India Glycols Q3 FY26 Profit Soars 21%, Revenue Rises 5.25%

Introduction

India Glycols Limited (IGL) has reported a strong financial performance for the third quarter and nine months ended December 31, 2025. The commodity chemicals company announced a significant year-on-year increase in profitability, driven by robust growth across its key business segments. The results reflect healthy operational efficiency and improved margins, positioning the company on a positive trajectory as it moves forward with strategic initiatives, including a planned business demerger.

Q3 FY26 Financial Highlights

In the third quarter of fiscal year 2026, India Glycols demonstrated solid growth in both its standalone and consolidated figures. On a standalone basis, the company's revenue from operations grew by 5.25% year-on-year to reach ₹2,551.06 crore. The Profit After Tax (PAT) witnessed a more substantial increase, rising by 21.05% to ₹65.07 crore compared to the same period in the previous fiscal year. The company also noted an exceptional item of ₹0.83 crore related to employee benefits under the new Labour Codes.

The consolidated performance remained equally strong. Consolidated revenue from operations stood at ₹2,551.10 crore, a 5.24% increase year-on-year. Consolidated PAT for the quarter was ₹67.57 crore, marking an 18.9% growth over Q3 FY25.

Performance for the Nine-Month Period

For the nine months ending December 31, 2025, the company's performance continued its upward trend. Revenue for this period reached ₹2,368 crore, up 16.6% compared to the corresponding period last year. EBITDA for the nine months saw a significant jump of 45.6% to ₹319 crore, with the EBITDA margin improving by 267 basis points to 13.3%. The net profit for the nine-month period grew by 79% to ₹131 crore, underscoring sustained profitability growth.

Segment Performance Drives Growth

The company's robust performance was largely fueled by strong results from its Biofuels and Potable Spirits divisions. The Biofuels segment reported a 63% year-on-year increase in sales to ₹423 crore for the quarter, while the Potable Spirits business saw its sales grow by 24.5% to ₹338 crore. The EBIT margin for Potable Spirits expanded to 21.4%, indicating improved profitability in this high-growth area. The company's partnership with Amrut and a strategic focus on premium products in the liquor business have shown positive results.

Operational Efficiency and Margins

India Glycols achieved notable improvements in its operational metrics. The company's EBITDA rose 33% year-on-year to ₹160 crore in Q2 FY26, with the EBITDA margin improving from 12.4% to 14.6%. This expansion was attributed to better product realization, a favorable product mix, and effective cost management, particularly in raw material and packaging costs. The consistent margin growth across segments highlights the company's ability to manage input cost fluctuations while enhancing profitability.

Management Outlook and Strategic Focus

The management has expressed a positive outlook, expecting further margin improvements in the chemicals business through a focus on value-added products. In the Potable Spirits segment, margins are anticipated to benefit from ongoing premiumization efforts and favorable raw material trends. The company continues to focus on differentiated products, including branded nutraceuticals within its Ennature Biopharma division, which recorded a Q3 revenue of ₹51 crore, up 21.8%.

Strategic Restructuring: The Demerger Plan

A key development for investors is the company's ongoing demerger process. This strategic restructuring is intended to unlock value by creating separate, focused entities. While the move is seen as a positive step towards streamlining operations and attracting specialized investors, its successful execution remains critical. Investors will be closely monitoring the timeline for regulatory approvals and the subsequent market performance of the demerged businesses.

Capital Management and Debt Reduction

To strengthen its balance sheet, India Glycols' board has approved a preferential allotment of ₹467 crore. The proceeds from this issue will be primarily used for debt reduction, which is expected to lower finance costs and improve net profitability. As of the latest reports, the company's long-term debt stands at approximately ₹1,400 crore. This proactive capital management initiative is a positive signal for long-term financial stability.

Market Reaction and Stock Performance

Reflecting its strong financial health and positive outlook, the India Glycols stock has delivered solid returns to investors. Over the past year, the share price has increased by 50.86%. While the six-month performance showed a modest rise of 6.15%, the long-term performance is notable, with the stock delivering a 329.62% return over the last five years. As of February 9, 2026, the stock was trading at ₹965.15 per share.

Conclusion

India Glycols has delivered a commendable performance in the third quarter and the first nine months of FY26, with strong growth in both revenue and profit. The growth was broad-based, led by strong execution in its Biofuels and Potable Spirits segments. With a clear focus on margin expansion, debt reduction, and strategic restructuring through its planned demerger, the company is positioning itself for sustained long-term growth. The successful execution of the demerger will be a key event for investors to watch in the coming months.