Gulshan Polyols FY26: Revenue up 14%, EBITDA +131%

Overview: ethanol drives a step-up in FY26 profitability

Gulshan Polyols Ltd (BSE: 532457) reported a sharp improvement in FY26 profitability, supported by scale-up in its ethanol business and softer input costs. Revenue from operations for FY26 rose 14% year-on-year to INR 2,314 crore. EBITDA for the full year grew 131% to INR 232 crore, taking EBITDA margin to 10%.

Management commentary in the results discussion positioned FY26 as the year when prior ethanol investments started reflecting meaningfully in financial performance, improving both revenue mix and overall margin profile. The ethanol segment was described as the primary driver, contributing over 60% of revenue and profitability.

What the audited numbers show for FY26

The board approved audited financial results at a meeting held on May 22, 2026. Net profit after tax for the full year ended March 31, 2026 rose to INR 107.15 crore (Rs 10,714.67 lakh), compared with INR 24.79 crore (Rs 2,478.71 lakh) in the previous year. Basic and diluted EPS for the full year stood at Rs 17.18 versus Rs 3.97 in FY25.

Operating cash flow improved to INR 207.45 crore (Rs 20,744.86 lakh) from INR 41.78 crore (Rs 4,177.64 lakh), reflecting stronger profitability and improved working capital management as stated in the disclosure. Cash and cash equivalents increased to INR 27.76 crore (Rs 2,775.87 lakh) at year-end from INR 1.17 crore (Rs 117.43 lakh) at the start of the year.

Q4FY26: margin expansion continues, but ethanol volumes dipped

For Q4FY26, revenue from operations came in at INR 550.82 crore (Rs 55,081.84 lakh), up from INR 514.88 crore (Rs 51,488.19 lakh) in Q4FY25. Net profit after tax increased to INR 37.54 crore (Rs 3,754.08 lakh) from INR 7.02 crore (Rs 702.02 lakh).

In the company’s earnings commentary, Q4 revenue was cited at around INR 550 crore, up 7%, with ethanol as the main contributor while grain processing remained subdued and the chemicals segment was stable. Q4 EBITDA was stated at INR 65 crore, up 121% year-on-year, with EBITDA margin in Q4 expanding to 11.9%.

The company also flagged that ethanol volume in Q4 declined versus the previous year and quarter due to lower order allocations.

Segment performance: ethanol leads, grain remains under pressure

For FY26, the ethanol segment reported revenue of INR 1,609 crore and EBITDA of INR 201 crore, with an EBITDA margin of 12.5%. Management attributed the performance to higher volumes, improved capacity utilisation, and a favourable feedstock mix.

Grain processing delivered revenue of INR 610 crore with EBITDA of INR 13 crore, translating into an EBITDA margin of 2.1%. The company noted margins remained subdued due to pricing dynamics, although it indicated gradual improvement.

The chemical segment (referred to as mineral/maintenance chemicals in different disclosures) reported revenue of INR 93 crore and EBITDA of INR 23 crore, with a margin of 24.2%, supporting cash flows with stable profitability.

Ethanol visibility and feedstock actions: what management highlighted

The ethanol business benefits from revenue visibility through long-term offtake agreements extending through 2032, as per the provided notes. The company also highlighted steps to reduce input cost volatility by sourcing 40% of its feedstock through FCI at fixed prices, aimed at improving margin stability.

The earnings commentary also referred to improved ethanol realisations, with realisations ranging between 21 to 22 for maize and about 25 for rice, translating into an incremental 9 to 10 rupees per litre in ethanol economics.

Debt and balance sheet position

Gulshan Polyols reported total debt of around INR 313 crore, including long-term and working capital borrowings, with repayments extending until FY32. It also stated that working capital borrowing costs were 7.25% and that dependence on working capital financing had reduced significantly, with expectations of remaining low through FY27.

On the audited balance sheet, total equity rose to INR 718.58 crore (Rs 71,857.58 lakh) from INR 613.37 crore (Rs 61,336.83 lakh). Total assets stood at INR 1,304.39 crore (Rs 1,30,438.64 lakh) as at March 31, 2026.

FY27 outlook: revenue target and grain margin expectations

The company is targeting FY27 revenue of INR 2,600 to INR 2,800 crore, with focus areas including utilisation optimisation and balance sheet strengthening.

For the grain processing segment, the company indicated signs of recovery and expectations of achieving about 5% EBITDA margins in FY27. It set an internal target of INR 40 crore EBITDA on revenue of INR 800 crore, driven by improvements in sorbitol, fructose, and starch.

FY28 and beyond: specialty and import-substitute chemicals

From FY28 onwards, Gulshan Polyols plans to enter a growth phase focused on specialty and import substitute chemicals. It is evaluating projects with capex of about INR 500 crore, aiming to generate revenue of INR 1,000 to INR 1,500 crore.

The broader medium-term ambition mentioned is to reach INR 5,000 crore in revenue over the next four years.

Key risks flagged: grain pricing, exports, and ethanol supply

Alongside the positives, the company highlighted several risk factors. Grain processing margins remain subdued due to pricing dynamics. It also pointed to export market volatility, especially from China, that could impact competitiveness and margins.

In ethanol, the company acknowledged potential challenges in maintaining current profitability as industry supply increases and blending levels mature.

Summary table: FY26 snapshot and segment mix

Dividend and next steps

The board recommended a final dividend of Rs 1.50 per equity share for FY26, subject to shareholder approval at the ensuing AGM. If approved, the dividend will be paid within 30 days of the AGM.

With FY26 profitability expanding sharply and ethanol continuing to dominate the earnings mix, near-term tracking factors include FY27 utilisation, grain margin recovery progress, and any updates on the planned capex pipeline for specialty and import-substitute chemicals.