Yashhtej Industries (India) Limited is engaged in the manufacturing of soybean crude oil and de-oiled cake (DOC). The company operates a 250 TPD solvent extraction plant in Latur, Maharashtra. Revenue is generated through sale of crude soybean oil to refineries and DOC to cattle feed manufacturers and exporters. The company also operates a solar power unit, helping reduce energy costs and improve operational efficiency.

Key Clients & Manufacturing Facilities

The company supplies soybean crude oil to oil refineries and DOC to feed manufacturers and traders. It has a manufacturing facility at Industrial Plot No. D-73-1, Additional MIDC, Latur, spread across approx. 21,975 sq. meters. The plant includes solvent extraction machinery, storage facilities, and a solar unit. The factory land and plant are hypothecated with Union Bank of India against working capital and term loans.

Product Portfolio & Order Book

The product portfolio includes Crude Soybean Oil and De-Oiled Cake (DOC). Crude oil is further refined by clients into edible oil, while DOC is used in animal feed production. These products lie in the agri-processing and edible oil value chain. The company operates on an order-based and continuous demand model. Revenue from operations grew from ₹5,924.49 lakhs (FY24) to ₹32,475.64 lakhs (FY25), showing strong execution capability.

Merger, Capex & Expansion Plans

The company recently changed its name to Yashhtej Industries (India) Limited in February 2025. There is no change in business object. Future plans include capacity expansion, working capital strengthening, and modernization of plant & machinery. The IPO proceeds are expected to support debt reduction and working capital needs. The company’s leverage ratio improved from 2.23 (March 2025) to 1.39 (September 2025), indicating strengthening financial stability.

Employees & Banker

September 30, 2025, the company had 91, full time employees. The Banker to the Company is Union Bank of India.

Management & Growth Vision

The company is led by Mr. Suraj Shivraj Barge (Managing Director) and promoters with experience in agro-processing and solvent extraction. The management has demonstrated strong revenue growth, increasing revenue from ₹5,924.49 lakhs (FY24) to ₹32,475.64 lakhs (FY25).

Their vision focuses on:

• Expanding solvent extraction capacity
• Increasing operational efficiency
• Strengthening working capital cycle
• Reducing debt levels

The company plans to fund capex through:

• IPO proceeds
• Internal accruals
• Bank borrowings (if required)

With Return on Net Worth (RoNW) of 58.86% in FY25, the company has shown strong profitability compared to peers.

Long-term targets include scaling production capacity, improving margins through cost control (solar unit benefit), and strengthening its presence in the soybean processing industry.

Industry Overview

Industry Segment

The company operates in the Indian edible oil and soybean processing industry.

Indian Industry Size

India is one of the largest consumers of edible oils globally. The edible oil market in India is estimated at over ₹1.5–2 lakh crore annually and continues to grow due to rising population and food consumption.

Global Industry Size

Globally, soybean oil is one of the most widely consumed edible oils. The global soybean oil market is valued at over USD 90–100 billion, growing steadily at 4–5% CAGR.

Industry Growth Rate

• Indian edible oil demand growth: 4–6% CAGR
• Animal feed industry growth: 6–8% CAGR
• Rising protein consumption boosts DOC demand

Market Leaders

• KN Agri Resources Limited
• Rama Phosphates Limited

Compared to peers, Yashhtej Industries reported revenue of ₹32,475.64 lakhs in FY25 with a P/E of 14.27 and RoNW of 58.86%, indicating strong profitability at current scale.

Industry outlook remains positive due to:

• Increasing edible oil consumption
• Growing cattle feed demand
• Government focus on oilseed self-sufficiency

Major Risk Factors

1. Raw Material Price Volatility

Soybean prices are highly volatile and depend on crop yield, monsoon, and global commodity trends. Any sharp rise in soybean prices may impact margins if the company is unable to pass on the increase to customers.

2. Working Capital Intensive Business

The company requires high working capital for procurement of soybeans. As of September 30, 2025, total borrowings stood at ₹3,747.23 lakhs. High reliance on working capital loans may affect profitability.

3. Industry Competition

The soybean processing industry has multiple regional and national players. Large players like KN Agri Resources have significantly higher revenue scale, which may result in pricing pressure.

4. Regulatory Risk

The edible oil industry is affected by government policies on import duties, MSP, and export restrictions. Policy changes can impact raw material cost and product pricing.

5. Customer Concentration Risk

Revenue largely depends on sales to oil refineries and feed manufacturers. Loss of key customers may impact revenue stability.

6. Debt Obligations

The company has secured loans from Union Bank and other borrowings. Any inability to service debt may impact financial stability.

7. Agricultural Dependency

The business depends on soybean crop availability. Poor monsoon or crop failure can reduce supply and increase procurement costs.

Key Strengths, Moat & Opportunities

1. Strong Revenue Growth

Revenue increased significantly from ₹5,924.49 lakhs (FY24) to ₹32,475.64 lakhs (FY25). This shows strong operational scaling and market acceptance.

2. High Return on Net Worth (58.86%)

The company has demonstrated strong profitability compared to peers, indicating efficient capital utilization and operational performance.

3. Integrated Manufacturing Facility

The 250 TPD solvent extraction plant with solar power integration reduces power costs and improves operational efficiency.

4. Improving Leverage Position

Leverage ratio improved from 2.23 to 1.39 within six months, showing management’s focus on financial discipline and debt management.

5. Strategic Location in Latur

Latur is an agricultural hub for soybean production, ensuring easier access to raw materials and lower logistics cost.

6. Growing Demand in Edible Oil & Feed Industry

Rising edible oil consumption and animal feed demand create strong long-term growth opportunities for crude oil and DOC manufacturers.

7. Scalable Business Model

The solvent extraction model is scalable. Capacity expansion can significantly improve revenue without proportionate increase in fixed costs.