Financial Performance Overview
I G Petrochemicals Limited reported significantly weaker financial results for FY26. Standalone revenue declined 12.5% to ₹1,953.66 crore (FY25: ₹2,234 crore), while profit after tax plummeted 79.4% to ₹23.16 crore (FY25: ₹112.47 crore). Basic EPS stood at ₹7.52 compared to ₹36.52 in the previous year. The decline was primarily driven by compressed margins, foreign exchange fluctuations, and challenging market conditions.
Key Financial Metrics
- Total Income: ₹1,95,084.42 lakh (Previous year: ₹2,23,183.76 lakh)
- EBITDA: ₹130.43 crore (FY25: ₹248 crore) - decline of 47.4%
- Finance Cost: ₹37.52 crore (FY25: ₹38.80 crore)
- Tax Expense: ₹8.21 crore with effective tax rate of 26.17%
- Depreciation & Amortization: ₹61.54 crore (FY25: ₹65.26 crore)
Revenue Breakdown & Cost Structure
Revenue from operations decreased to ₹1,92,497.90 lakh, with sale of goods contributing ₹1,91,950.06 lakh. Geographic revenue split shows India ₹1,72,619.78 lakh and exports ₹19,878.12 lakh. Cost of raw materials consumed was ₹1,49,303.62 lakh, while employee benefit expense stood at ₹9,660.66 lakh. Other expenses included significant foreign exchange translation difference of ₹2,809.60 lakh.
Operational Highlights
- Market Position: India's largest Phthalic Anhydride (PAN) manufacturer with ~50% market share
- Production Facilities: Five integrated PAN plants at Taloja, Maharashtra
- Advanced Plasticizer Plant: Achieved mechanical completion in March 2026, expected to commence commercial operations in FY27
- Forward Integration: DEP plant capacity increased from 600 MT/month to 840 MT/month
- Employee Strength: 509 employees
Strategic Developments & Debt Management
The company prepaid portion of Euro-denominated loan and converted significant exposure to rupee borrowings to reduce forex risk. New ventures including Compressed Biogas (CBG) and Pyrolysis Oil projects are under development. India Ratings & Research affirmed "IND AA-/Stable/IND A1+" rating for the company's bank loan facilities.
Balance Sheet Position
Assets: Property, Plant and Equipment ₹91,127.97 lakh, Capital Work-in-Progress ₹17,309.32 lakh, Inventories ₹20,685.87 lakh, Trade Receivables ₹35,031.04 lakh, Cash and bank balances ₹15,937.39 lakh.
Liabilities: Borrowings ₹27,795.33 lakh (Non-current ₹14,722.62 lakh, Current ₹13,072.71 lakh), Trade Payables ₹38,700.14 lakh, Deferred Tax Liability ₹10,528.08 lakh.
Corporate Actions & Dividend
Board recommended final dividend of 50% i.e., ₹5 per equity share (aggregating ₹153.97 crore), subject to approval at AGM. Previous year dividend was ₹10 per share. The 37th AGM will be held on August 6, 2026 via video conference to approve financial statements and special business resolutions including re-appointment of Executive Director Sagar Jadhav for three years.
Promoter Shareholding & Governance
Promoters held 68.74% of share capital with key entities including Vincent (India) Ltd. (15.40%), Mysore Petro Chemicals Ltd. (13.23%), and Kamrup Enterprises Ltd. (9.57%). Board composition includes 7 Directors (4 Independent, 3 Executive) with 4 meetings held during FY26.
Contingent Liabilities & Risks
Total contingent liabilities not provided for: ₹9,929.42 lakh, comprising disputed excise & service tax matters (₹1,711.81 lakh), income tax disputes (₹3,979.07 lakh), electricity duty disputes (₹3,997.54 lakh), and other claims. Key risk factors include raw material price volatility, import competition, environmental compliance, and foreign currency exposure.
CSR Activities & Subsidiaries
CSR expenditure of ₹2.99 crore impacted 4,000+ lives through vocational skill development, women empowerment, and healthcare programs. Subsidiaries include IGPL International Ltd and I G Biofuels Ltd (both yet to commence operations), while IGPL Energy Ltd is in process of liquidation.
Forward Outlook
The company is focusing on strengthening its integrated business model, operational excellence, and sustainable growth opportunities. The new plasticizer plant is expected to contribute to revenues in FY27. Market outlook remains optimistic for chemicals sector with rising infrastructure and construction activity, though near-term challenges persist from forex volatility and margin pressures.