IG Petrochemicals Limited (NSE: IGPL) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Pramod Bhandari — Chief Financial Officer
Analysts:
Aditya Khetan — Analyst
Nirav Jimudia — Analyst
Kunal — Analyst
Ashish Konaje — Analyst
Madhur Rathi — Analyst
Rishikesh — Analyst
Chirag Vekaria — Analyst
Amit — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of IG Petrochemicals Limited.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touchtone phone. Please note that this conference is being recorded.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on-date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. I now hand the conference over to Mr Pramod Banari, Chief Financial Officer, IG Petrochemicals Limited. Thank you and over to you, sir.
Pramod Bhandari — Chief Financial Officer
Good afternoon. Afternoon. Thank you very much. Good afternoon, everyone. Thank you for joining this call. On this call today, we have a SGA IR advisor with us. I hope everybody had an opportunity to go through the financial results and investor presentation, which is uploaded on the stock exchange and the company’s website. After providing a brief overview of the industry and the company, we will begin the question-and-answer session.
As you are aware that the global geopolitical environment has been a challenging and leading to a lot of economic uncertainty, largely impacting the global trade investments and consumption. This has largely impacted the performance of the prominent Indian chemical manufacturer, especially those who are dependent on the imported raw-material. The price of the product remains under pressure due to continuous weakness in the demand and supply dynamics in international market, the rupee depreciation has further escalated the cost and adding pressure on the raw-material.
Additionally, many of them have faced oversupply and aggressive pricing from the competitors. After witnessed a few challenges like weak food, feed stock prices, rising freight costs, subduumed demand for the past few quarters the pricing of the key petrochemical has seems to be bottom out and started seeing some recovery probably in last 1/4. Although there was a gap in the supply domestic demand-supply, but the production was sufficient to meet the domestic demand.
Recently, the trade that is imposed by the US president has further ended the ambiguity over the demand visibility in the international market. To restate that the IGPL operational experience minimals this disruption as the majority of our business conducted within the domestic market, which comprises around 80% to 85%, especially within the 200 to 300 kilometer supply-chain radius. IGPL is the one of the lowest-cost producers and largest producer of the second-largest globally with a capacity of 2,75,000 tonnes.
With a strong focus on the operating efficiency and cost optimization, IGPL has built a reputation of excellence in the production and serving the high-quality output and consistent supply to the various industries in domestic market as well as in the existing market. And is a critical raw-material used across the diverse end-user industry, including, plasticizers, pigment, polymers, coatings.
We continue to expand our product portfolio, manufacturing a lot of downstream, especialty chemicals, ballic,, BEP, Benjoic acid and advanced plasticizers. Our facility is strategically located near the key industrial hub ensuring the efficient supply-chain management, reduce the logistic cost, seamless distribution to our customers. Most of the customers, 80% to 85% will give the delivered supply. This enhanced the production infrastructure of PFI finish, reinforce position as a leading and cost-efficient manufacturing in the global market. The expected market size of the environ is around 5,000 to 50,000 ton per annum.
We foresee the demand to grow at annual rate of 5% to 7% per annum. We are well-equipped to meet the rising demand of diverse end-users industry, offer high-quality the key raw-material for the various downstream products. As highlighted earlier, our active pursuit of diversification into the wide range of the downstream products, we are setting up the — up to 75,000 ton capacity of advanced plasticizer plant, which we will be investing around INR165 crores plus the GST and expected to commission it by December 2025 with a wide range of advanced plasticizers such as DOP, BI, DOTP and other plasticizers being added to our product portfolio.
