Guwahati: Numaligarh Refinery Limited (NRL) will prioritise its expansion project before moving ahead with the proposed polypropylene unit, chairman Ranjit Rath said in Guwahati on Friday.

Addressing a press conference after the company’s 33rd annual general meeting, Rath said the Numaligarh Refinery Expansion Project (NREP) would remain NRL’s immediate priority, with work on the polypropylene unit to follow once the expansion is achieved.

NREP has achieved 87.1% physical progress. The project will raise NRL’s crude processing capacity from the existing 3 million tonnes per annum (MTPA) to 9 MTPA through the installation of a parallel new refinery with a capacity of 6 MTPA.

The project also includes a 1,398-km pipeline to transport imported crude oil from Paradip in Odisha to Numaligarh and a 654-km product pipeline from Numaligarh to Siliguri.

The expansion had earlier been targeted for completion in December 2025, following delays attributed to procedural clearances and financing arrangements.

“NRL continues to focus on sustainable growth, innovation and strengthening India’s energy security,” Rath said.

Rath also said NRL’s bamboo-based bio-ethanol plant is yet to commence commercial production and that procurement of bamboo has been halted.

The bio-ethanol plant was developed by Assam Bio Ethanol Private Limited, a joint venture between NRL and Finland’s Fortum and Chempolis Oy. It was inaugurated by Prime Minister Narendra Modi at Golaghat in September last year, along with the foundation-laying for a polypropylene unit at the same site.

The project, aimed at producing ethanol from bamboo biomass, was billed as the first of its kind in India.

Set up under the Assam Accord framework, the plant is considered one of the country’s largest second-generation ethanol projects. Despite expectations that production would begin soon after the inauguration, reports earlier this year said the plant had not achieved the technical success required to start production.

Construction of the bio-refinery began in 2018 with an initial outlay of around Rs 800 crore and a target completion timeline of about four years. The cost was later revised to Rs 4,200 crore, with production targeted for March 2025, before rising further to an estimated Rs 5,000 crore.

The project is expected to generate 1,000 to 1,500 jobs, directly and indirectly, once production begins.

Meanwhile, NRL reported a sharp improvement in its financial performance during 2025-26. Its standalone net worth rose 17.69% to Rs 18,912 crore, while profit after tax surged by more than 90% during the year, Rath said.

Revenue from operations increased to Rs 26,393 crore in 2025-26 from Rs 25,147 crore in the previous fiscal.

Standalone profit before tax stood at Rs 4,077 crore, while profit after tax rose to Rs 3,057 crore, registering growth of more than 90% compared with 2024-25.

Earnings per share also increased to Rs 17.52 from Rs 9.82 in the previous year.

The higher profit was mainly attributable to improved product margins and increased sales volume during the year, Rath said.

The refinery processed 3,113 TMT of crude oil during 2025-26, operating at 103% of its rated capacity. Total sales volume stood at 3,200 TMT.

Motor Spirit (MS) production reached 727 TMT, surpassing the previous all-time high of 725 TMT. Sulphur recovery also touched a record 6.3 TMT, exceeding the earlier high of 5.6 TMT.

The Siliguri Marketing Terminal is also being expanded and augmented to facilitate the evacuation of petroleum products after the commissioning of NREP, Rath said.

Rath, who is also the chairman and managing director of Oil India Ltd, said NRL’s growth was further recognised with its elevation from Miniratna Category-I to Navratna status on December 3, 2025.

He also highlighted the company’s efforts to promote innovation and entrepreneurship through its ‘Ideation’ programme, under which promising start-ups are supported and funded.

“Through such initiatives, the Company seeks to foster an ecosystem of innovation while contributing to the development of new technologies and entrepreneurial opportunities,” he added.