India Glycols Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

India Glycols reported record revenue and EBITDA for Q3 and 9M FY26, driven by strong performance in Potable Spirits and strategic improvements in Chemicals. The company significantly reduced debt and is focusing on bio-based and premiumization strategies. Challenges persist in Ennature Biopharma and the JV, alongside a volatile global environment.

Highlights

  • Record revenue and EBITDA for Q3 and 9M FY26, demonstrating strong financial performance.

  • 9M FY26 Net Revenue grew 11% to INR 3,235 crores, and EBITDA increased 29% to INR 487 crores, achieving a 15.0% margin.

  • Q3 FY26 Net Revenue was up 13.0%, with EBITDA growing 36.1% and margins at 16.0%.

  • Potable Spirits segment delivered strong performance with 9M FY26 net revenue up 17% to INR 1,025 crores and volume up 5% year-on-year (23.7 million cases).

  • BSPC/Performance Chemicals segment showed outstanding EBITDA performance, up 68% in Q3 and 26% for 9M, driven by strategic actions.

  • Significant debt reduction of INR 582 crores, including INR 467 crores from preferential allotment and INR 116 crores from internal accruals in Q3.

Concerns

  • Ennature Biopharma segment experienced pressure with EBIT margins at 4.1% in Q3 and 2.9% in 9M FY26.

  • Chemicals segment saw a sales decline of 3.8% in Q3, though EBIT increased 46.1%.

  • Joint Venture (JV) experienced margin squeeze due to pricing of alternate materials, impacting profitability.

  • Management noted an 'extremely volatile global environment' and 'structural overcapacity in the world' in the chemical space, leading to soft pricing.

Key financials

2 periods

Q3 FY26

  • Net Revenue Growth
    —
    YoY +13%
  • EBITDA Growth
    —
    YoY +36.1%
  • EBITDA Margin
    16%

9M

  • FY26 Gross Revenue
    ₹7,467 Cr
    YoY +9%
  • FY26 Net Revenue
    ₹3,235 Cr
    YoY +11%
  • FY26 EBITDA
    ₹487 Cr
    YoY +29%
  • FY26 EBITDA Margin
    15%
  • FY26 PAT
    ₹206 Cr
    YoY +23%

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

  • BSPC/Performance Chemicals (Q3 FY26)
    ₹313 Cr Turnover12.8% EBIT Margin68% EBITDA Growth
  • Biofuels (Q3 FY26)
    ₹394 Cr Turnover8.4% EBIT Margin45.2% Revenue Growth273.2% EBIT Growth
  • Potable Spirits (Q3 FY26)
    ₹345 Cr Turnover21% EBIT Margin11% Revenue Growth5% Volume Growth
  • Ennature Biopharma (Q3 FY26)
    ₹50 Cr Turnover4.1% EBIT Margin
  • Performance Chemicals (9M FY26)
    ₹901 Cr Revenue11.6% EBIT Margin26% EBITDA Growth
  • Biofuels (9M FY26)
    ₹1,165 Cr Revenue7.3% EBIT Margin51.2% Revenue Growth108.5% EBIT Growth
  • Potable Spirits (9M FY26)
    ₹1,025 Cr Revenue21.2% EBIT Margin16.6% Revenue Growth22% EBIT Growth
  • Ennature Biopharma (9M FY26)
    ₹144 Cr Revenue2.9% EBIT Margin

Capital allocation

high confidence
  • Capex Capex disclosed
    Apart from this, we are not having any big size capex. And any capex will be undertaken only after the demerger.
  • Debt Net ₹1,100 Cr
    • Repayment Total debt reduction, including INR 467 crores from preferential allotment and INR 116 crores from internal accrual in Q3. ₹582 Cr
    • Repayment Planned repayment in Q4. ₹75 Cr
    • Rate reset Swapped high-cost debt to low-cost debt, saving 125-150 bps. ₹130 Cr
    So, company has raised INR467 crores in November through preferential allotment through the promoters, their friends and relatives. ... So, I cannot give you the number for the next year, but we will certainly try to reduce our interest burden in the coming years.
  • Liquidity Liquidity disclosed Company has good cash flow, with CC (cash credit) totally vacant.
    Today, our CC is totally vacant. So that's why the cash flow side, we have a good cash flow.

Guidance & targets

Debt

  • Term Loan Debt · March 31, 2026 · High confidence INR 1,100 crores
    So hopefully, we will close on 31st March 2026 around INR1,100 crores term loan.

    — Anand Singhal

  • Q4 Repayment Debt · Q4 FY26 · High confidence INR 75-100 crores
    We are also planning to prepay some of the debt, say about INR75 crores to INR100 crores, in Q4 that will also be through our internal accrual.

