<h1>Ganesh Benzoplast Plots Growth: Land & Profit Outlook</h1>

Ashwin Thakker

— 2 min read
  • Outlook for Sales: Expects 5-6% year-over-year rental income growth for FY26; planning 30-50% increase in JNPT Liquid Storage Terminal (LST) capacity over time. Chemical division expected to maintain steady revenue growth.
  • Outlook for Margins: Chemical division's improved profitability (223% PBT growth in Q1 FY26) driven by operational efficiencies is expected to continue. Future LST lease cost increases are projected to be absorbed within 1-2 years by price adjustments, maintaining margins.

Ganesh Benzoplast Limited (GBL) demonstrated robust performance in Q1 FY26, reporting a 9% year-over-year increase in consolidated revenue to INR 956 million and a 10% rise in consolidated profit after tax. The recent earnings call provided vital insights into the company’s strategic forward-looking guidance, focusing on optimizing its land assets, sustaining the chemical division’s growth trajectory, and enhancing shareholder value.

Strategic Land Utilization and Terminal Expansion

GBL is actively strategizing the utilization of its prime 8.5 acres of land at Jawaharlal Nehru Port Trust (JNPT) following the termination of its Joint Venture. The management aims to finalize plans for either liquid storage (LST) or Liquefied Petroleum Gas (LPG) projects by the end of the current quarter, post-monsoons. An LST expansion could significantly boost the company’s capacity, potentially adding “approximately 1 to 1.5 lakh KL” to the existing 2.83 lakh KL, representing a substantial 30-50% increase. While an LPG project would necessitate external funding, liquid storage development may proceed through internal accruals, with customer demand being a key determinant for investment. The company noted that the profitability for LPG versus LST projects, on a PAT basis, is “not too substantial,” though LPG initially offered assured throughput.

Chemical Division’s Steady Gains and Financial Outlook

Ganesh Benzoplast's Chemical division continues to be a strong performer, achieving a remarkable 223% year-over-year increase in Profit Before Tax (PBT) for Q1 FY26. This significant improvement is attributed to “upgradation of system at plant level, resulting in better yields and changes in raw material procurement policies.” For its core Liquid Storage Terminal business, GBL anticipates a “4% to 5% year-over-year escalation of pricing” for its 100% occupied facilities at JNPT and Cochin, targeting an overall rental income growth of 5-6% for FY26. Furthermore, with the resolution of past legal issues, the company is re-evaluating its dividend policy for the current financial year, signaling a positive outlook for shareholder returns.

Ganesh Benzoplast is strategically positioning itself for sustained growth through efficient asset utilization, particularly the JNPT land. The Chemical division's strong operational performance, coupled with disciplined cost management and a focus on passing on lease cost increases, forms a robust foundation. The re-evaluation of the dividend policy underscores GBL’s commitment to enhancing shareholder value in the current financial year.

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