India Glycols Ltd (NSE: INDIAGLYCO) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Unidentified Speaker
Rupark Sarswat — Chief Executive Officer
Anand Singhal — Chief Financial Officer
Analysts:
Unidentified Participant
Nitin Abashi — Analyst
Rohit Nagraj — Analyst
Saket Kapoor — Analyst
Bala Subramaniam — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to India Glycols Limited Q3 and 9 months FY26 earnings conference call hosted by Incred Equity. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call. The future statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand over the conference to Mr. Nitin Abashi from Enclave Equity. Thank you. And over to you sir.
Nitin Abashi — Analyst
Thank you. Firstly, I would like to thank the. Management for giving us this opportunity to. Host their conference call today. From India Glycos Management we have the CEO Mr. Rupak Saraswat, the CFO, Mr. Anand Singhal, the Head of Liquor Business Mr. S.K. Shukla and the Company Secretary Mr. Ankur Jain. I would now like to invite Mr. Rupak to initiate the proceedings with his. Opening remarks post which we shall open the floor for Q and A session. Thank you. And over to you sir.
Rupark Sarswat — Chief Executive Officer
Thank you Nitin. And let me start by apologies for. Making all of you wait for about 10 minutes. It was some itch at my end which I had to resolve. In addition, let me also wish you all a very happy new calendar year. Of course all of us follow different financial year. You know, I was listening to the introduction and for the first time I took notice. And she said he kind of put a disqualifier regarding forward looking statements, uncertainties and projections being indicated. So I thought to myself, what better time in the world than this to remind ourselves of the uncertainties starting with Mr. Trump, to the war, to the FTAs that we are signing, to the drastic change in the tariffs we hear every day. So never ever before has it been a roller coaster ride as it has been this year. So with that I’ll get onto the. Regular business of talking about how IGL. Has Done at the very, very highlight. And I will come to the points again. I am happy and I’m sure you are happy as well that India Glycol has recorded record revenue and EBITDA for the quarter as well as for nine months. And I will get into the details in a bit. And you know, talking about the volatility. It’S something that you know. But to also remind ourselves that we’ve been dealing with an extremely volatile global environment. So fortunately growth engine has been Asia. And continues to be so. Whereas US and EU have been weaker in general in the chemical space there has been some recovery, particularly in performance. Chemicals, agrochemicals, but it has been gradual I think and the sentiment globally is. Conscious optimism with writing still being soft. And to some extent some of these. Things impact on how we think about our company. And there have been some weaknesses in. Base and petrochemical materials and in some of the areas we’ve been dealing with structural overcapacity in the world. Now having said that, I think Asia. Continues to be the growth engine and the expectation is that Asia will continue to be the growth engine. North America has been somewhat moderate in performance, whereas European Union, as you know, has been facing significant challenges on account of high energy costs, regulations, lack of investment plus geopolitical uncertainty and so on. So globally the outlook, and I kind of agree that the growth drivers would. Be in the chemical space. It will be driven by innovation, performance chemicals, truly performance chemicals, huge amount of innovation and sustainability which is safe by design, decarbonization will be a great driver, circular economy, carbon economy and so on. Now while I spoke about India, I. Think India on the other hand has by and large registered high single or double digit growth and this trend is expected to continue with expanding manufacturing and. Consumption in India and growing incomes. And the reason I mentioned it is that by and large our growth strategy. Is aligned with how some of these macros have been changing. So if you look at how we’ve been looking at place positioning our company. It is about the focus on bio based ingredients. Incidentally, the lifestyle and consumer products that. We make also are truly bio based ingredients and with a high level of synergy in what we manufacture. So we’ve been looking at how we. Will leverage our sense in a non limiting way. We’ve been looking at how we’ll focus on and one of the outcomes of that is in the last few years and now once again how we’ve been reorganizing and restructuring our businesses to bring the necessary focus. Given the opportunity in India and the Focus on value. We’ve been looking at significant value realization in the consumer segment and therefore the lifestyle segment and the portable split segment. For us, on one hand, value to. Innovation and cost and efficiency. On the other hand, value through connecting. To end consumers through the lifestyle products. And within that, and within everything, moving up the value chain to premiumization, superior innovation and broadly all across, how can we build on broader partnerships to take this forward and innovation in our products? So that has been broadly the strategy. And by and large we can say. Despite all the ups and downs and. The challenges, the company has been making robust progress and we expect that that will continue. As I mentioned to you, IGL has. The highest net turnover and highest EBITDA for any quarter. And you can also see, as my. Colleague Anandji will explain subsequently, that we have had a substantial reduction in debt and as a result the interest payments. So for the nine months the revenue. Is up 11.54% which is strong growth. The EBITDA is up 28.9% and our EBITDA margin for nine months is 15%. The three month revenue is up 13%. And EBITDA has an excellent growth of 36% with EBITDA margins of 16%. Overall. The portable spirit segment, which has been. Doing very well for us in terms of profitability as well as driving growth. Has delivered a strong performance and we received a 17% year on year growth. In net revenue for nine months, FY26, totaling 1025 crores in the business. And in this period we’ve sold. A large number of cases, which is 23.7 million cases, which is a 5% year on year increase. Our broad strategy has been a dual. Strategy for future growth in this segment. And we’ve been trying to focus on. Product innovation and minimization, as you would. Hear later, and also in a gradual. Manner and in a phased manner, regional. Expansion, expanding geographically and also to other. Markets