Q4 25/26

May 18, 2026

Summary

FY26 revenue and EBITDA grew, with biofuels and potable spirits leading; debt reduction and margin gains strengthened results. Management sees growth opportunities in premium spirits and performance chemicals, while geopolitical and input-cost risks persist.

Ladies and gentlemen, good day and welcome to India Glycols Limited's Q4 FY 2026 earnings conference call hosted by InCred Equities. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Awasthi from InCred Equities. Thank you, and over to you, Mr. Awasthi. Thank you. Firstly, I would like to thank the management for giving us this opportunity to host a conference call today. From India Glycols management, we have their CEO, Mr. Rupak Sarswat, their CFO, Mr. Anand Singhal, their head of liquor business, Mr. S.K. Shukla, and their head legal and company secretary, Mr. Ankur Jain. I would now like to invite Mr. Rupak to initiate the proceedings with his opening remarks. Post which, we shall open the floor for a Q&A session. Thank you, and over to you, sir. Yeah. Good afternoon, Nitin, and thank you for hosting this call. Also, my apologies for us starting a little late. I am also joined with one of our other colleagues, Vivek Shivranshu, who heads the M&A Biopharma business. I am told due to some emergency he is not here. Generally, I think I have a good year to report because we are talking about the annual performance. As you have probably seen the numbers, we have had gross revenues of INR 9,827 crores, which is up 8.7%. Net revenues of INR 4,211 crores, which is up 11.8%. The revenue growth has been led to a large extent by the growth in potable spirits and biofuels, and we will talk about these segments a little bit subsequently. EBITDA has been INR 664 crores, which is up 24.5% over last year. The EBITDA margin itself is up 50.5%, up 162 basis points. We have seen EBITDA growth more or less across the business. The significant segments of potable spirits, biofuels as well as chemicals have driven the margin improvement, particularly led by chemicals and biofuels. At a PAT level, we are posting INR 264 crores, which is up 26.8%. The PAT margin at 6.9% is also 84 basis points up. All in all a strong operating performance and therefore also resulting in a good increase in profitability. If you look at the quarter, we have a net revenue of INR 976 crores, which is up 13.1% for the same quarter prior year. In this quarter, all segments have delivered strong growth, and that has resulted in this 13.1% growth for the quarter. In EBITDA terms it is INR 167 crores, which is up 13.3%, and the EBITDA margin at 17.1% is up five basis points. Now if you add other income, actually our EBITDA margin is 20% to 20.8%. The reason I mention this is that the most significant part of our other income is actually income from the JV. Why it is not a kind of a one-off income, it is an income which is very much interrelated and integrated with the chemical business. In a way we sell EO to them and the way I think realizes this profitability is through this steady other income. So in that sense when you look at the chemical business as a business or the quality of the business, it might be good to look at those. As you would expect, our finance costs have been lower and all segments, talking about the segments, India reached 20% blending as far as biofuel is concerned, which drove quite a lot of growth, both in terms of profits as well as sales. As we will talk later, there is talk about how and whether the government of India can increase the blending to 21% to 22% or even looking at flexing ratios. In the potable spirits space we have maintained our market leadership in the markets that we are present. Broadly as far as IMFL is concerned, we successfully look at implementing the strategy for premiumization and Bunty Bubbly continues to be the largest selling brand within the country. In chemicals we have seen a bit of a dip in sales. But having said that, actually we saw significant uptick in terms of the margin percentages as well as growth in overall margin. Now that is based on some readjustments in the business and letting go of some low margin businesses but we continue to focus on higher value-added chemicals. In short, our performance chemicals portfolio has started to do well though it is a smaller part of the overall chemicals business. But our pipeline is strong and we expect that it will continue to drive good growth in chemicals. In Ennature Biopharma you will hear later as well. But the top line by and large has been stable despite a relatively challenging global and macroeconomic environment as well as cost pressures. But the simple idea is that we have been acquiring new customers and the progress that has been made in terms of launching of branding new pharmaceuticals, getting more standards and certifications, etc., is good, and we expect that the business will recover and do well in the times to come. Now, as I report this year, I may like to point out that we have had an interesting journey over the last few years. So I talk about some ratios, for example. Our EBITDA ratio in the year FY 2022 was 11%. In 2023, it became 13%. In 2024, it became 14.2%. In 2025, it became 13.9%, and in FY 2026, it became 16.4%. While if you remember, when we started doing these calls, we spoke about certain challenges that the business had and strategies to overcome those challenges, both in terms of actions in the marketplace, diversifying our portfolio, taking some cost actions. Of course, we always depend on some headwinds and tailwinds. For brand ash, it is the result of a strategic thrust to improve the quality of the business. Similarly, if you look at some of our ratios, our debt-to-equity ratio has gone down from 0.9 to 0.6 this year. Our interest coverage ratio has gone up from 3.17 to 4.13. If you look at ROCE over the last three years, it has gone from 7.7% to 11.9%, and RONA has gone up from 7.7% to 11.7%. I am optimistic, and I think I'm happy to report that we've made progress and we've made progress over the years, we made steady progress, and we've made good progress. The other thing which is talked about, and I must brief you, is whether the war has had any impact on us. Well, the short answer for everybody is yes, but it has had a mixed impact on us. The reason it has had a mixed impact, probably overall a little positive, is that what it has led to, it has led to sharp increases in the crude price and also some availability constraints as far as MEG or ethanol is concerned. Which means that our relative competitiveness for products which are based