Gulshan Polyols Reports Robust Q2 Performance with 23% Revenue Growth and 1,000% PAT Surge

Gulshan Polyols Limited, a multi-product company operating nine plants across India, has reported strong financial results for the second quarter. The company, which specializes in producing ethanol and specialty chemicals, has demonstrated significant growth across key financial metrics.

Financial Highlights

Revenue Growth: 23% year-on-year increase
EBITDA Growth: 140% year-on-year increase
Profit After Tax (PAT) Growth: 1,000% surge

Government Incentives

The company has received notable government support:

Production Linked Incentive (PLI) of Rs. 5.34 crores from the Madhya Pradesh government in October
Expected additional incentives:
- Rs. 14-15 crores from Madhya Pradesh government
- Rs. 5 crores from Assam government under the North Eastern Industrial and Investment Promotion Policy (NEIIPP)

These incentives are expected to be realized in the second half of the fiscal year and will be treated as other income in the company's profit and loss account.

Operational Overview

Gulshan Polyols operates in multiple segments:

1. Ethanol Production

Current allocation from Oil Marketing Companies (OMCs): 17.5 crore liters for the Ethanol Supply Year
Targeting total production of 23-24 crore liters for the full year
Expecting additional allocations in upcoming tender cycles

2. Grain Processing

Temporarily halted starch production (less than 10% of total revenue) due to market conditions
Other products like Sorbitol and fructose continue to be in production
Anticipating recovery in the second half of the calendar year

3. Mineral Processing

Stable business with consistent margins
Expecting to maintain margins of 23-24%

Raw Material and Cost Management

Material/Cost	Price/Rate
Maize prices	Rs. 21-22 per kg
Rice prices	Rs. 24-25 per kg
Power and fuel cost	Rs. 6 per liter of ethanol produced

Future Outlook

FY Guidance: 20% revenue growth expected from previous FY
Next FY Target: Revenue of about Rs. 2,800 crores, subject to market conditions and OMC allocations
Capacity Utilization: Aiming for 80-90% utilization across all divisions by next FY

Aditi Pasari, Joint Managing Director of Gulshan Polyols, commented on the results, stating, "We are delighted to say that the company is on a U-turn recovery mode as far as the bottom line is concerned. We are looking at better margins quarter-on-quarter and we are looking forward to turning out good results, strong numbers quarter-on-quarter going forward."

The company's diversified product portfolio and strategic operational decisions have contributed to its robust performance, despite challenges in certain segments. With government incentives and anticipated market improvements, Gulshan Polyols appears well-positioned for continued growth in the coming quarters.

Note: All financial figures and projections are based on the company's statements and are subject to market conditions and future performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.69%	-3.61%	-10.07%	-29.10%	-23.11%	+105.16%

Gulshan Polyols Limited (GPL) has reported a strong financial performance for the fiscal year 2025, with significant growth driven primarily by its ethanol segment. The company's diversified portfolio across ethanol, grain processing, and mineral processing segments has shown resilience in the face of market challenges.

Financial Highlights

GPL's financial results for FY25 showcase substantial growth:

Metric	FY25	FY24	YoY Change
Revenue	Rs 2,020.00 Cr	Rs 1,378.00 Cr	47% ↑
EBITDA	Rs 100.00 Cr	Rs 70.00 Cr	43% ↑
PAT	Rs 25.00 Cr	Rs 18.00 Cr	39% ↑

Segment-wise Performance

Ethanol Segment: Stellar Growth

The ethanol segment emerged as the star performer for GPL in FY25:

Revenue surged by 141% to Rs 1,187.00 Cr
Sales volume increased by 112% to 14.10 crore liters
EBITDA grew by 179% to Rs 69.00 Cr

This remarkable growth was attributed to successful capacity ramp-ups across all plants, aligning with India's push for increased ethanol blending in petrol.

Grain Processing: Facing Headwinds

The grain processing division encountered challenges:

Revenue declined by 7% to Rs 729.00 Cr
EBITDA decreased to Rs 6.00 Cr, a 58% reduction

GPL attributed this underperformance to geopolitical disruptions and realignments in global commodity markets.

Mineral Processing: Steady Performance

The mineral processing segment maintained stability:

Revenue increased by 5% to Rs 104.00 Cr
EBITDA grew by 8% to Rs 24.00 Cr

This segment's performance was supported by steady demand and consistent operational execution.

Future Outlook

Looking ahead to FY26, GPL has outlined positive expectations across its segments:

Ethanol Segment: The company aims for full capacity utilization of its 810 KLPD distillery, targeting 25.00 crore liters of production.
Grain Segment: GPL anticipates a recovery in industry demand, which should enable scaling up operations and ramping up production capacity.
Mineral Segment: The company projects stable operations with continued full capacity utilization.

Additionally, GPL has undertaken a feasibility study to assess the viability of bio-diesel production, potentially expanding its product portfolio.

Management Commentary

While specific management quotes were not provided, the company's investor presentation emphasized its strong momentum and positive outlook across all segments for FY26.

Conclusion

Gulshan Polyols Limited has demonstrated resilience and growth in FY25, particularly in its ethanol segment. Despite challenges in the grain processing division, the company's diversified business model has allowed it to deliver overall strong financial results. With a focus on capacity utilization and potential expansion into bio-diesel, GPL appears well-positioned for continued growth in the coming fiscal year.