Gulshan Polyols profit quadruples to ₹107 cr on ethanol demand
Annual net profit surges 332% as ethanol revenue hits ₹1,609 cr, offsetting weakness in grain processing.
— 1 earlier story on Gulshan Polyols Ltd. →What's new
- Annual revenue climbed 14.5% to ₹2,312.42 cr, meeting the company’s ₹2,300 cr guidance.
- Ethanol segment revenue surged 35.6% to ₹1,609.09 cr, providing the bulk of growth.
- Grain processing revenue slipped 16.2% to ₹610.29 cr, acting as a drag on top-line expansion.
Why it matters
Gulshan successfully pivoted toward high-growth ethanol, allowing it to clear its FY26 targets despite softness in the grain business. A 150% dividend payout suggests the company is comfortable with its improved cash flow position.
What we're watching
- Whether the ethanol growth momentum can persist in FY27.
- A turnaround plan for the grain processing segment to arrest its 16% revenue slide.
- Shareholder approval for the proposed ₹1.50 per share dividend.
The full read
Gulshan Polyols closed FY26 with a net profit of ₹107.15 crore, more than four times the ₹24.79 crore it reported in the prior year. Revenue climbed 14.5% to ₹2,312.42 crore, meeting the company's internal target of ₹2,300 crore.
Ethanol was the primary driver.
The division saw a 35.6% surge in revenue to ₹1,609.09 crore, which helped offset a 16.2% decline in the grain processing business that contributed only ₹610.29 crore to the total. Backed by these stronger earnings, the board recommended a final dividend of ₹1.50 per share, indicating confidence in cash flows. The company's pivot to ethanol capacity is clearly paying off, even as the legacy grain segment shrinks under competitive or supply pressures. Management now faces the task of scaling the core ethanol operation while preventing the grain business from eroding future margin gains.