on ethanol is somewhat better or significantly better in some cases, and which has helped us improve margins a little bit, get market a little bit more. I will talk about crude price a little bit more subsequently. As far as exports is concerned, it has impacted us adversely because for big customers like Newpark where we send our chemicals largely to the Middle East, that business is largely on hold. I think fundamentally the business is strong. We continue to work on new products and new application areas, but this has caused some problems. As you also know, as a result of the war, many raw material feedstocks, for example, propionamide, prices have gone up, availability is a challenge, so it has affected some areas. As you would imagine, given a sustained situation of war, the demand itself has softened in some areas. All in all, a mixed impact, but overall leaning slightly positive given the fact that in the ethanol-based materials, it has improved our competitiveness. Now talking about business performance from a net view or segment perspective. In the chemicals business, we've had a net revenue of INR 1,203 crores, which is down 10%, but our EBIT at INR 141 crores is up 12.5%, and our EBIT margins are up to 11.7%. I spoke about the reasons for the retail, but it is a good improvement both in EBITDA margin as well as overall EBITDA. Now, if you look at EBITDA without adjusting the other income and probably some streamlining that is required in-house, we will start to see that the quality of the chemicals business is probably going to be better than this going forward. As far as the potable spirits business is concerned, we posted a top line of INR 1,331 crores, up 14.2%, and an EBIT of INR 285 crores, which is up 11.1%. For the biofuels business, an excellent year with a 40.9% growth delivering a top line of INR 4,370 crores and an EBIT of INR 115 crores, which is nearly double, which is up 103%, and an EBIT margin of 7.8%. Ennature Biopharma, as I mentioned, top line has more or less been similar to last year, but margins have been under pressure, and we talk about the actions which we are taking and making good progress on, which should see this business becoming stronger in this year as well as the years going forward. For the quarter, the net revenue for chemicals is up 18.8% at INR 301 crores. The EBIT is at INR 37 crores, is up 37.4%, and EBIT margins are 12.2%. This is given some of the factors that I spoke about. The business, in my opinion, will start to look better going forward. In potable spirits, we posted a top line of INR 306 crores for the quarter, up 7.9%. Whereas margins for the quarter were somewhat under pressure, but that was a bit of an odd quarter in the last few years, at INR 68 crores. Overall, EBIT margins were very good at 22.1%. For biofuels, for the quarter, 11.6% growth posted a top line of INR 305 crores and an EBIT of INR 30 crores, which is up 90%, with an EBIT margin of 9.9%. Ennature Biopharma saw a turnaround as far as the top line is concerned, with a 24% growth in the last quarter. But an EBIT of INR 3 crores, as I said, the margins have continued to be under pressure. Talking about a few other things. I spoke about one of the things that we often talk about, which is the EO price and ethanol price and the relative price of EO to Reliance's EO price, because it impacts several of our businesses. We saw a period, and for the last couple of months, we have been competitive as far as Reliance's EO price is concerned, and that is because of rising crude prices and also ample availability of ethanol within India. As we talk about the ethanol capacity and the fact that we have now a little more than the capacity that biofuels consume in India. The reason I mention about this is that I do feel, however, that whilst the petroleum prices or the crude prices may soften, but the crude prices may, and that's my opinion, provided if anybody guesses what's going to happen, are expected to stay a bit firm. The reason I say this is, first of all, the war, different people have different expectations, has lasted a little longer than what most people expected. There has been a significant amount of damage, and the damage has been to a number of friends of the U.S. and people who control oil. I would imagine that one of the ways to some extent recover is to keep oil prices somewhat higher. The second reason, in my opinion, is that America also wants to sell oil. You remember Mr. Trump saying, "Drill, baby, drill," in his election campaign, which means that there's a possibility of America wanting the prices to be a little more firmer than they have been. We've seen a period of low crude prices for a period, and they also control Venezuela, to some extent Iran. So I would imagine that it's not certain that the competitiveness that we kind of stay for some more time. I also imagine that some customers would like some diversification in terms of sources, even if it is a smaller percentage of share, we should be able to benefit in some cases. The reason I say this is that we have seen a period of lower crude prices, and if you go back before 2021, for a period of 15 years, we were equal or less than Reliance's EO price. So I do not know which period to call abnormal but we did see significantly lower crude prices for a period of time. Related to this is also the ethanol price trends that we monitor, which is important to several of our businesses, chemicals, potable spirits, biofuels. Because of a number of factors, including trade and others, the imported ethanol prices in India went up quite significantly. Whereas the domestic prices have more or less been stable or maybe even saw a bit of a dip. Given the fact that we have good ethanol capacities in-house, we talked about the PYC capacity and the fact that we have grain, molasses-based, as well as the option to import, it allowed us, or it allows us to also use in-house ethanol for our chemicals as an intermediate without worrying too much about excess ethanol capacity. So I think that strategy, which allowed us to tide over some of the difficult times, also is helping us right now because we've toned down our imports quite significantly, and we've been able to support our chemicals business to a large extent by ethanol produced in-house. Talking about the segment which is in higher spirit segment, which is essentially potable spirit, to start with, continued to have a very good year with 14.4% top-line growth, as I mentioned, 11.1% EBIT growth and improvement in EBIT margin as well. So we made a strong entry in the CSD business, as we spoke about. Bunty & Bubbly continues to remain the highest-selling brand in India. We've maintained our market leadership position as far as Indian Made Foreign Liquor is concerned in U.P. and Uttarakhand, and we launched several new brands that we'll talk about a little bit. In Uttarakhand, Indian Made Foreign Liquor, we saw growth of 21%. In U.P., we saw a growth of 11%, and despite our being in only these territories as far as Indian Made Liquor is concerned. We have done several things to continue to strengthen this exciting business. We've expanded coverage in Western U.P. with new brands as far as IMIL is concerned. IGL has maintained the leadership position in U.P., so our leadership position has been amongst the top two and very close for a long period of time. We have increased our coverage in the state with almost 10 new stations. We've introduced seven new brands in the market to the new stations. As per the government policy, we also added 300 ml PET in the market, and we're getting a good response. We've also opened 42 company-operated warehouses in U.P., which will continue to drive this business. For IMFL in U.P., we've successfully introduced Amrut Prestige Whisky in deluxe segment, and sold 61,000 cases so far. We've introduced Bunty Vodka, Hira, and Cranberry Fever in the middle of this year. We've achieved a 66% growth in Amrut MaQintosh whisky. Overall, a 30% growth in annual volumes for the year. We successfully launched Amazing Vodka, Jamun Vodka, Jamun flavor, which is Bunty Vodka in Q1 as well. We've also successfully launched Duranda Whiskey in the regular category. Similarly, talking about our initiatives in Uttarakhand, Amazing Vodka achieved a 21% market share against an 18% market share last year. Amazing Whisky in Uttarakhand secured a 76% growth. We also introduced Amrut Specialty Whiskey in the middle of this year. In Bunty Vodka, we saw 122% growth. We have continued to maintain our leadership position in the regular whiskey category with Soulmate Black. We've successfully introduced Amazing Jamun, Bunty Jamun, and Twin Berry, and these I think will continue to drive growth in these segments, both in U.P. and Uttarakhand. Other than that, of course, as you know, our growth is also coming from new areas like CSD and paramilitary, which you'll hear more about a little later. Rajni, would you like to add about- No. Then glycols. No issue. Thank you, Ram. I have already spoken about biofuels, so I will not come to the numbers once again. Except that, in general, the government policy of 20% blending was finished ahead of schedule, which was initially scheduled for 2030. Now we have somewhat excess capacity in ethanol, which you all know, and there are discussions with increasing talk about securing India's energy, reducing foreign outflows, of probably increasing it beyond 20%. So you can increase a few percentage points beyond 20, it depends upon the government policy decision. The other thing that is being talked about is, in a selective manner, going to flex-fuel vehicles, which operate at 85%+. As some of you may know or most of you may know, there is an operating range for ethanol. You can't linearly go from 20 to 85. There is a wide range, broadly between 30 and 85, which is the known operating range, for various reasons. So both these may help further the pull of demand for biofuels. Having said that, I think if India continues to remain a high volume, cost-effective producer of ethanol, there are a number of other outlets for ethanol, including ethanol-based chemicals. Similarly, we saw good sales growth in our ENA business, which is extra neutral alcohol. Now, dual flexibility, as you know, that we can produce ethanol from grain and molasses, has helped us with optimizing the cost as well as offering people different feedstock for ENA. Our domestic volumes are stable, and we also see steady demand from ion cell, pharma, perfumery, as well as the packaging that we do for Bacardi. Now we keep a track of our margins and the two factors which affect our margins for the biofuels business include the price, of course, which has more or less been steady. The good thing has been that the grain prices have been somewhat stable. In fact, a little lower than what we saw earlier last year. And there is increasing acceptability of DDGS, which is a protein by-product, which means that the profitability in the biofuels business, as you see, has also improved. Now, these are questions which many of you over the years continue to ask, which was about growth in biofuels as well as how we sustain the profitability in biofuels. We continue to at least have an opinion that the policy, by and large, is not a short-term policy, it is a long-term policy, and there is enough thought that the government has given to make sure that the industry is sustained with reasonable margins at the least. So while from time to time the profitability varies, but remember it never became red and by and large, there were adjustments in the market either due to a natural adjustment or because of price adjustments that the government did, and the profitability of the industry has remained healthy. Now talking about chemicals, we have spoken about the numbers. In short, the story in chemicals is that we continue to see very good growth in performance chemicals although it is a relatively smaller segment as of now and we are quite confident that that growth is going to stay for the years to come and drive growth as far as chemicals is concerned. We've spoken to you in the past about CarbonSmart materials. We continue to build that business. We continue to build the business in oil field chemicals, working with several global majors like BASF, Newpark, and now even some others. We continue to work with big majors like Dow, L'Oreal. We spoke about bio-based amines. We had a slow start, but we did mention to you that IGL became the first manufacturer of a green bio-based amine for certain applications and our first customer, we are proud to say, is L'Oreal with whom we also did some co-development over the last four, three years and we've started commercial supplies for them. There are a number of new products that we're working on which includes digestive enzymes for formularies, bio minerals, certain products for the personal care space and the flavors and fragrances space. Our glycols did well. We saw some growth in the glycols space and we've maintained our market in Southeast Asia despite the challenges I don't even think that I should talk about those separate challenges right now because the Reliance MEG we don't compete with. I think the point here is