💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 5% YoY to INR 2,234 Cr in FY25. Phthalic Anhydride (PAN) remains the core segment, while non-PAN revenue (Maleic Anhydride, Benzoic Acid, DEP) contributed INR 74 Cr in H1 FY26. The company targets non-PAN revenue of INR 1,000-1,100 Cr at optimum capacity, representing a potential 400%+ increase from current levels.

Geographic Revenue Split

Not disclosed in available documents, though the company notes impact from US market tariffs on downstream clients and sluggish demand in Western markets.

Profitability Margins

Gross profit for H1 FY26 was INR 216 Cr. Net profit margin for FY25 improved significantly to 5.11% from 1.90% in FY24, an increase of 168.89% YoY due to higher operational spreads.

EBITDA Margin

EBITDA margin stood at 11.30% in FY25, up from 6.39% in FY24, representing a 491 basis point improvement. EBITDA rose 82.5% YoY to INR 248.38 Cr.

Capital Expenditure

Planned investment of INR 100 Cr in the Compressed Bio-Gas (CBG) business, with IGPL's equity contribution expected to be INR 15-30 Cr. The company is also spending INR 160-170 Cr on plasticizer capacity to generate INR 1,000 Cr in revenue.

Credit Rating & Borrowing

The company is net debt-free as of Q2 FY26. It repaid INR 40 Cr of debt in the most recent quarter to further reduce interest costs. Finance costs for FY25 were INR 38.80 Cr, up 27.6% YoY.

⚙️ Operational Drivers

Raw Materials

Crude oil derivatives (specifically Orthoxylene for PAN production) and Napier Grass for the new CBG segment. Raw material costs are a primary driver of margins, with Maleic Anhydride realizations currently at an all-time low of under $300.

Import Sources

Not specifically disclosed, but the company mentions high dependency on imports for the chemical industry, particularly from Europe and China.

Capacity Expansion

Current production is crossing 2,00,000 MTPA (approx. 45,000-50,000 tons per quarter). Planned expansion into plasticizers and CBG aims to reach a total revenue potential of INR 3,000-3,200 Cr at 90% capacity utilization.

Raw Material Costs

Raw material price fluctuations are cited as a primary risk. Inventory turnover ratio decreased by 28% to 6.91 in FY25 due to an increase in closing inventory values.

Manufacturing Efficiency

Capacity utilization is targeted at 90% for optimum revenue. Current production is maintained at 45,000-50,000 tons per quarter despite sluggish market conditions.

📈 Strategic Growth

Expected Growth Rate

35-40%

Growth Strategy

Growth will be driven by diversifying into non-Phthalic products, targeting INR 1,000-1,100 Cr from plasticizers, DEP, and Maleic Anhydride. The company is also entering the green energy space via I G Biofuels with a 5 TPD pilot CBG plant and plans for future 15-20 TPD plants.

Products & Services

Phthalic Anhydride (PAN), Maleic Anhydride (MAN), Benzoic Acid, Di-ethyl Phthalate (DEP), and Plasticizers (DOP, DBP).

Brand Portfolio

IGPL

New Products/Services

Compressed Bio-Gas (CBG) from Napier Grass (expected revenue INR 16-22 Cr for the pilot) and fuel oil from plastic waste via chemical recycling (Pyrolysis).

Market Expansion

Acquisition of I G Biofuels Ltd as a 100% subsidiary to house all future CBG projects. Expansion of the plasticizer business to achieve a 5x capital turnover ratio.

Market Share & Ranking

IGPL holds over 50% market share in Phthalic Anhydride (PAN) in India and is the sole producer of Maleic Anhydride (MAN) in the country.

Strategic Alliances

Strategic Growth Advisors (SGA) serves as the Investor Relations advisor.

🌍 External Factors

Industry Trends

The Indian chemical industry faces headwinds from volatile crude and weak Western demand. However, the plasticizer market is growing due to demand for eco-friendly solutions and film/cable manufacturing.

Competitive Landscape

Competes with global imports in the Maleic Anhydride segment and large domestic players like Adani and Reliance in the emerging CBG sector.

Competitive Moat

IGPL's moat is based on cost leadership (50% PAN market share) and being the sole domestic producer of Maleic Anhydride, providing a significant logistics and availability advantage over imports.

Macro Economic Sensitivity

Highly sensitive to global crude oil prices as raw materials are crude derivatives. Sluggish global demand and high interest rates impact downstream construction and automotive sectors.

Consumer Behavior

Shift toward sustainable and circular economy products is driving the company's investment in CBG and plastic waste pyrolysis.

Geopolitical Risks

US-China trade tensions and US tariffs on downstream chemical products have indirectly reduced volume off-take from domestic customers.

⚖️ Regulatory & Governance

Industry Regulations

Subject to stringent environmental and safety regulations for chemical manufacturing. The company maintains internal controls to monitor plant safety and compliance.

Environmental Compliance

The company is investing in solar and natural gas integration to meet stringent environmental and safety regulations and reduce its carbon footprint.

Taxation Policy Impact

Effective tax provision for FY25 was INR 31.85 Cr on a PBT of INR 144.32 Cr (approx. 22%).

Legal Contingencies

The company faced a fine from BSE for non-compliance with SEBI Regulation 21 regarding the composition of the Risk Management Committee; a waiver application is currently pending.

⚠️ Risk Analysis

Key Uncertainties

Volatility in crude derivative prices could impact margins by 10-15%. Mark-to-Market (M2M) charges of INR 8 Cr impacted Q2 FY26 profitability.

Geographic Concentration Risk

Manufacturing is concentrated in India (Goa and Karnataka), while demand is susceptible to global trade barriers.

Third Party Dependencies

High dependency on government pricing for CBG, where the government sets the procurement price for the 1,500-1,600 tons per year output.

Technology Obsolescence Risk

The company is mitigating technology risk by investing in chemical recycling (Pyrolysis) and renewable energy integration.

Credit & Counterparty Risk

Debtors turnover of 7.08 indicates healthy receivable quality; however, downstream industry sluggishness (30-40% utilization) poses a risk to future credit cycles.