like the CFD department, which is the canteen department and the paramilitary and so on. On the partnership front, as you heard before, apart from the partnership that we. Have with Bacardi, which has been a good partnership and has gone on for a long time. You are aware of. Our partnership with Amrus where we are manufacturing and selling several of the brands and now we’ve introduced several of them and there is good traction that we see and these kind of products will also be growth drivers for the future. In addition, IGL has been launching its own brand so that we are able to create a strong portfolio that will. Help us drive growth. Within the Chemical space as well as the portable spirit space. One of our common synergies or strength. Area has been our ability to manufacture ethanol and ethanol of very high quality. Which also means the ENA or extra. Neutral alcohol which is the beverage grade ethanol of very high quality from multiple feedstocks as we’ve spoken before. So we have the ability to use several feedstocks which is different kinds of rice, corn, molasses and so on. And this is crucial for our portable spirits business. This is the backbone of our biofastures. Business and is often significantly important for. Our chemicals business as well. It has been the backbone and the reason I use the word often is that we look at the make or. Buy versus opportunity on whether we would import or manufacture in house. As you’ve known, we’ve manufactured in the past and we’ve imported in the past. And it may so happen that the fact that we have external capacity and the country may have surplus external capacity, we could be stopping imports and utilizing its at a lower cost as an intermediate for a chemicals business as well. In the chemical space or the BSPC segment or the bio based specialties in performance chemicals, I’m happy to report an. Outstanding EBITDA performance which is up 68% in Q3 and 26% for nine months. Now this might appear that, you know, a bit certain to you, but it. Has been the result of several structured. Actions that we’ve been taking with his. Focus on high margin products, discontinuation of. Some of the businesses which have been. Low margin and significant changes in our. Operational philosophies, how we will run plants, outstop them, etc. Etc. And therefore reduce operational costs. And we realize those, we are starting to realize those benefits in this quarter. And we expect that this gain that. We’Ve made will continue to benefit us. In the time to come. Now apart from this business, we’ve also spoken several times about the pipeline in. The new performance chemicals business and while the business is still small, but I’m very confident of the strong business development and the new product pipeline that we have there and I’m quite confident that it will continue to grow very rapidly and become a significant part of the business not only for this year or next year, but you know, for a long time ahead, driving future growth and making it strong. Another good news for this segment for. Us is a debt reduction by 582 crores. So you are aware that 467 crores were raised through preferential allotment and Mr. Anand will talk about it subsequently. So overall the company is well positioned. To sustain a positive financial performance going forward. We have a diversified product portfolio but. It is not all over the place. As I try to explain to you. Our business have had significant synergies and. We benefited from those synergies and that is also apparent in how some of the results have shaped. I am sure we will continue to. Grow well, show strong leadership, make use of our strength in operations, marketing, understanding of the market of the country and consumer behavior. Talking about the performance, while I’ve spoken. About the numbers, but with a bit of repetition you will see that overall. The quarter has been strong with a. Positive momentum in revenue growth. So our revenue growth for the quarter is up 13%. The EBITDA is up 36% which is up 277 basis points driven by strong growth in EBITDA in chemicals as well as biofuels. For the quarter in particular. Looking at the nine month performance, you see that. Our gross revenue at 7467 crores is up 9%. Our net revenue at 3 to 3,5 crores is up 11% and at EBITDA at 487 crores per nine months is up 29% and our PAT at 206 is up 23%. So overall, strong revenue growth driven by. Strong growth in potable spirits as well as biofuels, excellent EBITDA growth up 29% year on year driven by excellent growth in biofuels, chemicals as well as portable spirits. And as I mentioned, we have a good pat growth to report as well. We’ve been focusing on the quality of. The business and I may just add for your information that we came from a period of greater uncertainty post Covid or in the midst of COVID rather than where we were operating within a bit margin of 11% which subsequently has grown from 11% in 22 to 13% in 23 to 14% in 24 to 14 point something percent in 25 and 15% in 26. The larger point that I’m making is. That this is a result of a structured effort in how we will run our business, how we will focus in more value adding segments, be it in the B2B space or the B2C space. And that was obviously the intention and that is obviously something that you are also interested in knowing from us. After this I’ve already, yeah. I’ll jump. To Mr. Anand Singhal talking about the financial summary and then I will spend. Some time on segmental highlights and my.Colleagues will talk a little bit more about specific segments in Portable spirits and other areas as well.
Anand Singhal — Chief Financial Officer
Thank you sir. Now financial highlights. More or less has been covered by our CEO on the interest side and the prepayment of the term loan. I will just cover the so company has raised 467 crore in November through differential allotment to the promoters, their friends and relatives. We have utilized the entire 467 crores for the prepayment of the of the existing debt which includes the term loan as well as the working capital. Apart from this we have paid 116 crore more debt in the third quarter itself.
This was through our internal. We are also planning to prepay some of the debts about 75 to 100 crores in Q4 that will also be through our internal. Apart from this we are also in the process of trapping the high cost debt to the low cost debt in which we have recently swapped say about 130 crore debt which will save us about 125 to 150 basis points. We are on the reducing the interest cost and the impact of all the efforts will be visible in Q4 because whatever efforts we have started that had been started from December 25th so you will see the interest cost coming down the fourth quarter.
