Q1 25/26

Aug 11, 2025

Summary

Net revenue rose 7% YoY, EBITDA 18% and PAT 21%, led by biofuels, potable spirits and stronger JV earnings. Chemicals and biopharma remained under pressure; FY26 CapEx is expected to be limited.

Ladies and gentlemen, good day and welcome to India Glycols Limited Q1 FY 2026 earnings conference call hosted by InCred Equities. 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 touchtone 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. Good evening, everyone. Firstly, I would like to thank the management for giving us this opportunity to host their conference call today and also congratulate them on a good set of numbers. We are joined on this call with the India Glycols management, represented by Mr. Rupark Sarswat, who is the CEO; Mr. Anand Singhal, the CFO; Mr. Rajesh, the Head of Sales and Marketing of BSPC segment; Mr. S. K. Shukla, Head of the Liquor Business; and Mr. Ankur Jain, Head- Legal and Company Secretariat. I would now like to invite Mr. Rupark to initiate the proceedings with his opening remarks, post which we shall open the floor for Q&A session. Thank you, and over to you, sir. Yeah. Good afternoon, everybody, and thank you for joining us. A small hygiene point. Can you hear me reasonably? Yes, sir. Okay. My legal people keep complaining that I sit away from the mic. We have uploaded two versions of the presentation. Before you start getting confused about it, you can look at either. There were just two minor points which are in the latest version, which in terms of uploading, the prior one got uploaded. Even if you have printed the earlier one or if you looked at the earlier one, there is no major change, you need not bother. But obviously, you might see two presentations getting uploaded. I thought I'll clarify so that there is no confusion. As you know, we will talk about briefly the performance of the company. Ankur. We've had a good quarter, as you know. We've had a strong performance for the quarter with a net revenue, which is up 7%. More importantly, the EBITDA growth is very strong at 18%, and PAT growth is at 21%. You've seen a gross revenue go up from INR 2,283 crores to INR 2,500 crores, 10% up. Net revenue, INR 1,040 crores from INR 969 crores, 7% up. EBITDA, INR 151 crores from INR 128 crores, 18% up, and PAT up from INR 273 crores from INR 60 crores, 76% up. From a margin perspective also, it has been good. Our EBITDA margins are up 128 basis points. PAT margins are up 80 basis points. In terms of the revenue growth, I think we are very happy to report great growth in both the potable spirits and the biofuel segments. It has been a weaker kind of quarter for chemicals and Ennature Biopharma. But when you look at chemicals, while the overall margin growth is actually better than the weakness in the sales growth. In terms of percentage margins or the mix, we've seen improvement both in potable spirits as well as BSPC. As I will tell you a little later, the joint venture performance has also been very good, which has contributed to the overall results. To summarize, in terms of net revenue, our biofuels top line is up by 45% to INR 348 crores. Our potable spirits revenue is up by 22% to INR 342 crores. Ennature Biopharma is INR 51 crores, and chemicals or BSPC stand at INR 300 crores. EBITDA margins have increased to 17.7% to be precise, INR 251 crores from INR 128 crores. As I mentioned, that has expanded by 128 basis points. For potable spirits, our EBIT margins have improved from 17.5% to 21%. For chemicals, our EBIT margins have expanded from 9.9% to 10.9%. Of course, there are several factors, but from an operating business, the EBITDA margin improvements in chemicals has been better. Our PAT stands at INR 73 crores with margins at 7% against 6.2% last year. We've had a very good increase in terms of the profit that we post from the joint venture, which is up 73.7% year-on-year to INR 19 crores from INR 11 crores. In terms of overall financials, I've more or less highlighted them, so I will not go through the entire sheet. Several other points with respect to financial parameters, I will ask my colleague, our CFO, Mr. Singhal, to talk to you about later. At a high level, I think we've continued to see a solid performance in country liquor, which is a good part of our potable spirits business. We continue to be both reputed and a robust business with Bunty Bubbly being recognized as the highest selling any brand of liquor in the country. Despite being a strong shareholder in Uttarakhand and U.P., we have increased our shares in Uttarakhand marginally, and we've kind of maintained our close leadership position, which we've held in U.P. We've talked about it before. Our Amrut partnership has been gaining momentum. I think we've settled down in terms of getting that partnership going, and we are starting to see good momentum in U.P., Uttarakhand, and Delhi, and we are increasing our focus on premium brands. One of the important objectives for us this year is also to enter the CSD, which is the Canteen Stores Department. Within the chemical space, I will talk a little bit about the businesses, but from a highlights perspective, we have a new value-added performance chemicals business, which is still small. Just to let you know that is doing very well, and we are quite confident of the business pipeline that we've put in place. In fact, in select areas, we are doing incremental capacity expansions. I think the indicators from our perspectives are that this will continue to drive growth in the quarters and years to come. For the joint venture also, there was very strong sales growth, excellent profit growth numbers. I think several factors have helped. One is that there has been a reduction in the EO price gap vis-à-vis Reliance, and we have seen much higher gap numbers earlier. The JV obviously also has been focusing on what products they can bring from Clariant worldwide to position them in the Indian market, which is the imported products. That portfolio has increased and also helped increase margins. In general, manufacturing in Kashipur also continues to focus on more innovation, more formulations, more value-added products, and I think that strategy is more or less in terms of the plan. I think we've come back from a tough situation over the last couple of years ago to the JV starting to look neat and tidy and doing well. From a sales perspective, I think