India Glycols Limited has received partial relief from the Commissioner (Appeals), Noida in a customs duty dispute case. The company disclosed the appellate order details under Regulation 30 of SEBI Listing Regulations on 13th March 2026.

Appellate Order Details

The Commissioner (Appeals), Noida issued an order dated 27th February 2026, which was received by the company on 12th March 2026. This order addressed the appeal filed by India Glycols Limited against the original order passed by Additional Commissioner, Noida Customs Commissionerate, Uttar Pradesh on 22nd March 2024.

Financial Impact and Relief Obtained

The appellate authority partially allowed the company's appeal, resulting in significant relief from the original demands. The original order had confirmed a duty short payment of Rs. 33.43 crore along with applicable interest, imposed a penalty, and demanded a redemption fine under the Customs Act, 1962.

The appellate order has resulted in a substantial reduction in the total demand against the company, providing significant financial relief through the penalty reduction and complete waiver of the redemption fine.

Company's Response and Future Course

Based on the company's assessment and advice from legal counsel, India Glycols Limited believes it has a strong case on merit. The company has indicated its intention to file a second appeal against the demand for duty, interest, and penalty that was confirmed by the appellate authority.

The company has stated that it does not reasonably anticipate any material impact on its financial, operational, or other activities from this matter. This disclosure was made in compliance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024, and the details have been hosted on the company's website at www.indiaglycols.com .

India Glycols Limited has received a credit rating update from CARE Ratings Limited, with the rating agency placing the company's bank facilities on Rating Watch with Developing Implications (RWD) following the announcement of a comprehensive corporate restructuring scheme.

Rating Action Details

CARE Ratings has reviewed facilities across multiple categories, maintaining the RWD status that was previously assigned. The rating action covers the company's entire banking facility portfolio:

The rating agency has also withdrawn ratings for bank guarantee facilities amounting to ₹72.63 crore based on the company's request and receipt of No Dues Certificates from the extending banks.

Proposed Corporate Restructuring

The Rating Watch status stems from India Glycols' composite scheme of arrangement, approved by the Board of Directors on 16th May, 2025. Under this restructuring:

• Biofuel (BF) and Potable Spirits (PS) undertakings will be demerged into IGL Spirits Limited (ISL)
• Bio-pharma (BP) undertaking will move to Ennature Bio Pharma Limited (EBL)
• Bio-based specialities & Performance Chemicals (BSPC) segment (excluding biopolymers) will remain under India Glycols
• Kashipur Holdings Limited (KHL) will not merge into India Glycols under the revised scheme

The scheme requires approvals from the National Company Law Tribunal (NCLT), shareholders, creditors, central government, and other regulatory authorities. Shareholding in the demerged entities will maintain the same proportion as India Glycols' current shareholding structure.

Post-Restructuring Business Profile

Following the demerger completion, India Glycols will transform into a pure chemical manufacturer, housing only the glycols and new specialities units. This focused segment demonstrated strong performance metrics:

CARE Ratings expects the restructured entity to maintain average debt coverage metrics, with net debt to PBLDT (including letter of credit acceptances) not expected to exceed 4.5x. This ratio is anticipated to strengthen further due to scheduled term-loan repayments and organic improvement in PBLDT as the new specialities unit scales up.

Current Financial Position

India Glycols operates across four major segments with diversified revenue streams. In FY25, the company achieved 14% revenue growth to ₹3,748 crore, with PBLDT margin improving to 13.09%. For 9MFY26, revenue grew 11% year-on-year to ₹3,239 crore, with margin expansion to 15.04%.

The company's segment-wise performance in FY25 showed:

• BSPC segment: 36% revenue contribution, 27% operating profit contribution
• Biofuels segment: 28% revenue contribution, 12% operating profit contribution
• Potable Spirits segment: 31% revenue contribution, 56% operating profit contribution
• Ethanol Business segment: 6% revenue contribution, 12% operating profit contribution

In Q3FY26, the company raised ₹467 crore through a preferential issue, with the majority utilized for debt reduction. Total debt including LC-based acceptances reduced to ₹1,863 crore as of December 31, 2025, and further to ₹1,793 crore by January 31, 2026.

Rating Outlook and Monitoring

CARE Ratings will closely monitor developments regarding the scheme approvals and will review ratings once necessary approvals are in place and the transaction is completed entirely. The rating agency expects the restructuring to enhance capital allocation, management focus, and resource efficiency across the separated businesses.

The completion timeline for the entire scheme is expected within six months, subject to regulatory approvals. Until then, the facilities will continue under the Rating Watch with Developing Implications status.