India Glycols Limited — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

India Glycols delivered a strong Q2 FY26 performance, marked by robust growth in gross and net revenues, and significant expansion in EBITDA and PAT margins. This growth was primarily driven by the Biofuels and Potable Spirits segments, which saw substantial sales increases and margin improvements. The company also outlined plans for significant debt reduction and strategic focus on high-margin performance chemicals, despite a weak quarter for the overall chemicals business and challenges in Ennature Biopharma.

Highlights

  • Gross revenues increased 13% YoY to INR 2,412 crores in Q2 FY26.

  • Net revenue grew 14% YoY to INR 1,092 crores.

  • EBITDA rose 33% YoY to INR 160 crores, with EBITDA margin expanding from 12.4% to 14.6%.

  • PAT increased 31% YoY to INR 65 crores, improving PAT margin from 5.1% to 5.9%.

  • Biofuels sales surged 63% to INR 423 crores, with EBIT margins at 6.9% (up from 5.1%).

  • Potable Spirits sales grew 24.5% to INR 338 crores, achieving EBIT margins of 21.4% (up from 20.5%).

  • The company plans to reduce debt by approximately INR 640 crores, expecting INR 60-70 crores annual interest savings.

  • Performance chemicals (NSU segment) revenue and contribution expected to double in H2 FY26.

Key financials

  1. Gross Revenue ₹2,412 Cr +13%YoY
  2. Net Revenue ₹1,092 Cr +14%YoY
  3. EBITDA ₹160 Cr +33%YoY
  4. EBITDA Margin 14.6%
  5. PAT ₹65 Cr +31%YoY
  6. PAT Margin 5.9%

What they filed

Q1 FY27: revenue up 8.7%, net profit up 32.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue961 975 863 1,040 1,092 +14%1,102 +13%976 +13%1,130 +9%
EBITDA116 124 146 150 158 +36%175 +41%166 +14%170 +13%
Net profit50 57 64 73 65 +30%68 +19%87 +36%97 +33%
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

Share of Net Revenue
₹1,092 Cr Total
  • Biofuels ₹423 Cr 38.7%
  • Potable Spirits ₹338 Cr 31.0%
  • Chemicals ₹288 Cr 26.4%
  • Ennature Biopharma ₹43 Cr 3.9%

Guidance & targets

Debt

  • Debt Reduction Debt · next 5 months · High confidence ₹640 crores
    this INR 467 crores will also be utilized for the repayment or you can say the prepayment of the existing debt. As far as the division is concerned, after the de-merger, there will be three companies. One is India Glycols, other one is IGL Spirits and third one will be the Ennature Bio Pharma. So, in these two companies, India Glycols and IGL Spirits, the segregation what we have done as of date is about INR 600 crores and INR 800 crores. INR 600 crores in India Glycols and INR 800 crores in IGL Spirits. So, if we pay this INR 467 crores plus INR 180 crores, which comes to about INR 640 crores; So, then the corresponding, I will say almost equal amount of the debt will be reduced from these companies.

    — Anand Singhal, Chief Financial Officer

Profitability

  • Interest Cost Reduction Profitability · next year onwards · High confidence ₹60-70 crores
    the interest will come down by say about INR 60 crores to INR 70 crores in a year, which will be visible from the next year onwards.

    — Anand Singhal, Chief Financial Officer

Biofuels

  • Blending Program Target Biofuels · FY26 · High confidence 20%
    the blending program has more or less progressed as per plan from nearly 5% blending in '19-'20 to an expected blending of close to 20%, which is expected in this year, which is the year '25-'26.

    — Rupark Sarswat, Chief Executive Officer

  • Long-term Blending Program Target Biofuels · beyond 2026 · Medium confidence 27%
    Beyond 2026, the government is looking at the possibility of increasing it to about 27%. However, that is something which will be clarified by the government in the times to come.

    — Rupark Sarswat, Chief Executive Officer

Performance Chemicals

  • Revenue and Contribution Growth Performance Chemicals · H2 FY26 · High confidence doubling
    we are seeing nearly a doubling of revenue and contribution for the year and also till date. In fact, for H2, it is much more than doubling of contribution.

    — Rupark Sarswat, Chief Executive Officer

  • Business Growth Potential Performance Chemicals · next few years · Medium confidence 10x
    Potentially, it can be 10x the business that we are doing right now over the next few years.

    — Rupark Sarswat, Chief Executive Officer

Capex

  • Incremental Capex Capex · next one year · Medium confidence ₹10-50 crores
    we are talking about in the range of maybe INR 10 crores to INR 50 crore kind of CAPEX to start with, but nothing of this is definitive.

    — Rupark Sarswat, Chief Executive Officer

Ennature Biopharma

  • Business Outlook Ennature Biopharma · Q4 FY26 · High confidence much better
    I could tell you that in fourth quarter, the situation will be much, much better than the first three quarters.

    — Manish Pant

Potable Spirits

  • Amrut Brand Volume Growth Potable Spirits · Medium confidence gradual increase
    We will increase, but we will increase gradually.

    — Raju Vaziraney

Risks & concerns

  • Global crude oil price volatility impacting petrochemical-based alternatives.

    medium

    Crude prices near $60 have made MEG and other petrochemical alternatives cheaper, putting pressure on glycol ethers' pricing and margins.

