Ganesh Benzoplast Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Ganesh Benzoplast reported strong profit growth in Q2 FY26, driven by increased revenue and operational efficiencies. The company has commenced work on new A-class tank capacity at JNPT, expecting high margins. However, decisions on further land utilization are pending, and increased lease rentals pose a challenge, though management expects to offset this through price increases and new capacities. Goa facility utilization remains a concern.

Highlights

  • Consolidated Q2 FY26 PAT increased 44% YoY to 237 million, up from 164 million in Q2 FY25.

  • Standalone Q2 FY26 PAT increased 42% YoY to 209 million, up from 147 million in Q2 FY25.

  • Consolidated H1 FY26 Revenue grew 5% YoY to 1946 million, and Standalone H1 FY26 Revenue grew 15% YoY to 1186 million.

  • Development of 30,000 tons A-class petroleum tanks has commenced, with an expected EBITDA margin of almost 90% and commissioning within a year.

  • JNPT and Cochin LST facilities are almost 100% utilized, and the company aims for 4-5% rental increases on contract renewals.

Concerns

  • Decision on the full utilization of the 4-acre land at JNPT has been delayed due to technical issues and the need to find the most optimum solution.

  • Goa facility utilization remains low at approximately 5-10%, with no immediate triggers for significant improvement in the next six months.

  • Lease rentals have significantly increased from approximately 3 crores per year to 18-20 crores per year, which will be a straight cost to the P&L.

Key financials

  1. Consol H1 Revenue 1,946 Mn +5%YoY
  2. Consol H1 PAT 419 Mn +26%YoY
  3. Consol Q2 Revenue 990 Mn +1.4%YoY
  4. Consol Q2 PAT 237 Mn +44%YoY
  5. Consol Q2 EPS ₹3.3 +44%YoY
  6. Standalone H1 Revenue 1,186 Mn +15%YoY
  7. Standalone H1 PAT 350 Mn +15%YoY
  8. Standalone Q2 Revenue 616 Mn +13%YoY
  9. Standalone Q2 PAT 209 Mn +42%YoY
  10. Standalone Q2 EPS ₹2.91 +41%YoY

What they filed

Q1 FY27: revenue up 22.9%, net profit up 0.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue98 89 100 96 99 +1%105 +18%111 +11%118 +23%
EBITDA25 27 32 29 22 −12%22 −19%21 −34%27 −7%
Net profit16 18 -13 18 24 +50%16 −11%15 +215%18 +0%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed Planning to fund through internal accruals, with backup bank lines available if required. Will come in a staggered manner phase by phase, mostly through internal resources.
    • 30,000 tons A-class petroleum tanks ₹40 Cr
    • Overall pure LST capacity at JNPT (potential) ₹125 Cr
    • Cryogenics or bullets capacity at JNPT (potential) ₹400 Cr
    • Ammonia capacity at JNPT (potential) ₹300 Cr
    Yes, we are as of now planning to fund it through internal accruals. We always, like any other company, we will make sure that we have backup bank lines available in case we require, but as of now, the company has sufficient funds to fund it. And it will come in a staggered manner phase by phase, so obviously, most hopefully it will be through our internal resources.
  • Debt Debt disclosed
    I am talking about the consolidated numbers. So, your subsidiaries will not show there. In the consolidated numbers, the long-term loans are 70 crores, and the short-term loans are about 27 crores. There is a mix of loans and advances because there is some idle funds lying with the bank which we have kept in FDs and all these things. So, to get the better returns which will at least beat our inflation, we have given some ICDs which are earning more than our bank FD rate. So, that may be the... We are earning average around 10% to 11% as against 6.5 percent in the bank FD.
  • M&A BW (JV partner) Divestment · Closed · Consideration ₹[object Object] (cash)

    Break away from LPG JV

    Received 97.26 million as a one-time fee for breaking away from the JV.

    And for the 97.26 million, as you know that we had a JV with BW and all for LPG which for whatever reasons we all decided to break away from. So, this is a fee that has been paid by BW to us for breaking away. So, this is a one-time thing. The fees is one-time.
  • Liquidity Liquidity disclosed The company has sufficient funds from internal accruals for planned CAPEX and has backup bank lines available.
    Yes, we are as of now planning to fund it through internal accruals. We always, like any other company, we will make sure that we have backup bank lines available in case we require, but as of now, the company has sufficient funds to fund it.

Guidance & targets

Capacity

  • 30,000 tons A-class tanks commissioning Capacity · within a year · High confidence Commission within a year
    We did expect the 30,000 to commission within a year.

    — Rishi Pilani

Revenue

  • Revenue from 30,000 tons A-class tanks Revenue · High confidence INR 400-500 per kl per month
    Our expectation would be that only from these tanks, we should be able to get what we get for our existing tanks which is approximately in the range of about INR 400 to INR 500 a kl per month.

