India Glycols Limited Q1 FY27 Earnings Conference Call Summary

Financial Performance Overview

India Glycols delivered strong Q1 FY27 results with:

  • Gross revenue growth of 19% year-on-year
  • Net revenue of ₹1,130 crore, up 9% year-on-year
  • Record EBITDA of ₹170 crore, up 13% year-on-year
  • PAT growth of 32% year-on-year
  • EBITDA margin improvement from 14.3% in Q1 FY26 to 15.0% in Q1 FY27

Finance costs declined significantly to ₹25 crore in Q1 FY27 from ₹45 crore in Q1 FY26 due to debt reduction efforts. Debt levels reduced during the quarter, and the debt-to-equity ratio improved.

Business Restructuring Update

The National Company Law Tribunal (NCLT) sanctioned the scheme of arrangement on July 17, 2026. Upon effectiveness, the business will be demerged into three separate entities:

1. India Glycols Limited (continuing entity) - Bio-based chemicals, specialty glycols, new performance chemicals, gases

2. IGL Spirits Limited - Potable spirits business (IMFL and Indian-made Indian liquor) and Bio-Fuel business

3. Ennature Bio Pharma Limited - Nutraceuticals, APIs, and biopolymers business from the chemical division

The effective date for the restructuring is to be communicated.

Segment-wise Performance (Post-Restructure View)

IGL Spirits Limited (Spirits + Bio-Fuel):

  • Net revenue: ₹694 crore
  • EBITDA: ₹120 crore
  • EBITDA margin: 17.3% (vs. 14.7% in Q1 FY26)
  • 17% EBITDA growth year-on-year

India Glycols Limited (Chemicals):

  • Net revenue: ₹345 crore, up 24% year-on-year
  • EBITDA: ₹40 crore, up 12% year-on-year
  • EBITDA margin: 11.6%

Ennature Bio Pharma Limited:

  • Net revenue: ₹90 crore, up 53% year-on-year
  • EBITDA: ₹10 crore, ~100% growth year-on-year
  • EBITDA margin: 11.1%

Detailed Business Segment Performance

Spirits Business (Standalone):

  • Revenue: ₹361 crore, up 5.3% year-on-year
  • EBITDA growth: 14.2%
  • Company retained dominant market share in UP and Uttarakhand
  • IMFL business: 1.4 million cases (55% volume growth), ₹371 crore revenue
  • Prestige & Above segment: 0.5 million cases (double previous year)
  • Non-IMFL business: 7.5 million cases (6% volume growth), ₹279 crore revenue
  • Other operating income (including Bacardi job work, ENA sales, power sales): ₹10 crore

Bio-Fuel Business:

  • Revenue: ₹323 crore, up 7% year-on-year
  • EBIT: ₹27 crore, up 19% year-on-year
  • EBIT margin: 8.4%
  • EBITDA margin: 10.8% (250 bps improvement)

Chemicals Business:

  • Revenue: ₹332 crore, up 25% year-on-year
  • EBITDA margin: 11.4%
  • Gases business: ₹13 crore revenue with 23.1% EBITDA margin
  • Green solvents and glycol ethers: Volume up 6%, value up 13%, gross margins ~50%
  • Glycols business: Value up 83% with strong gross margin growth
  • Performance chemicals: 40% growth (lower than targeted due to supply chain disruptions)

Ennature Bio Pharma Business:

  • Best-ever quarterly performance at ₹83 crore revenue (65% growth)
  • Thiocolchicoside sales: 26% growth quarter-over-quarter
  • Nicotine sales: Grew two times quarter-over-quarter
  • Started nicotine crude processing operations at Kashipur plant, adding significant capacity
  • Growth driven by new customer acquisitions, nutraceutical launches, nicotine business expansion

Macroeconomic Impact Assessment

Management discussed significant impact from geopolitical events:

  • Crude oil spike to four-year high created both headwinds and tailwinds
  • Positive impact: Bio-based ethylene oxide became price competitive with petrochemical alternatives
  • Negative impact: Propylene oxide raw materials became prohibitively expensive or unavailable
  • Supply chain disruptions: Freight costs increased 5-20 times for westbound cargoes
  • Exports to Middle East and US markets severely impacted
  • Rupee hit record low

Management Aspirations (Not Guidance)

IGL Spirits Limited:

  • Target EBITDA in excess of ₹500 crore for FY27
  • Target doubling of IMFL volumes from previous year
  • Aspire to become debt-free from FY28 onwards
  • Target EBITDA in excess of ₹1,000 crore in next 4-5 years
  • Aim to become top 5 alco-bev company in India

India Glycols Limited (Chemicals):

  • Aspire to deliver EBITDA of ~₹400 crore
  • Target business size of ~₹2,500 crore in next 4-5 years
  • Working on new technologies for carbon utilization and low-carbon footprint products

Ennature Bio Pharma Limited:

  • Aspire to achieve EBITDA of ₹130-150 crore in next 4-5 years
  • Target business size of ₹600-700 crore
  • Expect gross margins to improve to ~30% in 5-6 years

Joint Venture Performance

  • JV with Clariant showed strong performance with 21% net revenue growth compared to Q4
  • PAT of ₹21 crore for the quarter
  • Greater thrust on exporting India-made products to global Clariant customers
  • Performance supported by improved ethylene oxide pricing competitiveness

Capital Expenditure

  • Minimal capex expected for current year (₹5-20 crore)
  • No major plant expansions expected for next 2 years
  • Modular expansion approach as businesses grow

Future Growth Drivers

Spirits Business:

  • New launches in deluxe whiskey and semi-premium vodka segments
  • Focus on white spirits business (fastest growing segment)
  • Strategic partnership with Amrut for premium whiskey distribution
  • Geographical expansion beyond current focus states (UP, Uttarakhand, Delhi)
  • Defense channel providing all-India footprint with 3-4 new brands
  • Captive high-quality ENA production providing cost advantage

Chemicals Business:

  • Innovation in bio-based amines and carbon smart ethoxylates
  • Expansion into crop protection, food, pharma, and personal care applications
  • Strategic partnerships with BASF, L'Oreal, Unilever, Mibelle
  • Focus on specialty-led portfolio and value-added chemicals

Bio Pharma Business:

  • Capacity expansion in nicotine business
  • New certificates and approvals for global market penetration
  • Brand strengthening in nutraceuticals portfolio
  • Customer and product expansion initiatives

Q&A Session Highlights

  • IMFL volume target: Doubling from previous year's 3.4 million cases
  • Prestige & Above segment: 0.5 million cases in Q1 (double previous year)
  • IMFL expected to contribute over 30% of Spirits business revenue in FY27
  • Royalty arrangements with Amrut are confidential
  • Q4 FY26 EBITDA included ₹39 crore dividend income from Clariant JV
  • Restructuring rationale: Better focus, investor clarity, and business-specific dynamics