This project is expected to consume around 30,000 to 35,000 ton of the in-house helica. Additionally, our capacity has — our company has ventured into the compressed biogas by setting up the five-ton per day plant in India. The project has moved from planning stage to implementation stage. EPC context has already been assigned. The initiatives are in-line with our goal to increase the revenue contribution from the product and also venture into the new and green energy. As a part of our ongoing effort to enhance the efficiency, we have integrated the solar power and other renewable energy sources in our warehouses and the key operational areas. This strategic initiative not only aligns with our sustainability goals, but also provide a significant Cost advantage by reducing the overall power expenses. By leveraging the clean-energy, we aim to lower our carbon footprint, improve energy security, enhance our overall operating efficiency in the long-run. Coming to the financial performance, I think the total revenue for the quarter stood at INR567 crore, reflecting a 15% year-on-year growth. This contributed around 93% from the under and around 7% from the versus deep in other incomes. Gross profit for the quarter, EBITDA was around INR123 crore, 95% increase on year-on-year basis and gross margin improved by 890 basis-points. EBITDA was around INR54 crores, a margin at 9.6% and profit-after-tax is exactly the same as last quarter of Q2 FY ’25 at INR28 crores. For the Nine-Month ended we were for FY ’25, our revenue INR149 crores, a growth of around 12% on basis. Gross margin for the nine months ended was around INR41 crores with a 480 basis-point improvement in gross margin. EBITDA margin for nine months ended was INR195 crores, a 94% increase compared to the corresponding period of the last year. Profit-after-tax for the nine months is INR91 crores. This is a robust increase in year-to-year basis because for the last full financial year, the profit was around INR40 crores. We remain the net-debt free company with a strong balance sheet. As there was a demand and supply gap, overall production increased during the quarter. We history demand from energy industry compared to the last quarter despite the tough shutdown of a few minutes for the requirement or change in the catalyst. We remain optimistic about the upcoming quarter and we are well-prepared to capitalize on the emerging market opportunity. Additionally, demand from the End-User industry continued to so extend reinforcing our growth outlook. With this, I’d like to conclude the presentation and open the floor for question-and-answers.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.The first question is from the line of Aditya Khetin from SMIFS Institutional Equities. Please go-ahead.
Aditya Khetan
Yeah, thank you, sir for the opportunity. Sir, my first question is, on sequential basis, sir, we are witnessing a dip on-top line. As you had mentioned in your presentation that volumes have been higher. So I believe this decline is largely led by the realization decline in pan only. Sir, is it possible to highlight what was the volume growth quarter-on-quarter basis on the base business and how much we have operated the plant during the quarter.
Pramod Bhandari
So first, I’ll respond to your second question. We were continuing to make four plant because another one plant was shut-down because of some inspection, some change in the cable and other things, because we do the maintenance and shutdown also in terms of the production, we continue to operate the food plant because the one plant was shut-down for the requirement and the duty maintenance.
In terms of the overall sales, there is the improvement of around 15% to 16% compared to the last quarter. It was more than 55,000 tons in terms of the sales. But the overall realization has gone down because if you see there is a continuous decline in the prices as well as the oil prices. So although the volume improved by 50%, but since there is a decline in the prices, the overall realization was INR557 crores. The main reason for that apart from is the malic prices. The malic prices has also gone down compared to the last quarter that both has contributed into a decline in revenue in-spite of higher production and higher.
Aditya Khetan
Okay. Okay. Sir, you had mentioned so, 15% 16% jump-in sequential jump volumes.
Pramod Bhandari
In the sales volume, there was a jump-up because although we are producing less inventory was — was sold and we come to the inventory level, which is below the historical level. Since the demand was very good in the market, we were able to sell most of our products, not only if the product which is produced, but also the product which is lying in the.
Aditya Khetan
Okay. Okay. But sir, onto the demand-side, like you had mentioned some muted sort of a demand, given a cautious commentary that demand is weak. So any sense, sir on-the-ground on how this is changing?
Pramod Bhandari
Actually, the demand in the global market has been affected, but I think in the domestic market, you asked me the demand okay. That’s why we are able to sell 10% to 15% higher than the PSR.
Aditya Khetan
Okay, okay. Sir, on to the spreads like there is a clear contraction in.
Operator
Sir, Aditya, can you come back-in the queue for further questions?
Aditya Khetan
Okay.
Operator
The next question is from the line of Nirav from Annual Wealth. Please go-ahead.
Nirav Jimudia
Yes, sir. I have two questions. So first is on the raw-material side because we have also expanded and the competition has also expanded given the kind of press releases and everything what we have seen from them, how do we see the availability of raw-material over a period of next two, three years because like there is only one producer of that raw-material in India. So if you can share your views here in terms of —
Pramod Bhandari
Yeah. You are right that there is a one provision of the raw-material, but I think they have a sufficient capacity to feed the entire market, including the new unit which is started by IGPI, but that all depend upon how much percentage of the capacity we are utilizing and they are provisioning.
In terms of this capability, they can go up to 5 lakh tons plus, while Indian requirement — this requirement remains between 450 to 475 lakh. Sometimes they take the shutdown or sometimes they are not able to support commercial reason. But by and large, if you look at the overall demand-supply scenario of the raw-material and if they utilize the capacity 80% to 90%, it will be sufficient. But as a policy, we diversify our raw-material sourcing from 70% to 80% we tried to source from domestic and 15% to 20% we import. So we keep a fair balance. But given the total capacity, it can be supplied, but it all depends upon the supplier, how much they wanted to supply in terms of their capacity utilization. That depend upon your internal economics. Right now, we are sourcing from domestic as well as the international markets.