    — Anand Singhal

New Performance Chemicals Business

  • Revenue and Profit Growth New Performance Chemicals Business · this year · Medium confidence very strong growth
    We are going to see a very strong growth this year, both in terms of revenue as well as profit, on a small base.

    — Rupark Sarswat

  • Growth in Multiples New Performance Chemicals Business · next few years · Low confidence growth in multiples
    We are going to see good growth in the years to come. So, we are not talking about percentage growth here. Not allowing optimism to overflow, we are hopefully going to see growth for the next few years in multiples.

    — Rupark Sarswat

Chemicals

  • Margin Retention Chemicals · future · High confidence yes
    To answer your question first on Chemicals, whether we'll be retaining this percentage margin, the short answer is expectation is yes.

    — Rupark Sarswat

Biofuel

  • Margins Biofuel · longer term · Medium confidence range bound, positive, not huge
    So that is how we see the margins going forward as well. It's not a margin where we can predict that it will be 12% or 13%. I think it will be range bound. It will be positive. It will not be huge.

    — Rupark Sarswat

What to watch in Q4 FY26

Debt Reduction in Q4

next quarter
Current INR 582 crores reduced by Q3 FY26
Target Additional INR 75-100 crores repayment

Why it matters

To track the company's commitment to further debt reduction and its impact on financial health.

We are also planning to prepay some of the debt, say about INR75 crores to INR100 crores, in Q4 that will also be through our internal accrual.

Risks & concerns

  • Global Volatility and Soft Pricing

    medium

    The company operates in an 'extremely volatile global environment' with 'pricing still being soft' in the chemical space.

    Management acknowledged

  • Structural Overcapacity in Chemicals

    medium

    There is 'structural overcapacity in the world' for some chemical areas, impacting market dynamics.

    Management acknowledged

  • Challenges for Ethanol Blending Beyond 20%

    medium

    Blending beyond 20% requires 'greater effort' including vehicle modifications, infrastructure upgrades, and addressing issues like moisture absorption and corrosion.

    Management acknowledged

  • JV Margin Squeeze from Alternate Materials

    medium

    The joint venture experienced a 'squeeze of margins' due to competitive pricing from alternate feedstocks like Reliance, making IGL's greener products more expensive.

    Management acknowledged

  • Ennature Biopharma Cost Pressures and Market Volatility

    medium

    The Ennature Biopharma segment faced a 'challenging time' due to 'cost pressures on feedstocks' and 'significant amount of volatility in the Western market'.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Debt Reduction and Capex Plans Direct
So hopefully, we will close on 31st March 2026 around INR1,100 crores term loan. Apart from this, we are not having any big size capex. And any capex will be undertaken only after the demerger.

Provides clear targets for debt reduction and clarifies the company's capital expenditure strategy, linking it to the demerger.

Asked by Rohit Nagraj

Ethanol Blending Beyond 20% Partial
So just to let you know that blending of ethanol is a bit tricky and it is not a linear blending, which can happen from 20% to 30% to 40% to 50% to 60% to 80%. So, the way this goes is that when you increase from 0% to 5%, there are hardly any challenges. Up to about 10%, also hardly any challenges. When you go to about 15%, blending is okay, but then you also have to look at some issues in terms of mileage or some parts which need to be upgraded ideally.

Explains the technical and infrastructural challenges of increasing ethanol blending beyond 20%, indicating potential hurdles for future growth in the Biofuels segment despite government interest.

Asked by Rohit Nagraj

Progress on LanzaTech and Lululemon Collaborations Partial
As far as LanzaTech is concerned, we are working very closely with LanzaTech. We are continuing to sell some products to various customers, various multinational customers. The volumes have picked up lower from what we have thought, but there is regular business, and we are engaging with customers to sell more carbon smart products.

Confirms ongoing work with LanzaTech on carbon-smart products, indicating progress on sustainability initiatives, though specific details on Lululemon were not provided.

Asked by Rohit Nagraj

Ramp-up and Performance of New Performance Chemicals Business Evasive
So look, Saket, first of all, good to hear from you. I am tempted to give you numbers, because I think I'm very bullish about it. But it is a new business. It is very difficult to give you numbers and projections. We are going to see a very strong growth this year, both in terms of revenue as well as profit, on a small base.

Management expressed high confidence in the new business's growth potential but refrained from providing specific numerical guidance, making it difficult for investors to quantify future impact.

Asked by Saket Kapoor

Joint Venture (JV) Profit Share Decline Direct
So Saket, yes, so there has been not as much as a pressure on the top line, but there has been a squeeze of margins for the joint venture, essentially because as you know, we talk about price of the alternate material, which comes from Reliance as a feedstock versus ours. So that gap widened, which means that in order to get business, we were under a little pressure, our products are greener and more expensive.

Identifies the specific reason for the JV's underperformance (margin squeeze due to competitive pricing from alternative feedstocks) and outlines efforts to enhance exports.

