Shares of Gulshan Polyols Ltd rallied 5% on Thursday, December 19, after the company announced receiving a production-linked incentive of Rs 2 per litre for bio-ethanol, with its Goalpara plant being the key beneficiary.

In its regulatory filing, the company said, “We hereby wish to inform that the Company’s 250 KLPD plant located at Goalpara, Assam have received in addition to the eligible benefits under Assam Ethanol Production Promotion Policy, 2021 (AEPPP Policy), A Production Linked Incentive (“PLI”) of Rs. 2/Litre of bio-ethanol initially for 3 years, which shall be effective prospectively by “Government of Assam”- Cabinet Meeting held on December 7, 2024.”

The company added that they expect to receive an estimated benefit of Rs 50 crore for a period of 3 years, which is over and above the incentives already being awarded to the company under the AAP Policy. 

The filing added, “These incentives are expected to enhance our operational efficiency, support production growth, and contribute positively to the company’s overall performance.”

Gulshan Polyols specializes in producing a wide range of grain- and mineral-based chemicals, serving industries such as toothpaste, alcohol, sweeteners, paints, paper, pharmaceuticals, plastics, and personal care. The company operates through three primary divisions: Mineral Processing, Grain Processing, and Ethanol (Biofuel)/Distillery.

On the financial front, Gulshan Polyols posted a 42.41% decline in net profit, reporting Rs 1.29 crore for the quarter ending September 2024, compared to Rs 2.24 crore in the same period last year. Despite this, the company saw a 43.09% growth in sales, reaching Rs 440.47 crore in September 2024, up from Rs 307.83 crore in September 2023.

At 1:32 pm, the shares of Gulshan Polyols were trading 2.66% higher at  Rs 180.10 on NSE. 

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