GULPOLYNSEQ4 FY26May 22, 2026

Gulshan Polyols Limited

6,298words
83turns
10analyst exchanges
4executives
Management on call
Aditi Pasari
JOINT MANAGING DIRECTOR – GULSHAN POLYOLS LIMITED
Rajiv Gupta
CHIEF FINANCIAL OFFICER – GULSHAN POLYOLS LIMITED
Reetika Pant
COMPANY SECRETARY – GULSHAN POLYOLS LIMITED
Rutul Shah Consultant
ATLAS CAPITAL INVESTOR RELATIONS
Key numbers — 40 extracted
rs,
cial performance, improving both our revenue mix as well as overall margin profile. Over the years, we have steadily evolved from a single product PCC business into a diversified player across biofue
60%
f our earnings. Our ethanol business is now the primary driver of the company, contributing over 60% of both revenue and profitability. We have an installed capacity of around 810 KLPD, placing us am
18 crore
ngths of this segment is its strong revenue visibility. We currently have an order book of about 18 crore liters, providing healthy near to medium-term visibility alongside long-term off-take agreements
13 crore
healthy near to medium-term visibility alongside long-term off-take agreements for approximately 13 crore liters annually with OMCs extending through 2032. In addition, our classification as a dedicated
40%
e, the availability of FCI rice has been a key positive this year. We are currently sourcing about 40% of our feedstock through Regd. Off.: 9th K.M., Jansath Road, Muzaffarnagar, (U.P.) 251001, Ph.: (
INR 19
he same time, improved grain availability has softened maize prices, which are now in the range of INR 19 to INR 20 per kg, depending upon the region and the season. This has supported margins across the
INR 20
me, improved grain availability has softened maize prices, which are now in the range of INR 19 to INR 20 per kg, depending upon the region and the season. This has supported margins across the business.
INR 21
bility of the ethanol segment. Realisations have improved from previous years, now ranging between INR 21 to INR 22 for maize and about INR 25 to INR 27 for rice, translating into an incremental INR 10 pe
INR 22
the ethanol segment. Realisations have improved from previous years, now ranging between INR 21 to INR 22 for maize and about INR 25 to INR 27 for rice, translating into an incremental INR 10 per liter in
INR 25
tions have improved from previous years, now ranging between INR 21 to INR 22 for maize and about INR 25 to INR 27 for rice, translating into an incremental INR 10 per liter in ethanol economics. While th
INR 27
improved from previous years, now ranging between INR 21 to INR 22 for maize and about INR 25 to INR 27 for rice, translating into an incremental INR 10 per liter in ethanol economics. While this remain
INR 10
n INR 21 to INR 22 for maize and about INR 25 to INR 27 for rice, translating into an incremental INR 10 per liter in ethanol economics. While this remains a strong supporting factor, we remain mindful th
Guidance — 20 items
Aditi Pasari
opening
“On behalf of Share India Securities, I welcome you all to Q4 FY26 Earnings Conference Call of Gulshan Polyols.”
Aditi Pasari
opening
“FY26 has been an important year for Gulshan Polyols.”
Aditi Pasari
opening
“We currently have an order book of about 18 crore liters, providing healthy near to medium-term visibility alongside long-term off-take agreements for approximately 13 crore liters annually with OMCs extending through 2032.”
Aditi Pasari
opening
“As we move into FY27, our focus is clearly on consolidation and improving efficiency across the business.”
Aditi Pasari
opening
“Looking slightly ahead, from FY28 onwards, we intend to re-enter a growth phase with a focus on specialty and import substitute chemicals, which will help us move further up the value chain and reduce exposure to commodity cycles.”
Rajiv Gupta
opening
“Starting with the consolidated performance for quarter four, FY26, our revenue for the quarter stood at INR 550 crores, which is up by 7%.”
Rajiv Gupta
opening
“Our revenue for FY26 was INR 2,314 crores, which is up by 14%.”
Rajiv Gupta
opening
“EBITDA margin for FY26 was 10%, up by 504 basis points.”
Rajiv Gupta
opening
“Margin remains subdued due to pricing dynamics; however, with input costs now moderating, we expect a gradual improvement going forward.”
Rajiv Gupta
opening
“With a sharper focus on utilising working capital efficiency and cost discipline in financial year '27, we expect to deliver more consistent and predictable performance.”
Risks & concerns — 6 flagged
Coming to our grain processing business, which includes sorbitol, starch and fructose, this segment is gradually moving out of the down cycle we experienced last few years, elevated maize prices had impacted export competitiveness and led to margin pressure.
— Aditi Pasari
My calculation says it should be somewhere around 4 - 4.5 crore liters and it seems to be a decline from previous year, as well as previous quarter.
— Sanjay Manyal
So, ma'am, given the recent softness in maize mandi prices, is there a risk that farmers may reduce their sowing acreage next season or what is your outlook in general about the maize prices also, because of the unusual rains in the north, is there any impact on the quality that we are getting?
