Ganesh Benzoplast Limited (GBL), a leading provider of liquid storage terminal services and chemical manufacturing, has reported a robust financial performance for the first half of fiscal year 2026, coupled with ambitious expansion plans.

Financial Highlights

GBL achieved a consolidated profit after tax of INR 419.00 million in H1 FY26, marking a significant 26% increase from INR 329.00 million in the corresponding period last year. The company's quarterly earnings per share (EPS) saw an impressive 44% rise to INR 3.30.

Expansion Plans

In a strategic move to enhance its capacity, GBL has commenced construction of 30,000 tons of A-class petroleum tanks. This expansion represents an investment of approximately INR 40.00 crores and is expected to yield significant returns:

• Anticipated monthly rental: INR 400-500 per KL
• Projected EBITDA margins: 90%
• Estimated annual revenue: INR 12-15 crores

Operational Performance

The company's Liquid Storage Terminal (LST) business continues to perform well, with JNPT and Cochin facilities operating at nearly 100% utilization. However, the Goa facility remains underutilized at about 5-10% capacity.

Future Outlook

Ganesh Benzoplast is actively exploring options for further expansion on its available land at JNPT. The company is considering various possibilities, including LPG, ammonia, and cryogenic storage facilities, with potential CAPEX ranging from INR 150.00 crores to INR 500.00 crores, depending on the final product mix.

Challenges and Opportunities

The company faces a significant increase in lease rentals at its JNPT facility, rising from approximately INR 3.00 crores to INR 18-20 crores annually. However, management expects to offset this impact through price increases and new capacity additions over the next 2-3 years.

Management Commentary

Rishi Pilani, Chairman and Managing Director, stated, "We are committed to finding the most optimum solution for our expansion plans, ensuring the best return on investment for our shareholders. Our focus remains on steady growth and maintaining our strong market position in the liquid storage terminal business."

As Ganesh Benzoplast Limited navigates through increased costs and expansion opportunities, the company appears well-positioned to capitalize on the growing demand for liquid storage facilities in India's bustling port sector.

Ganesh Benzoplast Limited (GBL), a leading player in the chemical storage and logistics sector, has reported a significant increase in its consolidated net profit for the second quarter, despite facing some challenges in its operational efficiency.

Financial Highlights

Key Takeaways

1. Profit Surge: GBL witnessed a substantial 44% year-over-year increase in its consolidated net profit, rising from ₹164.60 crore to ₹237.60 crore.

2. Marginal Revenue Growth: The company's revenue saw a slight uptick, increasing by 1.40% from ₹976.00 crore to ₹990.00 crore year-over-year.

3. EBITDA Decline: Despite the profit growth, GBL's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 10.40% to ₹220.00 crore from ₹245.40 crore in the same quarter last year.

4. Margin Compression: The EBITDA margin contracted by 291 basis points, falling from 25.14% to 22.23%, indicating some pressure on operational efficiency.

Analysis

The significant jump in net profit, despite a marginal increase in revenue and a decline in EBITDA, suggests that GBL may have benefited from factors such as lower interest costs, reduced tax outgo, or exceptional items. However, the compression in EBITDA margin points to potential challenges in managing operational costs or pricing pressures in the market.

The company's ability to boost bottom-line performance in the face of these challenges demonstrates resilience, but investors may want to keep an eye on the declining EBITDA trend in future quarters.

Corporate Governance

As per the LODR (Listing Obligations and Disclosure Requirements) data, GBL's Board of Directors met on November 13, 2025, to approve the unaudited financial results for Q2 and the half-year ended September 30, 2025. The results were reviewed by M/s. Mittal & Associates, Chartered Accountants, ensuring compliance with regulatory requirements and maintaining transparency for stakeholders.

Ganesh Benzoplast's performance this quarter presents a mixed picture of strong profit growth alongside operational challenges. Investors and analysts will likely be watching closely to see how the company addresses its margin pressures while maintaining its profit momentum in the coming quarters.