01 — At a Glance
The Conglomerate That Reads Like a Bingo Card at a Trade Fair
- 52-Week High / Low₹1,223 / ₹502
- TTM Revenue₹4,098 Cr
- TTM PAT₹270 Cr
- TTM EPS₹42.76
- Q3 Annualised EPS (Q3×4)₹40.32
- Book Value₹357
- Price to Book2.43x
- Dividend Yield0.59%
- Debt / Equity0.86x
- 3-Month Return-20.0%
The Setup: India Glycols closed Q3 FY26 with ₹1,102 crore quarterly revenue (+13% QoQ), ₹1,092 EBITDA margin at 16.3%, and TTM PAT of ₹270 crore. Sounds impressive? Now imagine if someone told you this company does: chemicals, liquor, biofuel, and nutraceuticals—badly. They announced a demerger. Three separate companies will emerge. The stock fell 20% in 3 months because, apparently, specialisation was a dirty word. Let’s investigate.
02 — Introduction
The Company That Wanted to Be Everything (And Mastered Nothing)
Imagine walking into a restaurant that serves pizza, sushi, tandoori chicken, Pad Thai, and shawarma. You sit down, order biryani, and get lukewarm momos from the freezer. That’s India Glycols.
Established in 1988, IGL started as a chemical manufacturer. Then it thought: “You know what? Let’s add liquor.” Then: “Biofuel! Nutraceuticals! Industrial gases!” By 2026, the company looked like a startup founder’s mood board—everywhere at once, good at nothing in particular.
Revenue composition tells the whole story. In FY25, the company generated ₹3,748 crore across BSPC (36%), Biofuels (28%), Potable Spirits (31%), and Ennature Biopharma (6%). On paper: diversification. In practice: identity crisis. So what does management do? Split into three companies. Because if you can’t execute one strategy, the solution is clearly to execute three in parallel.
On February 10, 2026, the board approved a scheme of arrangement. IGL Spirits Limited will house potable spirits and biofuels. Ennature Bio Pharma will take the nutraceuticals. The original IGL keeps glycols and the new specialities unit. NCLT has already signed off. Share swaps are locked in. This is happening.
The stock is down 20% in three months. Investors hate clarity, apparently.
Management Concall (Feb 2026): “Record revenue and EBITDA for the quarter as well as for 9 months.” Management spent more time celebrating last quarter’s numbers than explaining the demerger logistics. Bold move.
03 — Business Model: Jack-of-All-Trades, Master of Nothing
They Sell Slippery Stuff. And Booze. And Fuel. And Pills.
IGL operates four distinct businesses pretending to be one company:
BSPC (36% of Revenue)
Bio-based glycols (MEG, DEG, TEG), glycol ethers, ethylene oxide derivatives, industrial gases, bio-polymers. Used in paints, FMCG, textiles, automotive. Market share in bio-glycols: largest globally. Performance? Margins declining due to overcapacity and Chinese competitors selling at prices that make Indian costs look like luxury goods.
Potable Spirits (31% of Revenue)
Whiskey, vodka, rum, country liquor. Brands: Soulmate Blu, Amazing, Zumba. Strong position in Uttar Pradesh and Uttarakhand. Market share in flavoured vodka: 40%+ in tetra packs. Growth driven by premiumization (launching whisky at ₹3,000+) and CSD contracts.
Biofuels (28% of Revenue)
Ethanol for fuel blending and chemical feedstock. Revenue jumped 104% in FY25 to ₹1,044 crore. Pricing is government-set. Margins are “range-bound by policy” (management’s polite way of saying “it’s not our fault if margins suck”).
Ennature Biopharma (6% of Revenue)
Plant-based APIs (Thiocolchicoside, Lutein, Curcumin, Astaxanthin). Struggles with feedstock cost volatility and Western market weakness. Q3 margin: 4.1%. Barely surviving. Demerger is basically a mercy kill.
Management’s Concall Insight (Feb 2026): “ENA is like the blood”—referring to captive Extra Neutral Alcohol production. Yes, they are liquor experts now. The stock is down 20%. The irony is not lost on us.
💬 If a company sells four different products and is bad at three of them, is diversification a strength or an excuse?
04 — Financials Overview
Q3 FY26: The Number That Went Up