Nirav Jimudia
Got it. And sir, how cost-efficient it is to import OX in India is availability an issue globally also because we see that lot of specialty chemicals in India also do imports of OX in India. So your views here would be helpful.
Pramod Bhandari
So I think OEX is substantly available in the industrial market. Our price is not that much different, but you need to incur extra freight, transportation, logistic cost, the port cost and domestic transportation and the ForEx. So these things we need to add over the actual cost. So these are the differential between the when you are buying in domestic market vis-a-vis the imported.
But in terms of the availability of the raw-material, I don’t find any issue in terms of availability. It’s only the pricing. If it is available at the right price, you can source that compared to the domestic market, but the freight and other things, you need to add it on that.
Nirav Jimudia
Got it. And sir, last two clarifications. So one, you mentioned that our volumes were 55,000 tons this quarter. How we see coming quarters in terms of volumes, A and B, if you can share the breakup of revenue of INR39 crores between Malik and DEP.
Pramod Bhandari
So basically, first, I not mentioned 55 crore, I said higher than that.
Nirav Jimudia
Okay.
Pramod Bhandari
That’s first. Second, I think because we were carrying some inventories, we are able to absort that inventory. Going-forward, we are expecting probably for the next quarter, it should be 50,000 plus-minus 5% or 2% or 3%. 60,000 is the range you are looking at. Probably from April and onwards, we will see the picking-up in the overall volume. Right now, because the demand was very strong and there was the inventory available, we are able to offload most of the inventory to the market.
Today, we are at very negligible inventory. And since production is happening right now between 16,000 and 18,000, that’s much we are planning to sell. If we sell 17,000, it will be around 50,000 around. From April onwards, we are planning to increase it to maybe 55,000 or 56,000 crores.
Nirav Jimudia
Got it, got it. And sir, last question on that ME and DEP sales breakup from you.
Pramod Bhandari
So the — generally, we don’t give the direct breakup, but you can say that the ballic sales the volume was same, but the prices has gone down. So around INR15 crore was the and DP was INR22 crore.
Nirav Jimudia
Thank you so much, sir and wish you all the best.
Pramod Bhandari
Thank you.
Operator
The next question is from the line of Kunal from Alpha Alternatives. Please go-ahead.
Kunal
Sir, just wanted to understand the supply which is coming on China side wherein some 2 million ton man capacity has been put up and what is the demand and supply scenario globally? Secondly, what were the average spread for this quarter?
Pramod Bhandari
First, for the, I think just set-up the and they — because of that, there is overall supply in the market for last one year. So right now, when we are talking, the malic prices are actually the last two to three years low, $780 to $790 in the international market. Indian demand remains around 80,000 to 90,000 tons. We produced roughly 7,000 an annual basis to 1,60%. I mean generally is 20% and.
Operator
Sorry to interrupt sir. So your voice is cracking a bit. Can you repeat?
Pramod Bhandari
I’m saying the malic prices are typically 20% higher than the Thallic historically, but we have observed that in last two to three years because of oversupply and other matters, it is 15% to 20% lower than the. We estimate a INR100 crore-plus revenue from. But since the prices are low, our revenue annualizes around INR60 crores INR65 crore. So right now, this is June and since we are using the wash water to produce the, it doesn’t have a direct impact on us. Whatever is the revenue is translated to EBITDA. But anybody who is producing based on and all that, I think every — every player in the international market is having a loss in Malik today because of the pricing. What was your second question?
Kunal
What were your spreads during the quarter?
Pramod Bhandari
So spread is raising from $150 to $170. How much it that is separate, but.
Kunal
And the decade leverage, the last decade, the average.
Pramod Bhandari
Last decade, it will be around 200 to 220 is that? And we have made, I think 150 to 170 is the spread in the international market. So about.
Kunal
Your voice is cracking.
Pramod Bhandari
Hello.
Kunal
Yes sir. Okay.
Pramod Bhandari
Now it’s clear.
Kunal
Yes.
Pramod Bhandari
So I’m saying market was $150 to $160 170, we are making over and above $50 to $60 or $100 depend upon the realization from the, operating efficiency and other products.
Kunal
So somewhere it is normalized, no.
Pramod Bhandari
Not normalized. I think still it is 20% 50% below the normal average. And if it would normalize and then around 200 plus, then the margin would have been much better.
Kunal
And sir, for the capex we have done, are we eligible for any subsidies?
Pramod Bhandari
The capex which we have done for the PF4 and 5, we are having opportunity to get the subsidiary, how we can get that because the policy provides INR750 crore-plus investments. There is eligibility for policy that is under evolution.
