India Glycols Limited (IGL) has reported strong financial results for the second quarter, delivering solid growth across major business segments and unveiling plans for a significant preferential share issue aimed at reducing debt.
Financial Highlights
The company’s net revenue rose 14% year-on-year to ₹1,092 crore, up from ₹961 crore in the same quarter last year. EBITDA grew 33% to ₹160 crore compared to ₹120 crore in the previous year’s Q2, reflecting improved operational efficiency.
Key Q2 Metrics:
| Metric | Q2 This Year | Q2 Last Year | YoY Growth |
|---|---|---|---|
| Net Revenue | ₹1,092 cr | ₹961 cr | 14% |
| EBITDA | ₹160 cr | ₹120 cr | 33% |
| EBITDA Margin | 14.6% | 12.4% | +220 bps |
| PAT | ₹65 cr | ₹50 cr | 31% |
| PAT Margin | 5.9% | 5.1% | +80 bps |
Segment Performance
Biofuels:
The Biofuels division was the strongest performer, with sales up 63% to ₹423 crore. Growth was driven by the government’s ethanol blending initiatives and the company’s capacity expansions.
Potable Spirits:
Sales in the Potable Spirits segment rose 24.5% to ₹338 crore, supported by strong demand in both Country Liquor and IMFL categories.
Chemicals:
The Chemicals division posted quarterly sales of ₹288 crore. Despite facing some headwinds, the company remains positive about growth in specialty and performance chemicals.
Strategic Developments
Preferential Share Issue:
The Board has approved a preferential allotment worth ₹467 crore at a price of ₹915 per share to promoters and related entities. The funds will primarily be used to reduce existing debt of around ₹1,400 crore, strengthening the company’s balance sheet.
Amrut Distilleries Partnership:
IGL’s collaboration with Amrut Distilleries for premium whisky brands is performing well. The company has launched 8–10 Amrut premium labels across multiple markets, targeting higher-margin segments.
Market Expansion:
IGL is expanding its IMFL footprint in states like Kerala and is also tapping opportunities in Paramilitary and Canteen Services Department channels.
Outlook
India Glycols remains confident about future growth. The company expects its premium spirits strategy, continued expansion in biofuels, and focus on specialty chemicals to support performance in the coming quarters.
CEO Rupark Sarswat noted, “We have seen strong growth in net revenue and a healthy improvement in EBITDA margins. Our strategic initiatives in biofuels and potable spirits have contributed significantly, and we aim to further strengthen our capabilities in green chemistries and advanced biofuels.”
India Glycols — Historical Stock Returns
| Time Period | Return |
|---|---|
| 1 Day | –2.51% |
| 5 Days | +8.37% |
| 1 Month | +14.18% |
| 6 Months | +27.66% |
| 1 Year | +102.98% |
| 5 Years | +660.29% |
