IG Petrochemicals Ltd (IGPL) reported strong margin performance on the back of favourable PAN/OX spread during the quarter. Revenue de-grew by 9.1% YoY to INR 2424mn (est INR 2621mn) mainly impacted by lower realization due to soft crude oil prices. However, demand is fully recovered in Paints and Plasticizers to pre-COVID levels. EBITDA surged by 191.5% YoY to INR 418mn (est INR 235mn) with 1186bps YoY expansion in margin from 5.4% in Q2FY20 to 17.2% in Q2FY21 (est. 9%). This was mainly due to 1134bps expansion in gross margin (33.4% vs 22.4% in Q2FY20) on account of improvement in PAN/OX spread. Currently, PAN/OX average (avg) spread is around $200 (vs avg $150 in Q1FY21) compared to 10-year avg of $200 vs $100 in FY20. We believe spreads can continue to remain favourable in the near term on the back of healthy demand in the Paint and Plasticizer...