IG Petrochemicals Limited (NSE: IGPL) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Pramod Bhandari — Chief Financial Officer
Analysts:
Unidentified Participant
Riya — Analyst
Aditya Khetan — Analyst
Chirag — Analyst
Nirav Jimudia — Analyst
Madhur Rathi — Analyst
Presentation:
operator
It. Sa. Sa. Ladies and Gentlemen, good day and welcome to IG Petrochemicals Limited Q3FY26 earnings call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. This conference call may contain forward looking statements about this company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Pramod Bhandari. Thank you and over to you, Mr. Pramod.
Pramod Bhandari — Chief Financial Officer
Yes today on the behalf of IG Petrochemical, I would like to extend a warm welcome to all the participants. We are also joined by sg, our Investor Relations Advisor. We trust that everyone has had an opportunity to review our financial results and the investor presentations which were uploaded on Stock Exchange as well as company’s website. During today’s discussion, we will briefly begin with the quick overview of the recent industry development, provide an update on the IGPL financial performance as well as the project progress which will be followed by the financial highlights for the quarter. Coming to the Industry the Indian chemical. Industry continued to operate in a challenging environment, saved by the combination of factors including ongoing geopolitical developments, volatility in the crude prices, rising global trade and the logistic cost subdued demand from the key western markets. These headwinds have impacted the performance of the major chemical companies across domestic as well as international market. IGPL is also not entirely immune to these pressures. Companies with a higher dependence on the. Import of raw material, particularly those sourcing raw materials such as Europe China have forced competitively faced greater challenges additions the player with a significant exposure to the US market are impacted by the tariff related uncertainties. However, following the announcement of the US India Trade Agreement, uncertainty surrounding the tariffs have been moderated. Further, the recent development around the EU free trade is also expected to open up the new opportunities for the industry over the medium to long term. While certain downstream segment experienced temporarily softening in demand in earlier quarters, the current trend indicate a healthy demand revival from various end user indices.
The impact on IGP was relatively limited. This is primarily due to the localized customer base. Majority of our customers are located within radius of 200-300km from our facility, providing the logistic efficiencies as well as Demand stability Although IGPL doesn’t directly export to us, however, some of our customers downstream industries cater to the US demand. About IGPL IGPL continue to stand on a strong foundation build our focus on the operating efficiency and cost leadership. We are one of the lowest cost producers of phthalic in India. We are the largest producer of phthalic in the domestic market and second largest producer of phthalic in the global markets.
Over the decade of focused effort and continues to improvement, IGPL has developed a strong manufacturing excellence ensuring a consistent and reliable supply of high quality products. In addition to phthalic undrident, our diversified product portfolio include many unhydrated benzoic acid and DP which cater to the broad range of industries. We expect this product to meaningfully increase their contribution to the company overall financial performance over the next four to five years. Particularly about the Q3. Our performance for the quarterly was impacted because of the compressed margin, lower realization of phthalic as well as soft pricing for the downstream products. These prices pressure largely affected our revenue as well as margin during the period. In addition, the profitability was also impacted. By the higher cost inventory buildup which has been carried forward from the earlier period. From a balanced perspective, the past quarter we had also converted most of our euro debt, euro denominated debt into the rupee so that has significantly saved us in terms of the currency fluctuation and we also repaid a significant portion of our outstanding loan. So this initiative has helped overall reduce the foreign exposure and strengthen our overall financial position. As a part of forward looking strategy, we are continuously focusing on updating our key equipments and improve plant reliability ensuring we are well positioned to capitalize on the future growth opportunity.
On CAPEX front, our advanced plastic project is progressing well and expected to achieve the mechanical completion by the end of March 2026. The plant will have an initial capacity. Of around 75,000 tonnes which can be later on scaled up to 1 lakh. The facility will be manufactured a wide range of plasticizers including DOP, BinP, DBP and EIBP which will captively consume approximate 30 to 35,000 ton of phthalic and when operated at optimum capacity thereby improving the overall value chain and integration. In parallel we are also doing the debacle making of our DP plant which will increase the capacity of DEP from roughly 8,000 tonnes right now to 12,000 tonnes by the end of March 2026. IGPL is also taking concrete step towards green chemistry and sustainable circular economy as a part of this, we have planned to set up a compressed biogas plant at Karnataka.
The project is expected to generate the revenue from sustainable resources by reinforcing our long term commitment to the environment. CBG project is under complementation and is on track to achieve the commercial liability or mechanical completion by the end of the June or July 2026, while the parenthesis plan is expected to be on schedule. Along with these initiatives, we remain focused on enhancing operating efficiency, lowering our carbon footprint across our operations. We are steadily increasing the integration of. Solar power and other renewable energy sources at our facility which will support sustainable and long term optimization. In addition to we also began a phase transition from the conventional fuel including LSFO diesel to the natural gas. This shift is expected to save the cost over the period of time and also improve the energy efficiency and reducing the emissions, thereby aligning our operational objective with the broader sustainability commitments. We believe that the period of complete. Demand for the telekinetic is behind us. Price level across the two products appear to be have bottom out. Looking ahead, we expect to have a gradual improvement in the demand from energy industry supported by the normalization of the market condition. Additionally, the recent developments such as US India Trade Agreement, EU India Trade Agreement present meaningful opportunity for the chemical sector. These initiatives are expected to enhance the market access and improve competitiveness and support the export led growth for igpl. This evolving trade environment also open up the opportunity for potential revenue stream. Positioning the company to benefit from the global demand condition will improve overall.