Kunal
In case we get this, how much is the subsidy?
Pramod Bhandari
I think we will discuss this once we are able to get a confirmation from the government, but not right now.
Kunal
Okay. Thank you.
Operator
Thank you. The next question is from the line of Ashish from Everflow Partners. Please go-ahead.
Ashish Konaje
Yeah. Good afternoon to the management. So my first question was with regards to the spread. How have you seen the spreads come about in the quarters? Like what was the spread previous quarter? And I think you mentioned it was around 150.
Pramod Bhandari
I think this quarter was around 200 to 220. This is drop-in the market. What we have realized in the result is INR240. Previous quarter it was around INR300. So what we realize is INR50 to $100 or and above the market spend depend upon the capacity operating performance, capacity utilization as well as the realization from. So compared to the last quarter, it has gone down, but we have seen the stabilization of that for quite two to three months now and we have seen some improvement in the overall margin going-forward.
Ashish Konaje
So can you just repeat that again? There’s some kind of a disturbance?
Pramod Bhandari
I am with margin is lower by 5% to 10% compared to the last quarter. However, we have seen the stabilization of the margin or bottoming out-of-the margin during the current quarter and expected margin to improve going-forward.
Ashish Konaje
Okay, what were the spreads, sir, last quarter to this quarter?
Pramod Bhandari
So for the company, it was $242, if you include everything operating efficiency and all. And for the last quarter, it was around for a company side 270 to $280. But in the market, it was around — the spread right now was 150 to 170 compared to 200 last quarter.
Ashish Konaje
Okay, got it. Got it, sir. And secondly, I wanted to know what the management’s outlook was on the demand-side and the spread side going-forward for PAM.
Pramod Bhandari
It’s improved because right now it is actually below the total average of 200 to 220. So it needs to improve further and we are seeing that demand is actually across the segment and DEP, UPR. Demand in Indian market is very good, but it has to improve the international market to see the overall jump-in the margin. So demand-side, I don’t find any problem or challenge in the Indian market. But the — when it comes to the margin, it is linked with the international market margin. So internationally when the marketing margin need to stabilize and improve, we have seen the bottoming out-of-the margin in the last quarter. We expect margin to improve and go beyond the historical average of 200 to 220.
Ashish Konaje
Got it. Thank you. Thank you so much.
Pramod Bhandari
Yeah.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press star N1 to ask a question. And the next question is from the line of Madhuj Rathi from CounterCyclical Investments. Please go-ahead.
Madhur Rathi
So thank you for the opportunity. Sir, I wanted to understand previously we used to say that when we earn 150 to 160 kind of a spread, then we get a 10% to 15% portion kind of an EBITDA margin. Right now, the market is earning 150 to 170 spread, but still our margins are at 8%. So I’m trying to understand that.
Pramod Bhandari
Because the reason is very simple. We are not operating all our plants. Right now we are at 75% to 80% of capacity utilization. So all the profitability you are looking at is for the full plant while we are providing for all the expenditures, all the interest cost, everything for the fire plants. So what you are looking at, all the employee cost, the other expenses, everything is for fire plant while you are operating four plant. So the burden of five plants are taken off by the profitability of the four plants. That’s why the margins are looking like that.
Madhur Rathi
So sir, when do we aim to reach optimal capacity of 19%.
Pramod Bhandari
Beginning from April onwards, you will see the improvement in capacity in April to June, we will be — we will be reaching at our historical average of 90% to 91%. To June quarter.
Madhur Rathi
Okay, got it. Sir, my next question was, sir, on the plasticizer segment. Sir, when we look at the imports that have happened in India, so they are happening at a very higher-rate of $2 to $2 to $3 per kilogram. So based on that, our capacity would be — the revenue potential would be much higher. So I’m not trying to understand why is this discrepancy.
Pramod Bhandari
So actually the plasticizer we have a capacity may be operating at 70,000 to 75,000 tonnes probably after ramp-up suppose it’s say at optimum capacity. Our revenue is — our revenue is based on the historical average price. We are expecting INR900 crores to INR950 crore gross revenue from plasticizer. But addition to the overall revenue will be INR500 crore because INR400 crore will be the which will be utilized. So when you are talking about only plasticizing revenue, it is INR900 crore-plus. But when we are talking about its addition to the company’s revenue, it will be INR500 crores because INR400 crores will be used.
Madhur Rathi
Okay. Okay, got it. But sir, if I consider a $2.5 per kg of phthalic price — the plasticizer prices. So sir, are we going to manufacture plasticizer that would be of a low — like of a lower-quality or a lower prices.