    Management acknowledged

  • US tariffs impacting joint venture and product exports.

    medium

    A 50% tariff in the U.S. has directly and indirectly impacted the joint venture and some of the company's products.

    Management acknowledged

  • Excess ethanol capacity in the industry.

    medium

    While the blending program is strong, there is now some excess capacity in the industry, which could lead to market-driven prices for ethanol sold outside of biofuels.

    Management acknowledged

  • Volatility and supply disruptions in the Thiocolchicoside market.

    medium

    Disruption in Gloriosa seed supply and international trade pressures have impacted the Thiocolchicoside segment.

    Management acknowledged

  • Competition and low-cost production impacting nicotine sales.

    medium

    New manufacturing facilities and the Russia-Ukraine war have negatively impacted nicotine business volumes and value.

    Management acknowledged

Areas of evasion (1)

  • Specific royalty payment details for the Amrut partnership

Q&A highlights

3 direct
Debt reduction plans and impact on credit rating post fundraise. Direct
Our credit rating exercise will start about next 15 to 20 days. And after that, we will see that how credit rating behaves on whatever has happened in the company.

This question clarifies the timeline for debt reduction and the potential for an improved credit rating, which could lower future borrowing costs.

Asked by Vignesh Iyer

Reasons for margin improvement in the Chemicals segment despite revenue decline. Direct
improving margin mix in some of the businesses like performance chemicals, I think that has led to the improvement in margins in chemicals.

The response explains the strategic shift in the chemicals business towards higher-margin products and away from less profitable ones, indicating a focus on quality over volume.

Asked by Saket Kapoor

Potential US ethanol imports and the impact of cane allocation policy on Country Liquor. Direct
I think ethanol may be unlikely for Biofuel blending. But it is completely speculation right now, Saket. And I would like to believe that it is a program which has certain objectives. ... So, your question was that why the government has reduced the reservation quota from 19% to 18%? So, answer is, first, you have to understand Country Liquor segment in Uttar Pradesh.

This addresses external market risks for the Biofuels segment and clarifies a critical raw material policy for the Potable Spirits business, both of which are significant revenue drivers.

Asked by Saket Kapoor

3 min read 7 chapters

Detailed narrative

Robust Q2 FY26 Financial Performance

India Glycols reported strong financial results for Q2 FY26, with gross revenues increasing 13% year-on-year to INR 2,412 crores. Net revenue also saw a significant rise of 14% to INR 1,092 crores. Profitability metrics showed even greater improvement, with EBITDA growing 33% to INR 160 crores, and EBITDA margins expanding from 12.4% to 14.6%. Net profit (PAT) increased 31% to INR 65 crores, pushing the PAT margin from 5.1% to 5.9%.

Segmental Growth Led by Biofuels and Potable Spirits

The Biofuels segment was a key growth driver, with sales soaring 63% to INR 423 crores for the quarter, and EBIT margins improving from 5.1% to 6.9%. The Potable Spirits business also performed strongly, registering a 24.5% increase in sales to INR 338 crores, with EBIT margins rising from 20.5% to 21.4%. In contrast, the Chemicals business experienced a weak quarter, with sales at INR 288 crores, though EBIT margins expanded from 8.1% to 10.9% due to product mix optimization. Ennature Biopharma contributed INR 43 crores in revenue.

Strategic Debt Reduction and Interest Cost Savings

The company is actively pursuing debt reduction, with plans to utilize INR 467 crores from a preferential allotment along with INR 180 crores from normal repayments, totaling approximately INR 640 crores. This initiative is projected to reduce annual interest costs by INR 60-70 crores starting from the next financial year, enhancing the company's financial efficiency and potentially improving its credit rating.

Biofuels Program and Future Expansion

India Glycols continues to be a significant contributor to the national biofuels program, having supplied 15 crore liters in FY24-25. The company expects to align with the government's target of 20% ethanol blending for FY26. Beyond 2026, the government is exploring an increase to 27% blending, indicating a sustained long-term commitment to the sector, which benefits rural economy, saves forex, and promotes energy independence.

Chemicals Business Focus on High-Value Performance Products

Despite a challenging quarter for overall chemical sales, the segment's margin improvement was attributed to a strategic shift towards new performance chemicals and discontinuing lower-margin businesses. Management expressed confidence in a strong pipeline for performance chemicals, expecting a doubling of revenue and contribution in H2 FY26, with a potential for 10x growth in this segment over the next few years through partnerships with major players like BASF and Dow.

Potable Spirits Market Expansion and Premiumization Strategy

The Potable Spirits business is expanding its market reach, particularly in Kerala, where seven brands, including rum and brandy, have been approved and are expected to drive future growth. The partnership with Amrut for non-malt whisky brands is contributing to premiumization and margin expansion, leveraging Amrut's established name without significant advertising expenditure. The company aims for gradual, consistent growth in premium brands and market share.

Ennature Biopharma Navigates Challenges with Future Optimism

The Ennature Biopharma segment faced pressures from competition in nicotine sales and supply chain disruptions for Thiocolchicoside due to international trade issues and seed shortages. However, the company anticipates a significant improvement in Q4 FY26, following US FDA approval for its plant and ongoing efforts to secure certifications for branded nutraceuticals. The strategy focuses on differentiation through standards, registrations in developing markets, and building a branded portfolio, targeting 40-50% margins for branded nutraceuticals.

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