Detailed Narrative
Strong Full Year FY26 Performance Driven by Key Segments
India Glycols delivered a robust performance in FY26, with gross revenues reaching ₹9,827 crores, an increase of 8.7% year-on-year, and net revenues growing by 11.8% to ₹4,211 crores. This growth was primarily fueled by strong contributions from the Potable Spirits and Bio-Fuels segments. The company's EBITDA for the full year stood at ₹654 crores, marking a significant 24.5% increase over the previous year, with the EBITDA margin expanding by 162 basis points to 15.5%. Net profit after tax (PAT) also saw a healthy rise of 26.8% to ₹293 crores, achieving a PAT margin of 6.9%.
Segmental Performance Highlights and Strategic Shifts
The Bio-Fuels segment had an excellent year, with its top-line growing by 40.9% to ₹1,470 crores and EBIT more than doubling to ₹115 crores, achieving an EBIT margin of 7.8%. Potable Spirits also showed strong growth, with a top-line of ₹1,331 crores (up 14.4%) and EBIT of ₹285 crores (up 11.1%), driven by premiumization and market leadership. While the Chemicals business experienced a 10.4% revenue decline for FY26, it demonstrated a turnaround in Q4 with an 18.8% revenue increase and 37.4% EBIT growth, with management targeting to double this business in FY27. Ennature Biopharma's top-line remained stable for the year, but Q4 saw a 23.2% growth, despite continued margin pressure.
Balance Sheet Strengthening and Debt Management
India Glycols significantly improved its financial health in FY26, with the debt-to-equity ratio decreasing from 0.7x in FY23 to 0.5x. The interest coverage ratio also strengthened, rising from 2.3x in FY23 to 3.0x in FY26. The company prepaid ₹804 crores of debt in Q4 FY26, funded by a ₹467 crores equity issue in November 2025 and internal cash flows, resulting in an annual interest cost saving of ₹20 crores. Management aims to further reduce debt, with a normal liability of ₹268 crores for FY27, and targets making the Chemical business entirely debt-free by FY28-29.
Capital Expenditure and Demerger Update
The company incurred approximately ₹830 crores in capital expenditure during FY26, with about ₹400 crores allocated to its grain distilleries in Gorakhpur and Kashipur. This investment supports capacity expansion and strategic growth initiatives. Regarding the ongoing demerger process, management expressed optimism, expecting to receive the NCLT order within the first 10 days of June 2026, after which they will proceed with the necessary ROC filings.
Impact of External Factors and Strategic Outlook
Management acknowledged the mixed impact of geopolitical conflicts, which led to higher crude prices, raw material availability constraints, and affected exports, but also improved competitiveness for ethanol-based products. The company's strategy focuses on premiumization in Potable Spirits, diversification and new customer acquisition in Ennature Biopharma, and high-value-added products in Chemicals. The in-house ethanol production capabilities have provided a competitive advantage amidst volatile input costs, supporting the overall business quality improvement.