Pramod Bhandari
We that when we have mentioned this, we have not considered the current Current market price. It may vary depend upon that it may be between INR900 to INR1,100. I’m giving you just general idea or guidance about the expected revenue from plasticizer. It’s a ballpark number, it’s not the number which is based on the today’s price.
Madhur Rathi
Got it. Sir, just a final question from my side. Sir, on the CBG plant, sir, why are we getting into CBG plant when we see that the ethanol players are struggling in a segment where the government decides the end price as well as the government decides the raw-material price and just becoming a converter. So why I’m not trying to understand.
Pramod Bhandari
So CBG plant is the idea there the CBG plant is management decided to venture into the entry side of the energy. When we look at the various opportunities, the CBG is one of the opportunity where the — there are three ways to look at, one is the raw-material second is the technology. Third is the offtake. In this case, the technology is proven, offtake is the government is proven. You need to just fix the sourcing of — right sourcing of the meter, which is the agro waste, natural gas or various types of waste, agro waste available in the market.
Yes, then we are setting a five plant and we are looking at the various options available and the nearby availability. So I think when the material is sufficiently available to set-up a CBG plant is not a challenge because technology is proven and government has an offtake agreement. The CBG, once produced, it will be blended with the CMG and government has come up with a policy to have a 1% lending of CBG with CNG beginning from this year, which will go up to 5%. So there will be huge demand of the CBG in Indian market. And I don’t know-how you got that information is, they thought players are struggling.
They are not, they are making good amount of money and CBG, you need to just produce. Everything else is taken care by the government, our government policy. And this is another way to convert the agro waste and all and all type of pollutant into a green type of gas. So this is the first plant we are setting up. Once it is set-up and commercially successfully started, we made plan to replicate at a different, different location, five to 10 plants.
Madhur Rathi
Okay, sir. So just on the future, sir, if we get some of — the future capex would be sir, on the CV side more or on the plastic side more?
Pramod Bhandari
No. I’m just CBG is INR20 crores to INR25 crores project. Once we need to set-up one project, evaluate that project, see the profitability, then the decision for the next will be taken. The capex for the plastic that is already under project is under-construction is already committed and we are under looking for other opportunities to get into the further downstream industry of the panic and plasticizer.
Madhur Rathi
Okay, got it. Sir, thank you so much and all the best. I’ll get back-in the queue.
Pramod Bhandari
Thank you.
Operator
The next question is from the line of Aditya Khetin from SMIFS. Please go-ahead.
Aditya Khetan
Yeah. Thank you, sir for the follow-up. Sir, my question is on to the non-thalic business. Sir, this quarter like we have seen around almost around INR13 crores INR40 crore of revenue from the side. Sir, if you can highlight like what are the margins from this business, like out of this INR40 crores what margins we are making? And from the pan business, if you can just a ballpark figure, you can give how much margins we are making over there.
Pramod Bhandari
So I think whatever is the margin or EBITDA you are looking at, for the men sale, which is around INR15 crores, the entire — the revenue is the EBITDA margin for the balance side, it is 10% to 12% for INR25 crores is a INR4 crore to INR5 crores. So if you put together, it’s a INR15 crore to INR18 crore the EBITDA contribution of the other income and balances from Telex.
Aditya Khetan
Okay, okay. And sir, on to onto the plastic side, like you have mentioned somewhere around INR800 crore to INR900 crore. If we exclude that, that would be — if we exclude the PAN, that would be INR500 crore INR600 crores. So sir, out-of-the total PAN, I believe PFI from the 53,000 ton almost around — so 35,000 tons would be yield captive, right.
Pramod Bhandari
30,000 to 35,000 tonne depends which type of composition you have?
Aditya Khetan
Okay. And remaining we would be selling in the market.
Pramod Bhandari
Between 10,000 to 15,000 ton, yes.
Aditya Khetan
Okay. And sir, what would be the margin, sir from the new plasticizer plant which we are setting up?
Pramod Bhandari
So plastic sizer, the capex is around INR160 crores to INR170 crores, total capex on the plasticizer. The revenue is expected at INR900 crores. So when you are looking at INR900 crores, we expect typically 5% to 6% is the PAT margin. So suppose you assume 5% and INR50 crores. So you can see the PAT the payback period is less than three, 3.5 years based on the historical number. You don’t count it today because today the prices are high, the margin is high, the payback period will be less than three years, but we need to count the historical average, not the margin and the pricing today.
Aditya Khetan
Okay. Okay. So sir, like earlier guidance what we have stated earlier, like so on a base of INR2,000 crore top-line, we would be reaching around INR3,000 crore of topline in the next three years.