Asked by Saket Kapoor

Ennature Biopharma Margin Improvement Strategy Direct
So Saket, just to add to what Manish said, as you see, nicotine sales have started to increase. In terms of branded ingredients, Gingeren and asparagine have been launched in supply chain in U.S. with clinical data, and I think that will strengthen NHS's global market presence.

Details the specific actions being taken to improve margins and market presence in the Ennature Biopharma segment, which has been under pressure.

Asked by Saket Kapoor

Potable Spirits Premiumization and Market Share Direct
See, what is our strategy? Important is the strategy of the organization. The strategy of the organization is to establish our brands across segments, particularly in whiskey segment. All our competitors, most of them do not have whiskeys in the premium segment.

Provides a comprehensive overview of the company's strategy to expand its premium spirits portfolio, leverage partnerships, and gain market share in key regions like North states and Kerala.

Asked by Balasubramanian

Biofuel Margin Dynamics with Government Fixed Pricing Direct
On that biofuel side, the margins also significantly improved from 3.3% to 8.4% in this quarter. And because in the OMCs, their pricing is very stringent. We are achieving this scale because of the operating leverage or whether we can be able to cross it double-digit levels?

Clarifies how biofuel margins are determined (government fixed pricing based on feedstock) and the factors influencing them, such as feedstock prices and byproduct value, despite the fixed nature.

Asked by Balasubramanian

3 min read 7 chapters

Detailed narrative

Overall Strong Financial Performance

India Glycols reported a quarter of record performance, with both Q3 and 9M FY26 achieving highest-ever revenue and EBITDA. For 9M FY26, net revenue grew 11% to INR 3,235 crores, and EBITDA increased 29% to INR 487 crores, resulting in a 15.0% margin. Q3 FY26 alone saw net revenue growth of 13.0% and EBITDA growth of 36.1%, with margins reaching 16.0%. PAT for 9M FY26 also saw a healthy increase of 23% to INR 206 crores.

Strategic Focus on Bio-based and Premiumization

The company's growth strategy is aligned with evolving macro trends, emphasizing bio-based ingredients and value realization across its consumer and potable spirits segments. This involves a dual approach of innovation and cost efficiency, coupled with connecting to end consumers through lifestyle products. A key focus is on premiumization and superior innovation to build broader partnerships and enhance product offerings.

Potable Spirits Segment Drives Growth and Expansion

The Potable Spirits segment demonstrated strong performance, contributing significantly to overall growth. For 9M FY26, net revenue grew 17% year-on-year to INR 1,025 crores, with volumes increasing 5% to 23.7 million cases. The company is actively expanding its premium and luxury portfolio, strengthening partnerships with brands like Amrut and Bacardi, and launching new state-specific single malts. Distribution is being enhanced, including entry into 34 CSD depots pan-India.

Chemicals Business Restructuring and New Product Pipeline

The Bio-based Specialty Chemicals and Performance Chemicals segment showed outstanding EBITDA growth of 68% in Q3 and 26% in 9M. This improvement is attributed to structured actions, including discontinuing low-margin businesses and optimizing operational philosophy. The company has commenced commercial sales of bio-based amines to L'Oreal and is developing a strong pipeline of over 30 new products, targeting segments like crop protection, personal care, and oilfield.

Biofuels Segment Performance and Policy Dependence

The Biofuels segment experienced robust growth, with Q3 revenue up 45.2% and EBIT up 273.2%, and 9M revenue up 51.2% and EBIT up 108.5%. Margins improved from 3.3% to 8.4% in Q3. This growth is largely driven by India's ethanol blending program, which has reached 20%. While blending beyond 20% is under consideration by NITI Aayog, it presents challenges related to vehicle modifications and infrastructure, making future margin expansion range-bound and policy-dependent.

Proactive Debt Management and Cost Optimization

India Glycols made significant strides in debt reduction, decreasing it by INR 582 crores. This included utilizing INR 467 crores from a preferential allotment and an additional INR 116 crores from internal accruals in Q3. The company plans to repay another INR 75-100 crores in Q4, aiming for a term loan of approximately INR 1,100 crores by March 31, 2026. Furthermore, INR 130 crores of high-cost debt were swapped, leading to interest cost savings of 125-150 basis points.

Ennature Biopharma Challenges and Recovery Initiatives

The Ennature Biopharma segment faced a challenging period, with EBIT margins at 4.1% in Q3 and 2.9% in 9M FY26, primarily due to cost pressures on feedstocks and volatility in Western markets. To address this, the company is focusing on stabilizing raw material supply, restarting nicotine sales, and launching new branded nutraceuticals like Gingeren and Asparagine. Efforts are also underway to build standardized ingredients and improve certifications to strengthen global market presence.

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