Ganesh Benzoplast Limited — Q3 FY26 earnings call

Call held 19 Feb 2026

Management summary

Ganesh Benzoplast reported strong revenue growth in Q3 FY26 and 9M FY26, driven by its chemical business. However, Q3 PAT saw a decline due to a significant, one-time increase in lease rental provisions for the JNPT terminal. The company is progressing with a major 1 lakh KL capacity expansion at JNPT, funded by internal accruals, and plans to initiate consistent dividend payouts from Q1 FY27. Strategic EPC projects are being used to foster client relationships, while development of other high-value storage types faces delays in securing long-term partner commitments.

Highlights

  • Consolidated Q3 FY26 revenue of INR105.3 crores, up 18% YoY.

  • Consolidated 9M FY26 PAT of INR58.0 crores, up 13.06% YoY.

  • Chemical business 9M FY26 PBT of INR18.7 crores, up 36.5% YoY.

  • First phase of 1 lakh KL capacity expansion at JNPT expected by Q1 FY27.

  • Strategic EPC projects, like the INR51.33 crores Reliance order, are being pursued to strengthen customer relationships and secure future storage business.

Concerns

  • Consolidated Q3 FY26 PAT declined 11.96% YoY to INR16.2 crores, primarily due to a substantial increase in lease rental provision for JNPT terminal.

  • Overall EBITDA margins dipped due to the increased lease rentals, though management expects recovery over time.

  • Delays in monetizing reserved JNPT land for new, high-value storage types (LPG, ammonia, hydrogen) due to challenges in securing long-term commitments from potential partners.

Key financials

  1. Consolidated Revenue ₹105.3 Cr +18%YoY
  2. Consolidated PAT ₹16.2 Cr -12%YoY
  3. Consolidated 9M Turnover ₹299.9 Cr +9.3%YoY
  4. Consolidated 9M PAT ₹58 Cr +13.1%YoY
  5. Consolidated 9M EPS ₹8.06 +13.2%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.

Segment breakdown

  • Chemical Business (9M FY26)
    ₹139.9 Cr Turnover₹18.7 Cr PBT

Capital allocation

high confidence
  • Capex ₹160 Cr entirely from our internal accruals
    • 1 lakh KL capacity expansion at JNPT ₹160 Cr
    It's approximately INR160 crores to INR170 crores. And this we would do entirely from our internal accruals? As of now, the plan is that, yes.
  • Debt Debt disclosed
    My question is about -- yes, currently, we are almost debt free.

Guidance & targets

Capacity

  • 1 lakh KL capacity expansion completion (Phase 1) Capacity · Q1 FY27 · High confidence 50% ready
    we are expecting that about 50% to 40% to 50% of the capacity should be ready by the first quarter of next year.

    — Rishi Pilani

  • 1 lakh KL capacity expansion completion (Full) Capacity · beginning of FY27-28 · High confidence entire construction completed
    And the entire construction will be completed with commissioning in -- by the end -- by the beginning of FY '27-'28.

    — Rishi Pilani

Revenue

  • Incremental revenue from 1 lakh KL capacity Revenue · once the full capacity is commissioned · High confidence INR45 crores to INR50 crores
    So our estimate is that we should be -- once the full capacity is commissioned, we should have a range of approximately INR45 crores to INR50 crores of additional top line due to this.

    — Rishi Pilani

Margin

  • EBITDA margins from 1 lakh KL capacity Margin · once the full capacity is commissioned · Medium confidence 65% to 70% (potentially >75%)
    I mean we -- since we are expanding on the same site, we would expect that the EBITDA margins for this one would be close to 65% to 70%. In fact, I can expect up to 75% also -- more than 75%.

    — Rishi Pilani, Amar Kabra

  • EPC business margins Margin · Ongoing · High confidence 5% to 10%
    So in any EPC business, you expect a margin range of anywhere between 5% to 10%. Usually, that's the norm. And we expect that this contract will be in those lines also.

    — Rishi Pilani

Dividend

  • Dividend payout initiation Dividend · first quarter of next year (Q1 FY27) · High confidence starting dividend payouts
    Yes. So we have -- we are looking at starting dividend payouts from the first quarter of next year, so that means in the quarter of April to June from that we are going to start dividend.