    — Rishi Pilani

Profitability

  • EBITDA margin on 30,000 tons A-class tanks Profitability · High confidence Almost 90%
    You can expect for this part an EBITDA of almost 90% because there is no real increment in cost except for little bit handling cost.

    — Rishi Pilani

  • EBITDA margin for rental business Profitability · High confidence 50-55%
    For rental business, right now it's between 50% to 55%. With this slight increase in this lease rental, it may go down for some time. But obviously with the increase in lease rental and reduction of other overheads like litigation costs and other upcoming capacity, new capacity, so that will remain steady around 50% to 55%.

    — Amar Kabra

  • Consolidated EBITDA margin Profitability · next six months · Medium confidence In line with Q2 FY26 trend
    It will remain on the same lines, like September quarter result we had given. So, obviously, you assume that similar figure will come in the next six months, because ultimately that one time compensation income will go away next quarter and this lease expenditure already you have captured. So, it will be in line with our trend only.

    — Amar Kabra

Rental Business

  • Rental increase on contract renewals Rental Business · year over year · High confidence 4-5%
    That is generally year over year when our contracts are getting renewed. We aim to get at least a 4% to 5% increase in our rentals.

    — Rishi Pilani

What to watch in Q3 FY26

Dividend policy announcement

next quarter
Current Under active consideration, balancing with expansion plans
Target Firm answer on dividend policy

Why it matters

Management has committed to providing a firm answer on the dividend policy in the next quarter, which is important for shareholder returns.

Probably, I think in next quarter, when I do the call, at that time we'll be able to give you a very, very firm answer on this.

Risks & concerns

  • Significant increase in JNPT lease rentals

    high

    Lease rentals have increased from ~3 crores/year to 18-20 crores/year, a direct cost to P&L, though management plans to offset this through price increases and new capacities over 2-3 years.

    Management acknowledged

  • Delay in finalizing full utilization of 4-acre land at JNPT

    medium

    Technical issues with JV closure and the need to find the 'most optimum solution' have delayed the announcement of plans for the remaining land.

    Management acknowledged

  • Increased competition in LST segment from new capacities

    medium

    New LST plants and potential developments like Vadhavan Port and Aegis's JNPT terminal could increase competition, though management believes it could also consolidate volumes at JNPT.

    Analyst acknowledged

  • Persistently low utilization at Goa facility

    medium

    Goa utilization is only 5-10%, dependent on government mining policy and internal modifications, with no significant improvement expected in the next six months.

    Management acknowledged

Q&A highlights

4 direct
Delay in 4-acre land utilization announcement Direct
Yes, we were going through some, we had to solve some technical issues with the closure of the JV because of which it is delayed. But now the work has already commenced in terms of engineering and everything. And then the first phase, we are already building 30,000 tons of A-class petroleum tanks in that land. While the balance we are still deciding what to do.

Addresses a prior commitment and explains the reason for delay, while also providing an update on partial utilization of the land.

Asked by Gautam Gupta

Competition from new LST plants and Vadhavan Port Partial
As of now, we have not got any indication or any signal from our customers that they are planning to migrate or go away. Plus, as on date, today if you see Bombay's volumes, the Bombay region volumes are divided amongst two ports, which is Mumbai port and JNPT port. So, if there is enough demand to supplement that, the ships don't prefer to do two port callings. It's not their first choice. But as of now on JNPT side there is not enough tankages. So, if there is another option that comes up which allows the ship to discharge fully at one port then probably what we are looking at is that we'll be cannibalizing the volumes on Bombay Port Trust, which is also significant.

Management acknowledges potential competition but suggests new capacity at JNPT could be beneficial by consolidating volumes from Mumbai Port Trust.

Asked by Gautam Gupta

Max potential of 4.5 hectares at JNPT for capacity addition Direct
See, max potential depends. So, like I said, we have already started with 30,000 tons of Class A tanks, but the max capacity depends. Like right now, we have a lot of different product choices including some pressurized bullets. There are a lot of options being discussed right now. So, the exact capacity is difficult to define in terms of a land. But let's say if I just made LST, which is the normal liquid, probably we could make totally including this 30,000 close to about 1,00,000 to 1,20,000 kl.

Provides a potential range for capacity expansion based on product mix, indicating significant future growth opportunities at the site.

Asked by Saurabh Dhole

Dividend policy after Morgan issue resolution Partial
Dividend policy is something that we are also actively looking at. Being promoters, you can understand that we stand to benefit the most from it. But there are two things that we always look at is, one is that what is the company doing with the money right now. So, right now, like I said, we have this expansion coming. We want to make sure that we are doing that as fast as possible. So, we are looking at somehow trying to get a good mix of dividend versus capital utilization. Probably, I think in next quarter, when I do the call, at that time we'll be able to give you a very, very firm answer on this.