that niche customers have continued to buy glycols from us and have continued to grow. Then coming to Ennature Biopharma. We spoke about the numbers in terms of growth being steady, in terms of top line, a nominal decrease in what we saw. However, margins being under pressure. The Q4 revenue performance was strong comeback, as I mentioned, driven by a sustained increase in thiocolchicoside prices, recovery of the nicotine business and strong nutraceutical numbers. We have strengthened our branded nutraceutical portfolio through global certifications, clinically backed and various launches, and we expect that the business will come back given the action that we are doing in the times to come, both in terms of volume as well as profitability. My colleague Akshay will be here to answer or talk about this business a little more. Now, allow me to take a pause as I request my colleague, Mr. Singhal, to take you through the finances. Good afternoon. Since most of the financials have already been covered, I will only cover three points. One point is that the company has prepaid almost about INR 804 crores in this quarter, which has been funded by INR 467 crores through equity, which we did in November 2025, and rest of the funds has been put in through the cash flow. So this INR 804 crores includes the long-term debt, the working capital and the short-term loans. Causing us or rather resulting INR 20 crores saving any interest cost which is already there in the results. Number two, there are so many queries relating to the dividend showing in the consolidated results. Just to update that the Ind AS 28 do not allow us to show the dividend as income. The amount of INR 38.38 crores which we have received from our JV, Clariant, has been adjusted against the investment which is there. Third point, that there was a plant shutdown for the change of the catalyst from March 17 till April 2. So this has also resulted the reduction in the production as well as some sales. Apart from this, most of the results have already been covered by Mr. Rupak, and that is all. I do not want to rather take more time, and I will like you to raise your questions. Thank you. Sir, should we start the Q&A session now? Yeah, you can. Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Please press star and one to ask questions. The first question is from the line of Pragyam Ladha from Omni Securities. Please go ahead. Good evening, sir. Am I audible? Yes, you are audible. Sir, my question was firstly on the plant shutdown which you talked about. How was your business disturbed due to this? Can you throw some more light on it? Yeah. We take shutdowns for two reasons. One is generally for catalyst changeovers, which takes some time. This is why it is up in one and a half years. The way the business gets impacted by that is that we are a continuous plant. We also make ethylene oxide, which we sell to, for example, the Clariant joint venture. Which means that that business, to some extent, gets affected to the extent that they cannot build up stock. Obviously, sometimes there are new orders for which we have not planned and they stop. The other thing is that it is not impacting our MEG business, but it impacts some other businesses like glycol ethers or speciality surfactants, et cetera, which you cannot stock up too much in advance. That is how it impacts us. Okay, sir. Secondly, sir, on the potable spirits segment, this is down Q-over-Q. We say we are continuously moving towards premiumization. Sir, first question is, what is the split between country liquor and IMFL and how do you see it moving forward? Also, what would be the EBITDA margins for the FY 2027 going forward for this segment? Okay. Thank you for the question. Approximately 25% of the pie is towards IMFL, and this is approximate. 75% is towards India-made liquor. We are making definite progress to improve the IMFL part of it without losing focus of the IML part. With the result that we are now, I will like to tell you what are the steps we are taking for increasing the IMFL segment, particularly premium segment. First of all, we take satisfaction in mentioning that two of our key brands, that is, Soulmate Whisky, which is a millionaire whisky brand. Also our Zumba Lemoni, which is very popular in the market, has been introduced in the CSD, and we have already started supplies in the entire country. For the benefit of those who are not very much familiar with CSD details, this is a lifetime registration, and which is obtained after a lot of screening by the armed forces because it is meant for the consumption of the military. So this is one. Also a third brand of ours, that is Zumba Black, which is the mainstay business, the rum, black rum of the military, also has cleared the preliminary screening committee, PSC, we call it, which consists of the entire board of administration of CSD. In other words, in principle, they have accepted our third brand also. Of course, final board approval will be awaited. It will take little time, but this is also very positive news. Our approach, as our CEO rightly said, has been very strong with the IMFL, particularly premium segments, and we expect to continue to grow rapidly in the IMFL premium segment. Now, how this is possible is in two ways. The first point is that we are taking more geographical coverage. We started with Kerala market. We are very conscious about giving credit. Our first focus is on the corporate-led markets in particular, where the money is secure because the working capital required for IMFL is very high. So we want to go steadily and with very firm grounding. So Kerala has given us very good response. We introduced our new brandy in Kerala, and we used a French blend, which took us a lot of time. A lot of research was done. We do not introduce brands off the cuff. We do a lot of research, and when we do it both internally and externally. So the brand is well accepted in the market. Then we have started business in other states, and very soon we will be doing in Andhra and other markets like Rajasthan. So one is geographical coverage, and second is with new brands. As our CEO rightly said, we have introduced brands like Jamun and Cranberry, which are in demand. Or if I may use the word, which are in vogue. Because of we being a tropical country, Jamun and Cranberry are well accepted. We have two more up our sleeve, but for obvious reasons, we cannot disclose at this stage. But very soon they will see the light of the day. Both geographically as well as new brands will stem the growth to high double digits, and we expect to consolidate our position in