IIG PETROCHEMICALS FUNDAMENTAL RESEARCH REPORT

G Petrochemicals (NSE: IGPL, BSE: 500199), part of the Dhanuka group, is India’s largest maker of phthalic anhydride (PAN) ,with about half of the domestic market, fi ve PAN plants at one Taloja (Maharashtra) complex, and by its own account thelowest cost of production in the industry. It is also India’s only maker of maleic anhydride (MAN), which it recovers from PANwash water, and it makes benzoic acid and di-ethyl phthalate (DEP). PAN goes into plasticisers, paints (alkyd resins),unsaturated polyester resins and pigments. Most customers are within 150-200 km of the plant. Rated IND AA-/Stable . Event 1 - the cycle turned in Q1 FY27. After a near-zero FY26 (consolidated PAT Rs 2 Cr; standalone Rs 23 Cr, after inventorylosses and weak spreads), Q1 FY27 standalone revenue was Rs 625 Cr (+30%) , EBITDA Rs 120 Cr (19.2% margin vs 2.7%) andPAT Rs 71 Cr (consolidated Rs 66 Cr). The gain came from price, not volume: the Middle-East confl ict lifted ortho-xylene andPAN prices 30-40%, and volume was 10-15% lower than in Q4. Management puts the market spread at $250-300/t (10-yearaverage $200-250) and says IGPL earns about $100-120/t more through yield and by-products. About Rs 10-15 Cr of Q1 waslow-cost inventory sold at high prices. Event 2 - protection renewed.