Gulshan Polyols shifts gears as its strategic focus on expanding ethanol capacity and efficiency drives a significant surge in profits, indicating a new phase of growth driven by operational optimisation and strong market demand.
Gulshan Polyols is moving into a new phase. After several years of heavy capital spending on distillery capacity, the company is now showing the benefits in its latest results, with earnings rising much faster than sales and margins widening sharply.
For the quarter, revenue increased 8% year on year to ₹646 crore, but EBITDA jumped 135% to ₹91 crore and profit after tax rose 307% to ₹54 crore. Livemint separately reported that for the December 2025 quarter, total income reached ₹626.65 crore, operating profit climbed 140.74% to ₹73.25 crore and profit after tax rose 159.69% to ₹40.90 crore, underscoring how quickly profitability has improved as the business has scaled up.
The main driver is ethanol. Trade Brains said the segment now accounts for the bulk of income, with annual ethanol revenue rising to ₹1,609 crore from ₹1,187 crore and segment EBITDA more than tripling to ₹201 crore in FY26. Chinimandi reported that net profit for the year ended March 31, 2026, increased more than fourfold, with the distillery business doing most of the heavy lifting. In the June quarter, ethanol income rose further and segment EBITDA expanded strongly as utilisation improved.
Capacity use has been the key operational story. Trade Brains said the company’s distilleries were running at 45% in FY24, 62% in FY25, 80% in FY26 and 85% in the June quarter. With 810 kilolitres per day of ethanol capacity split between Madhya Pradesh and Assam, the focus is now on extracting more from existing plants rather than building new ones. The company also has a sizeable order book, with committed ethanol volumes and management expecting more business through government tenders.
The balance sheet has improved alongside the earnings recovery. Capital expenditure has dropped sharply as the investment cycle winds down, while operating cash flow rose to ₹207 crore in FY26 from ₹42 crore a year earlier. That cash was used to cut debt, bringing the net debt-to-equity ratio down to 0.3 from 0.5. Return on equity improved to 16.1% and return on capital employed to 14.9%, suggesting the company is beginning to convert its earlier spending into steadier returns. Trade Brains said management expects ethanol to remain the main growth engine through FY27, with specialty and import-substitute chemicals due to contribute later.
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