    — Rishi Pilani

  • Dividend payout consistency Dividend · next year onwards · High confidence consistent yearly payouts
    No, no. I don't think the intent is to make it a one-off kind of a thing, no.

    — Rishi Pilani

What to watch in Q4 FY26

Progress on 1 lakh KL capacity expansion (Phase 1)

Q1 FY27
Current Construction started
Target 50% of capacity ready

Why it matters

This is a major capex project expected to drive significant incremental revenue and high margins, crucial for future growth.

So, the work has already started on the construction. We are expecting that the first phase will be ready in the first quarter of FY '27...

Risks & concerns

  • Impact of increased lease rental provision on profitability

    medium

    Consolidated Q3 PAT declined due to a substantial increase in lease rental provision for JNPT terminal (INR22 crores for full year), though management expects to pass on costs over time.

    Management acknowledged

  • Delay in monetizing JNPT land for new, high-value storage projects

    medium

    Land is kept aside for LPG, ammonia, or hydrogen storage, but no contracts are in place due to the requirement for long-term tank utilization commitments (10-15 years) from partners, leading to opportunity cost.

    Analyst acknowledged

  • Legacy issue of unauthorized transactions

    low

    Auditor commented on it as a contingent liability in FY23-24, but management asserts no financial liability for the company as transactions were unauthorized, with legal cases ongoing.

    Analyst downplayed

Q&A highlights

7 direct
JNPT capex timeline and product prioritization Direct
So, the work has already started on the construction. We are expecting that the first phase will be ready in the first quarter of FY '27... And the entire construction will be completed with commissioning in -- by the end -- by the beginning of FY '27-'28.

Provides concrete timelines for a significant capex project and clarifies the phased approach for the 1 lakh KL capacity expansion.

Asked by Bhavesh Patel

Legacy issue of unauthorized transactions Direct
So, see, the thing is that we have always maintained that there is absolutely no liability that can come on the company based on this since the company has not authorized any transactions in their official capacity ever. And I agree with you that as far as we as management can see, there is absolutely no chance of any liability coming on the company because of this. Yes, the court cases will continue, and we continue to address them legally.

Addresses a potential liability concern, stating management's confidence in no financial impact despite ongoing legal cases, which were flagged as a contingent liability.

Asked by Bhavesh Patel

Gross margin dip and lease rental impact Direct
So see, on a stand-alone basis, you can clearly see there is no decline in the rental income of the company. There is increase in the rental income of the company. The margin has been declined due to the increase in the lease rental... So we have maintained that number. It's not a declining one because this lease was due and this year, we have taken the provision of that lease rental -- substantial lease rent increase there.

Explains the reason for Q3 margin compression, attributing it to a one-time substantial increase in lease rental provision (INR22 crores for the full year) rather than operational decline.

Asked by Anukool

Reliance EPC work margins and strategic rationale Direct
So in any EPC business, you expect a margin range of anywhere between 5% to 10%. Usually, that's the norm. And we expect that this contract will be in those lines also... we use these opportunities very selectively to create different type of requirements and things for the infra business to support. Reliance is storing a lot of products with us. They are looking to expand their storage business with us. And as a support to them to understand -- build better customer relationships, you take these calls.

Clarifies the lower margin nature of EPC work but justifies it as a strategic move to build customer relationships and potentially secure future, higher-margin storage opportunities.

Asked by Anukool

Dividend payout plan and consistency Direct
Yes. So we have -- we are looking at starting dividend payouts from the first quarter of next year, so that means in the quarter of April to June from that we are going to start dividend... No, no. I don't think the intent is to make it a one-off kind of a thing, no.

Confirms the company's intention to initiate consistent yearly dividend payouts starting Q1 FY27, addressing shareholder return expectations and providing clarity on the policy.

