Company Overview

Gulshan Polyols Limited (Scrip Code: 532457, Symbol: GULPOLY) conducted its Q4 and FY26 Earnings Conference Call on May 22, 2026, at 04:00 P.M. The management participants included Ms. Aditi Pasari (Joint Managing Director), Mr. Rajiv Gupta (CFO), Ms. Reetika Pant (Company Secretary), and Mr. Rutul Shah (Investor Relations Consultant from Atlas Capital).

Financial Performance FY26

Consolidated Results:

  • FY26 Revenue: ₹2,314 crores (up 14% YoY)
  • FY26 EBITDA: ₹232 crores (up 131% YoY)
  • FY26 EBITDA Margin: 10% (up 504 bps YoY)
  • FY26 PAT: ₹107 crores (up 334% YoY)

Q4 FY26 Results:

  • Q4 Revenue: ₹550 crores (up 7% YoY)
  • Q4 EBITDA: ₹65 crores (up 121% YoY)
  • Q4 EBITDA Margin: 11.9% (up 612 bps YoY)
  • Q4 PAT: ₹38 crores (up 435% YoY)

Segmental Performance

Ethanol Segment (Primary Driver):

  • FY26 Revenue: ₹1,609 crores
  • FY26 EBITDA: ₹201 crores
  • EBITDA Margin: 12.5%
  • Installed Capacity: 810 KLPD
  • Current Order Book: 18 crore liters (₹1,250 crores revenue equivalent)
  • Long-term OMC agreements: ~13 crore liters annually through 2032

Grain Processing Segment:

  • FY26 Revenue: ₹610 crores
  • FY26 EBITDA: ₹13 crores
  • EBITDA Margin: 2.1%
  • Exports sorbitol to 45 countries
  • Showing early signs of recovery from down cycle

Mineral Chemicals Segment:

  • FY26 Revenue: ₹93 crores
  • FY26 EBITDA: ₹23 crores
  • EBITDA Margin: 24.2%
  • Stable performance and cash flow contributor

Operational Highlights

Ethanol Business Strengths:

  • Priority allocation status as dedicated ethanol player
  • 40% feedstock from FCI rice at fixed prices reducing input cost volatility
  • Maize prices currently ₹19-22/kg depending on region
  • Lean inventory strategy of 20 days
  • DDGS by-product realizations: ₹21-22/liter for maize, ₹25-27/liter for rice
  • DDGS contributes approximately ₹10/liter to ethanol economics

Capacity Utilization:

  • Targeting 80-90% utilization across key divisions in FY27
  • Current ethanol capacity: 26 crore liters annually
  • Current utilization: ~69% (18 crore liters of 26 crore liters capacity)

Balance Sheet & Debt

  • Total Debt: ₹313 crores (including long-term and working capital)
  • Long-term debt interest rate: below 5% (due to Interest Subvention Scheme)
  • Working capital borrowing cost: 7.25%
  • Working capital intensity reduced significantly
  • Target to become debt-free (excluding Assam plant) by FY29

Future Outlook & Guidance

FY27 Targets:

  • Revenue: ₹2,600-2,800 crores
  • Ethanol: ₹1,800-1,900 crores
  • Grain Processing: ₹800 crores
  • Mineral: ₹100 crores
  • EBITDA Margin: 10-12%
  • PAT Margin: 5-6%
  • Expected utilization: 80-90%

Growth Plans (FY28 onwards):

  • ₹500 crore capex for specialty chemicals and import substitutes
  • Land acquired: 100 acres in Narsinghpur, Madhya Pradesh
  • Target revenue from new project: ₹1,000-1,500 crores
  • Long-term vision: ₹5,000 crores company revenue
  • Expected ROCE: ~22% from new projects
  • EBITDA margin target for new products: ~15%

Government Policy & Subsidies

Ethanol Blending:

  • Current blending: E20
  • Government considering E25, E27, and E30 blends
  • E100 trial at 100 petrol pumps expected this year
  • Confident in government's continued support for ethanol blending

Subsidies Expected:

  • Q1 FY27: ₹5 crores capital subsidy for Assam plant
  • PLI benefits: ₹30 crores per annum (MP: 7 years, Assam: 3 years)
  • FY26 PAT includes PLI benefits

Q&A Highlights

Order Book & Allocation:

  • Current allocation: 18 crore liters (ESY '25-'26: Nov-Oct)
  • 50% fulfilled till March 2026 (9 crore liters)
  • Expect additional allocations in June tender cycles (C2 and C3)
  • Target to increase to 22 crore liters within FY27
  • Previous year allocation: 21 crore liters

Margin Sustainability:

  • Confident in sustaining current margins for next 2-3 years
  • Dependent on continued FCI rice availability (400 million tonnes stock)
  • Break-even at EBITDA level: maize price of ₹24/kg

Export Exposure:

  • Sorbitol exports: ~₹100 crores annually
  • Not significantly exposed to Chinese competition
  • 80-90% domestic sourcing

Working Capital:

  • Q4 inventory buildup is seasonal pattern due to OMC lifting patterns
  • Expected to even out in subsequent quarters

#Tags: #GulshanPolyols #EarningsCall #Ethanol #SEBIDisclosure #FinancialUpdate #Positive