India Glycols’ IGL Spirits targets ₹500 crore EBITDA by FY27E after demerger
Following an NCLT-approved demerger, India Glycols will house its alco-beverage business in IGL Spirits. The unit reported 26% year-on-year IMFL revenue growth and 1.4 million cases in volume, while expanding its premium product pipeline.
What happened
India Glycols’ NCLT-approved split will create specialty chemicals, IGL Spirits and Ennature Bio Pharma entities. IGL Spirits reported 26% IMFL revenue growth,
Key facts
- Target price: ₹1,639
- CMP: ₹1,101.65
- IMFL revenue growth: 26% YoY
- IMFL volume: 1.4 million cases
- IGL Spirits EBITDA target: over ₹500 crore in FY27E
- IGL Spirits EBITDA target: over ₹1,000 crore in 4-5 years
- Ennature EBITDA target: ₹130-150 crore in 4-5 years
- FY26-29E revenue CAGR: 12%
- FY26-29E EBITDA CAGR: 15.4%
- FY26-29E PAT CAGR: 29%
- FY29E EBITDA margin: 16.9%
Why this matters
A separately housed alco-beverage business gives IGL Spirits greater flexibility to pursue premium-brand partnerships, bolt-on acquisitions and strategic capital raising.
What to watch
- Completion milestones and financial terms of the demerger, including standalone debt and capital allocation.
- Quarterly IMFL case growth, premium-mix contribution and realization per case.
- EBITDA margin progression versus revenue growth and input-cost inflation.
- New state excise policies, route-to-market permissions and price-revision approvals.
- Brand launches, state entries, capacity additions and distribution partnerships.
- Management guidance on the FY27E EBITDA bridge and interim profitability targets.
- Prioritize premium and luxury IMFL extensions over low-margin volume growth.
- Use the demerged structure to pursue dedicated capital allocation, strategic partnerships and potentially a separate listing narrative.
- Expand state-by-state distribution while increasing control over key supply inputs and bottling capacity.
- Invest behind high-repeat brands, on-premise visibility and selective digital-led consumer activation.