— Aditi Pasari
As a result, the impact of climate conditions is not as significant as before.
— Aditi Pasari
As a result, especially during Q3 and Q4 after the mandate was implemented, we saw a sharp decline in maize and rice prices, which directly benefited the profitability of the company.
— Aditi Pasari
And my second question is, given the increasing uncertainty in export markets and continued competitive pressure from Chinese players across several segments, could you help us understand how exposed the company is to export market volatility, and what measures are being taken to maintain competitiveness and protect margins going forward?
— Kinjal Jain
Q&A — 10 exchanges
Q
Hi, thanks a lot for the opportunity. So, my first question is regarding the order book. So, as of now, what is the current order book status, and what is the execution timeline going forward?
Aditi Pasari
So, for the ethanol segment, we are currently in ESY ’25-’26, which runs from November to October. We had an order book of about 18 crore liters, which translates into revenue of around INR 1,250 crores. So that is the current order book status for the ethanol segment. We are, however, looking to increase this allocation in the subsequent tenders, which are expected to be released in the month of June. As the next tender cycles, namely C2 and C3, come in, we are confident that we will be able to increase this order book from 18 crore liters to at least 22 crore liters within this financial yea
Q
Hello, ma'am. Just want to understand, what is our ethanol volume for Q4? My calculation says it should be somewhere around 4 - 4.5 crore liters and it seems to be a decline from previous year, as well as previous quarter. So, what could be the reason for that? Regd. Off.: 9th K.M., Jansath Road, Muzaffarnagar, (U.P.) 251001, Ph.: (0131)32958800, Fax: (0131) 2661378
Aditi Pasari
So, the previous year we had a total allocation of about 21 crore liters, while this year it is 18 crore liters. We are also expecting further allocations in the remaining two quarters of ESY ’25-’26. Since the government has already given out the mandate for increasing blending, we expect further tenders to be announced, and additional allocations to be received by the company in the next two ESY quarters. This should help us make up for the revenue shortfall witnessed in Q4. Okay. So, the 18 crore liters allocation that you received is for the period from November to October. Out of that, ho
Q
Yes. As I just answered, so, we are looking at doing some fresh capex in the specialty chemical space. It will be mostly import-substitutes, introducing new products, something which is not being produced in the country. We have bought a piece of land, about 100 acres in Narsinghpur in Madhya Pradesh. We are looking at a mega project in that area, maybe looking at a capex of about INR 500 crores going forward, which will mostly be in the grain processing segment in the specialty chemical division. So, we are in the process of evaluating different projects as we speak. Mukesh Panjwani: Okay. Th
Management
Q
Yes. So, ma'am, given the recent softness in maize mandi prices, is there a risk that farmers may reduce their sowing acreage next season or what is your outlook in general about the maize prices also, because of the unusual rains in the north, is there any impact on the quality that we are getting? In agribusiness, we are very used to these things. We have been actually producing, procuring maize for the past 25 years. We have always been a grain processing company. First, we were making sorbitol, then starch, then fructose, now ethanol. So, grain is not new to us. The fluctuations in grain p
Pushkar Jain
All right. So, any outlook on the prices for maize in next one, two quarters? So, currently, prices are ranging between INR 19 and INR 22, depending on the region. Right now, in the north, we have the Rabi crop season. So, we are getting more favorable prices in the northern plants from crops sourced from Bihar, UP, and Assam. In those regions, prices are around INR 19 to INR 20, while in MP, prices are around INR 22. However, in the second half of the year, when the Kharif crop comes in, this trend is expected to reverse. MP is expected to receive better- priced crop at around INR 18 to INR19
Q
It is going to be a combination of everything. We still have to finalize those details and obtain Board approval. The capex will likely be spread across FY28 and FY29, over a period of two to three years, since it is going to be a mega project. So yes, it is going to be a combination of both debt and equity funding. It may also require some fundraising, and we are currently evaluating all available options. Nirav Bhanushali: And secondly, what kind of IRR are we expecting from this capex, and which products are we planning to manufacture through this large investment?
Aditi Pasari
So, any product that we evaluate should ideally have an EBITDA margin of around 15%. That is the basis on which we evaluate and Regd. Off.: 9th K.M., Jansath Road, Muzaffarnagar, (U.P.) 251001, Ph.: (0131)32958800, Fax: (0131) 2661378 finalize products. Based on that, we can expect a ROCE of around 22%. But again, everything depends, as we are still in the process of finalizing the project. Nirav Bhanushali: My second question was regarding blending targets. Currently, the government is close to E20 blending, and there have been discussions around E23 and E27 being fast-tracked. So, if you cou
Q
Yes. Thank you for the opportunity. So, my question was, among the company's three major segments, which are ethanol, grain processing and mineral processing, which segment do you think, will be contributing the highest incremental EBITDA growth over the next two, three years? Of course, for next two years; this year, the ethanol segment has been the major revenue contributor as well as the profitability contributor. And I expect the same trend to continue over next two to three years. And this mix will change once we are coming out with our new capex, and we are into the next growth phase. Bu
Charvin Zaveri
Okay. And also, could you elaborate more on the specialty chemicals opportunities that you said that you'll be evaluating after FY 28? How much margin and growth will it be contributing going forward? We are looking at coming up with a mega project involving a capex of about INR 500 crores, which should be able to generate revenue of about INR 1,000 crores to INR 1,500 crores. Our vision for the next four years is to take the company’s revenue to around INR 5,000 crores. So, that is the long-term vision for the company. Okay. Thank you so much.
