Ganesha Ecosphere Limited reported a significant acceleration in profitability for the first quarter of FY27, with standalone net profit rising 79% year-on-year to ₹13.75 crore. The growth was underpinned by an 18.4% surge in revenue from operations to ₹262.30 crore, reflecting strong demand in its core manufacturing segments. Consolidated net profit more than doubled, jumping 170% to ₹29.03 crore as group revenue expanded 25.7% to ₹423.67 crore.

The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, at a meeting held on August 3, 2026. The approval followed a review by the Audit Committee and compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Narendra Singhania & Co. conducted a limited review of the financial statements in accordance with Standard on Review Engagement (SRE) 2410.

Financial Performance Highlights

Standalone revenue from operations increased from ₹221.47 crore in Q1FY26 to ₹262.30 crore in Q1FY27. Total income stood at ₹265.82 crore, while total expenses rose to ₹247.36 crore, primarily due to higher costs of materials consumed at ₹195.11 crore compared to ₹160.09 crore in the prior year period. Despite the expense increase, profit before tax grew 79.8% to ₹18.46 crore. After accounting for tax expenses, including a deferred tax credit of ₹0.37 crore, the bottom line expanded significantly.

On a consolidated basis, revenue from operations reached ₹423.67 crore, up from ₹337.12 crore in the corresponding quarter last year. Consolidated profit before tax rose sharply to ₹37.09 crore from ₹14.32 crore. The share of loss from associates was minimal at ₹0.09 crore. Consolidated net profit for the period was ₹29.03 crore, a substantial improvement over the ₹10.75 crore recorded in Q1FY26. Basic earnings per share for the consolidated entity stood at ₹10.86, compared to ₹4.23 in the previous year.

What the Numbers Show

The divergence between revenue growth and profit expansion highlights improved operational leverage. While standalone revenue grew by 18.4%, profit before tax surged nearly 80%, indicating that cost structures did not scale linearly with top-line growth or that higher-margin products contributed disproportionately to sales. The increase in material costs was partially offset by favorable inventory changes, which reduced standalone expenses by ₹25.79 crore. This suggests efficient working capital management during the quarter.

Strategic Investments and Compliance

During the quarter, Ganesha Ecosphere invested ₹98.00 lakh towards the subscription of equity shares in Ganesha Recycling Chain Private Limited, an associate company. This move aligns with the group’s broader strategy to strengthen its recycling ecosystem. The Group operates without reportable segments as it manufactures products of the same type or class, per Ind-AS 108. Previous periods’ figures have been regrouped where necessary to conform to current classifications.

Ganesha Ecosphere Limited has filed a corrigendum to its audited consolidated financial results for the quarter and year ended March 31, 2026, correcting a clerical error in the Trade Payables disclosure under Current Liabilities in the Statement of Assets and Liabilities. The company clarified that the correction does not impact the audited figures or any other disclosures made in the financial results, and that the total trade payables figure remains unchanged.

Trade Payable Correction Details

The inadvertent error pertained solely to the bifurcation of trade payables between micro and small enterprises and other creditors. The corrected figures are presented below:

The company confirmed that except for the error cited above, there is no change in any other figure. The revised financial results incorporating the above changes have been hosted on the company's website.

Consolidated Financial Performance — Quarter and Full Year

For the quarter ended March 31, 2026, consolidated revenue from operations stood at ₹42,394.13 lakh, compared to ₹34,437.99 lakh in the corresponding quarter of the previous year. Full-year consolidated revenue from operations was ₹1,48,166.29 lakh against ₹1,46,570.55 lakh in the previous year. The following table summarises the key consolidated financial metrics:

*Not annualised

Standalone Financial Performance

On a standalone basis, revenue from operations for the full year ended March 31, 2026 was ₹1,01,410.25 lakh compared to ₹98,387.91 lakh in the previous year. Standalone net profit for the year stood at ₹4,783.24 lakh against ₹7,548.07 lakh in the previous year.

*Not annualised

Balance Sheet and Key Investments

As at March 31, 2026, consolidated total assets stood at ₹2,00,337.97 lakh, up from ₹1,93,420.11 lakh as at March 31, 2025. Total consolidated equity increased to ₹1,27,567.10 lakh from ₹1,15,067.47 lakh. On a standalone basis, total assets were ₹1,54,915.29 lakh as at March 31, 2026 against ₹1,38,892.61 lakh in the previous year.

During the quarter, the company made the following investments in its subsidiaries and associate:

• Rs. 320.00 crore towards subscription of Compulsorily Convertible Cumulative Preference Shares of Ganesha Ecopet Private Limited, a wholly owned subsidiary
• Rs. 90.00 crore towards subscription of Compulsorily Convertible Cumulative Preference Shares of Ganesha Ecotech Private Limited, a wholly owned subsidiary
• Rs. 49.00 lakh towards subscription of Equity Shares of Ganesha Recycling Chain Private Limited, an Associate Company

Labour Codes Impact and Dividend

The Government of India, vide Notification dated November 21, 2025, notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020. In accordance with Ind AS 19, the consolidated group recognised past service costs of Rs. 110.92 lakhs in the previous quarter ended December 31, 2025, and an additional Rs. 96.07 lakhs in the current quarter, both included under employee benefit expenses. On a standalone basis, past service costs of Rs. 103.09 lakhs were recognised in the quarter ended December 31, 2025, with a further Rs. 96.81 lakhs recognised in the current quarter. The Board has recommended a dividend of Rs. 3.50 per share on equity shares of Rs. 10/- each for the financial year 2025-26, subject to approval of members at the forthcoming Annual General Meeting. The statutory auditors have issued an unmodified opinion on both the consolidated and standalone financial results for the year ended March 31, 2026.