Considering the favorable global environment and anticipated demand, we remain optimistic about the outlook for the coming quarter. With a strong operational capability and integrated product portfolio and disciplined capital allocation, IGPL is well positioned to capitalize on these opportunity and drive sustainable growth. For the quarter ended 26 total revenue. Was 471 crore reflecting at a 17% decline primarily due to lower realization and impact of high cost inventory. However, the overall sales volume has improved by more than 10% compared to the last quarter. Revenue contribution from the non selling business was about 51 crore. Export contributed 15% to the overall revenue which we have expected significant growth opportunity going forward. Gross profit was 86 crore. EBITDA was testing crore mainly impacted by the compressed margin, high cost inventory and lower realization of the Malican Titrate. For the quarter, companies reported a loss of around 7 crore rupees. Total revenue for the nine months was 14.
24 crore. The non bank business for the nine months was 114 crore. Gross profit was 303 crore and EBITDA stood at 56 crore the total loss for the nine months ended of 14 crore. Because the first quarter was also having a loss, second quarter was profitable and third quarter again the 7 crude loss. Overall profitability was impacted because of multiple factor investing, cost adjustments, NPM charges for the Forex as well as the compressed margin. With this I conclude my presentation and open the floor for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We’ll now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while a question queue assembles. The first question is from the line of Rhea from Equitas. Please go ahead.
Riya
Thank you so much for giving me the opportunity. So I will go. Since we have all the five plants running, what was the capacity utilization this quarter and how. What would be the kind of volumes we have done?
Pramod Bhandari
So typically we are operating right now. Four plants, not five plants. And also one of the plant was set for one one and a half months. So for four plant the capacity utilization. Was around 80 to 85%.
Riya
And why was the first plant working only for one and a half months?
Pramod Bhandari
That was some technical snag that need to be changed. Otherwise we intend to operate only four plants. But there was some technical issue because. Of that it was set for around 20, 25 days. But again it has started in December. Overall sales volume. Overall sales volume compared to the last. Quarter has improved by more than 10 to 12%. It was more than 51,000 I think.
Riya
Last quarter also we had some maintenance shutdown. Right.
Pramod Bhandari
Last quarter was there was a change in the catalyst. We have five plants and every year we need to take two plants for the change in catalyst every two to three years. Three years we need to change the catalyst.
Riya
Yes, but however every quarter there is one plant or so which is.
Pramod Bhandari
We are operating four plants and in that four plants, one of one or two plants need to send down for change in catalyst. Fifth plant is expected to start in line with the plasticizer. Okay.
Riya
So plant will only start with the on the liner and the plastic this March, which is.
Pramod Bhandari
Which is March.
Riya
April. Yeah.
Pramod Bhandari
When plastic as a production will start. Because that plant will cater 70% of the requirement. 70 of that plant production will go to the plasticizers.
Riya
Right? Right, right. Also in terms of spreads, what are the current spreads? Also I’m understanding that since last 2, 3/4 on the Call we have been mentioning that it is going upwards of 100 to 150 range. However it is not reflecting in the margin.
Pramod Bhandari
Yeah, yeah it is. Last quarter was. I think you can say that for last nine months it was the worst quarter where the margin is compressed to around 50 to $100 which was the lowest. And that also the impact of the. Lower realization from the product the higher cost of the orthozylene which has compressed the margin. Second the reason is the low realization. Because $670 was around Malik and which has a revenue of around 11 to 12 crore. But we were expecting 15 to 18 crore every quarter. So that December quarter seemed to bottoming out. All the parties since then the prices. Has gone up from 80 to 83 rupee to 90 to 93 rupee. Now there is. Yeah. December quarter seems to be the bottoming. Out of most of the product prices as well as the margin in January. We have seen very good improvement in overall margins.
Riya
Okay, could you help me in terms of dollar terms what are the current spreads? Right now.
Pramod Bhandari
When you are talking about the market margin it’s between 100 to 120$ and IG margin is generally 40, 50 or 60$ higher. Because the the operating efficiency Malik Bijouga said all advantage. If you consider then you need to add around 70 to $80. Yeah. So earlier I think this number was like I think last two Q2 and Q1 you. I think Q1 you had mentioned that the spreads were around 100 to 120. Levels only 100 to 120 was right. When the Malik prices are very good. Now that 100 to 120 moved to 60 to 80 because of the decline in the malic prices. Because Malik realization in our case is directly added to the ebitda. Right. Malik prices has gone down significantly by I think like 20 25% in last six months.
Riya
Oh, since last one year only. Right.