Q
for thank you Good evening. And the opportunity. So, congratulations to the Management on delivering a strong set of numbers. So, my question is regarding the raw materials, could you share the current raw material mix for the business and specifically how the release of FCI rice has impacted the cost and overall procurement economics, and business quarters? So, the government has mandated that the ethanol industry lift 40% FCI rice for ethanol production. This has increased the availability of balance grains in the country and also softened maize and damaged broken rice prices. As a result, e
Het Ghorecha
Okay. Thank you.
Q
So, this is a pattern you will actually see every year that there is inventory buildup in quarter four. That is because the OMCs tend to increase their lifting from the sugar industry as compared to the grain division, because sugar ethanol, is available only till March and maximum April. After this, we are fully dependent on the grain ethanol manufacturers. Regd. Off.: 9th K.M., Jansath Road, Muzaffarnagar, (U.P.) 251001, Ph.: (0131)32958800, Fax: (0131) 2661378 So, this is a typical theme, which we are seeing since last two years that in March end, we tend to sit on some ethanol inventories.
Aditi Pasari
Current order book is definitely lower than what we had applied for and expected. Last year, we had an order book of 21 crore liter. And this year, we wanted to get allocations for 23 crore liter against, which we received for 18 crore liter. However, we are very confident that in the next two quarters of this ethanol year, we will be able to make up this gap, because the government is very robust and very positive in increasing the blending. And as it will increase its blending, its requirements for ethanol will increase, and they will have to come out with further more tenders, and based on
Q
My question is, how exposed is the company to the export market volatility and that particularly from China?
Aditi Pasari
So, the company exports sorbitol to about 45 countries. Right now, exports of sorbitol and starch from India have improved, as the industry is now able to compete better with China and other countries due to the softening of maize prices across the country. As a result, the products are now more price competitive. Hence, exports of starch and starch derivatives have increased, and the company is also able to achieve better realizations and margins on these products. Okay. Thank you. Thank you. The next question is from the line of Sachin, an Individual Investor. Please go ahead. Mr. Sachin, yo
Q
Which figure are you seeing? Negesh Motamari: Non-current investments. Last year, it was INR 16 crores.
Aditi Pasari
These are the mutual funds? Negesh Motamari: Yes. So, we have invested some funds in mutual funds. Basically, we are maintaining a positive working capital cycle because we have certain commitments with the banks, under which we are required to maintain minimum utilization levels of working capital facilities. Hence, we have utilized and invested some surplus funds in mutual funds. Negesh Motamari: Okay. And can I know when you expect to become a debt-free company going with the rate of income and other things? Any idea? Well, the next two years. Definitely, we could be a debt-free company by
Speaking time
Aditi Pasari
40
Moderator
11
Sanjay Manyal
11
Charchit Maloo
7
Pushkar Jain
3
Sachin
3
Charvin Zaveri
2
Kavya Padia
2
Kinjal Jain
2
Rajiv Gupta
1
Opening remarks
Aditi Pasari
Ladies and gentlemen, good day, and welcome to the Q4 and FY26 Earnings Conference Call of Gulshan Polyols Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Charvin Zaveri from Share India Securities. Thank you, and over to you sir. Thank you, and good evening, everyone. On behalf of Share India Securities, I welcome you all to Q4 FY26 Earnings Conference Call of Gulshan Polyols. We are pleased to have with us the management team, represented by Ms. Aditi Pasari, Joint Managing Director and Mr. Rajiv Gupta, CFO. We will have the opening remarks from the management followed by the question-and-answer session. Thank you and over to you ma'am. Yes. He
Rajiv Gupta
Thank you, Aditi ji, for giving me this opportunity. Now, let me share with the listeners our performance, and I will take them through the P&L as well as the balance sheet developments and segment trends as well. Starting with the consolidated performance for quarter four, FY26, our revenue for the quarter stood at INR 550 crores, which is up by 7%. Primarily, the main contributor to the revenue growth is basically the ethanol segment. Though there was a subdued performance from the grain processing business, and while the mineral chemical segment remained stable. Our revenue for FY26 was INR 2,314 crores, which is up by 14%. Now comes to EBITDA. EBITDA for the quarter was INR 65 crores, reflecting a growth of 121% year-on-year. Improvement was largely led by better operating leverage in the ethanol segment, supported by higher utilisation levels and softer input costs. EBITDA for the full financial year is INR 232 crores, up 131%, demonstrating the company's excellent performance. EB
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