India Glycols has received the certified true copy of the National Company Law Tribunal order sanctioning its demerger scheme. The Allahabad Bench of the NCLT approved the arrangement on July 17, 2026, splitting the company into three distinct entities. The company formally received the document on August 20, 2026.

The approved scheme involves the demerger of India Glycols Limited into Ennature Bio Pharma Limited and IGL Spirits Limited. The appointed date for the transaction is April 1, 2026. The effective date and record date will be determined by the boards of all involved companies and communicated subsequently.

Scheme Structure and Share Ratios

The tribunal order outlines specific share allotment ratios for existing shareholders of India Glycols Limited upon the scheme becoming effective.

Existing equity shares held by India Glycols in the resulting companies will be cancelled once the scheme becomes effective. The remaining business, assets, and liabilities will continue to vest with India Glycols Limited.

Regulatory and Tax Implications

The NCLT order mandates that all rights, benefits, interests, and obligations related to the respective undertakings transfer to the new entities as a going concern. This includes the transfer of pending legal proceedings and tax liabilities associated with each specific undertaking.

The Income Tax Department is permitted to retain recourse for recovery regarding demands and future liabilities of the demerged company in respect of assets transferred under the scheme. The petitioner companies must file modified income tax returns under Section 314(1) of the Income Tax Act, 2025, within six months from the end of the month of the order.

Shareholder Approval Context

The tribunal noted that the scheme had already secured requisite majority approvals prior to this final sanction. Equity shareholders of the demerged company voted overwhelmingly in favor, with 4,42,48,625 votes cast in support out of 4,42,48,626 total votes, representing only one vote against. Unsecured creditors also provided unanimous consent, with 36 out of 36 participating creditors voting in favor by value.

India Glycols Limited india glycols delivered a strong start to fiscal year 2027, with consolidated net profit after tax (PAT) rising 32.2% year-on-year to ₹96.8 crore for the quarter ended June 30, 2026. Consolidated revenue from operations grew 19.4% to ₹2,988.4 crore, reflecting continued momentum in its core spirits business and improved margins across its diversified portfolio. Net revenue, after excise duties, increased 8.6% to ₹1,130 crore. The Board of Directors approved the unaudited standalone and consolidated financial results in a meeting held on August 12, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors K.N. Gutgutia & Co.

Financial Highlights

The company’s top-line growth was broad-based, with significant contributions from its potable spirits and bio-based specialities segments. Consolidated EBITDA expanded 12.5% to ₹169.9 crore, indicating improved operating leverage despite higher input costs. The consolidated EBITDA margin stood at 15.0%, an improvement of 53 basis points from 14.5% in the corresponding quarter of the previous year. Finance costs declined significantly to ₹25 crore from ₹45 crore in Q1FY26, driven by debt reduction and refinancing of higher-cost borrowings.

On a standalone basis, revenue rose 19.3% to ₹2,986.9 crore, while net profit increased 44.9% to ₹76.6 crore. Standalone EBITDA grew 14.1% to ₹170.3 crore. The improvement in standalone profitability was partly offset by lower other income compared to the previous year, which had included significant dividend income.

Segment Performance

The potable spirits segment remained the primary revenue driver, contributing ₹2,218.7 crore (74.2% of total revenue), up 22.9% year-on-year. This segment generated an operating profit of ₹75.0 crore, up 3.7% from ₹72.3 crore in Q1FY26. During the earnings call, management provided further granularity: the Indian Made Foreign Liquor (IMFL) business recorded a net revenue of ₹371 crore with an EBITDA margin of 22.9%, up 207 basis points year-on-year. IMFL volumes reached 1.4 million cases, representing a 55% growth over the previous year, with the Prestige & Above category accounting for approximately 0.5 million cases, double the prior year level. The non-IMFL business remained relatively stagnant with revenues of ₹279 crore and volumes of 7.5 million cases, up 6% year-on-year.

The bio-based specialities and performance chemicals segment saw revenue rise 20.6% to ₹363.3 crore, with operating profit holding steady at ₹31.4 crore. Ennature Biopharma reported a sharp recovery in profitability, with operating profit jumping to ₹7.3 crore from ₹1.2 crore in the prior year quarter, alongside revenue growth of 64.9% to ₹83.3 crore. Biofuel reported revenue of ₹323 crore, with EBIT rising 19% YoY to ₹27 crore and EBIT margin at 8.4%.

Joint Venture Contribution

A key driver of the consolidated profit surge was the share of net profit from joint ventures, which stood at ₹20.6 crore in Q1FY27, compared to ₹18.6 crore in Q1FY26. This represents approximately 21% of the total consolidated PAT. Management noted that the joint venture’s performance benefited from reduced pricing disadvantages in ethylene oxide due to current market conditions, leading to high double-digit EBITDA growth compared to the previous quarter.

What the Numbers Show

The divergence between standalone and consolidated profit growth warrants attention. While standalone PAT grew 44.9%, consolidated PAT grew 32.2%. This is primarily due to the proportionate impact of the joint venture’s profit contribution, which is included only in the consolidated figures. Furthermore, the standalone EBITDA margin contracted slightly to 5.7% from 6.0% in Q1FY26, whereas the consolidated EBITDA margin improved to 15.0% from 14.5%, suggesting that the mix shift towards higher-margin spirits sales helped cushion input cost pressures at the group level. The significant drop in finance costs from ₹45 crore to ₹25 crore also contributed materially to the bottom-line expansion.

Corporate Developments and Future Aspirations

The company continues to pursue its Composite Scheme of Arrangement, involving the demerger of its Bio Pharma undertaking into Ennature Bio Pharma Limited and its Spirits & Biofuel Undertaking into IGL Spirits Limited. The National Company Law Tribunal (NCLT) sanctioned the scheme on July 17, 2026. Post-restructuring, promoters will hold 59.63% in each of the three resulting companies: India Glycols Limited, IGL Spirits Limited, and Ennature Biopharma Limited.

During the earnings call, management shared long-term aspirations for the demerged entities:

• IGL Spirits Limited: Targets an EBITDA in excess of ₹500 crore for FY27 and aims to become debt-free from FY28 onwards. The company aspires to deliver an EBITDA in excess of ₹1,000 crore in the next four to five years.
• India Glycols Limited (Chemicals): Aspires to deliver an EBITDA of approximately ₹400 crore and a business size of approximately ₹2,500 crore in the next four to five years. Management expects gross margins to approach 30% by 2030 through product mix improvement.
• Ennature Bio Pharma: Aspires to achieve an EBITDA of ₹130 crore to ₹150 crore over the next four to five years, supported by growth in nicotine processing and nutraceuticals.

Earnings Call Details

India Glycols hosted an earnings conference call on Friday, August 14, 2026, to discuss the Q1FY27 results. Key participants included CEO Rupark Sarswat, CFO Anand Singhal, Executive Director Manoj Kumar Rai, and Executive Director Akshay Bansal. The company also introduced Gagan Kwatra to handle Investor Relations.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE560A01023/d6bcdb97-d02e-4c15-831e-8ff543fcbfca.pdf