JV sales are also up in double digits. EBITDA is up in high double digits, well in excess of that. As you know, 12th August 2025 has been fixed as a record date for determining the entitlements of eligible equity shareholders for the purpose of subdivision, split of equity shares of the company. I think these are areas which Anil will talk about later. Let me give you a high-level input on our segmental performance for our chemicals business, our performance chemicals business. Our top line has not done so well. It has been a weak quarter, and I will talk about it a little later. Our turnover is down to about INR 300 crores, whereas for the biofuels business, it is up from INR 239 crores to INR 348 crores with EBIT margins of 6.5%. Chemicals business has EBIT margins of 10.9%. For the potable spirits business, top line up to INR 342 crores from INR 380 crores, and EBIT margins up from 17.5% to 21.1%. For Ennature Biopharma, margins have been under pressure and sales have been weak, and so have been the margins for this business. We have some amount of portfolio shift that has been happening. You see that compared to other segments, the potable spirits business and the biofuels business have taken a larger share, both in terms of revenue or EBIT in this year, which is more or less in line with our expectations. We do think we have a strategy in place which is working for the chemicals business as well as the Ennature Biopharma business. Let me start by talking about the chemicals business. We achieved a INR 300 crore top line with an EBIT of INR 60 crores. Margin expanded 100 basis points to 10.9%. I mentioned to you about performance chemicals and the strong growth by the joint venture. We sell ethylene oxide into the joint venture. Some of the areas in the chemical segment have been under pressure. Whilst we continue to sell glycols in niche markets, the gap with respect to crude-based MEG has increased, which means while there is still interest for green MEG, if the gap continues to be high, there is price pressure. Crude prices have been lower, which means crude-based MEG prices have been lower. The demand for PET, PTA resin, et cetera, has been softer. Having said that, I think at a more longer-term level, we continue to believe that MEG will continue to see steady growth. More importantly, greener MEGs, of which plant-based MEG is one part, is expected to see double-digit growth over the period of time. In the potable spirits business, our revenue is up to INR 342 crores, up 22.4%. EBIT at INR 72 is up 47.4%, and margins are up at 21.1%. We have been focusing since last year on the partnership with Amrut because that gives us an opportunity to look at premium brands, and acquire some brands which Amrut had not been focusing on as they focus more on their single malts. It allows us to move up the value chain. Our focus so far has been U.P., Uttarakhand, and Delhi. We have now included Amrut Prestige Whisky, which also, in addition to others, we shall be adding to manufacturing, bottling, and marketing that IGL shall be doing for these brands on a priority basis. I spoke to you about strong performance in country liquor, with our flagship brand Bunty Bubbly continuing to be the highest-selling any liquor brand in India for three consecutive years. In a newer segment that we had entered last year, we've seen strong growth, which is the paramilitary segment, where we've strengthened our sales position and where IGL now supplies five brands and amongst top four suppliers out of the 66 companies that had participated. We have also introduced some of our in-house brands like Zumba Lemoni, Amazing Vodka in Kerala, which we considered a high potential market and also a market where we would like to increase sales for some of these relatively premium brands. We continue to hold leadership position, as I mentioned, in country liquor, MANível, I mentioned that before. We've spoken about the biofuels strategy before. I think it is something that we take some satisfaction in. Many of you have been attending our calls for the last 3-plus years when we have been speaking about the biofuels segment. By and large, I think the government strategy to blend biofuels starting from whenever 2017 onwards, has been very robust. It has more or less gone as per plan. In fact, the initial plan of blending 20% ethanol was to be there by 2030. That got preponed to 2025, and as far as I know, we are well on track to deliver 20%. Now, when we say 20% blending, it does not mean that 20% is happening throughout the country. There are some portions, for example, in Northeast where blending is lower, but it means that in several big states, up to 20% blending has been achieved. An empowered set of personnel from ministry along with MoPNG, we are looking at enhancing the blending range between 25%-30% by 2030. There are signs that to some extent, government is likely to move that forward, but I think we will wait for the final call, and which essentially means that the biofuels business is expected to continue to grow. One, because of increased consumption, second because of increased penetration across the country, and thirdly, if there is an increased blending mandate. The more India looks at energy independence, I think that is one more adding factor to continue to drive this forward, looking also at forex outflows. The Ennature Biopharma segment broadly has two big molecules, colchicine and nicotine, and various derivatives of them. Both of them have been facing some challenges, primarily because of slowing demand in terms of the developed country markets. Colchicine particularly goes via Turkey into EU. Nicotine demand is there, but there is also capacity and there are a number of new entrants, which that is putting some margin pressure. But broadly, the strategy of the company has been to continue to come with differentiated products on purity, impurity profiling, continue to get regulatory approvals to participate in developed markets like U.S., Europe, Japan. We made good progress in that area. Continue to look at our formulations and the branded portfolio. So why is this particular business has been under pressure? But I think the broad strategy has been very clear. We will continue to maintain the market, but look at differentiation, registrations and regulatory qualifications, branded and formulary products to drive this business forward. You have