On 17 July 2026, the National Company Law Tribunal (NCLT) Allahabad sanctioned India Glycols' scheme to split into three standalone listed entities. According to reports from The Financial Express, the company will retain its chemicals business while demerging its potable spirits and bio-fuel segments into IGL Spirits Limited (ISL) and its bio-pharma business into Ennature Bio Pharma Limited (EBL). Shareholders will receive 1 share of IGL Spirits for every share held and 1 share of Ennature Bio Pharma for every 3 IGL shares on the record date. The demerger aims to reduce the conglomerate discount that has historically penalized the company's diverse business portfolio.
The potable spirits segment emerged as the most profitable business in FY26, generating ₹1,331 crore revenue with a 21.4% EBIT margin, representing the highest EBIT margin among all business segments. As reported by The Financial Express, this segment is the market leader in country liquor (IMIL) in Uttar Pradesh and Uttarakhand, with Bunty Bubbly Whisky selling 18,434,799 cases and achieving 30% volume growth in the IMFL segment. The segment's margin improvement from 13.5% to 21.4% is driven by country-liquor price hikes, premiumization with IMFL comprising approximately one-third of the segment, and in-house extra-neutral alcohol production through its 3×3 feedstock flexibility.
The bio-fuel segment, primarily ethanol production, achieved ₹1,470 crore revenue with 40.9% growth and 7.8% EBIT margins in FY26, though it remains fundamentally inferior to spirits in terms of margins. According to The Financial Express, the chemicals segment generated ₹1,203 crore revenue at 11.7% EBIT margin, up 239 basis points as management shifted toward higher-value performance chemicals. India Glycols is the largest maker of bio-based glycols and runs a growing performance-chemicals portfolio serving customers like L'Oréal, Dow, and BASF.
The company has significantly improved its financial position, with total debt falling from ₹1,863 crore in December 2025 to ₹1,528 crore by March 2026. As reported by The Financial Express, India Glycols raised ₹467 crore through a preferential issue in November 2025 and used it to prepay approximately ₹804 crore debt in a single quarter. CARE Ratings expects the net-debt-to-PBILDT ratio to improve from 4.31x in FY25 to a 2.5-3.0x range, with adjusted gearing toward 0.7x by year-end. The company expects gross cash accruals of ₹440-550 crore against scheduled repayments of ₹337 crore in FY26 and ₹277 crore in FY27.
Currently valued at approximately ₹6,600 crore on 22x earnings and 13x EV/EBITDA multiples, India Glycols' demerger aims to unlock value by allowing each business to trade on its own merits. According to The Financial Express, the spirits and ethanol segments together represent a ₹2,801 crore revenue company with the best margins and fastest growth. The demerger is expected to complete within 1-3 months from the record date, with procedural steps including filing certified orders with exchanges and listing ISL and EBL on BSE and NSE. However, base case estimates suggest little value remains on the table, with the current market capitalization not leaving significant upside before separate listings.
