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.

Ganesha Ecosphere Limited has informed stock exchanges about receiving a significant GST demand notice from tax authorities in Uttar Pradesh. The disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Demand Details

The company received a Demand Notice/Order dated November 28, 2025, from the Office of the Joint Commissioner, Corporate Circle, SGST, Moradabad, Uttar Pradesh. The notice was issued under Section 74(9) of the Central Goods and Services Tax Act, 2017, following an audit conducted by the SGST department.

Company's Response and Legal Position

Ganesha Ecosphere Limited has strongly contested the demand notice, stating that the order is not based on correct facts and is not legally sustainable. The company plans to file an appeal against the order within prescribed timelines, supported by:

• Detailed facts and figures
• Legal justifications
• Various high court rulings supporting their position
• Required evidences substantiating their legal stance

Financial and Operational Impact

The company has clarified that there is no immediate impact on its financial position, operations, or other business activities due to this demand notice. All amounts mentioned in the GST demand, interest, and penalty are currently under contention and will be challenged through the appropriate legal channels.

Regulatory Compliance

The disclosure was made through a communication dated February 3, 2026, signed by Bharat Kumar Sajnani, Company Secretary-cum-Compliance Officer. The company acknowledged an inadvertent delay in submitting the disclosure to stock exchanges due to oversight, and has assured that such unintended delays will not occur in future.

The matter represents a significant regulatory challenge for the company, though management remains confident about their legal position and expects to successfully contest the demand through proper legal channels.