all heard about restructuring. I will just talk about the rationale. You are aware of it. In greater detail, if you have any questions on it, actually, Mr. Singhal will tell you. So broadly, the idea has been to look at our businesses to enhance value. The idea is to put together potable spirits business and the ethanol or the biofuel business together into one business, which will be called IGL Spirits. To put the chemicals business, value-added chemicals business, and the Clariant JV into one cluster. Clariant JV, as in because that sells chemicals and the profit from the joint ventures come into that entity. To put Ennature Biopharma along with the biopolymers business into another business. The idea is that different investors have different appetites for different kind of businesses. So that gives us an opportunity to drive these businesses, with different strategies. Satisfying how different investors may have interest in different businesses, why we will continue to build on some synergies that we have because of the proximity of our plants and the integration of our business models that exists. There are some numbers to share which have already been shared. I will take a pause here and some things that I may have missed out, particularly on the financial front, because I have just given a very high-level overview. I will request Anandji to guide through some more details and take more questions. I think the results are already with all the investors, and just to read out the brief. On the consolidated basis, I think the CEO, sir, has already briefed. The EBITDA vis-a-vis Q1 in the current quarter is almost about 19% up, amounting to INR 151 crores, vis-a-vis INR 128 crores in Q1 last year. The PAT is INR 73 crores, vis-a-vis INR 60 crores in Q1 in the last year, which is up by 21%. The EPS for the current quarter is INR 23.66, which is again up by 21% in the last quarter, last year for Q1. This is very brief, I am giving, and ready to take the question answer. Because I am not taking much time, I will request to start the question and answer session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue is prepping. The first question is on the line of Bala Subramaniam from Arihant Capital Markets Limited. Please proceed. Good evening, sir. Congratulations for a good set of numbers. Sir, my first question in the potable spirits side, I think we have seen a highest selling brand of Bunty Babli. I just want to understand how this dominance is sustainable. Secondly, we are focusing on, especially in Delhi, Haryana, and targeting paramilitary and CSD channels, and how these channels are picking up. Thirdly, in the Amrut side, we are targeting 850, 82,000 in that range for our brands, and how these things are getting adaptable in the market. Finally, if you could share what is that breakup between IMFL and country liquor, approximately that would be fine. Bala, thank you. You have given us a question paper. I have my colleague, Raju ji here, but I will try and answer just the first one, which is to do with Bunty Babli, and I will request Shukla ji, is there? Shukla ji, are you there? Yes, sir. I am here. Hello. Shukla ji, so their question was, how have you managed to be number one in Bunty Babli, and how do you think that will be sustained? I would request you to respond then. I was not sure if you are there, so yeah, please. Then I think you and Raju ji can take the remaining. Okay. Thank you. Bunty Babli is the brand which came in the picture 2006, and after 2006, because we are growing this brand approximately 15%-20% every year. The peculiar character of this brand is made from the rose and lime, which be more comfortable to the drinkers. That is why we have that, in the country liquor segment, the liquor is in three category, 25 degree, 36 degree, and 42.8 volume by volume strength. In all strength, this brand is the most favorable brand because customers liking growing day by day, and our size is currently approximately, we are holding more than the 24%-25% the share, and MSD share is brand is around 16%. This is the undoubtedly most favored brand in the country liquor segment, especially in U.P. Raju ji, over to you. Hello. I'm Raju Bajirani speaking. I'll come to the point straight away. The next question was on Delhi and paramilitary and other segments, how are we growing? Delhi is a very safe market as far as payments are concerned. It's well known. In Delhi, I take satisfaction in mentioning that we are in three segments in particular. One is the regular segment where our Soulmate Blu is among the top three brands in the state of Delhi, and we command that position for the last so many years. We have a license in Delhi for the last 25 years. In other words, IGL is a prominent player in Delhi market. Second is the segment of vodka. Again, we are among the top three brands. There are more than 35 brands in Delhi of vodka, but we are among the top three brands of vodka in the state of Delhi. This is because of the fact that we use imported enhancers, which cost a little bit more, but the consumer shifts from other regular vodkas to our vodka, and once he or she shifts from the regular vodkas, he or she stays with us. We are increasing at an increasing rate in terms of market share. This is the vodka segment. The third segment, in fact, you clubbed it well with the third question, if I may say, that's INR 850 and INR 1,000 segment. These are the two segments which are galloping. Galloping in the sense, the consumer is all the time very aspirational and all the time moving upwards and trading up the price ladder. It is very difficult to establish a whiskey brand in this premium price point. This is with reference to Delhi. As you rightly said, these are the price points of Delhi market. This segment is growing in high double digits, and there was every reason for us to address this because of two reasons. One is our extra neutral alcohol, which goes to Diageo, Pernod, Radico, name the top big companies world over. It is used by all of them. There was every reason for us to use it for our captive consumption. We have, as our CEO rightly said, we have, in conjunction with Amrut, taken certain brands on royalty. We have made two brands. One is MaQintosh White Label, which is at INR 850, and one is MaQintosh Black Label, which is at INR 1,100. These two segments are growing, and we are able to capitalize on the growth, and