• Mundra facility benefits from port adjacency and direct Dubai import access.

Financials

• FY26 revenue fell 14.1% to ₹261.87 crore from ₹304.93 crore.
• FY26 EBITDA rose 7.3% to ₹12.07 crore; margin improved to 4.61%.
• FY26 PAT increased 5.0% to ₹6.39 crore; PAT margin improved to 2.44%.
• Gross margin improved to 12.65% from 8.90%, aided by better product mix.
• Q2/FY26 ended with cash and equivalents of ₹0.50 crore and receivables of ₹31.52 crore.

Capital

• Total equity rose to ₹38.66 crore in FY26 from ₹32.27 crore.
• Long-term borrowings increased to ₹3.35 crore, while short-term borrowings declined to ₹17.41 crore.
• Debt-to-equity increased to 0.60 from 0.54.

Outlook

• Management sees demand support from road construction, expressways, rural roads and import substitution.
• KrishiBind™ positions the company for sustainable road-building demand and higher-margin products.
• Three facilities and owned logistics support expansion across western and central India.

Risks

• Bitumen prices are exposed to import costs and geopolitical volatility.
• Company highlights competition and execution risk in scaling strategy and expansion.

Governance

• Chairman and Managing Director is Haresh Mohanlal Senghani; Whole Time Director is Rahul Mohanlal Senghani.
• Company is listed on BSE SME.

Business

• 📍 The company manufactures and trades bitumen and similar products.
• 📍 The company operates in a single business segment.

Bio-Bitumen Technology License

• Nexxus Petro holds CSIR-CRRI & CSIR-IIP certified license for KrishiBind™ bio-bitumen technology
• KrishiBind™ is a bio-binder derived from agricultural biomass
• Company is among 15 licensed bio-bitumen producers in India

Market and Industry Context

• India imports 54% of bitumen demand, about 6 million tonnes annually
• International bitumen prices surged nearly 40% due to West Asia conflict
• Domestic bitumen prices rose from ₹40,000 to ₹54,000–₹76,000 per tonne
• Government promotes bio-bitumen to reduce import dependence
• Road construction demand growing under PM Gati Shakti and Bharatmala initiatives

Strategic Positioning

• Nexxus Petro positioned to supply bio-bitumen to road agencies and contractors
• Government policy supports adoption of bio-bitumen alternatives
• Sustainability and ESG factors favor bio-based, waste-derived bitumen
• Commercial bio-bitumen production expected to scale significantly

Company Operations

• Nexxus Petro manufactures, processes, imports, and distributes bitumen products
• Operates automated processing facilities with NABL-accredited labs
• Serves infrastructure contractors, road authorities, and government agencies