Ganesh Benzoplast LimitedChemicalsGANESHBE
Q2 FY27 concall · earnings callGanesh Benzoplast Limited
Ganesh Benzoplast is divesting its JNPA, Goa and Cochin liquid tank farm business for INR1,154 crores to repay debt, return approximately INR200 crores via buyback and special dividend, and expand its chemical and EPC businesses.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Divestment consideration for JNPA, Goa, Cochin and rail business | ₹1,154 Cr | — | |
| Expected receipt before January of 2027 | approximately ₹500 Cr | — | |
| Expected receipt before March of 2027 | approximately ₹300 Cr | — | |
| Balance consideration over next 12 to 18 months | ₹354 Cr | — | |
| June quarter chemical turnover | almost 60 crores | — | |
| June quarter chemical profit | ₹6 Cr | — | |
| EPC book with KKR order this year | close to ₹500 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹89.22 Cr-16% YoY-8.6% QoQ | ₹18.39 Cr+14.4% YoY+11.7% QoQ | ₹2.55+9% YoY+11.4% QoQ |
| Q2 FY25 | ₹97.63 Cr-4.9% YoY+11.5% QoQ | ₹16.46 Cr+5.6% YoY+0.2% QoQ | ₹2.29-1.7% YoY+0.4% QoQ |
| Q1 FY25 | ₹87.53 Cr-28.2% YoY-40.2% QoQ | ₹16.43 Cr+6.1% YoY+15% QoQ | ₹2.28-3.8% YoY+12.3% QoQ |
| Q4 FY24 | ₹146.26 Cr+9.1% YoY+37.7% QoQ | ₹14.29 Cr-3.1% YoY-11.1% QoQ | ₹2.03-16.8% YoY-13.2% QoQ |
| Q3 FY24 | ₹106.20 Cr+7.3% YoY+3.4% QoQ | ₹16.08 Cr+10.8% YoY+3.2% QoQ | ₹2.34+0.4% YoY+0.4% QoQ |
TL;DR
- Divesting liquid tank farm business at JNPA, Goa and Cochin plus JNPA-linked rail business for INR1,154 crores plus consideration based on exit valuation of investors
- Expects approximately INR500 crores before January of 2027, approximately INR300 crores before March of 2027, and INR354 crores over the next 12 to 18 months
- Plans to use first tranche for taxes and bank limit closure of approximately INR190 crores to INR200 crores, approximately INR200 crores for buyback and special dividend, and INR100 crores for chemicals and EPC
- Targets growth from current 70 to about INR210 crores of PAT in 3 to 5 years, with chemical PAT of approximately INR60 crores to INR70 crores and EPC PAT of almost INR150 crores
- Chemical June quarter did turnover of almost 60 crores with profit of INR6 crores, with REACH certification and orders of over 600 tons for export, and plant doubling expected in July of 2027
Said on the call
“We have increased the profitability by almost 1,000% over the last 2 years.”
From the Q&A
| Topic | What management said |
|---|---|
| Consideration timeline | Management said about INR500 crores is expected before January of 2027, about INR300 crores before March of 2027, and INR354 crores in tranches over the next 12 to 18 months linked to port approvals for transfer and commissioning of tanks. |
| Use of proceeds | Management said out of the first INR500 crores, approximately INR190 crores to INR200 crores will go to taxes and closing bank limits, approximately INR200 crores to buyback plus special dividend, and INR100 crores to chemical expansion and EPC book, with future tranches used for expansion or shareholder returns. |
| Rationale for LST divestment | Analysts questioned selling the higher-margin LST business; management said it weighed future cost increments, market movement, growth opportunities and valuation, and concluded presenting the deal to shareholders was prudent. |
| Chemical business | Management said chemical turnover was almost 60 crores with INR6 crores profit in the June quarter, current capacity is approximately 1,000 tons a month per plant across two plants at 70% to 80% utilization, with REACH certification in United Kingdom and Europe and over 600 tons of export orders, and doubling of one plant expected by July of 2027. |
| EPC outlook | Management said this year EPC revenue will be around INR50 crores, INR60 crores, rising to around INR250 crores per annum next year with the almost INR300 crores KKR order, with order book expected close to about INR500 crores to INR600 crores next year and PAT expectations of 7% to 8% on a conservative basis. |
| Non-compete and buyback | Management confirmed a standard non-compete, retention of only a small insignificant shareholding in a Kandla terminal, no plan to return to LST in the near future, and that promoters will not participate in the buyback. |
Guidance
- Receive approximately INR500 crores before January of 2027 and approximately INR300 crores before March of 2027, with balance INR354 crores over the next 12 to 18 months
- Allocate approximately INR190 crores to INR200 crores from the first tranche to taxes and closure of bank limits
- Allocate approximately INR200 crores to combined share buyback and special dividend from the first tranche; promoters will not participate in the buyback
- Target at least a 15% to 20% growth year-over-year
- Double capacity in one chemical plant expected to complete in July of 2027 and target chemical PAT of approximately INR60 crores to INR70 crores over the next 4 to 5 years
- Expect EPC order book close to about INR500 crores to INR600 crores next year and target EPC PAT of almost INR150 crores
- Limit Stage 1 capex for chemical and EPC to about INR150 crores
Source
Summary written from the transcript filed by Ganesh Benzoplast Limited for the call held on 7 Oct 2026; published 13 Oct 2026, 12:14 IST.
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