we are able to get more than 10% market share. We have not even completed one year of its launch, and it is quite satisfying that we have more than 10% market share. As far as your third question or partially third question was paramilitary. As our CEO rightly mentioned, there were 66 companies. This is an annual contract. Just to elucidate for the benefit of everyone, paramilitary means ITBP, BSF, CRPF, and SSB. These are the four arms of the defense forces, which are paramilitary, which complement. They fend the internal, that is India operation. Army fends the borders. That is the difference. They are under Ministry of Home Affairs, and they do an annual contract, which is generally extended for one more year. Effectively, it is two-year contract. It is noteworthy that out of 66 companies who tendered, less than half of them got approval, including IGL. We are the number four company already in India. Just to mention that this is an all-India supplies, so it has a snowballing effect on the civil sales as well. This keeps us in good stead as far as our long-term pursuit of going national is concerned because we are able to feed as many as our CEO rightly mentioned, five brands across our price spectrum that we have got into the entire country. I can talk more, but I will be very glad to field any other question. Thank you for detailed explanation, sir. In that biofuel segment, what is the capacity utilization at this point of time? We have seen the revenue growth is much, much better, but we have seen some margin contractions. Are we facing on that raw material side any issues? Are we dependent on domestic maize supply? Is there any risk on the gross margin side if corn adoption faces any regularity hurdles? Bala, let me try and take that, and then if there is something else, then Shukla ji may add. Great. Thank you so much. Your question was with respect to the biofuel segment and whether there is a margin squeeze there or whether there is a raw material issue. The short answer is there is no raw material issue. There were some hiccups last year, more to do with internal arrangements. There are multiple sources which the government has allowed, which includes sugarcane juice, C-heavy molasses, B-heavy molasses, rice, which is DFG, damaged food grain rice, surplus food grain, as well as corn. It is not a completely free market kind of system because the government has come up with very well thought through administrative price mechanism. They recognize what the various feedstock costs are. Accordingly, if you see, different prices are given for ethanol, which is produced for using different feedstocks to make sure that there is balanced growth. There are so many factors to be balanced. There is agricultural factors, there are climatic factors. There is factors to do with MSP, factors to do with excess food grain storage, et cetera. In terms of gross margins, as you know, there are three factors which lead to the money that we make in the biofuel space. One is the administered price. Second is the cost of the grain which is used, which is for our case, either damaged food grain, DFG, or surplus food grain. The fourth factor is at what price are we able to sell DDGS, which is the by-product containing protein. Like we continue to look at the overall profitability that we get, the government also continues to look at that. It is a flagship program for the government, so it is very important that people who have invested continue to support this program. What we have seen ever since we have participated in the market, there have been times when margins go up, margins come down a little bit. But the regulatory bodies play a significant role in making sure with respect to availability of feedstock, with respect to adjustment of prices, which they have done from time to time, that by and large, a steady, patient margin, not necessarily steady in the shorter term, is made. I have no reasons to believe that that will go away. We also keep track of overall capacities that the country has. The country has put up capacity, but we do not have excess capacity compared to the total current demand. Demand will continue to grow, and people will continue to add steady capacity, but there is no huge excess capacity which impacts us. To answer your question, we are not in a situation where suddenly you will see a collapse because of either raw materials are not available or suddenly because of market factors, prices collapse. Prices are determined by the government. The government takes several supporting actions to make sure feedstocks are available. Whilst there is some level of uncertainty on all businesses, and to some extent, you may say that at times we may think that we could make more money, but this is a more steady, reasonably supported business backed by a national ethanol blending program. At least I do not have undue concerns, and I have definitely spoken to you about this for the last three and a half years. At times I was a little conservative, which also some people did not like. But at the same time, I was reasonably confident that this is not just a splash in the pan. This is a well-thought-through agenda which the government has executed quite well, and I think industry players have come up to support that and deliver it throughout the country quite well. If you look at how the blending has gone up in the country from something like 5% in 2019-2020, to 10% in 2020-2021, to 10% in 2021-2022, there was a hiccup, to 12% in 2022-2023, to 15% in 2023-2024, to 19% in 2024-2025, and we are expecting to do 20% in 2025-2026, which mind you, is ahead of the original plan of delivering this by 2030. So I would not be overly concerned, and I would request you not to be overly concerned. Got it. Sir, my last question- Sorry to interrupt, Mr. Bala Subramaniam. May we request you to join the question queue again, as there are other participants. Okay. Thank you, sir. Thank you, ma'am. Thank you. The next question is from the line of Saket Kapoor from Kapoor & Company. Please proceed. Namaskar, sir. Namaskar, Saket. Thank you for this opportunity, sir. Firstly, sir, with now Q1 through and we have the remaining three quarters. As an organization, what are our key operational and financial agendas or the thought process of the management for this current year? Because I think finance cost is the area that needs attention, and what steps