Ganesha Ecosphere Limited , a leading player in the PET recycling industry, has announced its financial results for the second quarter and half-year ended September 30, 2023, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth Amid Challenges

The company reported a consolidated revenue from operations of Rs 363.38 crore for Q2 FY24, showing a 7.8% increase compared to Rs 337.12 crore in Q1 FY24. However, this figure represents a 6% decrease from Rs 386.81 crore in Q2 FY23. The half-yearly revenue stood at Rs 700.51 crore, slightly down from Rs 723.36 crore in the same period last year.

Profitability Under Pressure

Despite the quarter-on-quarter revenue growth, Ganesha Ecosphere faced significant challenges in maintaining its profit margins:

• Consolidated net loss for Q2 FY24 was Rs 0.50 crore, a stark contrast to the net profit of Rs 10.75 crore in Q1 FY24 and Rs 27.11 crore in Q2 FY23.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY24 decreased to Rs 22.30 crore from Rs 36.30 crore in Q1 FY24, with the EBITDA margin contracting to 6.1% from 10.8%.

Operational Highlights

The company's operational performance showed some positive signs:

• Consolidated production volume increased by 7.8% quarter-on-quarter.
• Sales volume reached 39,132 MT, marking a significant increase of 16.3% (20.9% in legacy business and 4.7% in subsidiary business).

Challenges and Market Dynamics

Ganesha Ecosphere faced several challenges during the quarter:

• A sudden and steep hike in bottle scrap prices during the June quarter led to higher raw material costs, impacting gross margins.
• The average selling prices in the legacy business dropped by 3%, while subsidiary businesses saw a 6% decline.
• Uncertainty surrounding a draft notification from the Ministry of Environment and Forests affected the demand for rPET granules.

Future Outlook

Despite the current challenges, the company reports a positive outlook:

• The demand in the legacy business is showing steady revival, despite ongoing challenges in the Indian textile sector.
• The company has a good order book position and visibility of future demand with price stability.
• Commitments from existing buyers for rPET granules deliveries are expected to start from January 2024.

Corporate Actions

On July 17, 2023, Ganesha Ecosphere made an allotment of 13,39,000 fully paid-up equity shares at an issue price of Rs 1,035 per share to the Promoter Group. This increased the total Paid-up Equity Share Capital to Rs 26.80 crore.

The company declared a final dividend of Rs 3.00 per equity share for the financial year 2022-23 at its Annual General Meeting held on September 27, 2023.

While Ganesha Ecosphere faces short-term challenges, its strategic position in the PET recycling industry and positive demand outlook suggest potential for recovery in the coming quarters.

Ganesha Ecosphere Limited (GESL), a leading manufacturer of recycled polyester staple fiber and yarn, has reported a challenging second quarter for the fiscal year 2025-26. The company's financial results reveal a significant downturn in profitability and revenue compared to the same period last year.

Financial Performance

GESL reported a consolidated net loss of 5.00 crore rupees for the quarter ended September 30, 2025, marking a stark contrast to the profit of 271.00 crore rupees recorded in the corresponding quarter of the previous year. This represents a substantial decline in the company's bottom line.

The company's revenue also saw a decrease, falling to 3,633.82 crore rupees from 3,868.06 crore rupees year-over-year, indicating a 6.1% reduction in top-line performance.

Operational Metrics

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter experienced a significant drop:

The sharp decline in EBITDA and EBITDA margin suggests that the company faced considerable pressure on its operational efficiency and profitability during the quarter.

Board Approval and Audit Review

As per the LODR (Listing Obligations and Disclosure Requirements) data, the company's Board of Directors approved these unaudited financial results at a meeting held on November 10, 2025. The statutory auditors have carried out a limited review of the financial results as required under SEBI regulations.

Business Segments

Ganesha Ecosphere continues to operate in the manufacturing of recycled polyester staple fiber and yarn, with no reportable segments as per Indian Accounting Standard 108 on Operating Segments.

Conclusion

The company's performance in the second quarter reflects a challenging period for Ganesha Ecosphere. The significant drop in profitability and revenue indicates that GESL may have encountered challenges in its operating environment. Investors and stakeholders may be closely watching the company's future announcements and initiatives to gauge its potential for recovery and growth in subsequent quarters.