Target: ₹1,639
CMP: ₹1,101.65
The NCLT-approved trifurcation into India Glycols (specialty chemicals), IGL Spirits (spirits + biofuels) and Ennature Bio Pharma (nutraceuticals/APIs) is a major catalyst. This restructuring eliminates the conglomerate discount by creating three pure-play entities, each with distinct operational dynamics, enabling sharper management focus. Post-demerger, each business can pursue its own growth trajectory and unlock significant shareholder value.
IGL Spirits is the dominant market leader in UP/Uttarakhand with captive ENA production ensuring cost leadership. IMFL revenue grew 26 per cent year on year to 1.4 million cases. Premiumisation focus includes new launches in deluxe whisky, semi-premium vodka and white spirits, with revenue growth expected to outpace volume growth.
The management aspired to EBITDA of over ₹500 crore in FY27E and more than ₹1,000 crore over four to five years. India Glycols (Chemicals) is the world’s largest supplier of bio-based specialty chemicals and pioneer in bio based amines and carbon-smart glycols. It has strong partnerships with Dove, L’Oréal, Unilever. In Ennature Bio Pharma, the nicotine business grew 2x quarter-on-quarter with new capacity at Kashipur. The management is targeting ₹130-150 crore EBITDA in four-five years.
We estimate revenue/EBITDA/PAT CAGR of 12 per cent/15.4 per cent/29 per cent over FY26-29E, with EBITDA margin expanding to 16.9 per cent (FY29E). We maintain our “Buy” rating at a TP of ₹1,639 per share, based on SOTP.
Published on August 20, 2026
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