Q1 2027 India Glycols Ltd Earnings Call Transcript
Key Points
- India Glycols Ltd (BOM:500201) delivered a strong Q1 FY27 with record EBITDA of INR170 crores, up 13% year-on-year, and PAT growth of 32%.
- The company's Ennature Biopharma segment achieved its best-ever quarter, with revenue up 65% and EBITDA up 188%, driven by new customer acquisitions and nicotine business expansion.
- The Spirits business showed robust growth in the IMFL segment, with revenue up 26% and volumes up 55%, supported by premiumization and strategic partnerships like the one with Amrut.
- Finance costs declined by INR25 crores year-on-year due to debt reduction, improving the debt-to-equity ratio and supporting profitability.
- The company received NCLT approval for its demerger, which is expected to unlock value by creating focused entities for chemicals, spirits, and biopharma, enhancing investor clarity and strategic focus.
- The geopolitical war has caused significant supply chain disruptions, with freight costs rising 5 to 20 times, adversely impacting exports to the Middle East and the U.S.
- Raw material availability and pricing for key inputs like propylene oxide have been volatile and prohibitively expensive, negatively affecting the performance chemicals business.
- The non-IMFL spirits segment saw stagnant revenue, with volumes growing only 6%, reflecting a declining market and increased competition.
- The company's performance chemicals business grew by 40%, which was below target due to export losses and supply chain issues, leading to flattish contribution.
- The company's aspirations for future EBITDA growth are not guaranteed and are subject to market dynamics, with management emphasizing they are not projections but targets.
Ladies and gentlemen, good day, and welcome to India Glycols Limited Q1 FY27 earnings call hosted by InCred Equities. (Operator Instructions) Please note that this conference is being recorded.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Nitin Awasthi. Thank you, and over to you, sir.
I would like to thank the management for giving us this opportunity to host the conference call today. From India Glycols management, we have Mr. Rupark Sarswat, Chief Executive Officer; Mr. Manoj Kumar Rai, Chief Executive Director and COO of IGL Spirits Limited; Mr. Akshay Bansal, Executive Director of Ennature Biopharma Limited; Mr. Anand Singhal, Chief Financial Officer; Mr. S.K. Shukla, Head of Liquor Business; and
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