So this is what is from my side best CEO sir has already covered about the performance, right? I’m sure we’ll have more questions to Anandi later on. Coming back to talking about the segments in the quarter. So talking about BSPC or bio based. Specialty chemicals and performance chemicals. So we’ve registered a turnover of 313 crores. With an ebitda margin of 12.8%. For biofuels we visited 394 crores with an ebitda margin of 8.4%. For portable spirits ebit margin. Sorry, not ebitda. For portable spirit 345 crores up from 328 crores with an ebit margin of 21%. And for nhf biopharma 50 crores with an ebit margin of 4% which has been bit under pressure. For nine months. Commenced Chemicals has registered a sale of revenue of 901 crores with an EBIT margin of 11.6%. Biofuels has registered a revenue of 1165 crores with an EBIT margin Of 7.3%. Portable Spirits has registered revenue of 1025 crores with an EBIT margin OF 21.2%. And NHA Biopharma has registered a revenue of 144 crores with an EBIT margin to 2.9%. So with a little more detail on. The segments in the portable spirit segment, for three months of the quarter we’ve seen a growth of 5%. EBIT has been flattish, but for nine months we’ve seen a growth of 16.6% and an EBIT growth of 22% which is 217 from 178. Broadly speaking, affordable spirit has delivered a. 345 crore revenue which is up 11%. As I mentioned, our regular brands reported a volume increase in Uttarakhand while in Uttar Pradesh the sales were somewhat flattish. So we’ve taken several actions which is. For example improving the distribution of regular brands in UP by adding five more districts. And we have maintained the leadership position In UP and Uttarakhands the focus has. Been to expand premium and luxury portfolio. To premium single mall category, moving up the value chain. And so we talk a little bit more about it. The Amruz Partnership has been picking up traction in up, Uttarakhand, Delhi and we have been focusing on minimization of these plants. We’ve rolled out some major products in. Kerala strengthening overall presence in high consumption markets. And as I mentioned earlier we’ve reinforced our footprint in the paramilitary business and we’ve launched two major brands in CFC which is something that will drive significant growth. So overall we’ve been driving this business. With a lot of focus, leveraging our manufacturing, our capabilities in manufacturing high quality ena, traditionally strong market for us, UP and Uttarakhand which we are continuing to move up the value chain introducing more brands with our partners as well as ourselves which is also about partnerships. And we are also looking at new. Markets geographically as well as markets like paramilitary and. On the portable spirit segment I will request Rajuji to say a. Little bit more and then of course we can take in Q and A.
Questions and Answers:
Unidentified Participant
I am Raju Vidhirani here. Good evening. As our CEO has in a summarized manner already mentioned about portable spirits. What is noteworthy is in the last three months particularly because most of you must be attending our call regularly is a substantial cementing of partnership between Amrut and. Igl.
Unidentified Speaker
This is the first time Amrut which is known for its world class quality has given its brand away to IGL in India. They have never done this because of the strength of our company because we already got the royalty brands and they are doing well is the world famous single malts. As you are aware, Fusion is the most sought after Indian single malt world over. And if I may use the word, all the other Indian single malts are all inspired by Amrut. Amrut’s quality consciousness and AMRUT’s zero defect products. So in select markets of north we have been given long term distribution, sales, profit making rights because of our strength of manpower that we have in up, Uttarakhand and Delhi in particular.
Just what is noteworthy is that these three markets are all in terms of industry galloping. And so we have entered into markets which are already growing. Just to give you a perspective, in UP the sale used to be about 15 lakh cases per month. In IMFL, today it is 23, 24, 25 lakh cases. So natural growth is there. And on top of that we get our luxury brands. This completes our brand portfolio right from our Soulmate whiskey which is our traditional brand which is a millionaire case brand up to single malts like Fusion and Amalgam.
You must have heard these brands because these are age old brands now 20 years old and they are top sellers in CSV, paramilitary and all over the country and all over the world. So this gives us lot of market reach and as I say range selling at every 10 to 20 rupee a nip. In India we say nip price every 10 to 20 rupee a nip. We have water whiskey, we have got Soulmate then we have got amazing whiskey which are our organic brands. Then we have got our Macintosh white whiskey then we have got our Macintosh black whiskey then now we have got our fusion amalgam.
And then what gives us a lot of satisfaction is we were able to sell to Amrut a very unique concept. The unique concept which gives lot of money and reach in the market is super special special brands. We started with and I’m giving you a little bit of background so that you understand in the right perspective with City of Joy. City of Joy was Calcutta. When we launched a city specific brand, the idea was when the Indian diaspora comes in India because all over the world people want to visit India. So Indian diaspora and the foreigners when they go back, they want to carry these precious brands.
So City of Joy was quickly followed by Mumbai Sea Maya. I’m sure some of you are from Mumbai. So Mumbai Sea Maya was also launched. So we have not stopped here. And now IGL has been given three brands which are state specific. So in Uttarakhand, which is our home state, we have launched a Silver Jubilee edition. Because this is the 25th year of formation of Uttarakhand where we have leadership both in regular brands as well as imfl. We have launched this as the top end single vault followed quickly by Delhi where we are called the exclusive national capital, exclusive edition.
So this again is the highest price. And now we will follow it up with a brand in up. Since it has not seen the light of the day, it is not fair for me to name it. Very soon you will hear from us. So you know what is the idea? Idea is to address the aspirations of the consumer. The consumers are quickly shifting from blended whiskeys to malts. Because malts are very precious and very powerful. They are very good quality, particularly for mal. So this is as far as Amrut is concerned. I can talk more but for want. Of time I want to just run through the brand facts. I have already talked about Banti Bubbly which is our as a brand biggest brand in Asia and it’s an award winner from Asia Book of Awards. Then we have got our amazing vodka and its flavors which are which are doing very well. They are among the top three brands selling in up, Uttarakhand and Delhi. And then of course solvent is a billionaire case brand. An amazing whiskey. And what we did cleverly, if I may use the word or smartly is we have launched because India is a tropical country.
