Concall AI

India Glycols Limited — Q4 FY25 earnings call

Call held 21 May 2025

Management summary

India Glycols reported a strong full year FY25 performance with net sales growing 14% to INR 3,767 crores and standalone EBITDA increasing 23% to INR 521 crores. Q4 FY25 saw a 32% rise in EBITDA to INR 145 crores despite a 7% decline in net sales to INR 863 crores. The Bio-Fuels and Potable Spirits segments were key growth drivers, with Bio-Fuels revenue more than doubling and Potable Spirits growing over 22% for the full year. The joint venture also showed significant improvement, nearly tripling its net profit.

Highlights

Full Year FY25 Net Sales: INR 3,767 crores, up 14% YoY.
Full Year FY25 Standalone EBITDA: INR 521 crores, up 23% YoY.
Full Year FY25 Standalone PAT: INR 180 crores, up 19% YoY.
Q4 FY25 Net Sales: INR 863 crores, down 7% YoY.
Q4 FY25 EBITDA: INR 145 crores, up 32% YoY.
Q4 FY25 PAT: INR 50 crores, up 31.6% YoY.
Bio-Fuels segment revenue for FY25: INR 1,044 crores, up 103.7% YoY.
Potable Spirits segment revenue for FY25: INR 1,163 crores, up 22.8% YoY.
Joint Venture net profit for FY25: INR 46.4 crores, almost 3x previous year.

Key financials

2 periods

Q4 FY25

Net Sales
₹863 Cr
YoY -7%
EBITDA
₹145 Cr
YoY +32%
PAT
₹50 Cr
YoY +31.6%

FY25

Net Sales
₹3,767 Cr
YoY +14%
Standalone EBITDA
₹521 Cr
YoY +23%
Standalone PAT
₹180 Cr
YoY +19%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	961	975	863	1,040	1,092 +14%	1,102 +13%	976 +13%	1,130 +9%
Expenses	845	852	717	891	935	927	810	961
EBITDA	116	124	146	150	158 +36%	175 +41%	166 +14%	170 +13%
Margin	12%	13%	17%	14%	14%	16%	17%	15%
Other income	15	19	13	20	14	3	14	21
Interest	40	44	45	45	49	47	26	25
Depreciation	28	27	33	34	38	41	41	42
Profit before tax	63	71	82	91	84 +33%	91 +28%	112 +37%	123 +35%
Tax rate	22%	20%	22%	19%	22%	25%	23%	21%
Net profit	50	57	64	73	65 +30%	68 +19%	87 +36%	97 +33%
EPS	8.03	9.18	10.34	11.83	10.51	10.08	12.96	14.45

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

Segment	YoY Growth	Revenue	EBIT Margin
Potable Spirits (FY25)	22.8%	₹1,163 Cr	22%
Bio-Fuels (FY25)	1%	₹1,044 Cr	5.4%
Bio-based Specialties and Performance Chemicals (BSPC) (FY25)	-17.6%	₹1,342 Cr	9.3%
Ennature Biopharma (FY25)	—	—	—
Joint Venture (FY25)	1.8%	—	—

Guidance & targets

Capacity

Ethanol blending percentage Capacity · 2025-26 · High confidence 20%

In '25-'26, the target is 20% blending, and I think the expectation is that this 20% blending target will be met.

— Rupark Sarswat, CEO
Ethanol blending percentage Capacity · by 2030 · Medium confidence 25% to 30%

And the country is also looking at potentially blending much more ethanol going up from 25% to 30% maybe by 2030.

— Rupark Sarswat, CEO

Market Expansion

Number of new states for Potable Spirits Market Expansion · this year · High confidence at least 3 more states

And as our CEO rightly said, there will be at least three more states we will be adding this year after the initial success in North.

— Raju Vaziraney, Head Sales and Marketing (BSPC)

Volume

Country liquor industry growth percentage Volume · this year · Medium confidence 10% to 12%

So this is all about from the production side, this year, the target, we are expecting growth of the industry is around 10% to 12%.

— S.K. Shukla, Head Liquor Business
IGL country liquor growth percentage Volume · next year · Medium confidence more than 10-12%

And this year, probably we are targeting more than that.

— S.K. Shukla, Head Liquor Business

Profitability

Potable Spirits EBIT Margin Profitability · coming couple of years · High confidence Maintain current levels

I don't see fundamentally anything happening in cost, which will drastically get overall margins down... no red flag that I see immediately to say, oh, suddenly, Potable Spirits margins are going to come under pressure.

— Rupark Sarswat, CEO

Capex

Big sized capex Capex · near future, until demerger (next year) · High confidence No big numbers

But no big numbers you will see in the future, at least till the demerger of the company means next year.

— Anand Singhal, CFO

Supply Chain

Indian corn production increase Supply Chain · This year · High confidence more than 25% to 30%

And this year, we are expecting more than 25% to 30% production increase in Indian corn.

— S.K. Shukla, Head Liquor Business

Risks & concerns

Contradictory financial reporting for Q4 FY25 Net Sales and PAT
medium

Rupark Sarswat stated Q4 FY25 net revenue was INR 926 crores (up from INR 863 crores in Q4 FY24), while Anand Singhal stated Q4 FY25 net sales were INR 863 crores (down 7% from INR 924 crores in Q4 FY24). Similar contradiction for Q4 PAT.