are we taking to reduce the impact of the same? My first question. Secondly, on the CapEx part, last year we did around INR 750, INR 700 crores odd number. What has been envisaged for the current year? And what are the current maturities which are payable for the current financial year? Saket, after we answer your question, hopefully you will buy some more IGL shares. Yes, sir. We have already discussed it last year. Yes, we have. That was on a lighter note. Okay. Go ahead. Regarding the finance cost, Saket, as such, as of now, we are not planning to raise equity or something. That is always in the pipeline, always from last 7, 8 years. But since inception 1989, the company has not done any public issue. Yes, that finance cost is in our also mind that that is increasing, and we will certainly check that. But number 2, regarding the CapEx, we are not planning to do any huge CapEx in the current year. Hopefully the current year CapExes will be the rollover CapExes which are coming from the last year, or maybe maintenance CapExes which will be about INR 40-50 crores per year. We are not targeting any big size CapEx in this year, and we will like to consolidate. After the demerger, the separate companies will think over the CapExes. Regarding the financial performance, what you said. I think the Q1 numbers is already indicating about the financials of the company when the company has already achieved INR 23.66 paisa EPS. Rest you can think of on your own. I cannot give you the numbers and the projections because that is not allowed. But you yourself can rather guess what will be the financial numbers of the company. My question was mainly towards the strategic part, since lot of CapEx has gone through. As you mentioned that our key agenda should be how to sweat those assets and create value out of it. That was the premise of the question. For the current year, sir, what are the current maturities? How much is payable and are we going to pay through the internal accruals? Whatever CapEx is going on, that has already been funded. We are not targeting any fresh loan and whatever the maintenance CapEx will be there, that will be from the internal accruals. Current maturities, how much of the loan is due for repayment for this year? The current year, the repayment will be about INR 300 crores. Okay. This will be through the cash accruals funding. We will be lowering the debt by that tune for this year? Hardly any debt will be there. Maybe INR 100, INR 150 crore. Yes, INR 325 crore is the figure which will be paid out of the cash accruals. Right, sir. Sir, now coming to the JV performance. I think the JV performance has been very good if you take the Q on Q number. Last year the contribution was closer to INR 47 crore. The first quarter itself is now INR 19 crore. What factors that— Deepak sir did mention, but if you could allude more, Manish. Describe more onto the same and the continuity of the same, what should we factor in? Okay. Saket, I mentioned a couple of points. One is that we had faced a challenge where the cost differential between Reliance's and IGL EO had gone up to as high as 42% in around mid of 2023, July, August. That really came down to close to 12%-14% in the quarter. That was the highest that we had seen, which was 42%. In fact, if you go back prior to mid of 2022 or before that, for 5, 10, 15 years, never had been seen something like this, which was pre-COVID times. Manish, is that reasonable? In fact, if at all, IGL EO cost was slightly lower than Reliance's EO sale price. The good thing is that we have tidied over the biggest obstacle of as high as a 42% differential, and we are down to operating in the 12%-15% range. We have no reasons to believe that it's going up to fundamentally to those high levels. That is one. That has contributed in improving margins, getting more sales, and I think we've been able to not only sustain but drive the sale growth. That has contributed. The second thing, as I mentioned, it also improved trading. When we formed the joint venture, Clariant had a trading business in India. When I say trading business in India, they don't buy products from everybody and sell it. I mean, products that are manufactured in Clariant and sold in India through the Indian entity, and that business was put into the joint venture, that a joint venture will do that part. Which means that we have access to several technologies, manufactured products throughout the Clariant world, which are sold into India, which also improved both the percentage margin as the absolute margin. This was the second factor. The third factor has been enhancement of the product mix within what is manufactured in Kashipur. Some actions taken from here, some actions also taken because there is greater access to Clariant's application know-how, the product chemistry on the table bouquet, so to say. So these are factors. Given that these are factors and given the end markets that the joint venture services, which you know, right? From personal care, pharma, crop care, textiles, lubricants, coatings, et cetera, which are also growing. There are reasons for us to believe that there were fundamental reasons for the JV to start doing well. The challenges which posed squeezed profits a couple of years ago. As I said, whilst nobody can give you an exact number on how a business is going to perform, but going by the fundamentals of what the markets are doing, what the JV is doing in terms of driving the business growth We believe that, again, this is not a once off. I think the JV will steadily, in my opinion, you should expect JV to continue to steadily deliver good performance. Yes, sir. Last point on the nutraceutical. I think so you have- Sorry to interrupt, Mr. Saket. I joined the queue, madam. We will want you to. Yes. Thank you, sir. Yes. Thank you, madam. The next question is from the line of Rohit from B&K Securities. Please proceed. Yes. Thank you. Yeah. Thanks for the opportunity and congrats on good set of numbers. Sir, first question is on the specialty chemicals front. How have we seen growth in terms of volumes, and how has been the trend in terms of pricing over the last one year? What are you expecting? Are we seeing signs in terms of pricing recovery, just your personal view. Thank you. Are you talking about the joint venture or are you talking about Both. Our own business as well as on the JV part. I think some of the factors