So people want citrus and you know, refreshing drinks. So we launched a brand called Zumba. Zumba as you know is the biggest wellness program particularly for females. So we have launched this with the female customer in mind. And this is also doing very well. And wherever it has been launched, it is called Zumba Citrus. Of course, Bakati partnership. I don’t have to mention, you are aware, CEO also has covered. We do almost 2,200,000 cases of Bacardi across brands at our Kashipur mother plant. Now I’ve already talked about Amrut. The intent is that we must address. Segments which are growing, which are premium in nature. And also what inherent advantage do we have now see, after all there are so many brands coming from so many companies. But the mortality rate of our in India of premium brands is very high. So how do we insulate ourselves from any discomfort on the brand growth is Amrut. That is quantity assurance. We can also make our brand opposite Amrut or Macintosh or any other brand. But will take time. It will take. One has to do ATL activity. One has to invest over a period of time.
So here is a brand and we are known for our best quality Ena. Our Ena goes to Diageo Borno name the top company and it is welcomed there. Amrut also buys our Ena down south. While there is abundant Ena available in Karnataka that talks about our quality of Ena. And I take satisfaction in mentioning that all our products including our regular brands in both our mother factories in Gorakhpur as well as Kashipur Hundred percent captive consumption of Anas there. See it is known that in cigarette and in liquor consistency of quality is the key. So this assures us of quality.
You know Ena is like the blood in a person’s body, so it is the it is the heart or the blood. So that is consistent and our own. So which I don’t think any other company enjoys that luxury. One can talk more but I’ll just to mention. All the entire volume that we have talked about and our CEO has mentioned is done by captive consumption. So that gives us double advantage because naturally in the same factory we produce and we model it. And the latest addition to our portfolio has been CSD Canteen stores department normally takes number of years for introduction but considering the success story of our brands we have to mention that we have already got the orders and we have started in this financial year itself.
We will get volumes over to CEO.
Rupark Sarswat
For Thank you Raghuji for explaining in detail what we’ve done in the market. So as you heard we’ve expanded our portfolio to premium single malt category moving up the value chain. We’ve rolled out amazing Dark Spice Drum and amazing premium brand in Kerala with a focus on diversifying the offering, strengthening our presence in a high commercial market and within csd. Launch of Lumar Lemon Citrus Rum and Solmes Whiskey. And the rollout plan just to add is across 34 kfpg Port span India and also for the regular portable spirit segment we will introduce new SKUs in both glass and tetra formats, launching them in the Uttarakhand market and therefore expanding our portfolio.
Coming to the chemicals portfolio. So. For the quarter we’ve seen some decline in sales which is 3.8% decline and a 46.1% increase in EBIT and year on year it is declined of about 17% with a growth in EBIT of 8.3% and our EBIT margins are up from 8.5% for a quarter to 12.8% and 8.8% for nine months to 11.6%. So there are several segments that we operate in this. In general we’ve had a strong pipeline for our performance chemicals segment that I spoke about and our focus is to continue to do incremental capacity expansion, introduce new products and continue to drive growth.
Within the glycol space which has been. Significant for us or bio based glycols. We’ve continued to maintain our strong foothold. In the eastern and southeastern market despite introduction of rpec, we started to look at Biodeg which is different from meg, for new segments like PU UPR with Tipan Foem. We’ve initiated trials with some other companies and we are engaging with other companies which are showing greater interest in sustainability. Interestingly, some of them are also in China. Within the performance chemicals segment, which is. Something that I can talk about a little more which is smaller but we are seeing good growth. We are also now the first company. In the world to make the first commercial sale of bio based amines with which we make to l’. Oreal. We’ve worked on this project with them. For nearly for several years together and I say this with permission from l’ Oreal that we are selling to them and we are in discussion with several others to look at selling more of this and many other products. We are operating in several new segments. Over the last three odd years or really speaking about one and a half since I’ve units started to come up. We broadly introduced in excess of 30 different products. Now it takes time, there’s a gestation period to work with several customers to develop them. But our pipeline is strong. We are working with some very strong names right from bsf, Dow to many others internationally as well as within the country. Our end segments include crop protection, carbon. Smart products, personal care, crop protection, paper, oil field and we are looking at new areas like labor and pregnancies and potentially many other as well. So that is basically on the chemical. Segment as far as the biofuel segment is concerned. You are aware that this was driven by India’s plan to increase blending of ICNOL to about 20%. And our revenue for quarter three increased by 45%. EBIT up 273%. And for nine months revenue increased 51% and EBIT increased about 108%. So that is for the biofuel space. I have spoken about it before several times and I think we’ve taken quite a lot of time. So I will reserve any further input based on our questions. In short, the country is blending 20% ethanol. We believe that at least in near. Future growth in consumption of fuel will continue to drive this as well as increased penetration. For now there is adequate or somewhat excess capacity in ethanol, which means it presents an opportunity for us to also start to look at ethanol for our chemicals business being made within his house. That is something that we are considering opposite imports. As far as the NH biopharma segment. Is concerned, it is one of the smaller but interesting segments of our business. It has Been going through a bit of a challenging time essentially because of cost pressures on feedstocks and a significant amount of volatility in the Western market. That is where we sell this in Europe, US etc. But our focus is very clear. It is to graduate into the branded portfolio where we can add more value, implement stringent standards on quality and innovative products and formulations and get those permissions and our products registered into some of the major developed country economies in the world.