Pramod Bhandari
Actually historically if you look at Malik was around 20% higher than Telic. So suppose Telic is thousand ten fifty dollars. Malik is twelve hundred dollars. Ideally in last twenty years. But in last one one and a half or two years the Malik is 20 or 30% lower than Thalic. Right. Thalik is 150. Malik is 670. Right. So that’s that has impacted the overall age of our $150 is reduced to 60 to $80.
Riya
Right. So my question is that Malik prices have remained subdued since the last one one and a half year. However we were doing much better margins than the Current quarter. So what has changed? Given that the industry spreads have also remained the same, why is the margin impacted to this extent?
Pramod Bhandari
So there are two reasons. First reason which I mentioned there is. A compressed margin for last quarter. Second we were carrying. So first reason is there is a compressed margin for the last quarter. Second we were carrying some inventory which is of higher cost. So that inventory you are carrying at higher cost that you need to sell as per the prevailing market price. So the result in build the inventory losses themselves. The third point which I mentioned is about the lower realization of the malech and title.
Riya
Right? Could you help me on the first point a little?
Pramod Bhandari
Typically the margin across all segments are impacted. Because the downstream industries to whom we are supply some of them are supplying it to the US market they were not doing well. So that has impacted the overall demand and the margin and margin. When I’m saying margin is compressed it’s not just because of Indian market. In the global market margin has gone down which indirectly impacted the domestic player. Also. Those are three factors put together. One is the compressed margin. The second is lower realization of the malic and dry date. And third is the high cost inventory. Which we were carrying. Now that all are settled up to December.
operator
Sorry to interrupt you ma’. Am. I would ask you to rejoin the queue for a follow up question. The next question is from the line of Aditya Ketan from SMIFS Institutional Equities. Please go ahead.
Aditya Khetan
Thank you sir for the opportunity.
Pramod Bhandari
Thank you.
Aditya Khetan
Now sir, the remaining catalyst chain for this fiscal year has been completed. When you see like the next start in second quarter of. I think it is not there. In next. Next six months it is not there. Okay. It is not planned in March or June. It may be after June but I.
Pramod Bhandari
Don’T have exact date today.
Aditya Khetan
And sir, now we had mentioned like. Because US market was. Because of this tariff impact volumes of end user industries have been impacted. So now what is the negotiations like going on on the table? Are they are the customers expecting an uptick?
Pramod Bhandari
Volume has already improved because the US metal more or less settled and whatever the. Actually if you look at last 9 months so mpm inventory loss comprises around. 40 to 50 crores in last 9 months in the results. So that all matter is settled now. The prices has already bottomed out expected to go up. And we are expected to have more. Than 50,000 ton of the volume every. Quarter or more than that. And then there will be PA5 along with the plasticizer which will further improve. The phallic volume as well as the volume for Plasticizer which will add at. Optimum capacity of plasticizer and PA5 it. Will add thousand crore to the revenue. But I expect 30 35% on annualized basis Starting off the plasticizer gradually it. Will go up to optimum capacity.
Aditya Khetan
Got it sir. On to the DEPs in our existing. Plant of with thousand tons we are. Bottom to that to 12 already. So we have a 75 kilogram plant in completion right now this plant is that toxic.
Pramod Bhandari
There are two plants, one plant I’m talking about the DP which started in 22 that is catering to the fragrance industry. Mainly like all type of fragile chemicals companies like Orient, JB and all that. So these plants which has a capacity. Of around 8,000 ton that we are.
Pramod Bhandari
Right now doing the deep water lacking which will improve the capacity to 12,000 ton. So that is already under progress expected to complete by March 2026. And another plant of plasticizer which is under construction that is separate that doesn’t have a DP that is actually Dupdi. NP and other products. Like expanding into DEP is then more rational like because more customers are phasing out from DEP and looking to other options because. If. You ask me first there is a better margin There is a stability in the pricing and there is a good growth demand. We are not only supplying BP which. Is the base for the fragrance for all type of perfumes and all to. Domestic market but we also caught it to the export market so for us I think DEEP is something which provide greater stability in the overall margin. Right now we are also at DP 40% of market share with 12,010 we. Will have more than 50% market share. In DB deep is a good product. All the perfumes which you are using like a lot of market perfumes are. Available the fragrance, Agarbatti and all that. The base is DP sir what would be the capex on onto this debottle? It’s a 2 to 3 crore very small. It is not the capacity the part. Of the operating cost only operational cost.
Aditya Khetan
Yeah, got it. As of this new plant of plasticizer volumes and and revenue will flow from Q2 Q1 will be there, but very small revenue. But yeah Q2 gradually it will go up from Q2 Q3. Got it sir with this with the high tariff imposition on China so seems like more of material will not not go into US and flow into other markets. Is there any sort of a concern like outside of US the inventory would be very higher that would lead to further softening prices or still as we See like this is the bottom.
So the Malik Android prices I think I believe next one or two is tight because China has a extra capacity which they are supplying to catering to the global market. However with the India and Europe deal trade, free trade is signed. So there will be a lot of opportunity for Indian phallic Malik guys even to sell it to the European market. US market has a certain type of deal but they are providing certain concession.
