Ganesh Benzoplast Reports 44% Jump in Q2 Net Profit Despite EBITDA Margin Decline

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

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Net Profit	₹237.60 crore	₹164.60 crore	+44.00%
Revenue	₹990.00 crore	₹976.00 crore	+1.40%
EBITDA	₹220.00 crore	₹245.40 crore	-10.40%
EBITDA Margin	22.23%	25.14%	-291 bps

Key Takeaways

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.
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.
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.
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.91%	-0.82%	-5.19%	-31.55%	-38.57%	-11.94%

Ganesh Benzoplast Limited, a company listed on both the BSE and NSE, has reported that the Income Tax Department has conducted searches at its corporate office and the residence of its promoter director. The company disclosed this information in a regulatory filing, adhering to the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements.

Key Details of the Search Operation

According to the company's disclosure, the following details have emerged:

Aspect	Details
Authority Conducting Search	Income Tax Department
Date of Search	October 7, 2025
Locations Searched	1. Corporate Office of Ganesh Benzoplast Limited 2. Residential premises of the promoter director
Nature of Action	Survey/search operation under the provisions of the Income Tax Act, 1961
Current Status	Proceedings are ongoing

Company's Response

Ganesh Benzoplast has stated that the proceedings are currently underway, and the company is unable to ascertain any potential liability at this stage. The company emphasized its commitment to transparency by promptly disclosing this development to the stock exchanges.

Regulatory Compliance

In line with SEBI regulations, Ganesh Benzoplast provided additional details as required under Clause 19 of Para A of Part A of Schedule III of the SEBI LODR Regulations, read with the SEBI Master Circular dated November 11, 2024. This demonstrates the company's adherence to regulatory requirements even in challenging circumstances.

Potential Implications

While the specific reasons for the Income Tax Department's search operation have not been disclosed, such actions often indicate that the authorities are examining the company's financial records and transactions. It's important to note that a search operation does not necessarily imply wrongdoing, but rather an intensive scrutiny of financial matters.

Investors and stakeholders of Ganesh Benzoplast will likely be watching closely for any further developments or disclosures from the company regarding this matter. The outcome of these proceedings could potentially impact the company's financial position and market perception, although the extent of any such impact remains uncertain at this time.

As the situation unfolds, Ganesh Benzoplast is expected to provide updates to the stock exchanges and its shareholders in accordance with regulatory requirements. Stakeholders are advised to stay informed through official company communications and regulatory filings.