Gulshan Polyols September profit doubles as ethanol earnings rise

Gulshan Polyols Limited reported net profit of Rs 38.89 crore for the quarter ended September 30, 2026, more than double Rs 15.53 crore a year earlier, led by a rise in ethanol (bio-fuel)/distillery segment result to Rs 57.10 crore from Rs 27.15 crore. Revenue from operations increased to Rs 614.96 crore from Rs 541.72 crore.

How did Gulshan Polyols perform in the September quarter?

Gulshan Polyols recorded profit after tax of Rs 38.89 crore in the September 2026 quarter, against Rs 15.53 crore in the September 2025 quarter. Profit before tax rose to Rs 52.36 crore from Rs 22.35 crore, while total income increased to Rs 614.34 crore from Rs 542.02 crore. Tax expense was Rs 13.47 crore, compared with Rs 6.82 crore a year earlier.

The year-on-year improvement followed a sequential decline from the June 2026 quarter. Revenue from operations was Rs 614.96 crore in September, below Rs 639.87 crore in June, while profit after tax declined from Rs 53.51 crore. Profit before tax reduced from Rs 73.39 crore and earnings per share fell to Rs 6.24 from Rs 8.58, although both remained above September 2025 levels.

What drove Gulshan Polyols' profit increase?

Gulshan Polyols' ethanol (bio-fuel)/distillery business was the main disclosed driver of the year-on-year earnings increase, reporting a segment result of Rs 57.10 crore in the September 2026 quarter compared with Rs 27.15 crore in the corresponding quarter. Segment revenue increased to Rs 426.74 crore from Rs 386.55 crore. The segment result is reported before tax, exceptional items, interest and finance cost.

Ethanol (bio-fuel)/distillery generated Rs 426.74 crore of the company's Rs 614.96 crore quarterly segment revenue, ahead of grain processing at Rs 165.50 crore and mineral processing at Rs 22.71 crore. Its September segment result was lower than Rs 75.02 crore in June 2026, when segment revenue was Rs 446.15 crore. The business therefore expanded sharply from a year earlier but moderated from the immediately preceding quarter.

For the half year ended September 30, 2026, ethanol (bio-fuel)/distillery revenue reached Rs 872.89 crore, compared with Rs 789.67 crore in the prior-year half. Its segment result more than doubled to Rs 132.13 crore from Rs 53.51 crore. This Rs 78.62 crore increase exceeded the movements reported in grain processing and mineral processing.

How did Gulshan Polyols' other segments perform?

Grain processing recorded a segment loss of Rs 1.26 crore in the September 2026 quarter, compared with a loss of Rs 0.69 crore a year earlier. Revenue nevertheless rose to Rs 165.50 crore from Rs 133.24 crore. The segment had earned Rs 3.96 crore in the June 2026 quarter, showing that its September result moved back into loss sequentially.

For the half year, grain processing returned to a profit of Rs 2.70 crore, against a loss of Rs 5.00 crore in the comparable prior-year period. Half-year revenue increased to Rs 335.06 crore from Rs 300.68 crore. The six-month profit reflected the June-quarter result despite the September-quarter loss.

Mineral processing delivered a September-quarter segment result of Rs 3.26 crore, down from Rs 4.50 crore a year earlier, although revenue increased to Rs 22.71 crore from Rs 21.93 crore. Its result was also lower than Rs 4.19 crore in June 2026. For the half year, the segment earned Rs 7.44 crore compared with Rs 8.73 crore in the prior-year half, on revenue of Rs 46.88 crore versus Rs 44.61 crore.

How did costs and finance costs affect Gulshan Polyols' result?

Gulshan Polyols' total expenses increased to Rs 561.98 crore in the September quarter from Rs 519.44 crore a year earlier, while total income increased by Rs 72.32 crore. Material cost rose to Rs 400.12 crore from Rs 375.40 crore and other expenses rose to Rs 138.18 crore from Rs 123.43 crore. Finance cost fell to Rs 5.87 crore from Rs 8.15 crore, while depreciation and amortisation reduced to Rs 10.43 crore from Rs 11.43 crore.

In the half year ended September 2026, finance cost reduced to Rs 12.55 crore from Rs 16.24 crore in the prior-year half. Total segment results rose to Rs 138.30 crore from Rs 58.72 crore before finance cost. Gulshan Polyols reported no exceptional item in the latest September quarter or half year, whereas the corresponding prior-year periods included an exceptional expense of Rs 0.23 crore.

The board approved the unaudited September-quarter and half-year results on November 12, 2026, after review and recommendation by the audit committee. Shahid & Associates conducted the limited review, and the filing states that the statutory auditors expressed an unmodified opinion on the results.

What changed in Gulshan Polyols' balance sheet and cash flow?

Gulshan Polyols' total assets stood at Rs 1,388.62 crore on September 30, 2026, compared with Rs 1,304.39 crore on March 31, 2026. Current assets increased to Rs 615.66 crore from Rs 527.64 crore, including inventories of Rs 286.88 crore against Rs 222.92 crore. Total equity rose to Rs 802.08 crore from Rs 718.58 crore, including other equity of Rs 795.84 crore.

Borrowings declined during the same period. Non-current borrowings were Rs 85.14 crore on September 30, versus Rs 100.08 crore on March 31, while current borrowings reduced to Rs 147.87 crore from Rs 212.44 crore. Cash and cash equivalents increased to Rs 33.71 crore from Rs 27.76 crore after operating cash flow of Rs 118.94 crore in the half year, investing cash outflow of Rs 11.42 crore and financing cash outflow of Rs 101.57 crore.

Conclusion

Gulshan Polyols' September-quarter profit growth was chiefly associated with the year-on-year rise in ethanol (bio-fuel)/distillery earnings, which contributed Rs 57.10 crore of the Rs 58.24 crore total segment result before finance cost. Higher group revenue and lower finance cost also accompanied profit after tax of Rs 38.89 crore, although both quarterly profit and ethanol earnings were below the June 2026 quarter.

The filing sets out no management earnings target or operating plan. The disclosed matters to watch in later results are whether ethanol segment earnings remain above the Rs 27.15 crore reported a year earlier, whether grain processing moves from its September-quarter loss of Rs 1.26 crore into profit, and how inventories of Rs 286.88 crore affect operating cash flow.