Gulshan Polyols Limited – Investor Presentation Summary

Key Operational Highlights

  • Ethanol segment current order book stands at ~19 crore litres, with confidence of securing additional allocations through upcoming government tenders.
  • Feedstock availability remains favorable, supported by continued availability of FCI rice and improving domestic maize production.
  • Grain processing industry fundamentals continue to improve, supported by better starch and fructose realizations and enhanced export competitiveness.
  • Mineral processing segment continues to deliver stable operating performance, supported by long-standing customer relationships and healthy margins.
  • Operational focus remains on enhancing asset utilization, improving procurement efficiencies, and mitigating commodity price volatility.

Key drivers of operational performance: New capacity investments translating into stronger operating performance, improved earnings quality, and healthier free cash flows.

Segment-wise Performance

Ethanol and Distillery Performance:

  • Revenue: FY24: ₹493 crore, FY25: ₹1,187 crore, FY26: ₹1,609 crore (36% change), Q1 FY26: ₹403 crore, Q1 FY27: ₹446 crore (11% change)
  • EBITDA: FY24: ₹25 crore, FY25: ₹69 crore, FY26: ₹201 crore (191% change), Q1 FY26: ₹31 crore, Q1 FY27: ₹81 crore (160% change)
  • EBITDA Margin: FY24: 5%, FY25: 6%, FY26: 12% (665 bps change), Q1 FY26: 8%, Q1 FY27: 18% (1,036 bps change)

Grain Processing Performance:

  • Unit 1 (Gujarat): Capacity: 1,00,000 MTPA, produces sorbitol 70% solution and liquid glucose. Largest starch derivatives export facility; Holds Star Export House certification
  • Unit 2 (Uttar Pradesh): Capacity: 92,000 MTPA, produces precipitated calcium carbonate

Mineral Processing Performance:

  • Uttar Pradesh Unit - 1: Capacity: 23,400 MTPA for GNCC and CCPG
  • Himachal Pradesh: Capacity: 54,360 MTPA
  • Rajasthan: Capacity: 20,000 MTPA for GCC - Coated and Uncoated

Explanation of significant changes in segment performance: Ethanol business continues to be the primary growth engine, representing 70% of total revenue in FY26. Grain processing has entered a gradual recovery phase supported by improving industry fundamentals.

Financial Highlights

Q1 FY27 Performance:

  • Revenue from Operations: ₹640 crore (8% YoY increase from ₹593 crore)
  • Other Income: ₹6 crore (196% YoY increase from ₹2 crore)
  • Total Revenue: ₹646 crore (8% YoY increase from ₹595 crore)
  • Cost of Materials Consumed: ₹397 crore (-6% YoY from ₹423 crore)
  • Employee Benefit Expense: ₹16 crore (42% YoY increase from ₹11 crore)
  • Other Expenses: ₹143 crore (16% YoY increase from ₹123 crore)
  • Total Operating Expense: ₹555 crore (0% YoY change from ₹557 crore)
  • EBITDA: ₹91 crore (135% YoY increase from ₹38 crore)
  • EBITDA Margin: 14.2% (767 bps YoY increase from 6.5%)
  • Depreciation & Amortization: ₹11 crore (0% YoY change)
  • Finance Cost: ₹7 crore (-18% YoY from ₹8 crore)
  • Profit Before Tax: ₹73 crore (269% YoY increase from ₹20 crore)
  • Tax Expense: ₹20 crore (196% YoY increase from ₹7 crore)
  • Profit After Tax (PAT): ₹54 crore (307% YoY increase from ₹13 crore)
  • PAT Margin %: 8.4% (615 bps YoY increase from 2.2%)

Full Year Performance:

  • FY26 Revenue from Operations: ₹2,312 crore (14% YoY increase from ₹2,020 crore)
  • FY26 EBITDA: ₹232 crore (131% YoY increase from ₹100 crore)
  • FY26 EBITDA Margin: 10.0% (504 bps YoY increase from 5.0%)
  • FY26 PAT: ₹107 crore (332% YoY increase from ₹25 crore)
  • FY26 PAT Margin: 4.6% (341 bps YoY increase from 1.2%)

Drivers of financial performance: Higher revenue growth, improved operational efficiencies, disciplined procurement, and higher asset utilization.

Key Risks: Raw material price volatility may impact quarterly margins.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

FY26 Position (₹ crores):

  • Non-current Assets: ₹776 crore
  • Current Assets: ₹528 crore (including Inventories: ₹223 crore, Trade receivables: ₹206 crore, Cash & bank balances: ₹28 crore)
  • Total Assets: ₹1,304 crore
  • Non-current Liabilities: ₹156 crore (including Long term borrowings: ₹100 crore)
  • Current Liabilities: ₹428 crore (including Short term borrowings: ₹212 crore, Trade payables: ₹159 crore)
  • Total Liabilities: ₹1,304 crore

Financial Health Insights: Focus on strengthening balance sheet and reducing working capital intensity.

Capex & Cash Flow Health

FY26 Cash Flow (₹ crores):

  • Net cash from operating activities: ₹207 crore
  • Net cash from investing activities: -₹60 crore (Purchase of net fixed assets: -₹26 crore)
  • Net cash from financing activities: -₹121 crore (Repayment of borrowings: -₹79 crore)
  • Net Increase in cash: ₹27 crore
  • Closing Cash & Cash Equivalents: ₹28 crore

Capital Expenditure: Major capital expenditure behind us, focus shifted to maximizing returns on invested capital.

Investment Rationale: Foundation for next phase of growth through specialty and import-substitute chemicals from FY28 onwards.

Strategic & R&D Initiatives

Investments in Innovation: Dedicated manufacturing facilities equipped with in-house microbiology laboratory and state-of-the-art research facilities.

Expected impact on growth: Preparing for transition to higher ethanol blends & flex-fuel vehicles; targeting 80%-90% capacity utilization in FY27.

Strategic Rationale: Expanding into high-growth markets of specialty chemicals and biofuels; reducing operational costs through efficiency initiatives.

Industry Trends & Business Environment

Macro/Industry Trends: India's ethanol market size estimated at $4.1 billion in 2024, expected to reach $17.7 billion by 2035 (CAGR of 14.2%); favorable policy environment with ethanol prices delinked from crude or petrol prices; differential and attractive prices for ethanol produced from damaged/surplus food grains.

Impact on Company: Beneficiary of India's E20 mandate; business model supports adoption of locally sourced grains, farmer income visibility, and sustainable agricultural practices.

Management Commentary & Growth Outlook

Strategic Outlook: Q1 FY27 marks a strong start to the year, reinforcing transition from investment-led phase to execution, optimization, and cash generation. Recent capacity investments beginning to translate into stronger operating performance, improved earnings quality, and healthier free cash flows.

FY Guidance: Expect operational efficiencies, disciplined procurement, and higher asset utilization to support performance over the course of the year; confident of achieving FY27 guidance.

Risks and Opportunities: While quarterly margins may remain sensitive to raw material price movements, company expects to mitigate volatility through operational efficiencies.