Pramod Bhandari
I think by 2027, our revenue will have to be between INR3,200 crores to INR3,200 crores to INR300 crore if we optimally run all our plant at 85% to 90% capacity village.
Aditya Khetan
Okay. And sir, any update on the Malik side, like I believe after some Malik prices for the last quarter or for the last six months were going upwards, but now again like you’re mentioning like there have been — so the prices has been muted. Any sort of a trend you can give for the next year, this will be remaining at this level because the Chinese inventory is also — so they might have been depleting now. So any reason why.
Pramod Bhandari
I will — what happened is Chinese had set-up that plant of Malek to get into BBO to PB18 and PBT to get into the various types of plastics and all that PBT. But of late, the deadline has been extended by the government, they started selling into the international market. The day when they divert their melic for the downstream, you will see the improvement in the margin. So recently, the prices such as low as $780, which is I think in last five years the lowest. Typically last quarter was $800, $850. It was $780 to $7.90 for the last quarter, but I think this is the bottom. Why I’m saying bottom is this is a price when somebody is producing from the actual route of n butane, they will be making the losses.
Butane price is 500 to 550, conversion cost is INR300 to INR850 is the cut-off price for the manufacturing of the butane and actual price is around INR780. So this is the bottom, they can’t go further negative, it has to improve from this level.
Aditya Khetan
JBut sir, I believe sir, the prices were — so these range prices are for a year for a year now. Still the prices have not seen any material improvement. So the players who are making from these roof for the last one year, they would be making losses still.
Pramod Bhandari
Yes.
Aditya Khetan
Okay.
Pramod Bhandari
Actually they are making losses if they are getting the gas price on the market price and then converting into, no way you can make the money today, in today’s market.
Aditya Khetan
Okay.
Pramod Bhandari
So you can’t sustain the losses forever. Somewhere there will be equivalent in the market, some plant will down and then there will be gradual improvement in the prices.
Aditya Khetan
Got it. Sir, just one last question, sir, if you can share the revenues of hydrate and for the DEP of the total INR39 crores, we have reported.
Pramod Bhandari
INR15 crore of the manic and INR22 crore of the DEV.
Aditya Khetan
Okay. Thank you, sir. Thank you.
Pramod Bhandari
Yeah.
Operator
The next question is from the line of Rishikesh from RoboCapital. Please go-ahead.
Rishikesh
Yeah, hi. Thank you for the opportunity. Am I audible?
Pramod Bhandari
Yeah, yeah.
Rishikesh
Okay. Yeah. Sir, can you share what revenues can we do in FY ’26 given that we are aiming to operate about 90% plus utilization levels?
Pramod Bhandari
Yeah. So whatever is that today’s revenue, you can add similar INR50 crore to INR600 crore. So that will be the ending for the year for us.
Rishikesh
Got it. And what margins can we do in FY ’26?
Pramod Bhandari
So I will not be EBITDA margin today. I will not be able to predict it today, but I can tell you net nutshell, for the nine months ended, we had a — for the first full financial year, last year, we have a PAT of INR40 crore and in this nine months, we already have the PAT of around INR90 crore-plus. So I think we are going to cross, I think times to 2.5 times of previous year profitability.
Rishikesh
Okay. And also you shared that FY ’27, if we utilize the plants optimally, we’ll be doing around INR3,200 crores INR3,300 Crores of revenues. Can you share what sort of EBITDA margins are you targeting on that level of revenue?
Pramod Bhandari
I think it will be too early for me to talk about EBITDA margin. I can just give you the guidance amount that revenue range because it all depend upon the plant utilization, overall sales. So EBITDA and all margin, I think you need to wait for that quarter to come. It will be too premature for me to predict the margin, because they all depend upon the market and the margin. If market has X margin, we will have $50 to $100 number of the market in terms of., whatever is the sales we are doing and the market price that sales will be translated to EBITDA.
But plasticizer, generally the EBITDA margin is between 10% to 15%. So I will not be predicting the profitability EBITDA margin on absolute level. Individual level, I have already given you guidance.
Rishikesh
Got it. And lastly, our interest cost is very low around INR3 crores for this quarter. So can you throw some light here?
Pramod Bhandari
So actually the interest cost for the previous quarter was INR16, which has a INR6.5 crore of the INR6.9 crore of the forex impact of the euro depreciation, that impact euro started from 88 reached to INR93, again it back to come to that has been adjusted in the finance cost. So if you remove both the sites, interest cost for more the quarter is INR9.5 crore, more the quarter, Q2 and Q3. But last-time it was the loss on ForEx, this time it was the gain on ForEx. Which I just did?
