GRP Limited , a leading player in the rubber recycling industry, has reported a mixed set of results for the second quarter of fiscal year 2026, as the company navigates through global challenges while advancing its strategic initiatives.

Financial Performance

The company posted flat revenue growth at INR 1,331.00 million for Q2 FY26. Despite the challenging environment, GRP managed to improve its EBITDA, which rose by 13% to INR 114.00 million. However, profit after tax (PAT) declined by 22%, primarily due to the impact of US tariffs affecting export volumes and margins.

Key Highlights

Operational Updates

Pyrolysis Plant Commencement

A significant milestone for GRP Limited this quarter was the successful commencement of pyrolysis operations at its Solapur facility. This new plant is noteworthy for several reasons:

1. It houses one of India's largest single-line continuous reactor setups.
2. The facility is integrated with GRP's existing reclaim rubber operations.
3. It incorporates a closed-loop energy system utilizing syngas for clean and efficient heating, enhancing energy efficiency and reducing environmental impact.

The company expects this new operation to generate revenue of INR 250.00-300.00 million in the second half of FY26.

Product Recovery

The pyrolysis plant enables the recovery of three key material streams:

1. Tyre pyrolysis oil
2. Char (to be upgraded to recovered carbon black)
3. Steel wire

Business Segment Performance

• Reclaim Rubber: The domestic market showed strong growth with a 20% increase in revenues, offsetting a 2% decline in export revenues.
• Non-Reclaim Rubber: This segment underperformed, affected by soft uptake across all verticals.
• Polymer Composite Business: Due to commercial unviability exacerbated by US tariffs and strong local competition, GRP has decided to discontinue this business.

Market Challenges and Outlook

The company faced several challenges during the quarter:

1. US Tariffs: These significantly impacted export volumes and margins, particularly affecting the reclaim rubber business.
2. Global Market Volatility: Persistent macroeconomic challenges and industry headwinds affected overall performance.
3. Pricing Pressures: Commodity pricing pressures impacted margins across segments.

Despite these challenges, GRP Limited remains optimistic about its long-term prospects, particularly with the new pyrolysis operations and ongoing investments in technology upgradation and energy efficiency.

Management Commentary

Harsh Gandhi, Joint Managing Director of GRP Limited, commented on the results: "While short-term challenges, particularly the U.S. tariff situation, have impacted our performance this quarter, we continue to remain confident about our long-term story. The focus continues to be on operational excellence and strategic execution to strengthen our competitive position."

GRP Limited's mixed Q2 results reflect the company's resilience in a challenging global environment. While facing headwinds from US tariffs and market volatility, the company's strategic initiatives, particularly the new pyrolysis plant, position it for potential growth in the coming quarters. Investors will be watching closely to see how these initiatives translate into financial performance in the second half of FY26 and beyond.

GRP Ltd has taken a significant step towards sustainable waste management by commencing the commercial production of eco-friendly tyre recycling products. This move aligns with the company's commitment to environmental sustainability and marks its entry into the growing market for tyre waste management solutions.

New Product Line

The company has officially launched a range of sustainable products derived from end-of-life tyres. According to GRP's filing with the stock exchanges, the new product line includes:

1. Tyre Pyrolysis Oil
2. Recovered Carbon Black
3. Char
4. Recovered Steel Wire

These products represent GRP's efforts to transform tyre waste into valuable, reusable materials, contributing to a circular economy in the automotive and industrial sectors.

Launch Details

GRP announced that the commercial production of these eco-friendly products commenced on August 22, 2025. The company aims to cater to both domestic and international markets with these sustainable solutions.

Strategic Expansion

This launch follows GRP's earlier announcements on August 2, 2024, and March 25, 2025, regarding the expansion of their capacities in other categories under Tyre Extended Producer Responsibility (EPR). The move into tyre recycling products represents a strategic diversification of GRP's product portfolio, potentially opening up new revenue streams and market opportunities.

Environmental Impact

By producing sustainable solutions for tyre waste management, GRP is addressing a significant environmental challenge. End-of-life tyres are a major source of pollution, and recycling them into useful products can help reduce landfill waste and the environmental footprint of the automotive industry.

Market Implications

The entry of GRP into the eco-friendly tyre recycling market could position the company as a key player in the sustainable materials sector. As global emphasis on environmental sustainability grows, GRP's new product line may attract environmentally conscious customers and potentially lead to increased business opportunities.

GRP's strategic move into sustainable tyre recycling products demonstrates its adaptability to evolving market demands and environmental regulations. Investors and industry observers will likely watch closely to see how this new venture impacts GRP's financial performance and market position in the coming quarters.