IG Petrochemicals Reports Mixed Q2 Results, Expands into Biofuels

IG Petrochemicals , India's largest manufacturer of Phthalic Anhydride (PAN), has reported mixed results for the second quarter, while announcing strategic expansions into biofuels and plasticizers.

Financial Performance

The company's Q2 results show a significant year-over-year decline in revenue and profitability:

Metric (in Rs. Crores)	Q2 FY26	Q2 FY25	YoY Change
Total Revenue	471.60	587.50	-19.7%
EBITDA	27.30	68.80	-60.3%
EBITDA Margin	5.8%	11.7%	-590 bps
Profit After Tax (PAT)	1.40	28.30	-95.1%
EPS (in Rs.)	0.46	9.19	-95.0%

The company attributed the soft performance to low demand for Phthalic Anhydride in domestic markets, primarily due to reduced capacity utilization in downstream industries.

Strategic Initiatives and Expansions

Despite the challenging quarter, IG Petrochemicals announced several strategic initiatives:

Biofuels Expansion: The Board of Directors approved the acquisition of IG Biofuels Ltd as a wholly-owned subsidiary, with plans to invest up to Rs 100 crores in biofuels and compressed biogas projects.
Plasticizer Plant: A new plasticizer plant is expected to commence operations by March 2026, marking the company's entry into downstream PAN products.
Product Diversification: Revenue from non-Phthalic business reached Rs 74 crores in H1 FY26, contributing about 8% to total revenue.
Export Focus: The company reported that export markets contributed approximately 7% to H1 FY26 revenue.

Financial Management

IG Petrochemicals demonstrated prudent financial management:

Prepaid term loans of Rs 40 crores
Maintained its India Rating of IND AA-/Stable/IND A1+

However, the quarter's profit was impacted by:

A mark-to-market loss of Rs 3 crores due to rupee depreciation
A fixed asset write-off of Rs 5 crores

Looking Ahead

While facing short-term challenges, IG Petrochemicals' strategic expansions into biofuels and plasticizers signal a focus on diversification and long-term growth. The company's strong market position in PAN production and its efforts to expand into new areas may position it well for future opportunities in the chemical sector.

Investors and analysts will likely keep a close watch on the company's ability to navigate the current demand softness and the progress of its new initiatives in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.15%	-5.27%	-7.18%	-6.30%	-32.84%	+28.48%

IG Petrochemicals Limited (IGPL) has announced several strategic moves, including a key appointment, project timeline extension, and a significant investment in its subsidiary. These decisions were made during a board meeting held on November 3, 2025.

New Independent Director Appointment

The company has appointed Shri Sanjoy Datta as a Non-Executive Independent Director for a five-year term, from November 3, 2025, to November 2, 2030. This appointment is subject to shareholder approval.

Datta brings a wealth of experience to IGPL:

Over 36 years in financial services, consulting, and corporate leadership
Expertise in corporate strategy, growth, M&A, finance, and governance
Recent role as Chief Transformation Officer at Deloitte Asia Pacific
Experience in rebuilding client delivery platforms and strengthening technology alliances

Plasticizer Plant Timeline Extension

IGPL has extended the completion timeline for its plasticizer plant to March 2026. This update follows the company's previous communication dated August 11, 2025.

Investment in Biofuels Subsidiary

The board has approved an investment of up to Rs 100.00 crores in IG Biofuels Limited (IGBL), a wholly-owned subsidiary. This decision aligns with IGPL's letter dated May 18, 2023. Key points regarding this investment include:

IGBL focuses on biofuels and compressed bio-gas
The investment aims to develop, set up, operate, and maintain CBG production plants
IGPL may collaborate with joint venture partners for these projects
The investment is expected to be completed within 12 months

IG Biofuels Limited Overview

Incorporated to manufacture and trade in bio-fuels
Products include compressed bio-gas and ethanol derivatives
Currently not operational, with no turnover in FY 2023-24 and FY 2024-25
IGPL plans to acquire 700 shares (face value Rs 10.00 each) from existing individual shareholders

These strategic moves demonstrate IG Petrochemicals' commitment to expanding its expertise in corporate governance, diversifying into the biofuels sector, and optimizing its project timelines. The appointment of Sanjoy Datta may bring valuable insights to the company's strategic direction, while the investment in IGBL positions IGPL to capitalize on opportunities in the growing biofuels market.

Investors and stakeholders will likely watch closely how these decisions impact the company's future growth and performance in both its core petrochemicals business and the emerging biofuels segment.