Management not addressed
Pricing pressure and increased competition in Ennature Biopharma
medium

Significant pricing pressure due to softer international demand and increased competition, leading to a focus on value-added products.

Management acknowledged
Cyclicality and coupling of ethanol prices to crude prices
medium

If crude goes down, it also has a downward pressure on ethanol prices, creating green transition challenges, though mitigated by actions like grain-based capacities and diversification.

Management acknowledged

Areas of evasion (1)

Contradictory Q4 financial figures between CEO and CFO

Q&A highlights

3 direct

Sustainability of Potable Spirits EBIT Margin (27.6% in Q4) Direct

I don't see fundamentally anything happening in cost, which will drastically get overall margins down... no red flag that I see immediately to say, oh, suddenly, Potable Spirits margins are going to come under pressure.

Addresses investor concern about the exceptional Q4 margin in a key growth segment and provides confidence in its durability.

Asked by Neil Bahal

Debt allocation post-demerger and repayment plan Direct

we are having about INR 1,200 crores long-term debt in the books of the company, out of which about INR 500 crores will go to the Chemical division and INR 700 crores will go to the liquor division... every year, we will be having, say, about INR 150 crores to INR 160 crores debt repayment in the Spirits division, that is the liquor division and about INR 90 crores in Chemical division.

Provides crucial financial details regarding the upcoming demerger and the company's ability to manage its debt, which is vital for future capital structure.

Asked by Neil Bahal

Future of Bio-Fuels segment, raw material pricing, and government support Direct

The fact that how it has proceeded over the last few years successfully preowned, and the government is actually thinking about or contemplating a higher blending should give us some confidence... No reason to believe that suddenly this business is going to become unprofitable.

Reassures investors about the long-term viability and government backing for the Bio-Fuels business, which has been a significant growth driver.

Asked by Saket Kapoor

3 min read 6 chapters

Detailed narrative

Strong Full Year FY25 Performance Driven by Bio-Fuels and Potable Spirits

India Glycols reported a robust full year FY25, with net sales growing 14% to INR 3,767 crores and standalone EBITDA increasing 23% to INR 521 crores. The Bio-Fuels segment was a standout, more than doubling its revenue by 103.7% to INR 1,044 crores, while Potable Spirits grew 22.8% to INR 1,163 crores. The joint venture also contributed significantly, with its net profit nearly tripling to INR 46.4 crores from INR 16.66 crores in the previous year.

Q4 FY25 Mixed Performance with Margin Expansion

Q4 FY25 saw a 7% decline in net sales to INR 863 crores compared to INR 924 crores in Q4 FY24. However, EBITDA for the quarter surged 32% to INR 145 crores from INR 109 crores in the prior year. Potable Spirits EBIT margins notably improved from 16.2% to 27.6%, and Bio-based Specialties and Performance Chemicals (BSPC) EBIT margins expanded by 368 basis points to 11.4%.

Strategic Expansion in Potable Spirits with Premiumization Focus

The company is aggressively pursuing premiumization in its IMFL business through a partnership with Amrut, launching brands like Amrut MaQintosh Black Label (priced at INR 1,100) and Amrut White Label. Significant inroads have been made in UP, Uttarakhand, and Delhi, with plans to expand into at least three more states in FY26. India Glycols is also a top 3 supplier to paramilitary forces and has secured approvals for its Soulmate whiskey and Zumba Limon brands in CSD, ensuring stable business and all-India reach.

Bio-Fuels Segment Benefits from Government Mandates

The Bio-Fuels business continues to thrive, supported by the government's ethanol blending program, which achieved 14.6% blending in FY24 against a 15% target and aims for 20% in FY26. The government's focus on energy independence and farmer income ensures continued support, with plans to potentially increase blending to 25-30% by 2030. The company has invested in grain-based capacities, with 750 crore liters of ethanol now coming from grain out of a total 1,150 crore liters, and expects a 25-30% increase in Indian corn production this year.

Chemicals and Biopharma Segments Face Headwinds but Strategize for Value

The Bio-based Specialties and Performance Chemicals (BSPC) segment saw a 17.6% decline in net revenue to INR 1,342 crores for FY25, though its EBIT margin improved by 91 basis points to 9.3%. Ennature Biopharma's top line grew by approximately 7% but faced significant pricing pressure due to softer international demand and increased competition. Both segments are focusing on moving up the value chain, developing branded products, and securing certifications like the US FDA Establishment Inspection Report for nutraceuticals.

Debt Management and Capex Outlook

India Glycols holds approximately INR 1,200 crores in long-term debt, with INR 500 crores allocated to the Chemical division and INR 700 crores to the Liquor division post-demerger. The company expects to repay INR 150-160 crores annually from the Spirits division and INR 90 crores from Chemicals. Major capex cycles, including the grain distillery, are largely complete, with no significant new capex planned until the demerger, apart from maintenance and ongoing projects.

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

View original transcript