IG Petrochemicals Limited (IGPL) has announced significant strategic moves, including a substantial investment in its biofuels subsidiary and an extension of its plasticizer plant completion timeline.

Investment in I G Biofuels

The Board of Directors of IGPL has approved an investment of up to ₹100.00 crore in I G Biofuels Limited (IGBL), a wholly-owned subsidiary. This decision marks a significant step towards diversifying the company's portfolio and exploring opportunities in the biofuels sector.

Key points of the investment include:

• IGPL will acquire 700 shares of IGBL at face value (₹10.00 per share) from existing individual shareholders, making IGBL a wholly-owned subsidiary.
• The investment of up to ₹100.00 crore will be used to explore future opportunities in biofuels and compressed bio-gas production.
• IGBL may pursue these opportunities either directly or through collaborations with suitable joint venture partners.

Plasticizer Plant Timeline Extension

In another development, IGPL has extended the completion timeline for its plasticizer plant to March 2026. This extension suggests a recalibration of the company's expansion plans.

Board Appointment

The company has also strengthened its leadership by appointing Shri Sanjoy Datta as a Non-Executive Independent Director. Datta brings over 36 years of experience in financial services, consulting, and corporate leadership across India and the Asia Pacific region. His appointment is subject to shareholder approval and is effective from November 3, 2025, for a term of five years.

Financial Performance

While the company did not release detailed financial results in this announcement, the investment in biofuels and the extension of the plasticizer plant timeline indicate IGPL's focus on long-term growth and diversification strategies.

These strategic moves by IG Petrochemicals reflect the company's efforts to expand its footprint in the renewable energy sector while managing its existing petrochemical operations. The investment in biofuels aligns with the growing global emphasis on sustainable energy solutions.

IG Petrochemicals has reported a significant turnaround in its financial performance for the second quarter of the fiscal year. The company's latest results showcase a robust recovery, marked by substantial profit growth and increased revenue.

Financial Highlights

The company's performance shows a remarkable improvement, with a swing to profitability and a substantial increase in revenue compared to the previous quarter.

Half-Yearly Performance

For the first half of the fiscal year, IG Petrochemicals reported:

• Revenue from operations: Rs 46,941.00 crore (down from Rs 56,075.00 crore in H1 FY23)
• Profit: Rs 367.00 crore (compared to a loss in H1 FY23)

Despite the year-on-year decrease in revenue, the company has managed to turn its bottom line from a loss to a profit, indicating improved operational efficiency.

Operational Achievement

IG Petrochemicals' Devangonthi terminal achieved its highest monthly dispatch of 65.40 TKL in September, showcasing operational excellence and improved logistics capabilities.

Market Performance

• Closing stock price: Rs 142.10 (+0.77% on the day of reporting)
• 12-month stock performance: -16.35%

Analyst Outlook

The analyst community appears divided on IG Petrochemicals' prospects:

• Recommendations: 2 'buy' and 2 'sell'
• Consensus price target: Rs 139.25

This split in analyst opinions suggests a cautious outlook on the company's future performance.

Credit Rating Update

As per the latest LODR data, India Ratings & Research has affirmed and assigned credit ratings for the company's bank loan facilities:

• Rating: IND AA-/Stable/IND A1+
• Action: Assigned and Affirmed

This credit rating indicates a high degree of safety regarding timely servicing of financial obligations and very low credit risk.

The company's strong financial turnaround, coupled with its stable credit rating, points to a positive outlook for IG Petrochemicals. However, investors should note the mixed analyst recommendations and consider the broader market context when making investment decisions.