Ganesh Benzopl.

Ganesh Benzoplast delivered a robust Q1 FY26, with consolidated revenue growing 9% year-on-year to INR956 million and consolidated Profit After Tax (PAT) increasing 10% to INR181 million. The Chemical division was a key growth driver, reporting a 26% increase in turnover to INR494 million and a significant 223% surge in Profit Before Tax (PBT) to INR71 million. This impressive profitability was attributed to plant system upgrades and optimized raw material procurement policies, leading to improved yields and cost effectiveness.

The company successfully navigated significant legal hurdles, including the resolution of the long-standing Morgan case and a recent fraud issue, with court orders confirming the fraudulent nature of documents. Furthermore, despite the termination of a joint venture with BW, Ganesh Benzoplast retained approximately 8.5 acres of prime land at JNPT. Management plans to develop this land under 100% ownership, mitigating prior risks and securing future growth potential for the company.

Ganesh Benzoplast is actively evaluating options for developing its 8.5 acres of retained land at JNPT, considering both liquid storage (LST) and LPG/ammonia facilities. A final decision on the project type is expected by the end of the current quarter (Q2 FY26). The estimated CapEx for LST development is INR150-200 crores, while an LPG or ammonia project would require a substantially higher investment of INR800-900 crores. Funding for LPG projects would necessitate external capital, whereas LST could largely be financed through internal accruals.

Rental income experienced an 8% degrowth in Q1 FY26, primarily due to extensive maintenance and repair activities on 10-15% of tank capacity at JNPT between March and June 2025. Management expects this to be a one-off^📎 event and anticipates a normal year-over-year escalation of 4-6% in rental pricing going forward^⏳. The company is also in the process of renewing its JNPT land lease for another 30 years, with the tendering process completed and Letters of Intent (LOIs) expected soon, though lease costs are projected to increase and will be passed on to customers within 1-2 years.

Following the resolution of the Morgan case and other legal matters, management indicated a positive shift towards shareholder returns. The company plans to 'definitely think' about initiating dividend payments for the current financial year (FY26), signaling improved financial stability and a commitment to distributing profits to shareholders. This marks a change from previous periods where legal uncertainties constrained such decisions.