10:1 Bonus Issue: This micro-cap green energy stock jumps 7% after announcing shareholder reward

Bonus Issue: Shares of Kotyark Industries Limited witnessed strong buying interest on Thursday after the company announced a 10:1 bonus share issue for shareholders. The stock climbed nearly 7 per cent during intraday trade and touched a high of Rs 416.4 per share.

The company, which operates in the biodiesel and renewable energy segment, currently has a market capitalisation of around Rs 450 crore. The announcement kept the stock in focus throughout the session as investors reacted positively to the proposed corporate action.

Bonus issue approved by board

Kotyark Industries said its board has recommended the issuance of 10 bonus equity shares for every one existing share held by shareholders. The proposal will require approval from shareholders as well as regulatory clearances.

The company added that the record date for the bonus issue will be announced separately at a later stage.

In the same filing, the company said its previously announced dividend of Rs 5 per share for FY26 would be adjusted proportionately after the bonus issue. However, the total dividend payout amount is expected to remain largely unchanged.

Authorised share capital to increase sharply

The board also approved a proposal to increase the authorised share capital of the company from Rs 23 crore to Rs 200 crore, subject to shareholder approval.

Following the increase, the company’s authorised equity share capacity will rise from 2.3 crore shares to 20 crore shares with a face value of Rs 10 each.

Strong growth in latest quarterly performance

Kotyark Industries reported a significant rise in both revenue and profit in its latest financial results.

Revenue increased from Rs 19.86 crore in March 2025 to Rs 63.66 crore in March 2026, reflecting growth of 221 per cent on a year-on-year basis.

Net profit rose from Rs 1.51 crore to Rs 9.38 crore during the same period.

The company reported Return on Capital Employed (ROCE) of 15.3 per cent and Return on Equity (ROE) of 11.6 per cent. Its debt-to-equity ratio stood at 0.36, indicating relatively low borrowing levels.

The company also maintained a dividend payout ratio of 41 per cent. Debtor days improved from 26.4 days to 20.5 days, showing improvement in receivables and working capital management.

Business focused on biodiesel and clean energy

Kotyark Industries is engaged in the production and trading of biodiesel and related by-products such as crude glycerin. The company manufactures biodiesel using waste cooking oil, vegetable oils and animal fat as raw materials.

Apart from biodiesel operations, the company is also involved in renewable energy activities linked to the solar segment. Its business remains aligned with India’s growing focus on clean energy, alternative fuels and sustainability initiatives.

The latest bonus announcement, combined with strong earnings growth, has brought the stock into investor focus amid rising interest in renewable energy and green fuel companies.