Ganesha Ecosphere Limited (GESL), a leading manufacturer of recycled polyester staple fiber (RPSF) and spun yarn, has submitted its monitoring agency report for the quarter ended September 30, 2025. The report, issued by ICRA Limited, confirms that there has been no deviation in the utilization of the Rs 149.97 crore raised through fully convertible equity warrants issued in January 2024.

Utilization of Funds

According to the report, the funds have been utilized as per the disclosed objectives:

Deployment of Unutilized Proceeds

The remaining unutilized amount of Rs 62.25 crore has been deployed as follows:

Project Implementation Status

The company reports that the implementation of its objectives is on schedule:

1. The purchase of plant and machinery for manufacturing Rpet Resin/Granules and Rpet Filament Yarn is progressing as planned, with a completion date set for March 31, 2026.
2. The repayment of existing borrowings has been completed.
3. The utilization of funds for general corporate purposes is ongoing and on schedule, with a target completion date of March 31, 2026.

Corporate Governance

The monitoring agency report was reviewed by the Audit Committee and taken on record by the Board of Directors of Ganesha Ecosphere Limited at their respective meetings held on November 10, 2025. The board reported 'no comments' on the findings, indicating their agreement with the report's contents.

This transparent reporting of fund utilization demonstrates Ganesha Ecosphere's commitment to good corporate governance practices and responsible management of investor funds. The company's strategic deployment of capital towards expansion and debt reduction may potentially strengthen its market position in the recycled polyester industry.

Investors and stakeholders can access the full monitoring agency report on the company's website for more detailed information on the utilization of funds and project progress.

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.