the markets like Delhi, U.P., Uttarakhand, Kerala, and other markets very soon. Most important is that we have inbuilt capacity. See, as opposed to competition, if I may say, we have an inherent advantage where we do not use even 1 liter of ENA for our brands, and we have enough inbuilt capacity to use our ENA. For the benefit of you who may not be aware, our ENA goes to top multinational companies, including Radico and Dilip Sagar, and Diageo for now. Bacardi, which is our partner since over 15 years. There is no reason why we should not be able to make our brand as good or better than competition. Our ingredients are good. We have made the foundation of our new brand, and I am sure in times to come, we will have a very strong growth, double-digit growth. Any other questions? Rajiv, can I just add to it? Yeah, why not? Just to share some data with you. U.P. is one of the largest liquor market, where for IMFL, if I am not wrong, Manish, correct me, our top-line growth last year was 25%. A lot of our IMFL growth is coming from IMFL, which is a relatively premium part of potable spirits. The broad numbers that I have for U.P., for example, while Indian Made Indian Liquor is 52%-55% of the value, but it is 52% in terms of volume, but 52% of volume. IMFL, on the other hand, is about 16% of the volume, but about 34% of the value. If you see, in value terms, it starts to approach right now slightly more than one-third, but half of the market share. My understanding is that while the medium and economy brands over there have grown close to between 4%-7%, but the premium brands of IMFL have grown in higher double-digit number percentages. I have a number. I do not know what the exact one, so I am refraining from quoting it. If you see our strategy and why we think we should be successful in these markets that we are focusing on, for example, Delhi, U.P., Uttarakhand, which are the first markets that we are focusing on, is, as Rajeev said, we are very strong in terms of high-quality ethanol manufacturing. As you know, we are also the first company ever to start doing third-party bottling for Bacardi in particular. In addition to that, I think the fact that we have got a strong base in terms of Indian-made Indian liquor is a good way for us to make our presence felt and graduate some of our customers. In addition, I think our approvals in CSD as well as paramilitary, we think would be growth drivers. The traction that we have seen with the inorganic growth in terms of acquisition of Amrut brands is also good, which allows us to take with some confidence that we will continue to drive premiumization in our portfolio, which will not only drive growth but also makes the business better in terms of margins. Yeah. If I may just add and supplement to what our CEO said. See, now we are poised for growth, because now we have got the entire range of brands. Our Soulmate Whisky, which is our special brand and a premium whisky brand. We have got our vodka, which is Amazing Vodka with various flavors, including blackberry and Jamun, which are doing very well, which are a challenger brand to the leader brand. We have got our Zumba Lemoni, which is again the number 2 brand in that segment. Now, now it is public domain, so I can clearly say that in a few states of the lot, we have got the distribution rights of our Amrut Distilleries malts, which are world-famous and loved all over the world. There was unmet demand for these brands, so it is slightly more than distribution. But for obvious reasons, I cannot disclose, but we have got the entire range now. So when our sales guy goes, he has a regular in-brand, a premium single malt. The future is in premiumization, so we are in a good position to attend to the needs of all sectors. Okay. Thank you. Thank you, sir, for such a detailed answer. Since the IMFL portfolio is growing, do you see the margins to be north of 22%, if I am not wrong? 22% EBIT margins. Sorry, can you repeat your question? For the potable spirits segment, do you see the EBIT margins to be north of 22% for the IMFL segment, or sorry, the potable spirits segment? For the potable spirits segment, I think I have already shared the number, which for Q4 were 22% EBIT margins. Now, I think the point that we've made is, we've made certain assumptions in terms of ethanol, the growing market, premiumization, as well as strengths of IGL. So I would imagine that there is no reason for us to believe that we should be able to maintain these margins and if, for the effort that we put in, even try and improve it. Okay. Okay, sir. Thank you. Thank you so much, sir. Thank you. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Hello. Yes. Yeah. Yeah. Mohit, thank you firstly for the opportunity and congratulations firstly to the team, sir, for posting a good set of, tidy neat set of numbers. I hope I am audible. Hello. Yes. Yes. Sir, firstly, if we look at our numbers in the segment part, the BSPC segment performance is a little muted. So, if you could just give us some understanding on the factors that has led to the revenue going down and how should this segment shape up in the coming years? What are our preparations? Sir, some color on the same. Saket, thank you, and thank you for your nice kind words. Just give me a second, Saket. I want to take some 10 seconds to do that. First of all, it will be slightly incorrect to say that the performance has been muted. I think top-line growth has been muted. Yes, sir. Right. Whereas we have seen growth in EBITDA as well as the EBITDA margin. EBIT margin. Right. Now, since it is not just EBIT that is statutory, actually, EBITDA performance is much better. Now, there is some feedstock lining of certain costs, et cetera, which will also result in that. Yes, we lost some top line essentially because of loss of some markets like glycol ether. And also some top line loss in gases. The reason why we saw some drop in sales of businesses like glycol ether is that we had much lower cost material available from China, for example, and some of the other variants which are propylene or butylene-based glycol ether, which gathered some of our market. Some of our de-growth actually also came from the EO offtake by the joint venture. And one of the challenges here was a large delta between Reliance and our EO price. Not to some extent. Right now, to a large extent, that has been adjusted, and we believe that the huge delta that we saw for a period of 1 and a half, 2 years, hopefully, in my opinion, may be a thing of the past, and we should see much better competitiveness on that front as well. We have seen good growth in terms