INDIAGLYCO - India Glycols

📊 NSE: INDIAGLYCO 🏢 Breweries & Distilleries 📅 Last Updated: 12/14/2025 7:57

💰 Financial Performance

Revenue Growth by Segment

Biofuels (BF) grew 54.5% YoY to INR 770 Cr in H1FY26. Potable Spirits (PS) grew 24.5% YoY to INR 338 Cr in Q2FY26. Bio-based Specialities and Performance Chemicals (BSPC) declined 22.8% YoY to INR 588 Cr in H1FY26 due to subdued pricing and demand in Chinese/SE Asian markets.

Geographic Revenue Split

Not disclosed in available documents, though the company notes management decisions to restrict supply to domestic markets due to subdued pricing in Chinese and South-East Asian markets.

Profitability Margins

Gross Revenue reached INR 9,052 Cr in FY25, up 13.9% from INR 7,944 Cr in FY24. PAT margin improved to 6.5% in H1FY26 from 5.7% in H1FY25. Net profit for FY25 was INR 180 Cr compared to INR 152 Cr in FY24, a 18.4% increase.

EBITDA Margin

EBITDA margin stood at 14.6% in H1FY26, expanding by 172 bps from 12.8% in H1FY25. Absolute EBITDA grew 25.1% YoY to INR 311 Cr. The company has seen a steady margin recovery from 11% in FY22 to nearly 15% in FY26.

Capital Expenditure

Planned capex of INR 175 Cr and INR 190 Cr for FY25 and FY26 respectively, primarily funded through term loans for distillery capacity enhancement and the New Specialities Unit (NSU). Gross Fixed Assets increased to INR 4,377 Cr in FY25 from INR 3,713 Cr in FY24.

Credit Rating & Borrowing

Credit rating maintained by CARE Ratings with an 'Adequate' liquidity profile. Interest coverage ratio was 3.15x in 9MFY25. Finance costs increased 23.7% YoY to INR 94 Cr in H1FY26 due to higher debt for capex.

⚙️ Operational Drivers

Raw Materials

Ethyl Alcohol (primary feedstock for BSPC), Grain/Molasses (for distillery), and various chemicals. Raw material costs are highly volatile and impact the spread for glycol products.

Import Sources

Sourced domestically within India, particularly from states like Uttar Pradesh and Uttarakhand for distillery operations.

Capacity Expansion

Distillery capacity is being enhanced with a capex of INR 365 Cr over two years. The New Specialities Unit (NSU) is currently ramping up operations as of Q2FY26 to drive future revenue.

Raw Material Costs

BSPC segment profitability is susceptible to the spread between glycol products and ethyl alcohol. PS segment margins were previously impacted by sharp escalations in ethanol and material costs.

Manufacturing Efficiency

EBITDA margin expansion of 216 bps in Q2FY26 indicates improved operational efficiency and better product mix.

📈 Strategic Growth

Expected Growth Rate

11-14%

Growth Strategy

Scaling up distillery facilities to supply ethanol to Oil Marketing Companies (OMCs), ramping up the New Specialities Unit (NSU), and expanding the Potable Spirits portfolio with in-house brands. The company is also leveraging its JV with Clariant for bio-based specialities.

Products & Services

Bio-based glycols, Ethanol (for OMCs), Country Liquor, IMFL (Spirits), Industrial Gases, Sugar, and Nutraceuticals (Ennature Biopharma).

Brand Portfolio

Zumba Lemoni, Soulmate Blu, Amazing Vodka (Potable Spirits).

New Products/Services

Launched in-house brands Zumba Lemoni and Soulmate Blu; planning to launch a new Brandy brand to strengthen the Potable Spirits segment.

Market Expansion

Strengthening footprint in the Paramilitary business and institutional channels for Potable Spirits.

Strategic Alliances

Joint Venture with Clariant (Clariant IGL) which contributed INR 30 Cr to PAT in H1FY26, a 40.1% YoY increase.

🌍 External Factors

Industry Trends

The Indian chemical industry is expected to grow to USD 300 billion by 2025. The liquor industry shows strong potential with volumes of 350 million cases, while the government's ethanol blending mandate is driving the Biofuel segment.

Competitive Landscape

Competes with traditional petrochemical-based glycol producers and other distillery-based chemical companies in India.

Competitive Moat

Moat is built on green technology-based manufacturing (bio-based vs petro-based) and a strong market position in the regulated liquor industry in North India. Sustainability is driven by the global shift toward renewable chemicals.

Macro Economic Sensitivity

Highly sensitive to global chemical cycles and crude oil prices which affect substitute glycol pricing.

Consumer Behavior

Shift toward premiumization in the Potable Spirits segment and increasing demand for sustainable/green chemicals in global supply chains.

Geopolitical Risks

Trade tensions and global supply chain shifts (China+1) are benefiting the Indian chemical sector, though subdued demand in China currently pressures export volumes.

⚖️ Regulatory & Governance

Industry Regulations

Highly regulated liquor industry where states control production, sales, and duty structures. Ethanol prices for OMCs are also subject to government mandates.

Environmental Compliance

Focus on green technology-based chemicals; specific ESG costs not disclosed.

Taxation Policy Impact

Tax expenses for H1FY26 were INR 36 Cr on a PBT of INR 174 Cr, representing an effective tax rate of approximately 20.7%.

⚠️ Risk Analysis

Key Uncertainties

Volatility in the spread between ethyl alcohol and glycol prices; potential introduction of prohibition laws in key states; and the successful ramp-up of the NSU unit.