India Glycols Limited Q3 FY26 Earnings Call Summary

Summary

India Glycols Limited (IGL) - Q3 FY 2026 Earnings Call Summary Thursday, February 12, 2026, 17:00 IST

Event Participants

Executives 4 Anand Singhal (CFO), Ankur Jain (Head Legal & Company Secretary), Rupark Sarswat (CEO), S. K. Shukla (Head Liquor Business) / Raju Vaziraney (Note: Raju Vaziraney addressed as Head of Liquor/Executive in transcript)

Analysts 2 Balasubramanian (Arihant Capital), Nitin Awasthi (InCred Equities), Rohit Nagraj (360 ONE Capital), Saket Kapoor (Kapoor Company)

Financials & KPIs

Geographic & Segment Commentary

• Potable Spirits: Revenue reached ₹1,025 crores for 9M (+17% YoY) with high EBIT margins of 21.2%. The segment is pivoting toward “premiumization” through partnerships with Amrut (Single Malts) and Bacardi, alongside entry into 34 CSD (Canteen Stores Department) depots pan-India.
• Bio-based Specialties (BSPC): Recorded ₹313 crores revenue in Q3 with EBIT margins improving to 12.8% (up from 8.8%). Growth is driven by the discontinuation of low-margin trading and the launch of high-value bio-based amines for global clients like L’Oreal.
• Biofuels: Revenue grew 45.2% in Q3 to ₹394 crores with EBIT margins jumping to 8.4% from 3.3%. Performance is supported by India’s 20% ethanol blending mandate and better realization from the byproduct DDGS (animal feed).
• Ennature Biopharma: Revenue for 9M stood at ₹144 crores with a thin 2.9% EBIT margin. The segment faced margin pressure due to high feedstock costs (Gloriosa seeds), though management expects recovery in Q4 FY26 via new branded nutraceutical launches in the U.S.

Company-Specific & Strategic Commentary

• Debt Restructuring: IGL utilized ₹467 crores from a preferential allotment to promoters and friends to prepay term loans and working capital, targeting a term debt of ₹1,100 crores by March 31, 2026.
• Innovation in Chemicals: IGL became the first company globally to commercially sell bio-based amines to L’Oreal; the “New Specialty Unit” (NSU) has over 30-40 products approved in the pipeline for oilfield, paper, and crop protection.
• Premiumization Strategy: The company is shifting from “Regular” to “Luxury” spirits, launching state-specific single malts (e.g., Silver Jubilee Edition for Uttarakhand) and expanding the “Zumba” citrus rum brand.
• Feedstock Flexibility: Management emphasized the ability to switch between multi-feedstocks (rice, corn, molasses) for ethanol, allowing them to optimize costs between “make vs. buy” for chemical intermediates.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Debt & Interest

• Question: What is the gross debt target and capex plan? (Rohit Nagraj)
• Answer: Target term loan is ₹1,100 crores by year-end. No large-size capex is planned until the demerger is complete. We are swapping high-cost debt to save 125-150 bps (Anand Singhal).

Ethanol Blending

• Question: Can blending go to 25%? (Rohit Nagraj)
• Answer: Blending beyond 20% is non-linear and requires vehicle/infra upgrades. High-grain feedstocks (corn) are being prioritized by the government to sustain the 20% level (Rupark Sarswat).

Chemical Margins

• Question: Are the 12-13% margins in Chemicals sustainable? (Balasubramanian)
• Answer: Yes. We discontinued low-margin manufacturing and changed operational philosophy to stop producing low-value byproducts. Bio-based amines and oilfield chemicals have strong margin profiles (Rupark Sarswat).

Potable Spirits Expansion

• Question: Is premiumization cannibalizing the regular portfolio? (Balasubramanian)
• Answer: No, it is a “steady build” approach. We have a brand at every ₹20-₹30 price interval. Success in CSD and the Amrut partnership are key drivers for market share gains (Raju Vaziraney).

Key Takeaway

India Glycols Limited delivered a landmark Q3 FY26, achieving record quarterly revenue of ₹1,102 crores (+13% YoY) and a 36.1% jump in EBITDA, driven by a strategic pivot toward high-margin Performance Chemicals and Premium Potable Spirits. The company significantly strengthened its balance sheet by reducing debt by ₹582 crores during the quarter, primarily through a ₹467 crore preferential allotment, which is expected to sharply lower interest costs starting Q4 FY26. While the Biofuels segment remains range-bound by government policy, the Chemical wing is transitioning into a specialized bio-based player with 30+ new products and a world-first commercial launch of bio-based amines. Looking ahead, IGL remains focused on completing its demerger, scaling its premium liquor portfolio via the Amrut partnership, and leveraging its “New Specialty Unit” to drive multi-fold growth in niche chemical segments. Management expects to close the fiscal year with a leaner debt profile of ₹1,100 crores and improved PAT margins.