So that focus continues and we are quite hopeful that while we’ve seen some volatility and pressure on margins, the top line has been maintained or grown somewhat and that we believe will continue to drive the business forward. So with this, thank you for your time for a rather longish introduction from all of us but we will take your questions.
Unidentified Participant
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use answers while asking a question.
operator
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rohit Nagraj from 361 Capital. Please proceed.
Rohit Nagraj
Thanks for the opportunity and congrats on improvement in performance all along. So first question is to Anand sir in terms of gross debt after repayment of the one of the tranches in this quarter 7077 crores what is the year end figure that we are looking at and what could be the capex that is planned for the next couple of years and how are we likely to fund it? Thank you.
Anand Singhal
Go ahead. Whatever we have paid say 582 crores in this we have paid 288 crores working capital which is you can say rupee GC 200 crores we have paid out of the term loan and about 87 crore we have paid out of some unsecured loan which we have taken earlier. So hopefully we will close on 31st December around 1100 crores. Sorry March, March 26th about 1100 crores. Apart from this we are not having any big size capex and any capex will be undertaken only after the demerger and our efforts is continuing relating to the prepayment and we are planning to pay about 150 crores in April 26th also.
Reason being because of 31st March most of the banks are not ready to take the prepayment. So this is what is the situation as of now.
Rohit Nagraj
Sure. Thanks a lot, sir. Second question to Rupak sir, two parts. One is in terms of the ethanol blending in fuel, we have almost reached 20%. Is there any possibility to go further to 25%? And if yes, what are the, I mean what are the areas and if not, what could be the challenges? And second part is we have had two collaborations or relationships earlier. One is with Lonzatech and one was with lululemonuparnathrom. What is the current progress or status on this? Thank you.
Rupark Sarswat
Okay, so Rohit, thank you for your question. And this has been something which has. Been talked about in the industry and. The market as to whether the blending. Will be taken beyond 20% and if it all will be taken beyond 20%, what will it be? Now as I had mentioned in some. Of my earlier discussions that there is clearly a committee appointed under Niti Aayog to look at blending over and above 20%. So just to let you know that blending of Kysenol is a bit tricky and it is not a linear blending which can happen from 20 to 30. To 40, to 50 to 60 to 80. So the way this goes is that when you increase from 0% to 5%, there are hardly any challenges up to about 10%. Also hardly any challenges. When you go to about 15%, blending is okay, but then you also have. To look at, you know, some issues. In terms of mileage or some parts. Which need to be upgraded ideally. And when you start to go beyond. 20%, there is greater effort required in terms of some modifications in vehicles to get, get ideal performance and not have any issues. So beyond 20%, the government is also, I think in discussion with the auto. Manufacturers as I understand that is up for consideration. And also ethanol blending within petrol beyond. 20% raises some requirements with respect to infrastructure because petrol, as you know, is. Hydrophobic, ethanol is hydrophilic. And as more and more ethanol goes into petrol, it becomes hydrophilic, it absorbs. Moisture, which means challenges in terms of making sure invasive moisture, corrosion, etc. Etc. The smaller point that I’m trying to make is that a step from 20. To 25%, 27% may need some more. Actions on part of the government, on. Part of the automakers, in terms of the inflow sector. So there is a bit of a challenge there, but it is definitely up for consideration. Having said that, I think as far as the broader agenda of the government of India is concerned, which is increasing farm sector incomes. Just give me a second. Increasing farm sector incomes, reducing dependence on. Energy from outside, etc. That agenda, I think is still valid. And will benefit from greater blending, especially. Given the uncertainties in the world. For now, we believe, and I think we’ll have to wait and watch, it’s not a given that 20 to 25%. Is going to happen next year or. Not, but some growth because India is growing, India is doing well. So some growth in the consumption of. Oil will happen and that will drive some growth. Having said that, I think subsequently there is probably going to be increased demand. For ethanol for a set of chemicals for which it is an important feedstock. Now, why the Government of India may look at more blending from a feedstock perspective. If you look at the feedstock in 20, 19, 20, for example, 43, 49 or in excess of 80% of what was blended came from molasses or actually almost 90% came from. If you also include sugar cane juice. However, now you know nearly 80% comes from grain and only about the remaining or maybe 70% comes from grain, with about 46% from corn, which was nearly zero a few years ago. The reason I’m mentioning this is in order to increase this, the government is also looking at how to spread out the feedstocks because otherwise rice and sugar cane that by themselves become limiting. So from a rice perspective, there is. Increased water use, longer crop cycle time, geographic spend is not that much. Whereas if you look at maize, similarly for cane, the scalability is much higher, water use is lower, the crop cycle is shorter, the geography spread is much better. And so in future there are several things. One is people will grow more corn and the second is introduction of improved varieties either from within what is available in India or potentially even GM, con, etc. I do not know whether that will happen, but that thought process is there. It’s not something that is going to happen immediately. And we realize that for now we have to work with 20% increasing because.
