India Glycols Ratings on Watch with Developing Implications by CARE
India Glycols' credit ratings for long-term and short-term facilities are on Rating Watch with Developing Implications by CARE Ratings. This follows a proposed demerger of undertakings into separate entities. The company raised ₹467 crore via preferential issue in Q3FY26 for debt reduction. CARE expects adjusted overall gearing to decline to ~0.7x by FY26-end.
The 'Rating Watch with Developing Implications' signals potential changes to the company's creditworthiness pending the outcome of the demerger. This could influence borrowing costs and investor perception, making the impact medium.
The credit rating has been placed on 'Rating Watch with Developing Implications' due to a proposed scheme of arrangement and demerger. While the company is taking steps to reduce debt and improve its financial profile, the uncertainty surrounding the demerger's approval and its ultimate impact on the company's structure and financial health warrants a neutral sentiment.
India Glycols Limited (IGL) announced an update on its credit rating from CARE Ratings Limited. The long-term facilities for Term Loan (₹1,229.79 crore) and Working Capital Limits (₹450.00 crore) have been placed on Rating Watch with Developing Implications (RWD). The short-term Working Capital Limits (₹450.00 crore) and Non-fund-based - ST-BG/LC (₹850.00 crore) also continue to be on RWD.
The rating action follows a composite scheme of arrangement approved by the Board of Directors on May 16, 2025, under which the bio fuel and potable spirits undertakings will be demerged into IGL Spirits Limited, and the bio-pharma undertaking into Ennature Bio Pharma Limited. The Bio-based specialities & Performance Chemicals segment will remain with IGL. This scheme is subject to approvals from regulatory authorities and is expected to be completed within six months.
CARE Ratings has also withdrawn ratings assigned to the 'bank guarantee' amounting to ₹72.63 crore. If the scheme of arrangement is approved, IGL will focus on glycols and new specialities. The company's financial risk profile remains moderate, with overall gearing increasing to 0.84x as of March 31, 2025. However, the company raised ₹467 crore through a preferential issue in Q3FY26, which was used for debt reduction, and expects adjusted overall gearing to decline to approximately 0.7x by FY26-end.
The company's liquidity is considered adequate, with gross cash accruals of ₹390 crore in FY25 and expected GCA in the range of ₹440-550 crore in FY26-FY27. Total planned capex for FY26 is ₹150 crore. The company expects revenue to exceed ₹4,400 crore in FY26 with PBILDT margin above 14.25%.
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India Glycols Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by India Glycols Limited. Read the original for the full detail.