Rishikesh
Great. Thank you very much.
Pramod Bhandari
Thank you. Thank you.
Operator
The next question is from the line of Chirag from Finance. Please go-ahead.
Chirag Vekaria
Good afternoon, sir.
Pramod Bhandari
Good afternoon.
Chirag Vekaria
Sir, just wanted to understand, we have in terms of the other expenses, that has also gone down. So what has helped sequentially?
Pramod Bhandari
So other expenses has actually gone down from INR102 crores. Typically, other.
Chirag Vekaria
Crore in Q3 such Q2 and then it is INR43 crores.
Pramod Bhandari
So it’s basically the CSR expenditures, the logistics expenditure and all other expenditures are forming part of the other expenditure. If you need the breakup at the top-end, I will just give you. Just give me a second.
Chirag Vekaria
Yeah.
Pramod Bhandari
It has gone down in energy cost typically because the last quarter was a shutdown. This quarter was the shutdown. The last quarter was the for the change in the catalyst. This time was not for the change in the catalyst. Second, the energy cost generally has gone down because the Q2 was the relatively raining season when you need to spend more on the LSF and all that has reduced the INR5 crores to INR7 crore and then there is a lower repair and. So INR to crores is the impact on the lower energy cost and this cost. And typically, last quarter we have spent some money on the CSR. This quarter is yet to be spent, which will be spending in the Q4.
Chirag Vekaria
Okay. Sir, second is this plasticizer, this will start contributing from second-half of FY ’26, right?
Pramod Bhandari
This will be contributing a little bit in the Q4 of FY ’26, little bit, maybe 30%, 40%, 50%. But effectively utilization beyond 50%, 60% will be in Q1 of FY ’26 that FY ’26, ’27, sorry. Now from April ’26 onwards, you will see the meaningful contribution.
Chirag Vekaria
Okay. So as far as the FY ’26 is concerned, what we see is increase in volume from, right? There is no other contributing factor, right? Plasticizer will come into.
Pramod Bhandari
Increase in thalic volume, malic prices are down right now. If they improve, you will see the improvement in this. And then slightly improvement in the DP volume and the volume.
Chirag Vekaria
Okay. And sir, lastly, sir, what is your debt and cash order?
Pramod Bhandari
Debt is around INR225 crores INR30 crores. Cash is around cash plus investment liquid investment around INR300 crores. So it is an ended zero effectively you can.
Chirag Vekaria
Okay. Okay. Thank you, sir.
Pramod Bhandari
Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star N1. Participants who wish to ask a question to the management may press star and one at this time. The next question is from the line of Madhuj Rathi from Investments. Please go-ahead.
Madhur Rathi
Sir, what kind of payback are we looking at our CBG plant?
Pramod Bhandari
Sorry, can you repeat again?
Madhur Rathi
Sir, what kind of payback period are we looking at for the CBG plant investment?
Pramod Bhandari
I think the CBG plant is expected to provide between 15% to 18% of IRR. Based on the today’s market price of the CBG offtake by the government and availability of the raw-material.
Madhur Rathi
So around five years.
Pramod Bhandari
Slightly less than five years because we have conservatively taken the prices. Actual moment is giving now higher than what we have taken. So 15% to 20% is IRR, that is for sure. We don’t do any project less than 15%.
Madhur Rathi
Got it. And sir, on the plastic plant, sir, have we started supplying these pilot samples to our end-customers or.
Pramod Bhandari
No, no, no. No, no.
Madhur Rathi
Plant.
Pramod Bhandari
No, it is under-construction.
Madhur Rathi
Okay, so like nothing sir. So what kind of trial or pilot like.
Pramod Bhandari
I think trial you will see October, November-December, not this that.
Madhur Rathi
And sir from the end-customer customer’s point-of-view.
Pramod Bhandari
You will see the trial to begin in October, November, December. And end-customer point-of-view, we are already producing the DP, which is a specialized plasticizer that we are already selling in the market for last two years. And we have seen a very good and robust demand in the market for that specialized plastic hygen which used in the fragrance types of interest.
Madhur Rathi
Okay, sir. So it’s just a ramp-up kind of a scenario.
Pramod Bhandari
Correct.
Madhur Rathi
Okay. Sir, how do we — our plasticizer would be against our competitor KLJ? And sir, what kind of plasticizer market is currently, what kind of capacity is there currently and at what rate is it growing?