of glycols. We have seen excellent growth in terms of performance chemicals, which in terms of value itself is up 40%, in contribution is up 40%-plus. And we are hoping that, I am not projecting, but we are hoping for in excess of doubling this business this year and maybe if we continue to do our projects well, continue to maintain that momentum for years to come. In gases, the reason we saw a top-line decline was that in the year before, we saw extremely high argon prices. And argon is something which is very volatile. There was a shortage in India, partly because of steel plants, partly because increased consumption and putting up of electronics plants, et cetera. So that also led to some top-line decline in gases. And some of our smaller businesses we were selling as EO to some of our customers there, which was not particularly high margin. Again, for the reasons of competitiveness with plants, we could not do last year. So going forward, what we see based on the action that we are taking, we may be a little here and there in terms of sideline. Our quality of business will continue to improve. Our breadth of portfolio will continue to improve. The people that we are engaging with are good end customers. That will continue to improve. For a year at least, we feel that we should have improved profitability and also top-line growth. Beyond that, we are working on quite a number of projects. Saket, some of them which you are aware of, I will get them as we start materializing, which has a huge upside potential as well. I will leave it at saying that it is potential because we need to make them happen. Since you asked me as to what the future of the chemicals business is, I am cautiously optimistic or I am kind of cautiously optimistic for the immediate term, or rather optimistic, but I am bullish based on the actions that we are taking, that this business will continue to unveil. As we get in a little more focus on this business, you will find that this business actually shows us better than what it may be getting seen right now. Since you were then the NSU segment, I think so that will add to your growth because some CapEx was done, we were doing some commercial pilot plants also and some sales had also happened earlier last quarter. Where are we in terms of that impact? Secondly, sir, currently all our plants are running at optimum level because generally we also see that revenue decline is attributable to maintenance or a shutdown. Are things at optimum level? No. See, as I said, I have the numbers in front of me. We saw the value decline in glycol ether, we saw value decline in gases, and we saw value decline in terms of the EO offtake that we sell to the JV. The shutdown does directly impact the EO offtake that we sell to the JV. Because for 15-20 days there is no EO supply to the JV. Right. Most of the sales that we book under raw material sales to the JV is that EO offtake, which is completely stopped during the shutdown. So yes, that is a contributing factor as well. Okay. But sir, still then with the shutdown, our JV's contribution to the profitability was significantly higher on a quarter-on-quarter basis. Do we have any one-off or what has led to this jump to INR 13 crore? However, on the annual basis, number is flat at INR 46.42 crore versus INR 46.40 crore. How should the performance of then the JV shaping up? Sir, as per I think so the JV, we have 51%-49% ratio there. Going ahead, how are we going to monetize as per the term? If you could just give some more time. Saket, you always come up with difficult questions for me, but I will try and answer. Okay, sir. It's like this. The JV performance is not only reflected by how many EO they buy from us, and direct EO supply in a particular month is not a reflection on the total turnover of the JV from the year. These are its profitability. If you look at the JV performance, and by and large, the JV performance has improved by improvement in mix. And also improvement in certain imported traded materials that they get from clients. When we plow back from the joint venture, it is a sum total of all of that. Yes, going forward, if the ethoxylate-based volumes also pick up for the JV, and we do not have a shutdown, we expect that the EO-based volumes will also contribute to growth, and they will contribute to the growth in material. So JV's profitability, do not judge it based on the slight decrease in EO offtake, Saket. This is my only request to you. Okay. So sir, the profitability that has come from INR 12-13 crores as per normal terms, the factors due to which such numbers have come to us, can they remain in continuity? Right now, sir, what is our thought process on the monetization exercise of the JV? Look, Saket, to be very frank, last, not that, in the fourth quarter, the JV 49%, which we have taken into consolidated results, that will continue. This year, which you are seeing that INR 46.42 was the income from the JV or share net profits from the JV, I think that will improve drastically. As I have already told that in 2028, 2029, we are going to sell out 24% more equity as per the agreement. So depending upon the agreement and whatever, that will give us a very handsome amount, which will again be utilized for the payment of the term loan and making this company a debt-free. So in 2028, 2029, I am hopeful that the chemical will be totally debt-free. Right, sir. Very good to hear that. And sir, firstly, the finance cost number is one of, I think, the lowest numbers posted by the company. So the finance team headed by you has done a very good job. I think, can we maintain this run rate? The infusion of the promoter that has happened in one quarter, because of that our numbers are 26, 27 and going ahead. What should we be thinking in terms of finance cost going ahead? Look, Saket Kapoor, I have covered in the beginning itself that we have prepaid INR 800 crores and the promoter funding was only INR 467. So INR 333 crores has been funded from the internal FPL. Whatever you are saying that run rate will continue and will continue to reduce our interest cost in the years to come. Although there is the normal repayment of the term loan also, we will continue to prepay some of the high cost debt. You will see those numbers in first quarter and onwards in 2026, 2027. These are consistent numbers. What is the current maturity, sir? How much rent will we pay this year? This year we have a normal liability of about INR 268 crores, which is, say, in ether it is INR 168 and INR 100 crores in chemical. Right. We will pay. Apart from this, we will try to make some of the prepayment