are common, right? Right. If you look at the joint venture, there was broadly 15%-16% top-line growth. You already know the IGL share, which grew by 73%, which means that PAT growth was similar, which is high. EBITDA growth was around 40%. The factors that I told you led to increased sales, which is why you see the top-line growth. But the EBITDA growth is much higher than top-line growth because of a better cost position, raw material-wise and transaction-wise, and also improvement of the mix. When all of these go up, generally, PAT is more sensitive, so that goes up as well. Our story in value-added chemicals has some common factors, but obviously we are starting with molecules which are different, which we are entering the market, and our strategy is also somewhat slightly different. One of the things that we are doing in our performance chemicals business is whilst we continue to build on our green credentials, we are not as dependent only on EO ethanol in the bouquet of products that we have. It's not that we are discouraging ourselves from doing EO-based products, but a lot of EO-based products from this segment is done also by the joint venture. We have other ideas. For example, one of the areas that we have been looking at and doing well is oilfield chemicals, and we are looking at areas like crop protection, bio-based amines, carbon-smart products, et cetera. Our business will be led more by building partnerships where it is not that I have a product and suddenly go and sell into the market. It is generally about product development that takes us 2-4 years to work with the customer on developing the product, process, understanding the applications, and delivering the value that they seek. Broadly speaking, we are looking at significant kind of ballpark. Ballpark, I am saying, so keep that in mind. In excess of 150% volume value contribution growth in that small segment. Now, we think that is what our target is, maybe higher. I think the potential is more as well. I have reasons to believe that we should continue to deliver that kind of growth, at least in the foreseeable future or the years to come. Our broad strategy has been to become good partners with good players. The kind of companies that we are working with are generally very reputed global partners. We see value in IGL. We don't see ourselves as either low-cost players or just commodity players or me-too players. Our objective, obviously, is to be preferred, if possible, indispensable partners to some of these players. I think that strategy is well in place. It is a business which takes some time to build. I am very confident that sometimes you have ups and downs here and there, but broadly, that business will continue to grow. We should be able to maintain our reasonable contribution levels as well. Sometimes you enter with an entry strategy into the market, and then you improve your contribution by doing several things, by doing front-end differentiation, by improving your processes, et cetera. Those are things that we are working on. We have certain ideas about the business which could be quite strategic and also, God willing, give step increases rather than merely incrementals, but it is very early for me to start elaborating on them. Looking at different feedstocks, different value propositions, et cetera. That is it from me, Rohit, on this. Sure. Thanks a lot. Sir, second question on the liquor business. A few parts to it. One, in terms of the mix, how currently the mix is from the country liquor, then maybe if you can give in terms of IMFL where we are doing our own brands of whisky, vodka, and the one which we are doing bottling for third party, and the recently acquired brands from Amrut. How this particular mix was, let's say, 5 years back, just to get an understanding how we are progressing. The second one, again, a live question to that. In terms of individual brands and categories, which and all are the geographies where we are currently present and where we are likely to expand in near future? These two points on the, little more discussion on this will be really helpful. Thank you. Rohit, I will just give you a flavor of the mix and then I will pass on to Raju ji and Shukla ji to give you some more detail. The potable spirits for the liquor business has three parts. The smallest of them is extra neutral alcohol, which is basically ethanol, which is sold as such to beverage manufacturers in bulk, which last year, I am not going to project numbers for this year. Which last year was roughly around INR 70 crores. We expect to see very good growth in this area because now we have capacity, and this fetches us better profits than just selling into biofuel. That last year was close to INR 70 crores. As far as country liquor is concerned, which has been a good workhorse for us, both profitable, steady. Last year was close to INR 870 crores. Good share, strong presence in Uttar Pradesh and Uttarakhand, and we will continue to maintain that strong position and our excellence. This is net of excise, yes. For IMFL, we clocked about INR 185 crores last year, and we expect in percentage terms that will probably see much better growth because of focus. First of all, there is a much bigger playground there for us to play. Secondly, we are bringing in inorganics in some ways, growth strategies like Amrut, et cetera, which will help us drive penetration, value, profitability. That gives you an idea of the mix and the relative growth that we will see, we think we would register in near future. Now I will hand over to Raju ji to talk to you about the question on IMFL brand and Shukla ji, if you have anything on country liquor or anything else that he wants to add. Okay. Should I add? Yes, Shukla ji, go ahead. Hi, Shukla ji, please go ahead. So country liquor in U.P. and Uttarakhand, both states, we have the leading position because the position of quality of the product certainly played a very vital role in this segment, and IGL because of their external good quality ENA. We have the traditional blending, the methods through which we make this, the country liquor segment. Because of this, our growth each every year on year, most probably approximately 7%-12% growth we are getting. This is because we have the inbuilt capacity. So in U.P. and in Uttarakhand, mostly all the aseptic packs is compulsory by the state excise. We were the leader since beginning in the