Pramod Bhandari
To the Chinese market. The Chinese to sell their Melik to the US market and Europe market. So who is selling in China and Europe? They need to compete with the Chinese. But I believe that next six months to one year there will be a compact margin. But logically because today the margin of Malik is below the cost of production. Through the butane route. If you get the butane today in India it will cost 500 to 550. 300 is convergence. 850 to 900 is your breakeven prices are 670 IG case is different. We are using the. We are getting Malik from the wash water. So cost is practically mil. Otherwise if you use the butane route, Malik is not viable today.
Aditya Khetan
Okay, such as one last question. So we maintain that our top line of 2000 crore would be visible. So thousand crore of incremental addition on top line and subsequent at 14, 15% margin. Right now we have revenue between 2,000 to 2,200 crore which is roughly 2 lakh crore of 2 lakh ton of the phthalic which we are selling with malic and benzoic acid with optimum utilization. Or say 90% utilization of PA5 and the plasticizer. We expect to add 1000 crore revenue. If we do utilization of 40, 50% accordingly revenue will change. Yeah, got it. Thank you sir.
Pramod Bhandari
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference please limit your questions to two per participation. The next question is from the line of Chirag from keynote capitals. Please go ahead.
Chirag
Yeah. Thank you for the opportunity. Pramod. Sir, my first question is related to the time of spread you were talking about. So just on a comparative basis on Q1 Q2 were you also specifying Q1 Q2 in with Malic acid or malican hydride into picture? Because in our understanding it was like the spread that you always talk about is an off spread. So this 60 to 60 to $80 spread that you’re speaking about is something new that you have incorporated by specifying Malik and hydrate. So could you give a comparative Directional for the specs for Q3.
Pramod Bhandari
Can you just repeat your question Because I’ve not got. You wanted to ask a question why the additional margin or number of the market margin is coming from. That is your question?
Chirag
No, no, no sir. I’m just saying that since in last two quarters, even in Q2.
Pramod Bhandari
Yeah. When you were specifying about the spread which used to be 100, 120 and last quarter 120, $150. We were talking just about pan up spread. Right. So I will repeat again. Whatever is the market margin, IG used to have 80 to 100 to 120 extra because of operating efficiency yield by product like Melik and Benjogar when the market is compressed. When I am talking about in the margin plus the addition if there is some inventory inbuilt loss and all that loss that will be referring to the financial results. Okay. So it was the extra that we were earning was because of the malic. And benzoic acid specifically and operating efficiency of the yield advantage all three together. And that spread has come down to 60 to $80 for the.
Chirag
Yeah, but it was for the last quarter. Now it has again improved it and it in our case it has also got impacted apart from market margin because the hike of inventory which is now nil because that has been exhausted or sold and now the prices have gone up. So my second question is related to the four plants that you’re specifying about to run every time in the year round the year. So based on my understanding, once the classifier plant will come up. So we will be using three plants.
Pramod Bhandari
For phallic and one plant for plasticizer. And one plant will always be shut down roughly on an annual we will. Be operating five plants. One plant 70% will be utilized for. The purpose of of plasticizer. And out of four plant, one plant will be taken the sundown for change in catalyst. Every year. Probably we would be having two shutdowns every year. I think. I think I will repeat it again every three years. We need to take shut down. So if we have a six plant we need to take down two sundown in every year. Now we have five plant. So every year there will be two shutdown, one year there will be one turn.
Chirag
Got it. And. And sir, this technical problem that we face during the quarter led to one month shutdown.
Pramod Bhandari
Yeah, that has been sorted out and started again back in December. That has not what we did in this quarter compared to last quarter. Last quarter was around 47 times and this quarter was more than 51 this. Quarter was 51,000 roughly last quarter. So basically I don’t want to comment directly on volume but we improved around 10% compared to last quarter. Sales has improved because there was a good inventory line. And Mallet prices currently is 35% is down compared to pan prices. Malik prices are today is less than 700 in personal market less than 400670 to 60. This is. This is because of the excess supply from Chinese. I think there are multiple factors. It has actually been going down for last one one and a half year from thousand to nine 850900800 now 750 then now again below 700.
Chirag
Just two questions from my sector. First is when you’re saying that we are expected to get mechanical completion for the plant or plasticizer in Q4. When can we expect the plant to. Commission completely after the dry diagnosis?
Pramod Bhandari
I think generally one month. So that’s why I mention it. There may be some quantity of production of plasticizers but that will not be high in in up till May June. But you will see the gradual improvement from July as a September in production of plastic.
Chirag
And just last any update on the CBG plant? It is expected to be completed in Q2.
Pramod Bhandari
I think construction is going on. We expect mechanical completion to happen in June 2026. Construction is right now on.
Chirag
And what are the. What is the raw material that we would be using in cbg?
Pramod Bhandari
We will be using the native grass. And the agrob waste. As a raw material for CBT production. Yeah. And the raw material would be available at the nearby area. Yeah, yeah. It is. It is abundantly available. It is actually the plant is in between the sugar belt and all other belts. It’s a rice is the center place. Surrounded by a lot of sugar factories and other factories. Agro waste is available and natural grass is being grown to supply.