Of increased penetration and growth in the fuel market. Answering your second question, as far as Lanza Tech is concerned, we are working very closely with LenzaTech. We are continuing to sell some products to various customers, various multinational customers. The volumes have picked up lower from what we thought. But there is regular business and we are engaging with customers to sell more carbon smart products. I don’t have a ready data to tell you volume, but I think it. Is significant within the performance chemicals portfolio. So the broader strategy in terms of looking at decarbonization, in terms of looking at greener products is intact. Whilst you would keep hearing in the world that sustainability has suddenly Been to make an exaggerated point thrown out of window? I don’t believe so because sustainability is not a four year program. It is a decadal or even a century based issue. And as you can see in other areas, for example green hydrogen, green ammonia and multiple feedstocks for ethanol etc. Coming down and one of them is. Carbon captured as you keep hearing. I believe in due course the costs as well as the incentives for using captured carbon based products, be it for. The kind of product that we make. Or a wider range, will continue and therefore it continues to remain a strategic focus area for us. And it’s not something that has evaporated, but we have maybe possibly not spoken about it as much. It is something that is continuing.
Rohit Nagraj
Sure. Thanks for all that answers and all the questions. Thank you.
Rupark Sarswat
Thank you.
operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor company. Please proceed.
Saket Kapoor
Hello.
Rupark Sarswat
Hello Saket. Good afternoon. Sir. Firstly, pertaining to the, the NSU ramp up. What, what should we expect in terms. Of the ramp up in terms of the introduction of new products? You did outline about it in your opening remarks. So in terms of revenue, what should be the performance if, if you could. Throw more light on the share. So look, Saket, first of all, good to hear from you. You know, I am tempted to give you numbers because I think I’m very bullish about it. But it is a new business. It is very difficult to give you numbers and projections.
Rupark Sarswat
Let me, I’m just taking out one page, give me a second. We are going to see very strong growth this year both in terms of revenue as well as profit on a small base. And I am quite confident that we are going to see good growth in. The years to come. So we are not talking about percentage growth here. We are hopefully with some, you know. Not allowing optimism to overflow. We are hopefully going to see growth for the next few years in multiples. Okay, but any ballpark numbers, sir, to start with for this year? Sir, I am constrained to not rattle out numbers. As I said, I was very tempted. But I have to contain my optimism.
Saket Kapoor
Okay, and what should be the margin profile? Sir.
Anand Singhal
You can support me on my bullishness. Based on what I’ve told you, we are looking at a wide range of chemicals. More than 30 to 40 have been approved. We are working with some of the best names. Of course, these are products which take two to three years to work with them. You know, for example, we are working with one customer, you know, at one point in time, his projection is in terms of thousands of tonnes which is by itself potentially hundreds of crores of business. But then it depends on so many things, you know, how the technology is adopted, how the global environment is. I think once we are a little closer and a little more certain to what’s happening, that kind of idea we’ll continue to give you. But please excuse me for not kind.
Of giving you numbers.
Saket Kapoor
Right sir. So now coming to the pain point then sir, for the jv the performance have been on the lower side for the last. In fact last quarter was good sir, but this quarter I think so share of profit from of joint venture has dipped significantly. So if you could just explain to us the factors and Abhikya situation as well.
Rupark Sarswat
So Saket. Yes, so there has been not as much as a pressure on the top line but there has been a squeeze. Broadly a squeeze of margins for the. Joint venture essentially because we, as you know, we talk about price of the alternate material which comes from reliance as. A feedstock versus ours. So that gap widened which means that in order to get business we were under little pressure to ask. Products are greener and more expensive. So that pressure has led to squeezing of EBITDA margins and it’s not that much of a top line issue. That was one, but also to some extent top line. So that situation right now is like that. But we are working on several things. We are working on enhancing exports and you know, this is a cycle which has happened for the last five years up and down. And as I mentioned to you earlier in a different context, we also see that with growing capacities in ethanol it.
Is quite possible, in fact you can. See the trend right now that ethanol prices in India and globally are likely. I can’t determine on a commodity likely. To see a downward trend which should. Help us regain some of that margin. The broader focus of the joint venture, apart from the cost of course has been to look at more value added products, more formulated products. And we had, you know, one of the reasons is that we were also very focused on export. We are still very focused on exports, the market which pay a premium for the green products which as you know are Europe and us which have been going through much higher level of volatility. And some of the challenges in their chemical businesses. So that to some extent has put pressure. But as I mentioned to you longer term and strategically we are doing the right things and given all of these I think we should be okay.
Saket Kapoor
Okay, sir. And if time permits for the NHL biopharma we have seen the contribution margins improving rather for the quarter. So sir, Job is negative in the business plan, business environment rather how are those factors currently playing out and what is our roadmap for this segment? I think so this has been a pain point, although in total portfolio smaller portion but still that margins were significantly higher. So right now.