production capacity of the aseptic packs. Because of this, company as a whole, we are in a position to place our quality product almost 95%, more than 95% share in the nine districts of the U.P., which no districts having the such kinds of monopoly situation, which we have. Customer is liking too much our product and they are loyal, they can go away from the shops if the product is not available. Such kinds of loyalty never been seen in any shops for this product. This is the traditional advantage and traditional benefit of this product. After this plant, Gorakhpur plant is started in 2006, and after 2017, 2018, when the progressive governments came in U.P., all the growth happened in the last 7-8 years, as well as in Uttarakhand also. Raju ji, if you can add more. Thank you, Shukla ji. As for three questions you asked, three sub-questions. One is, the partnership that we have with Bacardi. For the benefit of everyone, it is not a third-party bottling or as we call it, contract bottling. This is much brighter ambit because we make all the brands of Bacardi at our Kashipur plant. One segment is the RTD segment Breezers, which require high degree of carbonated. It is a carbonated drink, so it requires high degree of capital, maintaining temperature, and it is a totally different ball game. Except Nanjangud, where Bacardi has its own plant. One more small place, where we supply most of North and East India only from our Kashipur plant for Bacardi products. Number two, we have in-house high bouquet spirit maturation CapEx has been spent. So the world-class standards of as many as more than 10 brands of Bacardi, right from Breezer up to their flagship brand, Carta Blanca and Bacardi Limon, are all manufactured there under very high quality standards. So the entire maturation and special distillation columns, the supply chain, the logistics, the environmental, the regulatory clearances, everything, Kashipur or IGL is responsible for. The principal company, Bacardi, who are our close partners for the last 15 years, are so satisfied that they have left everything to us except a couple of people, and of course, they do marketing because it is their brand. So it is a huge effort that we go into partnership with Bacardi. Just to give you a perspective, we do as many as 200,000 cases per month for Bacardi International, which is a very high degree of volume, considering the fact that they do all premium products. This is as far as Bacardi partnership is concerned, which for the benefit of everyone, I elucidated. As far as our own organic products are concerned, the traditional brand is Soulmate Blu Whiskey, which is a millionaire case brand last year we did. I briefly mentioned about vodka, Amazing Vodka, which is making its presence felt in wherever we go, wherever we have launched, and also the partnership with Amrut. Strategically, what we have done is, Amrut brands are being known for quality and high standards of packaging and recipe. We have kept it at the top end, so we complement each other as far as country liquor, then regular brands, then vodka for our IGL products. Then we come to premium and semi-premium brands for Amrut, which are from a long-term point of view, our own brands, acquired brands with the understanding that the first refusal is with us. These are all factual, publicly known facts. So we have a complete price spectrum of brands, and we have positioned the brands in such a manner that long-term point of view, we will be able to dwell upon them. Your third sub-question was geographical coverage. See, it is very easy to open new states, but we do a very detailed study and our CFO, CEO, and particularly our CMD are very particular that we do not open a state till we are sure about the size of the price or a huge opportunity exists, and we make money. So we have identified Kerala as the first state outside north, where we have succeeded in getting the tender brands approval, and this month we will be addressing that state. And then a couple of other states, for obvious reasons, since we have not started, I cannot mention, but we have definite plans in this current fiscal to address at least two or three more states along with CSD. Thank you. Yeah. Thanks a lot for answering all the questions. Best of luck, sir. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your question to one per participant. The next question is from the line of Jaswinder Singh, an individual investor. Please proceed. Hello. Am I audible? Yes. Yes, sir. Good evening, Mr. Saraswat and Mr. Singhal. My question is related to the liquor segment. I would like to bring out some figures which I see in the balance sheet. The sales, if you compare between the March and June quarter, the sales are up by 20.42%, but our net is down 7.75%. I was just listening to Mr. Shukla and Mr. Raju Bajirani, that they were saying that we have got leadership position in our liquor segment in U.P. and Uttarakhand, and we have been doing so much of cost-cutting measures, tetra packaging, premiumization of our liquor. But why is that the sales have grown, but there is a degrowth in our profit? I have been an investor of your company since last 10 years, and what I am yet to see is that we have been doing so much of CapEx with changing our company, our sales have grown, but we are yet to see any kind of financial or operating leverage come into play. It is a very basic mathematics that when our sales are growing and our CapEx is all done, the profit should be incremental. But this degrowth in our profit from March quarter has really disappointed us. Can you just throw some light and explain to me why we have missed on our bottom line in this quarter? See, in the Q1 of the last year, the EBIT margin was 17.54%, while in the Q1 of the current year, it is 21.12%. Of course, that has increased by about 3.5%. Of course, the sale has also increased from INR 1,593 crores to INR 1,805 crores. If you compare with the last quarter, Q4 of the last year, when the sale was INR 1,609, while in the current quarter it is INR 1,805, while the EBIT margin has certainly reduced from 27% to 21%. In some cases, there are so many brands which my marketing division is selling in the market, and every product is not having the same kind of EBIT margin. There may be, I have to check internally, but there may be some of the sale which is having a slightly lesser margin as compared to the other