Chirag
And what would be the size of the plant?
Pramod Bhandari
The size of the plant is 5 ton per day. The production of of CB 5.2 or 5.3. It’s a pilot plant for TBC. Yes. 300 days in a year. 350 because there is no other problem in that plant. 330 to 350 is the production period.
Chirag
Got it? Yeah. Hello. Yeah. Yes, that’s it from my side. Thank you sir.
Pramod Bhandari
Thank you.
operator
Thank you. The next question is on the line of Nirav Jamudia from Anvil Wealth. Please go ahead.
Nirav Jimudia
Yes sir. Good afternoon and thanks for the opportunity. So two questions. The first is on the user industry side like UPR and pigments were Indirectly affected due to the US tariffs because we were doing lot of exports from India in terms of both these products put together. So if you can just help us understand in terms of the volumes which we were catering to these segments before the tariff and after the tariff, how much of the volumes would have impacted.
Pramod Bhandari
So I think this point I can’t give you because after the tariff volume is yet to improve which we will see gradually. Typically paint, plasticizer and pigment put together is 50 to 55% for us. Paint, pigment and plasticizer is between 50 to 55% put together. Balance is the specialty, chemical, DEP and other plasticizer.
Nirav Jimudia
paWhat I was trying to ask you is that let’s say when the tariffs were in place and when the tariffs were not in place.
Pramod Bhandari
I’m not talking about the existing situation. So basically two segments which were impacted, one is UPR and some portion is. The the regime and the CPC. So overall difference will be 5 to 10% of the sales. We expect that in this segment sales will improve by 5 to 10. Correct. So let’s say if we are doing a volume of 50,000 tons, 2500 tons were impacted which should come to us on a steady state basis as Correct. Correct. Go. Absolutely right.
Nirav Jimudia
Correct. And sir, with reference to the paint which you just touched upon, like a nuclear gas being consistently increasing its market share. So are we currently supplying to them and each year what sort of monthly volumes we are catering to.
Pramod Bhandari
So typically we are supplied to all paint companies in India and the typical volume for the paint company is around. 15 to 20% of our production. 15 to 20% because it’s a seasonal. Sometime it’s 15, sometimes 17 because in gaming season the paint demand will low, plasticizer will improve. So it’s change quarter to quarter. Correct.
Nirav Jimudia
The second question is on the imports. Of OXO with this EU FTA going. So like EU FTA in place. So from next year onwards we’ll start. Getting the benefits of the deal. So are we importing anything from Europe in terms of oil?
Pramod Bhandari
So that the beauties which currently are. There, we don’t import anything from US Europe but there may be opportunity to sell the product in Europe where the prices are good. However we need to check the logistic point of view. And second is 60% or 65% of product which is being sold for helic in Europe is molten and around 30, 35% is on flex. So we are generally domestic market, we produce flex because molten is not easy to transport. There is a limited opportunity for the Indian player in European market. However we need to check the commercially based on the logistics. Correct?
Nirav Jimudia
Correct. Yeah. Correct. And the last question from my side. You mentioned about 9 month inventory loss figure of close to around 45 crores. If I heard you correctly. If you can just quantify.
Pramod Bhandari
Okay. I will tell you. I will just mention that the M2M charges and inventory effect is 40, 45. The box put together M2M was around 25 to 28. And then 10 to 15 was invented. Box put together was 40 to 45 crore. In which in the financial results for nine months. Correct.
Nirav Jimudia
Is it possible to share the inventory loss figure for Q3?
Pramod Bhandari
We don’t have a direct number calculated for that. It’s a cumulatively and it is not reflected in the results. That is how we internally calculate. Because the high cost inventory remain in your book and then you are selling it then the loss which is being calculated. So it is in between those separate calculation done by us for inventory. However for M2M we have already provided in the nine month results.
Nirav Jimudia
Correct. And sir, with the plasticizer plan getting commissioned currently we are around. Let’s say you would take 2 lakhs. 2 lakh 5000 tons of volume.
Pramod Bhandari
Correct.
Nirav Jimudia
So how our volume should optically look like in terms production for FY27.
Pramod Bhandari
Any guidance which you can check 2627. Ideally it should be between 230 to 235. Out of that 5 to 10,000 ton. Will be for plasticizer and DP. And around 220 to 225 should be for pH.
Nirav Jimudia
Perfect. Thank you so much sir and wish you all the best.
Pramod Bhandari
Thank you.
operator
Thank you. The next question is from the line of Madhur Rahati from Countercyclical Investments. Please go ahead.
Madhur Rathi
So Mr. Bhandari, disappointment seems to have. Become the destiny of IG Petro shareholders. Every quarter either there is a planned shutdown or unplanned shutdown or some technical breakdown. So. But the bottom line is that the numbers are really disappointing. And it is reflected in our stock price. The net worth is over 1300 and the market cap is around thousand crores. So basically market doesn’t believe our network. That so. I mean that’s what the means when the market. When the market cap is below network. So any plans to do share buyback? And why are we wasting money on cbg Plant paralysis oil and other exploring downstream chemistries when the core business is trading below book value. So why not just do a share buyback?