Asked by Rekha Multani

Strategy regarding LNG, Green Hydrogen, and strategic partners Partial
Gautam ji, first, we have to understand that your company is not an LNG business... Secondly, regarding green hydrogen, see, we are not into production or distribution of green hydrogen also. The best we can do is we can store liquid products or gaseous products... No. As of now, there's not been any such discussion at Board level.

Clarifies the company's focus, stating they are not directly involved in LNG or green hydrogen production/distribution but would consider storage. Also, indicates no current board-level discussion on strategic partners for M&A or rapid expansion.

Asked by Gautam Gupta

JNPT land area Direct
So the approximate area of the parcels that we have before is 19 acres. And the new one is approximately 11 acres.

Provides specific details on the company's land holdings at JNPT (totaling 30 acres), which are crucial for future expansion plans and asset valuation.

Asked by Vishal Prasad

Delays in developing other storage types (LPG, ammonia, hydrogen) Direct
Yes. Like I said, we have kept the land aside for that. But as of now, we don't have a contract in place to start building those... No, no. So that's what I said that we have a very, very clear thing that we whoever we tie up with for such a high-value project, they have to give us like a 10-to 15-year commitment for tank utilization. And there are not many companies out there who are willing to do that. So it's taking its own time.

Explains the reason for delays in developing other storage types on the reserved JNPT land, highlighting the challenge of securing long-term commitments from partners and the resulting opportunity cost.

Asked by Ketan Chheda

2 min read 6 chapters

Detailed narrative

Q3 FY26 Consolidated Performance Overview

Ganesh Benzoplast Limited reported a consolidated revenue of INR105.3 crores in Q3 FY26, marking an 18% year-on-year increase from INR89.2 crores in the prior year. However, consolidated profit after tax (PAT) for the quarter decreased to INR16.2 crores from INR18.4 crores, primarily impacted by a substantial increase in lease rental provision. For the nine months ended FY26, consolidated turnover grew 9.3% year-on-year to INR299.9 crores, with PAT increasing 13.06% to INR58.0 crores, and EPS rising to INR8.06 from INR7.12.

JNPT Expansion and Capex Plans

The company has initiated construction on its 4.5-hectare reclaimed land at JNPT for a 1 lakh KL capacity expansion, with the first phase (50% of capacity) expected to be ready by Q1 FY27 and full completion by early FY27-28. This expansion, costing INR160-170 crores, is projected to generate an additional INR45-50 crores in revenue with high EBITDA margins of 65-70%, potentially exceeding 75%. Funding for this capex is planned entirely through internal accruals, with management noting the company is almost debt-free.

Impact of Increased Lease Rentals

A significant factor affecting Q3 FY26 profitability was a substantial increase in lease rental provision for the JNPT terminal, amounting to an additional INR22 crores for the full year. This one-time increase led to a decline in consolidated Q3 PAT despite revenue growth. Management indicated efforts to pass on these increased costs to customers over time to restore overall EBITDA margins to previous levels, which they expect to climb back up.

EPC Business and Strategic Partnerships

The company recently secured an INR51.33 crores order from Reliance Industries for a carbon fiber project. While EPC business typically carries lower margins (5-10%), management views these projects strategically. They are undertaken selectively to build stronger customer relationships and support the core storage business, particularly with key clients like Reliance who are looking to expand their storage needs, hoping for future synergistic work orders.

Dividend Policy and Shareholder Returns

Ganesh Benzoplast Limited announced its intention to commence consistent yearly dividend payouts starting from Q1 FY27 (April-June quarter). This decision aims to enhance shareholder returns, with the dividend policy expected to be approved during the September 2026 AGM. Management emphasized that the intent is for these payouts to be consistent and not a one-off event, signaling a commitment to regular shareholder distributions.

Long-term Growth and Asset Utilization

The company is focused on a 'safe growth' strategy, ensuring long-term viable business rather than expansion for expansion's sake. While land is reserved at JNPT for potential high-value storage projects like LPG, ammonia, or hydrogen, development is on hold due to challenges in securing 10-15 year tank utilization commitments from partners. Efforts are also underway to increase utilization at the Goa facility by obtaining approvals for handling different petroleum products, which management expects will improve its performance.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Oil, Gas & Consumable Fuels earnings calls