Gulshan Polyols Limited submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing provides a detailed breakdown of the company’s operational footprint, revenue composition, and sustainability metrics for FY26.

Revenue Composition

Ethanol remains the dominant revenue driver for the company, contributing 59.13% to total turnover in FY26. Sorbitol followed as the second-largest segment with 14.71%, while by-products accounted for 11.10%. Fructose and sweeteners contributed 4.51%, liquor/country liquor 3.86%, and starch 3.13%.

Exports constituted 5.049% of the total turnover during the year. The company serves customers across multiple industries, including dentifrice, personal care, food, paper, pharma, footwear, plastics, printing, paint, oil marketing companies, animal feed, rubber, and automobiles.

Workforce and Safety

As of March 31, 2026, the company employed 368 permanent employees and 965 workers (comprising 209 permanent and 756 non-permanent workers). Women represented 7.33% of permanent employees but held 40% of Board seats and 50% of Key Management Personnel positions.

The company recorded one fatality among workers in FY26, matching the figure from FY25. The Lost Time Injury Frequency Rate (LTIFR) remained at zero for both employees and workers. No recordable work-related injuries were reported for employees, while workers had zero recordable injuries in FY26 compared to one in FY25.

Environmental Metrics

Total energy consumption from renewable sources stood at 13,74,67,641.36 J, while non-renewable sources contributed 1,39,59,788.40 J. Total water withdrawal increased to 34,05,008 kilolitres from 23,14,777 kilolitres in the prior year, driven by a rise in third-party water usage. Water consumption was 12,53,689 kilolitres.

Greenhouse gas emissions included 26,574.29 metric tonnes of CO2 equivalent for Scope 1 and 25,926.24 metric tonnes for Scope 2. Total waste generated was 52,358.66 metric tonnes, primarily comprising non-hazardous waste.

Governance and Compliance

The company disclosed monetary penalties totaling approximately ₹11.99 lakh during FY26. These included a GST penalty of ₹7,05,778 related to HSN classification disputes, a ₹20,000 penalty for wrongly taken ITC, a ₹4,00,000 fine from the Central Ground Water Authority for non-compliance with water metering norms, and a ₹93,144 income tax penalty for revenue discrepancies. No appeals were preferred against these orders.

CSR spending was applicable under Section 135 of the Companies Act, 2013, given the company’s turnover of ₹23,12,42,17,684 and net worth of ₹8,88,09,94,002. The company closed its foreign subsidiary, Gulshan Overseas – FZCO, in Dubai, which was legally dissolved on October 17, 2025.

What the Numbers Show

The divergence between renewable (~13.7 billion J) and non-renewable (~140 million J) energy consumption highlights a significant shift toward sustainable power sources, with renewables accounting for over 99% of total energy intake. Additionally, the rise in water withdrawal (+47% YoY) contrasts with stable production volumes, suggesting increased reliance on third-party water supplies rather than groundwater extraction alone.

Gulshan Polyols delivered a transformative financial performance in FY26, reporting a net profit of ₹1,071.5 crore, a sharp rise of 332% compared to ₹247.9 crore in the prior year. The surge was primarily driven by the successful ramp-up of its ethanol manufacturing capabilities and improved operational efficiencies across its diversified business segments.

Revenue from operations expanded by 14.5% to reach ₹2,312.4 crore from ₹2,019.7 crore in FY25. This top-line growth was accompanied by a significant improvement in operating profitability, with EBITDA jumping over 130% to ₹2,314.3 crore. The company attributed this performance to sustained demand in its core businesses and disciplined cost management.

Financial Highlights

The ethanol segment emerged as the principal growth engine during the year. Strong procurement by Oil Marketing Companies (OMCs) and the stabilization of expanded production capacities allowed the company to capitalize on the domestic ethanol market's rapid growth. Investments made in recent years began generating meaningful returns, strengthening both revenue profiles and competitive positioning.

Segment Performance

While ethanol drove the headline numbers, other segments showed resilience. The Grain Processing business demonstrated stability despite market volatility and pricing pressures, focusing on value-added products to enhance long-term profitability. The Mineral Processing business continued to deliver consistent performance, supported by steady market demand and long-standing customer relationships.

What the Numbers Show

A notable divergence exists between the company's revenue growth and its profit expansion. While revenue increased by a moderate 14.5%, net profit surged by over 330%. This disproportionate growth indicates significant operating leverage, where fixed costs were spread over higher volumes, particularly in the high-margin ethanol segment. Additionally, finance costs rose to ₹408.5 crore from ₹283.8 crore, reflecting increased borrowing likely tied to capital expenditure for capacity expansion, yet this was more than offset by the margin expansion.

Strategic Initiatives and Outlook

Looking ahead, management indicated a shift in focus towards maximizing asset utilization and improving operational efficiencies following a significant phase of capital expenditure. A key strategic milestone is the partnership with Trident Limited to establish an onsite Precipitated Calcium Carbonate (PCC) manufacturing facility with a capacity of approximately 22,000 MTPA. This project aims to strengthen the specialty chemicals portfolio and generate long-term revenue opportunities.

The Board of Directors recommended a final dividend of 150% (₹1.50 per equity share) for FY26, subject to shareholder approval at the upcoming Annual General Meeting. The company also closed its foreign subsidiary, Gulshan Overseas – FZCO, during the year, with the financial impact recognized under exceptional items.

The 26th Annual General Meeting is scheduled for September 11, 2026, where shareholders will vote on the adoption of financial statements, dividend declaration, and the reappointment of directors.