Pramod Bhandari
I think plasticizer has a capacity of 450 to 5 lakh ton. India is actually producing 4 lakh to-4 lakh tonnes, 410, 420. Some guys are under — project are under-construction. Growth is between similar to 5% to 7% like. And we are not competing in that sense of the customer because KLG has the athleic plant, we will have our own plasticizer plant. So both are having both the sides of the business. There are hardly one or two players apart from IG in the market. So IG will be the niche player supplying it to the niche customer and IG will be, I think second-largest or third-largest player and very soon it will be first or second.
So IGA is more or less there are three players, bigger players, small — I’m not talking about small player. Two or three players in Indian market is growing very well. We don’t find any challenge in terms of the overall classifiers.
Madhur Rathi
So one of our competitor, is also getting very aggressive in their growth targets and wa capacity expansion. So do we see any threat of over?
Pramod Bhandari
Can you repeat the name of the party.
Madhur Rathi
And-or all.
Pramod Bhandari
Yeah, they have a plant in India?
Madhur Rathi
Yes, they do.
Pramod Bhandari
So we are talking about helicoplastics.
Madhur Rathi
The plastics there.
Pramod Bhandari
Okay. So they are not in, correct? I think is a growing market in India. It can easily have four to five bigger players. For us, the advantage will be the 35% to 40% of the product is in-house produced by us. Plastic as they require halic and malic apart from the other type of alcohol. So halic mellic will be in-house. Some product — some of the product we need to take from outside. So inherent advantage of production cost will be there with IGPL. So we believe that we will be competitive enough and there is a sufficient market available for the cycle in terms of the overall growth in the Indian market.
Madhur Rathi
Okay, got it. And sir, just a final question from my side, sir, are there any plans to get into some value-added derivative for this plasticizer like our competitor Alai is getting into formic acid as well as some other food and then.
Pramod Bhandari
Evaluation is always under discussion. Once it is approved by the Board and management, we can discuss about that.
Madhur Rathi
Okay, got it. Sir. Thank you so much and all the best.
Pramod Bhandari
Thank you.
Operator
The next question is from the line of Amit from RoboCapital. Please go-ahead.
Amit
Thank you. Sir, my question is again on the margins. I understand that it’s difficult to forecast future margins. I was just looking at historical margins and my sense is that margin seems to be — the peak margin seems to be EBITDA margins about 20% 22%. And if I look at medium or average, my sense is that we can probably take 14% 15% margins as average margins over a long period of time, say, seven years, 10 years, of a time.
Pramod Bhandari
Correct.
Amit
Would you agree with me broadly?
Pramod Bhandari
No, I think I will generally avoid on the call to give any prediction About the margin. As a company, we can always provide that if market is this margin, we will be having $50, $60, $70, $80 over and above. So whatever is the market margin will have over and we will have an advantage because of the operating efficiency. All plants are single-location. So the fixed costs are divided, then we are into the and, which give us the upper in terms of the overall revenue directly translated to EBITDA, then we are doing well in the DEP segment, which we have entered two years back. Apart from that, we produce the acid, now we are planning to get into the plasticizer, which will be probably six to nine months from here. So I think it’s not correct for me to give the guidance. Guidance is always linked with the market. If you should say petrol diesel have a particular GRM, like in refinery, we Call-IT GRM. So you can give guidance, market Singapore GRM X, I will have $200 above this. So nobody can give the guidance in petrochemical in absolute terms. It’s always linked with the benchmarks.
Amit
I’m actually not looking for guidance. I was just trying to figure out what is the internal sense of the management that suppose we were to do a capex, right, on the core business. Typically, we will have to calculate IRR, we will have to look at the margins.
Pramod Bhandari
We — conservatively, we don’t do any investment till it has IRR of 15%. It has to be 15% 20%. Otherwise, we don’t do investments. We have decided not to pursue certain projects if it is less than 15%.
Amit
Sure, sir. I was looking at when you calculate IRRs, you need to put some margins, right? You pay 14% 15% margin in your base-case scenario?
Pramod Bhandari
Yeah, that is absolutely fine. It can be higher on that, but base-case, you can take this. For base-case, you can take $200 margin in the market.
Amit
Okay, sir. Thanks a lot. Thank you.
Pramod Bhandari
Yeah. Thank you.
Operator
Thank you. Ladies and gentlemen, this was the last question for today’s conference call. I now hand the conference over to the management for their closing comments.
Pramod Bhandari
Thank you very much everyone for joining this call. We really appreciate your interest in the company. In case you have any other questions, you can contact SG, our Investor Relations. Advisor can send the bill to us. We are happy to respond. Thank you very much. Have a nice weekend. Bye.
Operator
On behalf of IG Petrochemicals Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.