Ganesh Benzoplast FY26: Higher reported profit, but a structural cost reset at JNPT

Ganesh Benzoplast Limited closed FY26 with revenue from operations of INR 411.4 crore, up 9.9 percent year on year, marking a return to growth after FY25. Reported profit after tax rose sharply to INR 73.3 crore, up 92.5 percent, and EPS increased to INR 10.19 from INR 5.29 in FY25. Operating cash flow also improved to INR 79.3 crore, up 33 percent.

But the company has been clear that FY26 needs to be read with context. The headline PAT jump is not a clean measure of operating improvement because FY25 included a large exceptional charge of INR 44.7 crore, while FY26 included a smaller exceptional gain of INR 8.8 crore. On a like-for-like basis, PAT before exceptional items declined from about INR 82.8 crore in FY25 to about INR 64.5 crore in FY26.

The key driver: JNPT lease rental reset

The largest factor behind the underlying profit decline was the structural step-up in lease rental at JNPT for Plot 7 and Plot 13. The investor presentation states the annual rental cost increased from INR 2.0 crore in FY25 to INR 24.25 crore in FY26 due to renewal of the lease agreement for the next 25 years. This created a pre-tax impact of INR 22.25 crore, which management described as a reset that happens periodically, with the next reset expected decades later.

The company’s PAT bridge before exceptional items attributes most of the year-on-year decline to this rental increase. Management also stated on the concall that the company is working to pass through the impact to customers and expects that over the next 2 to 3 years, rental increases and pricing actions should help margins catch up.

FY26 financial snapshot

Two engines: Liquid Storage Terminals and Chemicals

Ganesh Benzoplast operates as an integrated liquid logistics and chemicals platform anchored on port-linked terminals at JNPT, Cochin and Goa. FY26 segment reporting shows both divisions grew in revenue, with Liquid Storage Terminals remaining the primary earnings driver.

In FY26, the Liquid Storage Terminals division recorded revenue of INR 225.9 crore, up 12.7 percent year on year. The Chemicals division recorded revenue of INR 185.5 crore, up 6.8 percent. Together, these add up to the consolidated revenue from operations of INR 411.4 crore.

Segment results highlight the profitability skew toward terminals. The presentation shows LST segment result of INR 73.2 crore and Chemicals segment result of INR 21.3 crore. The company describes LST as including EPC services, wharfage and rail logistics revenue, which can influence mix and margins.

On the concall, management said there is no major chemical capacity expansion planned, with only small debottlenecking initiatives underway. The company also explained that Q4 included certain exceptional expenses in chemicals related to recertification for the UK and Europe territory and settlement of staff dues, which impacted quarterly optics.

Asset base, utilisation and the expansion ladder

Ganesh Benzoplast’s liquid storage network totals 3,52,000 KL across 98 tanks and three port-linked terminals. JNPT is the scale anchor with 2,83,000 KL and 83 tanks. The presentation states JNPT handled FY26 throughput of 1,328 thousand MT at near 100 percent utilisation. Cochin has 43,000 KL with FY26 throughput of 348 thousand MT, and Goa has 26,000 KL but negligible throughput in FY26.

In the concall, management explained Goa was historically a bunkering terminal and utilisation dropped after the mining ban reduced large ship calls at Goa port. The company said it is pursuing modifications to handle blended petrol, with statutory approvals received. Work is expected to start after monsoon and finish by March 31, 2027, but management clarified that no contract has been signed yet for petroleum handling.

The growth story, therefore, is heavily linked to incremental capacity creation at JNPT, where utilisation is already near full. Management stated capex is ongoing to add approximately 50,000 KL at JNPT, with an estimated capex of INR 40 crore to INR 50 crore, and commissioning expected by the end of the calendar year. Management also indicated that revenues should start reflecting from Q4 after commissioning.

Separately, the investor presentation outlines a larger proposed expansion at JNPT Plot 14 and Plot 15: 1,22,000 KL of new tankage across 43 tanks, including 48,000 KL for Class A petroleum and 74,000 KL for chemical storage. The presentation states that post-expansion, JNPT capacity could rise to 4,05,000 KL and total LST capacity to 4,74,000 KL.

Rail logistics and EPC: building an integrated platform

Beyond storage, Ganesh Benzoplast has built adjacent capabilities. It owns 86.52 percent in Infrastructure Logistic Systems Limited, which provides rail logistics and is positioned as enabling end-to-end bulk liquid movement from port to customer sites. The presentation discloses ILSL FY26 revenue of INR 27.7 crore, EBITDA of INR 9.2 crore and PAT of INR 5.0 crore.

On the EPC side, management referenced a large EPC order of INR 175 crore for a JSW port project. They stated that engineering is complete and groundwork is expected to start after monsoon, but execution value was not quantified on the call.

Balance sheet position: low leverage, high liquidity

The company’s FY26 balance sheet reflects a low leverage profile. As of March 2026, cash and bank balances were INR 79.5 crore versus gross borrowings of INR 23.5 crore, implying a net cash position. Debt to equity was stated at 0.04x. Total assets were INR 849.5 crore and total equity was INR 617.7 crore.

This matters because the company is entering a capex phase at JNPT while also absorbing a structurally higher lease rental base. With operating cash flow at INR 79.3 crore in FY26 and liquidity exceeding debt, the company has flexibility to fund expansion without immediate balance sheet stress, at least based on the disclosed numbers.

What to track into FY27

FY26 has two simultaneous narratives. The first is positive: revenue growth, stronger operating cash flow, and a clean capital structure. The second is more nuanced: underlying profitability reset lower due to the JNPT lease renewal.

Management’s FY27 priorities, as reflected in the presentation and concall, revolve around three items. First, converting the lease step-up into a pricing and mix management discipline so margins recover over time. Second, commissioning new tank capacity at JNPT to create fresh earning headroom since the anchor terminal is already near full utilisation. Third, restoring asset productivity at Cochin and exploring a revival path for Goa, while being clear that Goa currently has approvals and plans but no signed petroleum contract.

The company’s disclosures in the investor presentation make it easier to separate reported numbers from underlying trends. That transparency will remain important as investors evaluate whether incremental capacity and pricing actions can offset the new fixed cost base at JNPT in the coming years.