India Capital Fund Limited has acquired a 5.07% stake in Ganesha Ecosphere Ltd through a series of open market purchases. The acquisition was disclosed to the Bombay Stock Exchange Limited (BSE) on June 29, 2026, under Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The Mauritius-based investor purchased a total of 1,359,872 shares between February 23 and June 25, 2026. Prior to these transactions, India Capital Fund Limited held no shares in the company. The purchases were executed across multiple trading days, with the highest single-day acquisition occurring on March 6, 2026, involving 365,278 shares.

Following the acquisition, the acquirer's holding in Ganesha Ecosphere Ltd stands at 5.07% of the total share capital. The disclosure confirms that India Capital Fund Limited does not belong to the promoter or promoter group of the target company. The shares of Ganesha Ecosphere Ltd are listed on both the BSE and the National Stock Exchange of India Ltd (NSE).

The total equity share capital of Ganesha Ecosphere Ltd is reported as INR 267,959,840, comprising 26,795,984 shares with a face value of INR 10 each. The acquisition was made entirely through the open market route, as detailed in the annexure to the disclosure form.

Acquisition Details

Holding Pattern

Ganesha Ecosphere Limited reported a strong financial performance for the quarter and year ended March 31, 2026, driven by robust operational metrics and improved margins. The company's consolidated production reached 41,268 tons in Q4 FY26, an increase of 6.45% over the previous quarter, while sales volumes grew by 12.25% to 45,162 metric tons. Consolidated revenue stood at INR 423.94 crores, with EBITDA of INR 52.35 crores and a net profit of INR 23.21 crores, reflecting significant quarter-on-quarter growth.

Financial Performance

The company achieved an EBITDA margin of 12.35% in Q4 FY26, up from 8.6% in the preceding quarter. On a standalone basis, revenue was INR 260.33 crores, with production at 28,209 tons and sales volume at 29,234 tons. While standalone revenue decreased by 4.8% quarter-on-quarter, EBITDA margins improved by 125 basis points due to better demand, stable prices, and inventory liquidation. For the full year FY26, operating cash flow generation was INR 170 crores, and the net debt position was maintained at a comfortable INR 375 crores.

Strategic Expansion and Outlook

Ganesha Ecosphere has commissioned a 22,500 tons Brownfield expansion of rPET chips at Warangal, with ramp-up expected by Q2 FY27. The company is pursuing an additional 22,500 tons expansion and de-bottlenecking projects to push installed capacity to nearly 1 lakh tonnes by FY27. Consequently, the Odisha Greenfield project has been dropped to focus on more efficient capex deployment. Management provided an EBITDA guidance of INR 225 to INR 250 crore for the current financial year, with total volume expected between 180,000 and 200,000 tons.

Industry and Regulatory Environment

The Ministry of Environment, Forest and Climate Change (MoEF) issued a notification on March 31, 2026, reaffirming mandatory recycled plastic usage targets. This regulatory clarity has enhanced industry confidence. Current FSSAI-approved capacity for rPET is approximately 2.8 lakh metric tons, with demand estimated at 4.5 to 5 lakh tons due to the 40% usage mandate, creating a supply-demand gap. The company expects the mandate to increase to 60%, potentially driving demand to 9-10 lakh tons in the future.