India Glycols Q1 FY27: Strong Profit Growth and a Demerger That Changes the Story

India Glycols Limited (IGL) began FY27 with a strong set of numbers and a clearer roadmap for what the company wants to become. In Q1 FY27, consolidated net revenue rose to INR 1,130 crore, up 8.6% year-on-year, while EBITDA increased 12.5% to INR 170 crore. Profit after tax jumped 32.2% to INR 97 crore. The quarter also benefited from a sharp reduction in finance costs, which fell to INR 25 crore from INR 45 crore in the same quarter last year.

This operating momentum comes at a critical time. The National Company Law Tribunal sanctioned IGL’s Scheme of Arrangement on 17 July 2026. Once the scheme becomes effective, the business will be reorganised into three listed platforms. Chemicals and industrial gases remain in the listed India Glycols Limited. Potable spirits and biofuel will move to IGL Spirits Limited. The biopharma business, along with the bio-polymers business, will move to Ennature Bio Pharma Limited.

Q1 FY27 performance: growth with improving quality

On the surface, revenue growth was broad-based. Every business other than biofuel grew on the top line, and the company highlighted a continuing margin recovery over multiple years. Consolidated EBITDA margin in Q1 FY27 improved to 15.0% from 14.5% in Q1 FY26. Management also referenced a multi-year improvement trend, with consolidated EBITDA margin rising from 9.6% in FY22 to 15.5% in FY26.

The quarter’s profitability improvement was reinforced by lower interest costs, aided by debt reduction and refinancing. Consolidated debt-to-equity had already reduced to 0.54x in FY26 from 0.80x in FY25, and management reiterated its intent to improve financial efficiency further.

Segment view: spirits and chemicals lead, Ennature breaks out

IGL’s segmental numbers show a portfolio that is still diversified, but the mix is evolving.

Bio-based Specialties and Performance Chemicals (BSPC) delivered net revenue of INR 363 crore, up 21% year-on-year. However, EBIT declined to INR 31 crore from INR 33 crore, and EBIT margin fell to 8.6% from 10.9%. Management attributed part of the quarter’s mixed profitability to supply chain disruption and raw material issues, citing propylene oxide as a key constraint. The company also pointed to crude price strength improving competitiveness for ethylene oxide, bio-glycols and green solvents.

Potable spirits (PS) posted net revenue of INR 361 crore, up 5% year-on-year, with EBIT of INR 75 crore. Management’s focus is clearly on premiumisation and scaling the IMFL platform, while retaining market leadership in core states. They also highlighted continued dominance in Uttar Pradesh and Uttarakhand and the benefits of new product approvals.

Biofuel net revenue declined 7% to INR 323 crore, but EBIT grew 19% to INR 27 crore, with margin improving to 8.4% from 6.5%. The company linked this to stable grain prices and operating efficiencies, and noted that with installed capacity already in place, utilisation is expected to run at 65% to 75% without significant near-term capex.

Ennature Biopharma delivered its best-ever Q1, with net revenue rising 65% year-on-year to INR 83 crore and EBIT rising to INR 7 crore from INR 1 crore. Growth was supported by new customer additions, nutraceutical launches, and expansion in nicotine. The company also commenced nicotine crude processing at Kashipur in April, adding 6 MT per month of capacity.

Demerger: a structural change that may reshape valuation and execution

The demerger is not positioned as a cosmetic financial exercise. Management argued that the consumer business dynamics of spirits are very different from a B2B chemicals platform, and a separation is intended to improve focus, governance and capital allocation. The company also stated that different investor cohorts often prefer investing in a focused consumer story versus a specialty chemicals and technology-led business.

Under the revised scheme structure, IGL shareholders will receive one share of IGL Spirits Limited for every one share held in India Glycols Limited. They will also receive one share of Ennature Bio Pharma Limited for every three shares held in India Glycols Limited. Post restructuring, promoters are expected to hold 59.63% in each of the three companies.

The investor presentation provided a pro-forma view of Q1 FY27 under the new structure. IGL Spirits Limited is shown with net revenue of INR 694 crore and EBITDA of INR 120 crore, at a 17.3% margin. The retained India Glycols Limited (chemicals plus gases) is shown with net revenue of INR 345 crore and EBITDA of INR 40 crore. Ennature Bio Pharma Limited is shown with net revenue of INR 90 crore and EBITDA of INR 10 crore.

What management is signalling for FY27 and beyond

Management provided a mix of near-term expectations and longer-term aspirations. For IGL Spirits, management stated it expects to deliver EBITDA in excess of INR 500 crore in FY27. It also stated an aspiration of INR 1,000 crore EBITDA in 4 to 5 years and a debt-free balance sheet from FY28 onwards.

For the retained India Glycols (chemicals) business, the presentation stated an expectation of EBITDA in excess of INR 200 crore for FY27, including dividend from the joint venture, and an aspiration to reach INR 400 crore EBITDA in 4 to 5 years.

For Ennature Bio Pharma, the presentation stated an expectation of EBITDA in excess of INR 50 crore in FY27, and an aspiration to reach INR 130 to 150 crore EBITDA in 4 to 5 years.

The concall also offered additional detail on selective projects. Management stated incremental capex expectations for the year are not large, indicating a likely range of around INR 5 to 20 crore based on current plans, and noted that the New Speciality Unit had seen investment of roughly INR 50 to 60 crore.

Key takeaways

IGL’s Q1 FY27 results show a business with improving profitability, aided by lower finance costs and a multi-year margin recovery trend. Segment performance is mixed, with strong growth in chemicals revenue but weaker BSPC margins, steady spirits performance with premiumisation underway, biofuel margin improvement despite lower revenue, and a sharp improvement in Ennature Biopharma.

The bigger change is structural. With NCLT approval in place, the demerger may lead to clearer financial reporting, more focused management execution, and potentially a different valuation framework for each business. The next major milestone is the effective date and the listing process for the resulting companies. Until then, investors will likely track how the company sustains profitability, navigates raw material and freight volatility, and converts its stated segment ambitions into measurable delivery.