Nayara Energy, a leading private player in India’s oil and gas sector, has built a dynamic business model that stretches from advanced refining to retail and now, into petrochemicals. As the company remains unlisted, interest in Nayara Energy unlisted shares continues to rise among investors seeking exposure to India’s energy growth story outside public markets. To understand the company’s future prospects and the unique value of its unlisted shares, it’s crucial to explore how Nayara’s business segments are structured, what drives its revenue, and what the outlook is for 2025 and beyond driving its price [View Current Market Price of Nayara Unlisted Shares]

Nayara Energy’s journey starts at its world-class refinery in Vadinar, Gujarat, which is the largest single-location refinery in India, handling about 8% of the nation’s total refining capacity. The refinery is designed for high efficiency, capable of processing a wide range of crude oils-including heavier, cheaper grades that many competitors avoid.

This flexibility allows Nayara to maximize output of high-value products like petrol, diesel, and aviation turbine fuel (ATF), while minimizing less profitable byproducts. In FY 2024, the refinery operated at 101.6% of its planned capacity, a testament to both robust demand and operational excellence.

Product Mix: Meeting Diverse Market Needs

From the refinery, Nayara produces a wide array of products tailored to various sectors:

Transportation Fuels

Petrol and diesel remain the backbone of India’s transportation sector. Nayara has taken the lead in supporting India’s renewable energy goals by introducing ethanol-blended petrol, making fuel both more affordable and environmentally friendly. Diesel production is diversified into variants for heavy and light engines, with light diesel oil gaining popularity due to its cleaner burn and cost-effectiveness. This shift saw its share grow from 9% to 12% in a single year, supporting industries like farming, transportation, and construction.

Aviation Turbine Fuel (ATF)

Nayara has optimized its ATF production, achieving record output in FY 2024 and ensuring reliable supply for India’s growing aviation sector.

Industrial and Household Products

The company’s LPG is vital for both domestic cooking and industrial applications, while naphtha and ethane serve as feedstock for the petrochemical industry. Bitumen, another key product, supports India’s massive infrastructure push by providing essential material for road construction.

Others

➢ Specialty Chemicals: Mineral turpentine oil and other specialty products have seen increasing market share, with high-quality offerings that cater to industrial needs.

➢ Byproducts: Petcoke and sulfur, often considered waste, are turned into valuable resources for power generation, cement manufacturing, and fertilizer production.

➢ Petrochemicals: The New Growth Frontier

Building on its refining strength, Nayara has made a major entry into petrochemicals with a high-capacity polypropylene plant launched in 2024. Polypropylene is a versatile plastic used in packaging, textiles, and automotive parts. The company is planning phase 2 of its petrochemical project, which will include a steam cracker unit-essential for producing key components for plastics and chemicals. Once complete, Nayara aims to capture 8% of India’s polypropylene market, leveraging its strategic location in western India to serve major industrial hubs.

➢ Retail and Institutional Business

Nayara’s retail business is rapidly expanding, with over 5,000 branded outlets across India and plans for further growth. These outlets are not just fueling stations-they are evolving into multi-service centers offering food, auto-related products, and even non-fuel retail services, creating new revenue streams and enhancing customer loyalty.

On the institutional side, Nayara has increased its market share from 6% to 9%, supplying large clients in sectors like industry, construction, and energy generation. This diversification reduces dependence on any single segment and ensures a steady revenue base.

Future Outlook (2025 and Beyond) for Nayara Energy

Looking ahead, Nayara Energy is strategically positioned for sustained growth, driven by key developments and market trends:

➢ Petrochemical Expansion:

The company's ₹68,000 crore investment in new petrochemical facilities is set to transform its revenue mix, reducing dependence on cyclical refining margins.

• Key Market Development: The high-capacity specialized plant that launched in 2024 marked Nayara's entry into plastics, focusing on polypropylene. The company is planning phase 2, which will include a steam cracker unit to produce components for plastics and chemicals.
• Expected Outcome: The completion of new petrochemical facilities is anticipated by late 2025, enhancing the company's presence in the sector and aiming to capture 8% of India's polypropylene market.

Continued expansion of the retail network, along with diversification into non-fuel services, will drive higher market share and customer engagement.

• Key Market Development: Nayara is growing its retail network, with over 5,000 branded outlets, and diversifying into non-fuel retail services, with services like food and auto-related products.
• Expected Outcome: The company aims to add 500-700 retail outlets by 2026, focusing on underserved rural areas and key highway corridors.

The ownership structure, with Rosneft as a major stakeholder, has been a point of scrutiny, particularly due to geopolitical tensions. There have been discussions and market speculation about Rosneft potentially selling its stake in Nayara Energy.

• Key Market Development: Indian corporate entities have shown interest in acquiring a stake in Nayara Energy, viewing it as a strategic asset in India’s energy sector. The appointment of Elena Alenagett as a Director in January 2024 could also signal strategic realignments.
• Expected Outcome: Any change in ownership could lead to a shift in strategic direction, potential for increased investments, and new partnerships. Investors should closely monitor these developments, as they could significantly impact the company's future growth and market position.