Rupark Sarswat
We look forward to. Your question every time. Overall record number. Please. Your questions are valid. You know I need to lighten a little bit. That’s fine. And I took the liberty with you because you’re a good friend. I will request money to enlighten you on. Coming quarter would also be in the under stress and the situation will improve. In fourth quarter only. So I’m in the same line. I’m just trying to tell you that the raw material PD stock which is glorious is now being stabilized and the new drop is coming. So and we don’t see any foresee any problem in getting the material. And we are expecting a better price in the international market also. And in the nicotine sales which was earlier under stress, now it has been started again. So we are expecting a good margin in the good turnover in the fourth quarter and going forward also. And with respect to the branded nuclear. Physicals. We are in the recent exhibition in supply side Quest, we are launching Gingerine and Asparage, both the new products under the blended nutraceuticals. So we are expecting a good traction in those products and we have already. Established an office in. Houston, America and the person who is already there is in the contact of the many agents to have the better turnover in the next coming quarters. So yeah, Saket, just to add to what Manish said, as you said, nicotine sales have started to increase. You know, in terms of branded ingredients. Ginger N and Aspergize have been launched in supply chain US with clinical data and I think that will strengthen NHS global market presence. Mexicuma, NOP organic certification and courier registration. Is underway which will also help enhance sales and positioning across key markets. I mentioned to you about some of the challenges in this business. We are dependent on how the developed. Markets are picking up. But the efforts are on to build. Standardized ingredients, improve quality, better certification, better registration, including markets like Taiwan etc. So all in all we are focused on the strategy. We realize we are going through a. Bit of a challenging time, but as. You know, the Nutraceuticals and the herbal, fundamentally it’s a good business as long as you continue to innovate, give differentiated. Products, build a brand around it, get your registrations and get your products into good formulations across the world.
Saket Kapoor
Right sir, thank you sir, for all the elaborate answer only one point for Anandji. Anandji Namaskar. Just you mentioned that 1100 cr is the net debt number for as on 31st December. And 150 is the repayment we are planning to make in the month of April. So sir, next week roadmap to end the closing date figure out.
Rupark Sarswat
I have told you that on 31st March the closing term loan will be about 1100 crore. We are planning to pay some more debt in April. Because there are some reservations from the bank side that they don’t want to take the prepayment in March.
Saket Kapoor
Okay.
Rupark Sarswat
Next year we have a normal repayment of 285crores. So any in any case that will happen. And depending upon our cash flow we will certainly like to prepay some of the debt. Today our CC is totally vacant. So that’s why the cash flow side we have a good cash flow. And we are continuously working very closely with the banks. How to reduce interest or take accept the prepayment. I cannot give you the number for the next year. But we will certainly try to reduce our interest burden in the coming years. Rating is in process. Shortly you will get.
But only thing is because of the demerger the rating agent watch list.
Saket Kapoor
Watch list. Yes.
Rupark Sarswat
So you will not find the rating improvement till our demerger happens. So the any improvement in the rating you will see only after the completion of the demerger. Till that time rating will be the same. And we will continue to be in the list.
Saket Kapoor
But it will cost of fund will remain then remain the same only. Sir that we will not be able to pressure. When I put the rational on banks to reduce.
Rupark Sarswat
We have already done some swapping of about 125 crore savings. About 150 to 200. 200 BPI. And now we are working on the same. So don’t worry. We will. We will reduce our interest debt.
Saket Kapoor
Yes. Yes. Thank you sir. To the entire team for very good set of numbers also and good operational data points. And hope to end the year on a promising note. Thank you. Rupakji, Anandji and all the team members. Yes.
Rupark Sarswat
You always improve our vocabulary. So Mayapo, Patana, Chataki company, Khali, Sudhar Technical.
Saket Kapoor
And all the best.
Rupark Sarswat
Thank you. Thank you.
operator
Thank you. The next question is from the line of Bala Subramaniam from Aryan Capital. Please.
Bala Subramaniam
Good evening sir. Thank you so much for the opportunity. For my first question in portable spirits the volume grew almost 5% year on year on nine month basis around 23.7 million cases while the revenue grows 16.6%. It clearly shows like we are shifting to premiumization strategy. I just want to understand this. Premium premiumization strategy is cannibalizing the regular portfolio and what price level ranges, products we are having on premium station, premium portfolio as well as regular portfolio. And we could share what is the current update on market share across north states and what is the current progress in Kerala market and other south India?
Rupark Sarswat
Okay, it’s quite a elongated question, but I will try to answer. See, as you rightly said, the intent is to move from from regular brands to premium and figures have already been spoken. You are talking about qualitative measures and you know, now we have a range of brands. See what is our strategy? Important is the strategy of the organization. The strategy of the organization is to establish our brands across segments. Particularly in whiskey segment. All of our competitors, most of them do not have whiskeys is the premium segment. So what we have been able to, if I may say establish is we have seeded in all segments which I spoke few minutes earlier, every 20 rupee or every 30 rupee or every 100.
Rupee a bottle, we have got a brand. So the stage is set. Now it is for us to go step wise. Our strategy, our chairman is very clear that it has to be steady build. Approach, not big bank. Because big bank generally doesn’t succeed. So we will be a starting stage like now to cover your other question, Kerala. Kerala is a government control market. Payments are secured and we have created a beautiful brandy. And I must mention that it has come from France. The blend has come from France. It took that kind of time. But one is well versed with making brandy for obvious reasons. I don’t have to elaborate. You are well aware it is the leader brand now. So we have got a challenger brand to the leader brand and we have got it from Cognac France and it’s brilliant.
The first reports are very encouraging. We are going to expand the brandy portfolio in south for the benefit of all the investors. After whiskey, it is the brandy which sells more, not drum. So we are now addressing the second biggest category of our country which is growing and that also in the premium range. So that is Kerala. Anything else you want to know from.
Bala Subramaniam
The market share side, especially the north States.
Unidentified Speaker
Market share, it’s not fair to elaborate because it is not in public dome but we are in double digit growth and we are among the top three brands, as I mentioned of our flagship organic brand called Amazing Vodka and its flavors. It has been well loaded brand and it is in all the markets that we have launched in it is among us. Similarly our Zumba Limon which is in the premium segment and calendar brand to the. To the leader also we are in double digit market share and you know, among the top. I mean there are two brands literally now.
