1:2 Stock Split: Ethanol stock in focus after company announces record date as 12th August

Synopsis:
Set for a 1:2 stock split on August 12, the ethanol player reported higher Q4FY25 profits despite lower revenue. With strong ethanol capacity, diversified facilities, and manageable debt, it drives growth through biofuels, specialty chemicals, and spirits.

India’s ethanol sector is a cornerstone of its green energy transition, aggressively pursuing a 20% ethanol-petrol blend (E20) by 2025. This ambitious goal is already within reach, with blending rates hitting a record 19.6% in early 2025. This progress is fueled by a massive scale-up in production capacity, now exceeding 1,685 crore litres.

With a market capitalization of Rs 5,253.24 crore, the shares of India Glycols Ltd were trading at Rs 1,696.70 per share, decreasing around 2.52 percent as compared to the previous closing price of Rs 1,715.70 apiece.

The company has set Tuesday, August 12, 2025, as the “Record Date” for determining entitlement of Equity Shareholders for sub-division/split of existing equity shares of the company in the ratio of 1:2, i.e., 1 equity share having a face value of Rs. 10 each, fully paid up, will be subdivided into 2 equity shares having a face value of Rs 5 each, fully paid up.

Looking forward to the company’s financial performance, revenue decreased by 7 percent from Rs 926 crore in Q4FY24 to Rs 863 crore in Q4FY25. Further, during the same time frame, net profit increased by 52 percent from Rs 42 crore to Rs 64 crore.

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In Q4FY25, revenue mix shifted with BSPC at 29% and Bio-Fuel rising to 32%, while PS contributed 33%, showing a stronger balance versus Q4FY24. EBIT mix saw PS dominate at 61%, up from 43% last year, indicating improved profitability, while BSPC declined from 36% to 23%, reflecting a strategic realignment across business segments.

The company operates advanced manufacturing facilities across Kashipur, Gorakhpur, and Dehradun. Kashipur, a 300-acre complex, focuses on ethanol, biofuels, chemicals, and industrial gases. Gorakhpur specializes in ethanol production and IMFL bottling, while Dehradun’s 1,60,000 sq. ft. facility excels in high-purity extractions, SCFE, and bio fermentation, showcasing strong integration and diversified capabilities.

With long-term debt of Rs 1,200 crore split between Spirits (Rs 700 crore) and Chemicals (Rs 500 crore), the company plans annual repayments of Rs 150–160 crore and Rs 90 crore, respectively. A Rs 1,300 crore capex cycle is largely complete, with only maintenance spends ahead. FY25 cash profit of Rs 360 crore ensures comfortable debt servicing.

India Glycols Limited is engaged in manufacturing green technology-based bulk, specialty, and performance chemicals and natural gums, spirits, industrial gases, sugar, and nutraceuticals. The Company’s segments include Bio-based Specialities and Performance Chemicals, Potable Spirits, and Ennature Biopharma.  

Written by Abhishek Singh

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