Management indicates a dividend policy is under active consideration, balancing it with ongoing expansion plans, and promises a firm answer next quarter.

Asked by Rekha Multani

Impact of revised JNPT lease rentals on profitability Direct
The lease rentals before were approximately close to about 3 crores or so per year. We don't know the exact number yet, but it will be somewhere around 18 crores to 20 crores a year. Lease is definitely a straight cost to your P&L, but having said that, we are increasing our prices a little bit to sort of compensate for this. And since our new capacities we have already started working on, once they come in, so overall, we expect that within the next 2 to 3 years we should be able to cross any impact. It will definitely keep reducing and whatever impact this has, we will be able to overcome it.

Quantifies the significant increase in lease costs and management's strategy to mitigate the impact through price increases and new capacities over the medium term.

Asked by Udit Gupta

Competition from Aegis's new terminal at JNPT Direct
I think I already answered that question in my first answer. Right now, the entire cargo in the Mumbai region is basically divided between two ports. That is, Mumbai port and JNPT port. Now, no shipper likes to call two ports. So, what we are sort of foreseeing is that if there is enough tankages available in JNPT to offload the entire ship load then we will actually be cannibalizing the cargo from Mumbai port to JNPT.

Management views increased tankage at JNPT, even by competitors, as potentially beneficial by attracting cargo away from Mumbai Port Trust, which could consolidate volumes at JNPT.

Asked by Udit Gupta

Low utilization at Goa facility (<5%) and plans for improvement Partial
The biggest trigger that can help is the government allows mining again in Goa, of course. But apart from that, we are working to see if we can do some modifications in the tank so that they can handle some other products so that we can use it for that. But as of now, that's only under observation. It's under a very preliminary stage of understanding. So, as of now, for the next six months, I would say that we could continue to expect the same type of occupancy at least.

Highlights the dependency on external factors (mining policy) and internal exploration of product diversification, but indicates no immediate change in utilization for the next six months.

Asked by Rohan

2 min read 6 chapters

Detailed narrative

Strong Profit Growth in Q2 FY26

Ganesh Benzoplast Limited reported robust profit growth in Q2 FY26. Consolidated Profit After Tax (PAT) increased by 44% year-on-year to 237 million, with corresponding EPS rising to Rs 3.30. Standalone PAT also saw a significant 42% year-on-year increase, reaching 209 million, and EPS of Rs 2.91. This strong performance was supported by a 1.4% increase in consolidated turnover to 990 million and a 13% increase in standalone turnover to 616 million for the quarter.

Strategic Expansion at JNPT Underway

The company has commenced work on the first phase of utilizing its 4-acre land at JNPT, specifically for building 30,000 tons of A-class petroleum tanks. This project is expected to be commissioned within a year and is projected to generate revenue of INR 400-500 per kiloliter per month with an impressive EBITDA margin of almost 90%. The overall CAPEX for this 30,000-ton capacity is estimated at approximately 40 crores, funded primarily through internal accruals.

Revised Lease Rentals and Mitigation Strategy

Lease rentals at JNPT have seen a substantial increase, rising from approximately 3 crores per year to an estimated 18-20 crores per year following a renewal with JNPT. This revised rental will be a recurring cost. Management plans to offset this impact by increasing prices for services and leveraging the new capacities coming online. They anticipate overcoming the impact within the next 2-3 years, with the rental business maintaining a steady EBITDA margin of 50-55%.

Future Capacity Expansion and Product Mix Exploration

Beyond the initial 30,000 tons of A-class tanks, Ganesh Benzoplast is still evaluating the optimal utilization of the remaining land at JNPT. Potential future CAPEX could range from 125-150 crores for pure LST, 300-400 crores for ammonia, and 400-500 crores for cryogenics or bullets, depending on the chosen product mix. The company is actively discussing various options with stakeholders to ensure the highest Return on Investment (ROI).

JNPT Market Dynamics and Competition

Management noted that the Bombay region's cargo volumes are split between Mumbai Port and JNPT. While acknowledging new competition like Aegis's terminal at JNPT, they believe that increased tankage at JNPT could be beneficial by allowing ships to discharge fully at one port, potentially cannibalizing volumes from Mumbai Port Trust. They do not foresee price wars, as new terminals have higher cost structures.

Low Goa Utilization and Improvement Efforts

The Goa facility continues to operate at a low utilization rate of approximately 5-10%. Management identified the resumption of government-allowed mining in Goa as the biggest trigger for improvement. Additionally, they are exploring modifications to the tanks to handle other products. However, these efforts are in a preliminary stage, and current occupancy levels are expected to persist for at least the next six months.

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