Pramod Bhandari
Okay, let me explain you about the industry first. Your comment is very blunt. But let’s Understand the industry, how it works. So IGPL is the largest pair of thalic. It is a cyclical industry. We understand that the margin move in. Line with the international market price. We have expanded our capacity. However, the plasticizer got delayed by some. Three to six months. When we start the plasticizer then we will get the advantage of complete integration of PA5 and the plasticizer. Coming to your point, the market, the book value and all that. I think that is the one way of looking at the investments. But we are focusing on improving our efficiency. When the market is bad, you can look at how you can optimize our cost. How you can improvise our overall margin. When market turned up like in January, we see that there is a good revival in the market. The margin has improved. So I don’t think it the investors would look at one or two quarter results.
And it’s not for ig. You look at the entire industry of the telegram market. So companies when the company is doing or company is not making money. Nothing to do with the company. It’s the performance of the market. And the margin company is not different from the market. If market is having X margin, company can have an improvement of 50, 60. 70 over and above.
Madhur Rathi
So Mr. Bandari, I understand the point you are making. In fact you are proving my point that we are in a cyclical down cycle. We have a great future ahead of us. We have expanded capacity and this is a temporary down cycle. Then that is exactly the time when share buyback should be done. So that all the future growth can get divided on a smaller page. My dear friend, decision is taken by.
Pramod Bhandari
The management and the board. You and me discussing can’t decide that. That is one but the other opportunity. You always look at the equity market point of. I understand our point of view. Another thing which I need to highlight. For last nine months, while we are operating four plants, the interest and depreciation is being charged for the five plants. So the what happened in the last nine months doesn’t necessarily meaning that the future will not be changed. It is. You need to wait for one or two quarters. You will see a gusting improvement in. The performance of the company. Right, sir. So why is our interest cost high for the past two quarters? If you could just help us bifurcate. Is it because of the euro loan that we. So if you go to bifurcate interest. The interest cost is not high. We have already projected for 36 crore in the interest in 2024 March when we completed PFIF. The debt of the PFIF is also reflected in the P and L in depreciation and the interest of PFIF which is yet to start the operation in terms of the production. So what you are seeing is 30. 36 crore. 36 to 38 crore was the financial interest and finance cost. However there is a minor impact of change in the interest rate from converting into Euro to rupee. However we have prepaid a loan of 45 crore so that is somehow balance it out.
So if you look at the overall interest cost because we have a treasury income of 20 to 24 crore effective interest cost in our balance it is 15 crore. For a company which is revenue between 2000 to 3000 crore. I think this is the fair one of the best in the industry. Right. So if I were to bifurcate the 10.4 crores of finance cost that we did in this quarter. So if you would just help us understand how much was towards interest and how much was towards other charges related. To all these factoring and euro loan conversion. 3, 3 to 4 crore rupee was. On account of term loan interest balance. Is the working capital charges, LC charges. Bill discounting charges and other bank charges. And around one one and half crore was the M2M for balance 5 million euro loan which is lying in the balances. Because we have converted 100 crore loan from Euro to rupee. But one loan which is 1.1% interest is still in euro. For that we need to charge M2M which is reflected in M2M as well part of interest cost. Right.
Madhur Rathi
So just a final question from mine sir. At what multiple do DEP and plasticizer realization can we expect versus realization? And sir, is it fair to assume that closer to 3,000 metric tons of thalic will be used for the expanded DEP capacity?
Pramod Bhandari
Correct.
Madhur Rathi
So basically when a DP is assuming it beep is operating at 75,000 ton then 30 to 35,000 ton Pellic will. Be used in that which is roughly 40% of the DEP. Now coming to a second question. What is the marking? I am assuming the we are transferring the pelic at a marginal cost or the lowest cost to the DP plant at which we are selling our selling in the market. If you consider that then the the the plasticizer margin is around 10 to 12% over and above the margin today. Answer on the realization front.
Pramod Bhandari
Basically realization front you can assume that right now at 75,000 ton sales is coming around 950 to 1000 crore. So it typically when you are considering phallic as a 1991 the weighted average because there are 67 type of plasticizer is coming between 100105 to 110 depend upon which type of plasticizer. Because plasticizer raw material is not only phallic but also the different different type of alcohols and some catalyst. So all put together you can say if plasticizer is 110 then 100 is the cost of raw material for the all plasticizers. Right? Including conversion cost. Yeah.
Madhur Rathi
Answer for DEP what would that number be?
Pramod Bhandari
BP Again DP we are actually more than 12%. We are making the margin on DP. When I then I’m saying 12%. I assume whatever helic we are transferring to DEP that margin is considered in Telix over and above we are making 10 to 12% in DP.
Madhur Rathi
Got it. And sir, what is. What is the revenue from DEP in nine months? And what was the volume in nine months that we did for this product?
