India Glycols targets debt-free status by FY29
After paying down ₹804 crore in debt during Q4, the company plans to clear its remaining liabilities while doubling specialty chemicals revenue.
What's new
- India Glycols targets zero debt by FY29 following a ₹467 crore equity infusion.
- Management expects specialty chemicals revenue to double in FY27.
- Potable spirits EBIT margins will remain above 22% through product premiumization.
Why it matters
The company is using a fresh cash injection to clear its interest-bearing liabilities. Doubling specialty chemicals revenue while protecting margins in its core spirits business indicates a plan to improve cash flow before the upcoming demerger.
What we're watching
- NCLT approval for the chemicals division demerger expected in early June.
- New customer acquisitions within the Ennature Biopharma segment.
- The pace of debt reduction through FY28-29.
The full read
India Glycols closed FY26 with consolidated revenue of ₹4,211 crore, an 11.8% rise. The company paid down ₹804 crore in debt during the fourth quarter, supported by a ₹467 crore equity raise. Management plans to hold no debt by FY29. The company also set a target to double its specialty chemicals revenue next year while maintaining potable spirits EBIT margins above 22% through premiumization. NCLT approval for the chemicals division demerger is expected in early June. While the Ennature Biopharma unit has trailed, management identified new customer wins as the path to recovery starting in FY28. India Glycols is working to shed its interest burden while resetting its operating segments.