Company Overview and Market Position

Nayara Energy Limited is India’s second-largest single-location oil refinery and a leading private sector player in the oil refining and fuel retail business, operating the strategically positioned Vadinar refinery in Kutch, Gujarat. Originally incorporated as Essar Oil and publicly listed on NSE and BSE, the company was taken private in a leveraged buyout in 2015 and subsequently delisted from stock exchanges at a valuation of Rs 380 billion. In 2017, a consortium led by Russia’s Rosneft and global investors acquired the company, establishing it as an Indo-Russian partnership. The company operates as a fully integrated oil refining entity with over 6,600 retail fuel outlets across India under the Nayara brand, making it the largest private sector fuel retail network in the country.

Refining Operations and Technical Excellence

Nayara’s Vadinar refinery commenced commercial operations in May 2008 with an installed capacity of 20 million metric tonnes per annum, enabling it to process approximately 400,000 barrels per day. The refinery boasts one of the highest complexity indices in India at 11.8, allowing it to process ultra-heavy and heavy crude oil grades that command premium processing margins compared to conventional refineries. The company has consistently achieved throughput exceeding its rated capacity, with approximately 96 percent of crude processed comprising ultra-heavy and heavy grades in FY25. The refinery produces a diverse product mix of over 10 petroleum and petrochemical products including LPG, Naphtha, Motor Spirit, Diesel, Vacuum Gas Oil, Sulphur, Petcoke, and Polypropylene, with approximately 89 percent production focused on light and middle distillates that command higher realisation values.

Strong Financial Performance and Profitability Metrics

Nayara Energy delivered robust financial performance in FY25 with revenue from operations reaching Rs 1,50,915 crore compared to Rs 1,38,112 crore in FY23, demonstrating consistent top-line growth. The company reported Profit After Tax of Rs 6,079 crore in FY25, recovering significantly from Rs 12,321 crore in FY24 as market conditions normalized after the prior year’s exceptional refining margins. The company achieved Earnings Per Share of Rs 40.79 in FY25 compared to Rs 62.54 in FY23, with a Profit Before Tax of Rs 8,458 crore. The company maintains a robust balance sheet with a Debt-to-Equity ratio of 0.25, indicating conservative leverage and financial stability. CARE Ratings has assigned a strong credit rating, highlighting the company’s powerful position in private sector oil refining with healthy refining margins and integrated operations.

Strategic Assets and Integrated Business Model

Beyond refining, Nayara operates a comprehensive vertically integrated business model encompassing a captive power plant with 1,010 MWe capacity to support refinery operations, a single-point mooring terminal and product jetties for crude intake and product offtake, and multi-modal dispatch capabilities via rail, road, marine, and pipeline. The company operates over 6,600 retail fuel outlets providing downstream market access and customer loyalty, positioning it as a fully integrated energy company with exposure across the value chain. The company’s strategic location on India’s west coast, proximity to the Middle East crude hub and Suez Canal, and access to major maritime routes enable optimal sourcing and international export logistics. Recent strategic initiatives include commissioning of polypropylene manufacturing and introduction of ethanol-blended motor spirit ahead of schedule, demonstrating diversification and regulatory compliance.

Pre-IPO Investment Opportunity with Liquidity Support

Nayara Energy represents a distinctive pre-IPO investment opportunity, trading in the unlisted market at prices ranging from Rs 1,210 to Rs 1,265 per share as of November 2025, with a 52-week range of Rs 550 to Rs 1,875. The company recently concluded a buyback offer in May 2025 at Rs 731 per share, providing shareholders with periodic exit opportunities and validating the company’s internal valuation as it navigates global sanctions complexities. The market capitalization stands at approximately Rs 1,80,358 crore, reflecting substantial enterprise value in the unlisted market. While no formal IPO timeline has been announced, early investors in Nayara Energy’s unlisted shares benefit from strong operational fundamentals, vertically integrated business model, and the company’s positioning as India’s premier private oil refiner with unmatched technical complexity and refining capabilities