Pramod Bhandari
So DP right now we are selling around 1500-2000 ton in a quarter. So typically right now annualized volume is around 6000 ton for the DEP.
Madhur Rathi
Got it. And revenue revenue at at 6766510 is around 100 crore. But today the last quarter the phalic prices and the DP prices was low. So the revenue in the last quarter was 1515 and half crore. So Mr. Bandari for next financial year what is the expected volume in of Thalik which I mentioned?
Pramod Bhandari
I think you were there on the call. We expect the volume of pure helic 22, 25,000. The production is expected between 230 to 235. 7 to 8,000 ton will go to the DP and the plasticizer. And balance to that 20 to 225 will be in the available in the market for sales.
operator
I may request you to rejoin the queue for a follow up question. The next question is from the line of Aditya from Securities Investment Management. Please go ahead.
Aditya Khetan
Yeah. Hi sir. Thanks for the opportunity. Sir, I believe the Chinese government had removed the export rebate on Phallic Niji. So have we seen a similar. Have they done similarly for Malicon hydrate as well?
Pramod Bhandari
Can you repeat your question? What they removed?
Aditya Khetan
The Chinese government had removed the export rebate which they are providing to their producers who are manufacturing silicon hydride. So has that similar thing happened in case for malic anhydride as well?
Pramod Bhandari
No, not yet. I have not seen any publication or notification.
Aditya Khetan
I believe that expanded this malic an ideal capacity is because we are going to implement single Use plastics. So Malic an ID was going to be used in bio for manufacturing bioplastics. So has that. Has that got delayed?
Pramod Bhandari
Actually not delayed the they were planning to implement in 22 compulsory implementation. Then they decided to do 25. They further extended the date. So right now biodegradable is not compulsory by law it’s optional. So because of that not everybody intended to convert the Malic into video and video to PB80 and PBT which is the biodegradable plastics. So to that extent the Malic is not being used for biodegradable. They will continue to sell Melic into the international market.
Aditya Khetan
Understood sir. And now sir, you mentioned that currently Malik and producers are selling below cost Especially especially those who are manufacturing through butane route. So how are the Chinese able to do it? Because I don’t believe they have their own butane capacities so just wanted to get a better flavor. How are they able to manufacture at such a price?
Pramod Bhandari
The Malic in Chinese are being produced for butane and which is an integrated part of refinery compactor chemical complex. So butane is basically the part of C1, C2, C3 and whatever butane is mixed butane then they convert it into N butane and again balance butane. Because in the Malic process you take 100 kg of gas use 60,40 you need to again give back to the refinery to pull it with the LPG pool. So around 60 gas is used and 40 go back to the source. So they are manufacturing the Malik which is the fully integrated refinery computer chemical complexes.
Aditya Khetan
Understood? Understood sir. Got it. And lastly sir, for Thalit and I tried just wanted to get a sense are the current lower prices is it because of lower demand or there is extra supply? Just some kind of outlook or flavor you could provide on Thalid and I.
Pramod Bhandari
Guess you are talking about Phalico Malik Sir, I think Phallic the overall there was a geopolitical uncertainty and everybody was under negotiation. So there was. There was an issue because lot of downstream of the Thalic players like UPR they are selling 70, 80% of their product like artificial marble into us because of geopolitical issues the downstream industry got impacted. That has changed the balance of demand and supply. That’s why the margin got impacted. Since now the Europe, Australia, the US deal is concluded we have seen the uptick in the demand as well as overall margin.
Aditya Khetan
Thanks for answering my question.
Pramod Bhandari
Thank you.
operator
Thank you. Participants may limit their questions to 2. The next question is from the line of Prasad from Kamayakya Wealth Management. Please Go ahead.
Unidentified Participant
Thank you for the opportunity, sir. So you mentioned that the CVG plan. Will go right from June 2026, right? Yeah. And when. When does the paralysis oil plan go live?
Pramod Bhandari
That I think I will not be able to tell you right now. But we are trying to get it before September. Because paralysis the CBGs I think work is more than 50% over. CBD is under construction is given to the PRAJ. Everything is settled Paralysis. I think plant construction is yet to start. Basic and detail engineering is just completed. Probably next quarter. I will give you the exact time. Okay. And can you just repeat at Ms. I guess I must heard. Can you repeat the spreads that we earned in Q3 on panox spreads?
Unidentified Participant
What are they? What are they at currently for us? Thank you.
Pramod Bhandari
In the result the spread which is reported is around $90 per ton. Which include the basically low realization of Malik compressed margin inventory, excess high cost inventory, everything is inbuilt. Market margin is around 60 to $80 or $100. Generally IGPL earn around 50 around 6080. To sometimes 100 to $120. Because of operating efficiency as well as the byproduct. But this time all put together there is a pressure on the downstream industry. There is a compressed margin. The lower realization of the malic andridate and overall operating performance. There was M2M in high cost inventory all put together is expected for last nine months. If you look at the financial performance it’s M2M charges, inventory loss, everything built together. And there was some unplanned shutdown also which has also cost in all has been inbuilt in the results. We expect that Q4 will be better, much better than last nine months.
