Strategic Analysis & Impact
India Glycols Limited is embarking on a significant corporate transformation by demerging its business into two separate, publicly traded entities: Ennature Bio Pharma Limited and IGL Spirits Limited. The National Company Law Tribunal (NCLT) has greenlit this scheme, with an appointed date of April 1, 2026, for the separation to take effect. A crucial meeting of unsecured creditors is scheduled for March 24, 2026, to finalize the approval of this Scheme of Arrangement. [2, 5, 6, 7, 15]
The rationale behind this demerger is to unlock focused growth potential and enhance shareholder value by allowing each business vertical to pursue independent strategies. Ennature Bio Pharma will focus on the burgeoning biotechnology sector, while IGL Spirits will handle spirits and biofuel operations. This strategic move aims to provide specialized management and capital allocation for each segment, aligning them with their respective sector's unique demands and growth opportunities. [16]
This corporate restructuring comes as India Glycols navigates varied financial performances across its segments. While recent reports for Q3 FY26 indicate revenue growth of around 5.25% and a notable increase in net profit, performance has been mixed. The Bio-Fuel and Bio-based Specialty segments have shown strength, but the Ennature Biopharma segment experienced a revenue decrease in Q3 FY26 due to feedstock costs and market volatility. [1, 2, 4] Despite these operational nuances, the company has actively focused on debt reduction, prepayment of significant loan amounts, and managing interest costs. [4]
The demerger is expected to allow the new entities to better capitalize on sector-specific opportunities. India's biotechnology market is projected for robust expansion, and the spirits sector is witnessing strong premiumization trends. [16]
Risks & Outlook
While the demerger signals a strategic intent to unlock value, India Glycols faces a considerable number of ongoing legal and tax proceedings that pose significant risks to investors. These disputes span multiple jurisdictions and types of claims:
- Civil Matters: The company is involved in several civil cases, including an appeal filed by M/s M.S. Tex Minerals and Chemicals LLC in the High Court of Singapore, a suit by Nagardas Kanji in the City Civil Court, Mumbai, a petition by Uttarakhand Power Corporation Ltd. before APTEL, and a petition against the Company and Shri U.S. Bhartia by M/s Texan Minerals and Chemicals LLC. Additionally, Igl Chem has an appeal against an arbitration award scheduled for hearing on April 24, 2026. [Input Text]
- Tax Related Matters: India Glycols is contesting claims related to tax matters, including disallowance of CSR expenses and claims under Section 35(2AB). There are also ongoing issues concerning duty drawback and the non-consideration of dividend distribution tax challans. [Input Text]
- Indirect Tax Matters: The company is engaged in proceedings related to excise duty demands and penalties, particularly concerning Denatured Ethyl Alcohol (DEA). [Input Text]
- Customs Duty Dispute: In December 2025, India Glycols received an order confirming a customs duty demand of approximately ₹32.95 lakh with an equal penalty for its Ennature Bio-Pharma division concerning imports between June 2020 and September 2024. The company plans to appeal this order, stating strong legal grounds and expecting no material operational impact. [17]
- Tax Appeal Outcome: While the company received a favorable order from the Income Tax Appellate Tribunal (ITAT) in December 2025, ruling in its favor regarding a tax demand of ₹5.06 crore, this highlights the active nature of tax disputes. [14]
- Input Tax Credit: A favorable order was received in December 2025 that set aside an earlier demand order of ₹1.92 crore related to Transitional Input Tax Credit. [13]
Peer Comparison
India Glycols operates in the diverse chemical, spirits, and biotechnology sectors. Its chemical peers include well-established players like Tata Chemicals, Deepak Nitrite, Navin Fluorine International, and GHCL. [8, 10] In the biotechnology and pharma space, it will compete with companies like LanzaTech and Manus Bio, while the spirits segment will see competition from numerous domestic and international players. [3]
Recent financial performance shows India Glycols has outperformed its peers in terms of 1-year stock returns, driven by strong growth in its spirits and chemicals segments. [10] However, the diversified nature of its businesses means that the performance of the demerged entities, Ennature Bio Pharma and IGL Spirits, will need to be assessed against their specific industry benchmarks. The Ennature Biopharma segment, in particular, has shown revenue decline recently, indicating challenges against specialized biotech players. [2]
The company's focus on debt reduction and improved EBITDA margins reflects an effort to strengthen its financial foundation, which is crucial given the substantial legal entanglements. [4]