GRP Limited Reports Q3FY26 Results with Strategic CAPEX Investments
GRP Limited reported Q3FY26 consolidated revenue of Rs. 1,352 Mn, up 2% from the previous year, though EBITDA declined 14% to Rs. 112 Mn due to higher raw material costs and export margin pressures. The company secured EUR 12 million ECB funding from PROPARCO, France, with EUR 7.5 million already drawn for strategic expansion projects including advanced tire recycling facilities with 30,000+ MT annual crumb rubber processing capacity.
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GRP Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing mixed performance amid strategic expansion initiatives. The integrated polymer recycling company reported consolidated revenue growth while facing margin pressures from various operational challenges.
Financial Performance Overview
The company's Q3FY26 consolidated performance reflected both growth and challenges across key metrics:
| Metric | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Total Revenue | Rs. 1,352 Mn | Rs. 1,327 Mn | +2% |
| EBITDA | Rs. 112 Mn | Rs. 130 Mn | -14% |
| EBITDA Margin | 8% | 10% | -200 bps |
| PAT (excluding exceptional items) | Rs. 23 Mn | Rs. 44 Mn | -49% |
For the nine-month period ending December 31, 2025, GRP Limited maintained steady revenue performance:
| Parameter | 9MFY26 | 9MFY25 | Variance |
|---|---|---|---|
| Total Revenue | Rs. 3,930 Mn | Rs. 3,912 Mn | 0% |
| EBITDA | Rs. 335 Mn | Rs. 363 Mn | -8% |
| PAT (excluding exceptional items) | Rs. 60 Mn | Rs. 113 Mn | -47% |
Operational Challenges and Market Dynamics
The company's EBITDA performance was impacted by several factors during the quarter. Raw material costs in the Reclaim segment increased by 11%, while export margins declined by 45% due to U.S. tariffs. Additionally, costs in select rubber grades continued to remain elevated, rising approximately 45% year-over-year.
The quarter's results included accrued EPR income of Rs. 4.54 crore, bringing the total accrual to Rs. 13.56 crore for Q3FY26. The company also implemented New Labour Code provisions on gratuity, incurring a one-time cost of Rs. 1.40 crore, which was treated as an exceptional item totaling Rs. 14 Mn.
Strategic Capital Expansion
GRP Limited has secured significant funding for its growth initiatives through External Commercial Borrowings. The company obtained a term loan of up to EUR 12 million from Société de Promotion et de Participation pour la Coopération Economique S.A. (PROPARCO), France:
| Funding Details | Amount |
|---|---|
| Total ECB Facility | EUR 12 million |
| Amount Drawn Down | EUR 7.5 million |
| Remaining Balance | To be availed in phases |
Advanced Recycling Capabilities
The company has expanded its tire recycling operations with new pyrolysis and crumb rubber facilities. The Solapur integrated facility now features India's largest single-line continuous reactor with capacity to process over 30,000 MT of crumb rubber annually, equivalent to nearly 2 million tires recycled. This closed-loop energy system utilizes syngas for clean, efficient heating and enables extraction of three material streams.
The current capacity represents Phase 1 of the project, with output expected to double within the next 12 months. These facilities are strategically located adjacent to existing reclaim units, providing operational synergies.
Segment Performance Analysis
The company's standalone operations showed varied performance across segments, with both reclaim rubber and non-reclaim revenue streams experiencing different market dynamics. Export revenues faced particular challenges due to international trade conditions, while domestic operations maintained relatively stable performance.
Renewable energy and biofuel initiatives continued delivering cost savings, totaling Rs. 8.70 crore up to Q3FY26. However, margins were impacted by costs from the pyrolysis project during its stabilization phase, as operations remained at sub-optimal utilization levels.
Source: GRP Limited Investor Presentation
Historical Stock Returns for GRP
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.76% | +0.06% | +2.97% | -10.79% | -31.66% | +768.64% |