And going forward you’ll see the improvement when we start the PFI as well as the plug effect.
Unidentified Participant
Got it, sir. So just one clarification. So the spreads that we mentioned at 100120 are. Are what we are earning currently, right? In Jan Feb.
Pramod Bhandari
I would not like to comment it. It’s a market margin and what IG will earn in the quarter that will be reflected in the result.
Unidentified Participant
Okay, sir.
Pramod Bhandari
So the market. Market spreads right now are at 120. Correct. Okay.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Kunal from Alpha and alternatives. Please go ahead.
Unidentified Participant
So to understand this slide we are at 110 to $130 spread now. And we do a volume of typically between 45,000 to 50,000 a quarter. And given these typically 50,000. 50,000 plus minus 5%. Yeah. 50,000 ton. Assuming there are no inventory losses now and M2M is largely gone. M2M is largely gone. We should expect a bit of 100 of 50 to 60 crores every quarter, right?
Pramod Bhandari
Yeah.
Unidentified Participant
Sir, also when we say that depreciation and interest is being charged for five plants and that is being absorbed by sales of four plants. But as I correctly hear you always one plant will be on on shutdown. So does this engine.
Pramod Bhandari
No, I will Repeat it again. PFIR will be starting along with the plasticizer. Four plant will be operating at 90 capacity. One plant out of four will be set for one month for change in catalyst.
Unidentified Participant
Oh, that is only for one month. So secondly, downstream capacities for PAN they were downstream industries were operating at 30, 40%. Has there any. Is there any upward trends there?
Pramod Bhandari
No, no downstream industry is paid. Plasticizer, pigment, cpc we are supplying to most of the chemical companies when we started plasticizer when we are planning to start in. In March mechanical completion and pray May. When we start plasticizer the volume will not go up in one day. Gradually it will start and gradually it will go. We expect 30, 35% of the volume. In the first year for the plasticizers. So not about plasticizers are UPR and pigments which are our downstream industries which. We supply to UPR up paint, plasticizer, pigment and CPC is around 50 to 55%. UPR and the DP put together is around 20%. Balance is other industries sir, and what.
Unidentified Participant
Would be the reason that PAN prices have risen up 1015% in last one month? Is there any pinpoint reason? And secondly to understand are there any triggers in Indian market which will drive the realization more than global markets in next few years.
Pramod Bhandari
So first question, your question is what are the reasons? So basically because of the geopolitical uncertainty. There was an imbalance in demand supply. And there were a lot of free. Trade agreement is being executed between various countries. So that clarity has come. I think most of the free trade. For India and other European market has already been concluded. Now US free trade is also in place. So overall demand in the downstream lot of downstream industry which was selling it to US and Europe they were not able to operate because there was a restriction in terms of the duty like 50% duty. You can’t sell it to Europe. Whatever product you are producing now with that clarity the overall production of the downstream industry has improved which in turn I’m not saying improvement in demand but returning of the demand which was subdued because of these results. So that has improved. And the second is it has gone to the level where the it is very difficult for the company to recover the operating cost no product can be sold for a longer period of time below the operating cost or basically the your cost of production so the prices and the margin has already bottomed out and since there is a improvement in the sentiment we have seen the good price appreciation between 80 to 83 rupee to 93 in a period of 15 days.
Unidentified Participant
So lastly on if you can tell us for next two years what will be the capex? Any any clarity on subsidy of your own old plant and as your competitor has filed add measure to be considered by government what could be the timelines we could expect for this?
Pramod Bhandari
I think all players put together a. File for LED which is review is expected to come up in August September. So it’s a from industry if no one person is filing it’s from industry we expect overall margin to improve in. Next one or two quarters and we’ve already seen in Jan and Feb. March we have expected to be good what. Was your second question?
Unidentified Participant
Capex for next two years and subsidy.
Pramod Bhandari
Clarity Capex Capex I think we have a capex of plasticizer which will be. Over by March which is. I think we already done 120130 crore. Around 3040 crore is pending for plasticizer. CBG capex is around 3035 crore we are already doing it so put together right now the for the capex plan you can say around 40 to 50 crore for next year the subsidy clarity if any we have got in principle. Approach from the government from subsidy capital subsidy from the government and we have. Applied to get the money from government in for 2425.
Unidentified Participant
Okay thank you.
operator
Thank you ladies and gentlemen Due to time constraints we take that as the last question of the day and now I would like to hand over the conference to Mr. Bhandari for closing comments.
Pramod Bhandari
Difference I think we have discussed the results in detail Only point I need to highlight is all chemical companies I’m not talking about IG. Is facing some challenges because of geopolitical issues compression in the margin but I. Believe there is a better time going ahead. I have witnesses in all chemical companies. Because we are supplying to most of. Chemical companies which is 70 to 80%. So we see there is a clear cut improvement in the margin going forward and we expect that not only there. Will be improvement in margin for IG but also improvement in the volume in. Terms of the telecontrollers and plasticizers so we expect 2627 will be much better than last year. Thank you very much for the call.
operator
On behalf of IG Petrochemicals limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. It.