IGL Spirits profit before tax rises despite revenue fall

IGL Spirits Limited reported profit before tax (PBT) of Rs 82.80 crore for the quarter ended September 30, 2026, up from Rs 79.86 crore in the June quarter and Rs 77.41 crore a year earlier, although revenue from operations fell sequentially to Rs 2,295.41 crore from Rs 2,541.89 crore.

Why did IGL Spirits’ profit before tax increase?

IGL Spirits’ PBT increased because total segment profit before interest and tax rose to Rs 103.95 crore in the September 2026 quarter from Rs 98.44 crore in the June 2026 quarter. The increase came despite a Rs 246.48 crore sequential decline in revenue from operations, with the segment-result movement shown in the company’s reconciliation to PBT.

Interest, shown net in the segment reconciliation, increased to Rs 10.94 crore from Rs 9.15 crore, while unallocated corporate expenses net of unallocable income rose to Rs 10.22 crore from Rs 9.43 crore. The Rs 5.51 crore increase in total segment result exceeded these higher deductions, lifting PBT by Rs 2.94 crore quarter on quarter to Rs 82.80 crore.

The year-on-year comparison also shows revenue and profit moving at different rates. Revenue from operations increased by Rs 214.78 crore from Rs 2,080.63 crore in the quarter ended September 30, 2025, while PBT rose by Rs 5.39 crore from Rs 77.41 crore. Total segment result was Rs 103.95 crore in the latest quarter, compared with Rs 101.59 crore a year earlier.

Which IGL Spirits segment changed in the September quarter?

IGL Spirits’ Bio-Fuel segment recorded a sequential increase in both revenue and segment profit during the September 2026 quarter. Bio-Fuel revenue rose to Rs 376.22 crore from Rs 323.22 crore in the June quarter, while segment profit before interest and tax increased to Rs 31.69 crore from Rs 30.77 crore.

Potable Spirits remained IGL Spirits’ larger revenue segment, but its sales declined sequentially. Potable Spirits revenue was Rs 1,919.09 crore in the September quarter, down Rs 299.58 crore from Rs 2,218.67 crore in the June quarter, while its segment profit increased to Rs 72.27 crore from Rs 67.67 crore.

Against the September 2025 quarter, Potable Spirits revenue increased from Rs 1,657.82 crore to Rs 1,919.09 crore, but its segment result declined from Rs 74.99 crore to Rs 72.27 crore. Bio-Fuel revenue fell from Rs 422.81 crore to Rs 376.22 crore year on year, while its segment result rose from Rs 26.60 crore to Rs 31.69 crore.

How did IGL Spirits perform in the first half?

IGL Spirits reported PBT of Rs 162.66 crore for the half year ended September 30, 2026, compared with Rs 149.89 crore in the corresponding half year ended September 30, 2025. Revenue from operations increased to Rs 4,837.30 crore from Rs 4,233.26 crore over the same periods.

The half-year segment data show Potable Spirits revenue of Rs 4,137.86 crore, up from Rs 3,462.88 crore a year earlier, while Bio-Fuel revenue declined to Rs 699.44 crore from Rs 770.38 crore. Potable Spirits segment result was Rs 139.94 crore, below Rs 147.34 crore in the previous-year half, whereas Bio-Fuel segment result increased to Rs 62.46 crore from Rs 50.91 crore.

Net cash flow from operating activities was Rs 185.85 crore in the half year ended September 30, 2026, compared with net cash used in operating activities of Rs 61.89 crore in the year-earlier half. IGL Spirits reported Rs 185.85 crore of cash generated from operations, compared with cash used in operations of Rs 43.79 crore in the corresponding prior period.

Capital expenditure, represented by purchases of property, plant and equipment, was Rs 54 crore in the latest half year, compared with Rs 22.97 crore a year earlier. Net cash used in financing activities was Rs 132.08 crore, versus net cash generated from financing activities of Rs 82.77 crore, while net borrowing payments were Rs 88.38 crore compared with net borrowing proceeds of Rs 136.65 crore in the earlier period.

What changed in IGL Spirits’ balance sheet?

IGL Spirits’ total assets stood at Rs 3,322.82 crore as of September 30, 2026, compared with Rs 3,258.82 crore as of March 31, 2026. Current assets increased to Rs 578.25 crore from Rs 514.62 crore, led by inventories of Rs 279.04 crore versus Rs 204.63 crore and trade receivables of Rs 247.03 crore versus Rs 229.08 crore.

Total equity increased to Rs 1,329.04 crore at September 30 from Rs 1,208.36 crore at March 31. Other equity rose to Rs 1,295.53 crore from Rs 1,174.85 crore, while the Rs 33.51 crore equity share suspense account at March 31 was replaced by equity share capital of Rs 33.51 crore at September 30.

Non-current borrowings declined to Rs 436.71 crore from Rs 518.49 crore, and current borrowings decreased to Rs 277.42 crore from Rs 284.01 crore. Total current liabilities were Rs 1,103.74 crore versus Rs 1,090.61 crore, including trade payables of Rs 637.11 crore compared with Rs 599.63 crore at the previous financial year-end.

What does the demerger mean for IGL Spirits’ reported comparisons?

IGL Spirits’ results incorporate the demerger of the spirits and biofuel undertaking from India Glycols Limited, with the undertaking transferred and vested in IGL Spirits from the appointed date of April 1, 2026. The National Company Law Tribunal approved the scheme on July 17, 2026, and its order was filed with the Registrar of Companies on September 1, 2026.

IGL Spirits said comparative financial results and other financial information were restated to reflect the scheme under Appendix C of Indian Accounting Standard 103, covering business combinations of entities under common control. The company also said figures for comparative periods were not audited or reviewed by the then statutory auditors, which is relevant to comparisons with the September 2025 quarter and half year.

IGL Spirits said it had initiated the process of obtaining regulatory approvals for licences and permissions in its own name. Until those approvals are obtained, business operations remain in the name of India Glycols Limited, while accounting transactions continue to be recorded in the demerged company’s books and are extracted for IGL Spirits’ reported results.

Conclusion

IGL Spirits’ September-quarter results show PBT rising to Rs 82.80 crore even as revenue from operations declined by Rs 246.48 crore from the June quarter. Both Potable Spirits and Bio-Fuel recorded sequential increases in segment profit, while Bio-Fuel also delivered higher revenue during the period.

The next disclosed matter to watch is the completion of regulatory approvals for licences and permissions in IGL Spirits’ name. The filing says operations and accounting transactions remain in India Glycols Limited’s name during the interim period following the April 1, 2026 appointed date, so later disclosures may show whether that transition has been completed.