also. Okay. Two points from the RM part, sir. How was currently the grain prices for our bioethanol segment shaping up, the availability of the same? If I remember correctly, sir, earlier when we had this shutdown and all, we had also realized some sale of some silver also because of some catalyst change, if I remember, twice or thrice we have done that. How has that benefited us, sir, in terms of our reportable numbers for this quarter? I will cover the silver, and grain will be covered by the CEO, sir. Silver sale during the shutdown was INR 98, so we got out of the silver sale. While the purchase price of the silver was INR 51, since we have not provided the consumption of the catalyst, which we are doing every month, basically there is no profit on the silver. That's why that has not been shown in this. Yeah. Saket, as I mentioned earlier, there is adequate stock of grain and the grain prices have been stable. If I may just state to you, in the middle of last year, grain prices were running close to INR 24 a kilo. Then in the last quarter of last year, they were running close to between INR 21 and INR 22, or INR 21-plus, minus. The good thing was that the DDGS started to fetch a better price. My opinion is, it is because there is greater acceptability of this protein source in the world. Also, you see a distinct shift in terms of the feedstocks which are being used to produce ethanol. If you go back to, say, 2019, 2020, out of 173, in terms of ethanol, C heavy molasses and B heavy molasses were contributing to 43% and 39% respectively, and sugarcane 9%, and damaged sugarcane only 9%. So grain was contributing only about 9% of the total 100% of ethanol production. Now come to 2025, 2026. Grain is contributing 27 plus 46, which is close to 70 plus percent of ethanol production is coming from grain. There also, a very interesting shift has happened. So what was initially largely being serviced by damaged grain and FCI rice, and it was zero in 2019, 2020, 46% is being covered by maize. I think there is a part of the policy initiated by the government realizing that we need to diversify in terms of the feedstocks for ethanol production. There is also increasingly maize being used. We believe that there will be several things being done on this front. First of all, it's a hardier crop which can be grown in many parts of the country, even in somewhat drier climatic zones. Also there is ample scope for improving the productivity of grain. I do not know if it will be speculative, but one of the things which could cause a significant jump in maize productivity, for example, which makes the U.S. quite an efficient producer of ethanol, is the introduction of genetically modified maize specifically for ethanol. I am not making this as a projection. These are some of the things which may, in going forward, significantly improve the productivity and efficiency of biofuel production industry. Right. If I may just add one more point and join the queue is about the Ennature Biopharma, I think. That segment also, the profitability has improved. Also in your presentation, sir, the outlook is mentioned that the segment is expected to perform well in future on account of good customer acquisition, volume growth and price realization. If you could just throw some more color and when will this segment achieve the earlier EBITDA higher profitability post category? I think the environment has changed significantly. Our product profile, how is this segment going to perform? Sachin, this is Akshay. Basically, the division was originally dependent on one of the products, which has the highs and downs of the price in terms of the total contribution to the net margin and as well as the top line. But as a company, what we have done in last three years, we have diversified the business. The more focus has come to the highly growing market in nutraceutical, which is basically the branded nutraceutical segment. We have invested very significantly on some of the clinicals, for of the highly growing indications of women's health and some other indications. Already we have completed some of the studies in last one year, and there are a couple of more studies which are ongoing, and that is likely to be completed by this financial year. Then we have a target focus on multi-geography presence. In terms of right now, we already have a strong presence in Asia Pacific, but we are also trying to get hold of U.S. market, which is one of the biggest markets. Then we also have opened our office very recently for us to have that trajectory and momentum in U.S. This is broadly in terms of Ennature Biopharma. We are on the right trajectory. We are investing in high growth component both in terms of our manufacturing capability and also the customer acquisition in various markets. We'll continue to remain in that. I hope that answers your question. Only on the profitability front, can you give one more color? How will the profitability shape? I think the last time because of some products and some new plants were also commissioned, because of this, the realizations were down and so were the profits. Our key products, I am able to compare it high or some key product of nicotine and all, wherein IT, one of your competitor also came up with a new unit and that has put pressure on the realization. How will that product profile shape up? For us, the nicotine business is we are diversifying into more of a value-added customer. We are trying to add couple of customers which are long-term sort. Broadly, if you look at where we started this business, we had some of the customers which are from the commodity side, but again, they are volume-based driven customers and that has given a good top line. But strategically, we have taken a very strategic shift in last three years for us to shift to more value-added customers to sustain for the long-term growth and to contribute on the profitability. This is broadly in terms of nicotine, and I would say the business right now is in the focus. But in terms of the EBITDA improvement, we may not see the significant improvement in this financial year. But definitely the investment and the growth and the customer acquisition, what we are doing right now is going to contribute towards more of EBITDA and the profitability of the particular Ennature Biopharma segment. Yeah. Thank you for all the answer and thanks to the board also for the interim dividend that has already been paid to the investors and that too on the higher side. Thank you for looking after all the management. