Ganesha Ecosphere has filed its quarterly monitoring agency report for the period ended December 31, 2025, demonstrating continued compliance with SEBI regulations governing warrant proceeds utilization. The report, submitted to BSE and NSE on February 12, 2026, provides a comprehensive overview of fund deployment from the company's preferential issue of fully convertible equity warrants.

Fund Utilization Progress

The monitoring report reveals significant progress in the deployment of warrant proceeds across all stated objectives. Out of the total issue size of Rs. 149.97 crores, the company has utilized Rs. 121.66 crores by the end of Q3FY26.

During Q3FY26 specifically, the company deployed Rs. 33.82 crores, with Rs. 27.81 crores allocated toward plant and machinery acquisition and Rs. 6.01 crores for general corporate purposes.

Debt Repayment Completion

The company has successfully completed the debt repayment objective, fully utilizing the allocated Rs. 37.50 crores for partial repayment of existing borrowings related to working capital funding. This component was completed by March 31, 2024, as originally planned.

Unutilized Funds Management

The remaining Rs. 28.31 crores in unutilized proceeds are strategically deployed across secure investment instruments to optimize returns while maintaining liquidity.

General Corporate Purpose Breakdown

The Rs. 17.17 crores utilized under general corporate purposes has been systematically deployed for working capital requirements across multiple quarters, supporting the company's operational expansion in recycled polyester staple fiber and spun yarn manufacturing.

Regulatory Compliance and Oversight

ICRA Limited, serving as the monitoring agency, confirmed no deviations from the original issue objectives and found all utilization aligned with offer document disclosures. The report underwent thorough review by the company's Audit Committee and Board of Directors on February 7, 2026, receiving approval without any adverse comments. The company maintains its target completion date of March 31, 2026, for the remaining plant and machinery acquisition objectives.

Ganesha Ecosphere Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, alongside releasing an investor presentation highlighting key operational metrics and strategic initiatives. The Board of Directors approved these results at their meeting held on February 07, 2026, following review by the Audit Committee.

Standalone Financial Performance

The company's standalone operations demonstrated resilience with sequential growth despite year-over-year challenges. The business showed strong quarterly momentum with significant production volume improvements.

For the nine months ended December 31, 2025, standalone revenue from operations was ₹75,376.89 lakh compared to ₹76,743.35 lakh in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹3,142.41 lakh versus ₹6,081.79 lakh in the previous year.

Consolidated Financial Performance

The consolidated results reflected more significant challenges, with both revenue and profitability declining substantially year-over-year due to regulatory uncertainties affecting the rPET granules business.

For the nine months ended December 31, 2025, consolidated revenue from operations was ₹1,05,772.16 lakh compared to ₹1,12,116.03 lakh in the previous year. Consolidated net profit for the nine-month period was ₹1,500.21 lakh versus ₹7,936.44 lakh in the corresponding period of FY25.

Operational Highlights and Production Metrics

The company demonstrated strong operational performance with notable improvements in production volumes. Standalone production volume registered 13% quarter-on-quarter growth, while sales volume increased by 7% sequentially. The legacy business performed reasonably well despite sectoral headwinds including higher US tariffs on Indian textile products.

Business Segment Performance and Market Challenges

The company's dependency on the yarn spinning sector declined, with over 35% of quarterly sales volume generated from the non-woven and home furnishing segments. However, ongoing ambiguity surrounding the draft notification issued by the Ministry of Environment, Forest and Climate Change caused delayed integration of recycled PET into supply chains of brand owners, leading to weak demand for rPET granules.

Capacity utilisation of the Warangal business declined to 50% while sales numbers were down by 19% during the quarter. Despite these challenges, the Group's rFilament yarn successfully qualified with a leading global textile brand, paving the way for substantial demand and increased sales volumes.

Regulatory Compliance and Labour Code Impact

The company recognized an incremental impact of ₹103.09 lakh in standalone results and ₹110.92 lakh in consolidated results due to changes in gratuity and leave liability following the Government of India's notification of four Labour Codes on November 21, 2025. This assessment was made based on available information and guidance from the Institute of Chartered Accountants of India.

Audit and Compliance

The financial results were subject to limited review by statutory auditors Narendra Singhania & Co., Chartered Accountants. The auditors confirmed that nothing came to their attention suggesting the results contained material misstatements or failed to comply with listing regulations. The company operates in manufacturing products of the same type/class, resulting in no reportable segments under Ind-AS 108.