So you know, I can talk more but we are in. We are cautiously but definitely working in premiumization. But we don’t take rash decisions because it has lot of financial implication. Now CSD has been our latest success and. And very quickly we have been able to get registrations because of our efficiency and our quality. Because there is preferential poll, market survey, hundred things, so many screenings that they do. We passed all screenings. I mean once our ENAS used by Bacardi which is an international brand all over CSD as well as civil and entire north and east.
There is no reason why our brand also should not succeed. So CSV is our, if I may say, latest success. And every quarter you will see more triggers, more minimization stories and more market share gain.
Bala Subramaniam
Yes sir, My last question. In chemical business side we have seen clear margin improvement supported by discoloration of low margin trading activities. Now I think a new bio based amine the commercial sales is beginning in Q4. I just want to understand this. Amine margins are double double digits rates whether we can able to maintain the historical average of 12 to 13% kind of range. On that biofuel side the margins also significantly improved from 3.3% to 8.4% in this quarter. And because in OMCS their prices pricing are very stringent. We are achieving this scale because of the operating leverage or whether we can able to cross it double digit levels.
Thank you sir.
Rupark Sarswat
To answer your question first on chemicals. Whether we’ll be retaining this percentage margin. The short answer is expectation is yes. As I mentioned to you. I mentioned you that first of all. I gave you a view of our margins have not suddenly improved but we’ve gone from 11% to 15% for the business. A similar thing is also something that. We were looking at very consciously in the chemical space. I mentioned to you, you mentioned one thing which is about discontinuing lower margin businesses. Not only trading but also manufacturing. I also mentioned to you that we made significant changes in our operational philosophy. Partly it was how we ran our plant. Continuous plant sometimes need to be shut down. Sometimes we need to segregate some portions so that we don’t manufacture for example by products or products which we have to sell at low prices and so on. That helped. We are continuing to look at a. Portfolio of performance chemicals which will continue. To deliver better margins over a period of time. The margins, the short answer to your question on bio based amines, the margins on that are good. It’s too early for on initial sales for me to predict margins for this in the longer term because we are also scaling up and looking at improving. Technology in this space. So when we enter products like bio based amines, it is a slightly longer term bet for us as well. And then I said it’s not bio based reminds it something that I talked about. But the numbers that I didn’t talk about which are delivering for us right now are for example chemicals in oil, field and gas, for example chemicals in paper, for example chemicals in crop, and for example chemicals in coatings and polymers. I’m sure that the pipeline that I’m aware of, one of the criteria for us to select our NPDI products is apart from the size of the market, apart from the strength that we may have, is also a reasonable profitability that it would deliver.
So with that strategy and based on what is happening in the world and how India is growing, I believe that the margins for the chemicals business, what you see right now is not a one stop shift. But we believe that this will be sustained and of course our attempt is to continue to make it even better.
Bala Subramaniam
So on the biofuels side.
Rupark Sarswat
Yes sir, I forgot. So in biofuels you are right that the price is actually fixed by the government, right? So it is based on the feedstock that they fix the price. It is not a price which is just fixed on ethanol. And I think it was part of a strategic action that the government took so that there is overall bouquet of feedstocks which are encouraged in the country and not only put pressure on one particular feedstock, be it cane, be it rice, etc. And I did speak about the fact that even though the government pays higher for corn and it is more expensive, it is a strategic feedstock.
And therefore the government is working on expanding maize and corn. And the reason I mentioned this is that the biofuel story may have taken a pause at 20% but. But strategically it is an important part of the government of India from a farm sector perspective, from an energy security perspective, and also from an environmental perspective, talking about water, they want to move to crops which are less water intensive and so on. And so margins also depend on several things. It depends on feedstock prices and it also depends on an important byproduct called DDGs. So I have a lot of data on various sources of Protein for veterinary and poultry use.
DDGs prices for example, off late have been going up. Now DGs availability has also been going up. But the reason it has been going up is that, you know, there is the biggest, for example sources of protein for animals and veterinary and poultry has been soya and some others. There is now increasing acceptance, for example for the by product in DDGs longer term, as far as the margins of this range of products in biofuels is concerned, my take on this and you know, take it with the fact that it is my take, it’s not a prediction is this is an important business from a country perspective, from a government perspective, from a farm sector perspective, from an energy security perspective.
And while the margins depending upon the availability of the feedstock, DDGS price decided by the government from time to time may vary a little bit, as has been seen over the last three or four years, as far as biofuels is concerned, there will be a range bound profitability, but it will be range bound on both sides, which means that it is not a commodity which will certainly start becoming like gold as it did. In the few months back. Neither will it drop or crash for what you sell in biofuels. So it is range bound by policy. So that is how we see the margin going forward as well. It’s not a margin where we can predict that it will be 12% or 13%. I think it will be range bound, it will be positive, it will not be huge. And this is a business which is here to stay strategically, my view is based on how the government has implemented its policies.
Bala Subramaniam
Thank you so much for the detailed answer, sir. All the best.
Rupark Sarswat
Thank you.
operator
Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today on behalf of Ingrid Equity. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Rupark Sarswat
Thank you very much for joining us.
operator
Everybody who spent time to understand what we’ve done. And thank you for your questions as well. Disconnected.