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. We will take the next question from the line of Bala Subramanian from Arihant Capital. Please go ahead. Good evening, sir. Thank you so much for the opportunity. My first question on the debt side, any further debt reduction plan is there in the coming year? Mr. Bala Subramanian, your audio is not clear. There is a background noise from your end. Coming now from- Please repeat the question, sir. Yes. Sir, on the debt profile side, is there any plan to further reduction in the coming years? Right now, it is around INR 25 crore-INR 26 crore kind of per quarter under interest cost side. Whether this rate will continue in the coming quarters, and what is the average borrowing cost right now, sir? If you could possibly share that debt breakup, all three segments. Madam, I have already given this answer that we are rather in the process of reducing the debt. There is a liability of INR 268 crore for the year 2026, 2027, which we will pay. Apart from this, as per the cash flow, we will target the prepayment. As such, there is nothing has been written in the paper that how much we will pay, but yes. The second thing, what you are saying that INR 25 crore-INR 26 crore per quarter, that we will reduce. Okay. If you want the debt profile, I will give you the debt profile of all the three units, which is in process, and I will share with you. Okay, sir. Sir, second question is on the scheme of arrangement submitted by NCLT. I think the hearing is expected 21st of May. Is there any expected timeline for the completion of demerger? 21st May, we are hopeful that we will get the order for the demerger of the division. Another hope is that in first 10 days of June, we will get the order. Once we get the order, we will start working for filing that in RoC and the other matters which is related with. Okay, got it, sir. Thank you. Thank you. We will take the next question from the line of Varun Mehta from Wealth Link Investment. Please go ahead. Good evening, sir. Am I audible? Yes. Yes. Sir, I just have question on the balance sheet side. Basically, this year we have done around about INR 830 crore of capital expenditure, and that also last six months, it has gone from about INR 600 crore in the last six months. Can you just throw some light on this, sir? Where have we invested this money? Actually, there are two distilleries largely, which are the main capital expenditure. One is the grain distillery in Gorakhpur, and one is the grain distillery in Kashipur. Basically, out of whatever amount you are saying, say about INR 400 crore is out of these two distilleries capitalization. Apart from this, we have some more CapExes, which is not a major amount, and that has been completed. This is what is the amount which we have spent on the CapEx. Okay. Secondly, on the debt side, we have repaid around INR 800 crore, but net debt from last year is only down by INR 220 crore. Will our interest costs remain at 45 or it will go slightly higher? No, our interest cost will be remaining about 25 range. Actually, you are not able to see the reduction because we have reduced our cash credit limits. Okay. So some of the amount which has been repaid against the long-term loans, that is visible. But the amount which we have paid out of the cash credit limit, that is not visible. Okay. All right, sir. Thank you so much. Thank you. The next question is from the line of Akash Gupta, an individual investor. Please go ahead. Good evening, sir. I hope I am audible. Yeah. First question I have on potable spirit segment. I think you answered this in the beginning of the call as some other participant asked. I wish that you could just repeat what percentage of our total revenue of potable spirit comes from IMFL. And within this, what percentage will be from Amrut? Sorry, IMFL revenue. Yes, second question. Can you repeat the second question, please, Akash? Akash, please unmute yourself and speak. Am I audible now? Yes. What I am asking is, out of total potable spirit revenue, what percentage comes from IMFL? And within that, what percentage comes from Amrut? Okay. Amrut. Akash, the total revenue percentage, whatever we have declared, it is around 31% of the total potable section. Amrut share is likely to be around 5%-6% of it. Not 1%. Okay. 31% you said, right? Yeah. If I remember correctly, last year it was around mid-teen, 16%, 17%. Are we saying that our IMFL have got doubled? I think Akash has actually already answered by our CEO that we are now shifting from our regular segment to the premium segment. The revenue percentage is increasing in the RFL, and we are aspiring to shift more percentage by introducing more premium brands in future. Okay. My second question is, sir, Bacardi that we do. I think that directly goes- Akash, I am sorry to interrupt you. Your voice is breaking. Can you come in the network area, please? Okay. I am actually. How is it now? Please continue. Yes. What I am asking is, sir, this bottling that we do for Bacardi, I think that directly flows into our margin, right? For potable segment. Excluding that, what is our margin on potable spirits? EBITDA margin. This Bacardi business, they have low-proof and high-proof brands. The major portion belongs to the low-proof brands, like and all. We are only charging the premium cost from them, and this clarity gives the revenue to us in liquor segment, but it comes under the miscellaneous income segment, not under the sales revenue. Right. Excluding that, what will be our margin for potable segment, potable spirits? It would be a very greater percentage in this. This could be hardly 2% or 3% of the total potable revenue. My suggestion is, Akash, if you can send an email, and we can revert with more precise details in terms of breakup, et cetera, if required, have a separate discussion later on. We will speak separately if required. Sure, sir. Sure. I will do that. Awesome. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Rupak, sir, for closing comments. Thank you, and over to you, sir. Yeah. Just let me thank you all on behalf of my colleagues here, for turning up for this conference and also giving us your time and a lot of interest in our business. A big thank you to Saket for all the interest that he gave, good suggestions, and he was still waiting to come back in the queue. Saket, I am sure we can have a discussion on your question. But on that note, all of you have a good evening, good day, and we look forward to seeing you again. Thank you for your time. Thank you very much. Thank you very much. Thank you. Thank you, members of the management. On behalf of InCred Equities, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.