products. It may be because of that. If Raju ji wants to add something on this, he can add. Shukla ji, will you like to add? Otherwise, I will come in. No, Raju ji. Continue. See, there are two factors as I know, as I understand, if my understanding of the question is right. Between last fiscal, last quarter, and this quarter, see, there were two changes that have happened in our heartland of U.P. and Uttarakhand. Both the states underwent new policies, with the result, the volumes from April. And policies start from April. So April and May, end of the last year, that is from March 31, there was lot of lifting, a lot of dumping of stocks naturally by the trade because they were not sure about the new policy. Once the new policy has come in U.P. and Uttarakhand, which are our key states, naturally the growth was sluggish. Not only with us, but it is also as an industry phenomenon. I am sure in the current quarter, July, August, September, it is not only stabilized, it will grow, and definitely in OND quarters, as we call it, October, November, December, it will gallop. As our CFO beautifully said, there can be up and down in a quarter in an industry, including us, but overall last year performance versus this year, we have definitely grown as a percentage of volume as well as value. There is no cause of concern. It is an industry phenomenon. Secondly, Mr. Saraswat, my next question is for Ennature Biopharma. I remember, post in 2021, we were doing a net margin of around 33% in our business, and our sales were around maybe INR 38 crore, INR 40 crore per quarter. Now when I see the results of Ennature Biopharma, the net has come down to 2.38%. As a businessman, this would suggest that this is a trading margin, not a manufacturing margin. Any manufacturer who is in a segment of pharmaceuticals or nutraceuticals would not operate. Sorry to interrupt, Mr. Jaswinder Singh. What is the business strategy in this Ennature Biopharma when we are demerging? Mr. Jaswinder Singh. Let him complete. I will give a short response and then. My concern is about the business strategy. We are planning to unlock shareholder value by demerging our business units when there is extreme degrowth in that business. How are we going to address that? Mr. Singhal, there is a margin squeeze, not as much as a degrowth in the business. Because when you look at growth, sometimes you don't only look at one year number, but if you look at four years, you will see a significant top-line growth in the business. That's one thing. You have made a very valid point. We recognize, I cannot deny the fact that there is a margin squeeze, which is what you pointed out. I will give you a more generic answer, so to say, and then we can engage separately with more details. I have my colleague who looks at finances numbers for Ennature Biopharma who will also respond. Why is this an API business? Which is, thiocolchicoside is also an API. So is nicotine where we sell in is also an API. It has its own pressures as well. There are a couple of pressures. I am not going to elaborate on the exact impact of all. One pressure is to do with if there is increased cultivation of the feedstock and there are more new entrants, that puts pressure on margin. That is one thing that happens. We have been selling thiocolchicoside to markets like Turkey, which is a gateway to Europe. We also saw some kind of a demand squeeze there. When there are a lot of new entrants and there are alternatives to these natural anthelmintics which come from countries like China, which have also flooded the market. To some extent, some of the more, so to say, workhorse products have faced this. That's a valid point. The strategy, of course, is very simple. I did mention it before, is to do several things. Is to, first of all, get into differentiation through impurity profiling, building dossiers, et cetera, which is something that we're doing. Also to get. What happens is, Turkey, for example, finds it easier to get materials from India, sell it into EU because they are part of that, to also get direct approval, which is a more stringent process. But when you go through this process and I will request Manish to talk about some of those approvals, which we are getting in the regulated developed markets to get our more product In there by being differentiated through quality, through having our dossiers completed, et cetera. We are also looking at a whole host of other products, and we are looking at formulated products, co-branding products, and created a branded portfolio. That is a generic strategy. But I'll pause. I have a colleague of mine who can add something more to it. Yeah. Justin, Manish this side. Yeah. Yeah. Broadly if we bifurcate nutraceutical business, one is API, another is nutraceuticals. As mentioned by him about the pressures of various kind on the APIs, simultaneously, we are trying to develop the nutraceuticals market. For that, our plant has also been certified as GMP plant. We have got the EIR and NSF for that particular plant. As this quarter performs, another one quarter could be on the same line, but from the third quarter, we are having a certain planning to introduce our nutraceuticals brand, branded nutraceuticals in U.S. market and in European countries directly from our own. At that time, the margin could increase substantially as it looks to us. Yeah, that's good to hear. Thank you. Thank you. This will be the last question of the day from the line of Saket Kapoor from Kapoor & Company. Please proceed. Yes, sir. Thank you for the opportunity. Yes, you have already answered about the nutraceutical part of the story. That was only the point of concern and steps also you have attributed what we are taking, and it is only now on the markets to improve so that our profitability will improve. That is what the understanding is. That's all from my side. We hope for good times ahead, sir. Thank you, Saket. Thank you. I now hand the conference over to the management for the closing comments. Thank you for conducting this conference for us. Thank you all for attending it, and thank you many of you who have been watching IGL very closely, and through your questions, we try and introspect, we try and learn. Thank you for that, and look forward to seeing you after the next quarter. Have a good day. Thank you very much. Thank you. On behalf of InCred Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.