GRP Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript GRP Ltd filed with BSE on 22 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
GRP Limited reported Q4 FY26 total income of INR 1,450 million, down 10% year-on-year, and FY26 total income of INR 5,380 million, down about 3% versus FY25, with management attributing the decline to a high EPR credit base in the prior year and softer export demand amid tariff disruptions. EBITDA for Q4 FY26 was INR 94 million and FY26 EBITDA was INR 429 million, impacted by lower export volumes, raw material inflation and incubation costs from the newly commercialized Pyrolysis business. Management also detailed the Pyrova Energy pyrolysis platform's commissioning progress, discontinuation of the Polymer Composite business, and a recommended dividend of INR 3.5 per equity share.
Numbers mentioned
Total income: INR 1,450 million (Q4 FY26)
p. 3
“Our total income for quarter 4 stood at INR 1,450 million, representing a 10% year-on-year contraction”
Harsh Gandhi, page 3 of the filed PDF · View the filing
Total income: INR 5,380 million (FY26)
p. 3
“while FY '26 income closed at INR 5,380 million, reflecting a decline of approximately 3% compared to FY '25”
Harsh Gandhi, page 3 of the filed PDF · View the filing
EBITDA: INR 94 million (Q4 FY26)
p. 3
“EBITDA for Q4 stood at INR 94 million, while FY”
Harsh Gandhi, page 3 of the filed PDF · View the filing
EBITDA: INR 429 million (FY26)
p. 4
“'26 EBITDA stood at INR 429 million.”
Harsh Gandhi, page 4 of the filed PDF · View the filing
Gross profit: INR 666 million (Q4 FY26)
p. 7
“Gross profit for Q4 of FY ‘26 was at INR 666 million as compared to INR 936 million in Q4 of FY ‘25.”
Shilpa Mehta, page 7 of the filed PDF · View the filing
Gross margin: 46% (Q4 FY26)
p. 7
“While gross margin stood at 46% for the quarter, margins were impacted primarily due to adverse product mix, export-related pressures and continued volatility in raw material costs across select categories.”
Shilpa Mehta, page 7 of the filed PDF · View the filing
EBITDA margin: 7% (Q4 FY26)
p. 7
“EBITDA margin for Q4 of FY ‘26 is at 7% as compared to 21% in Q4 of FY ‘25.”
Shilpa Mehta, page 7 of the filed PDF · View the filing
PAT: loss of INR 13 million (Q4 FY26)
p. 7
“The company reported a loss of INR 13 million for Q4 of FY ‘26 at PAT level.”
Shilpa Mehta, page 7 of the filed PDF · View the filing
Gross margin: 49% (FY26)
p. 8
“Gross profit for FY ‘26 stood at INR 2,637 million as compared to INR 2,980 million in FY ‘25, while gross margin stood at 49% as compared to 54% in FY ‘25.”
Shilpa Mehta, page 8 of the filed PDF · View the filing
EBITDA margin: 8% (FY26)
p. 8
“EBITDA margin for FY ‘26 is at 8% as compared to 13% in FY ‘25.”
Shilpa Mehta, page 8 of the filed PDF · View the filing
Adjusted PAT: INR 46 million (FY26)
p. 8
“Adjusted profit after tax for FY ‘26 stood at INR 46 million after accounting for onetime impact related to Labor Code implementation amounting to INR 14 million.”
Shilpa Mehta, page 8 of the filed PDF · View the filing
Debt-to-equity ratio: 1.15 (FY26)
p. 8
“The company's debt-to-equity ratio stood at 1.15 in FY ‘26 as compared to 0.76 in FY ‘25, primarily on account of strategic growth, capex and investments in new business initiatives.”
Shilpa Mehta, page 8 of the filed PDF · View the filing
Dividend per share: INR 3.5 (FY26)
p. 8
“the Board has recommended a dividend of INR 3.5 per share for FY ‘26, representing 35% of the face value subject to shareholder approval.”
Shilpa Mehta, page 8 of the filed PDF · View the filing
Cumulative Pyrova Energy investment: approximately INR 79 crores (up to March FY26)
p. 6
“our cumulative investment in the Pyrova Energy platform up to March stands at approximately INR79 crores”
Harsh Gandhi, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Growth capex — INR 90 crores to INR 100 crores · FY27
stated firmly by Harsh Gandhi
p. 6
“We are targeting a growth capex of approximately INR 90 crores to INR 100 crores during FY '27 with continued focus on disciplined deployment and further enhancement of solar and wind energy usage across our operations in Gujarat.”
Harsh Gandhi, page 6 of the filed PDF · View the filing
Phase 1b commissioning of Pyrova Energy — recovered carbon black facility and additional pyrolysis lines · by February 2027
stated firmly by Harsh Gandhi
p. 6
“Under Phase 1b, which is currently underway and likely to be commissioned entirely by February 2027 in phases, we plan to establish a recovered carbon black facility, along with expansion of additional lines of tire pyrolysis capacity.”
Harsh Gandhi, page 6 of the filed PDF · View the filing
Reclaim Rubber margin restoration — FY27
stated conditionally by Harsh Gandhi
p. 9
“As we attempt to recapture the lost export share and assuming that we get back to the similar levels of higher of export revenue from past, I would imagine that the restoration of the margins will happen through this year as far as the Reclaim Rubber is concerned.”
Harsh Gandhi, page 9 of the filed PDF · View the filing
U.S. export volume restoration — entirely restored · FY27
stated conditionally by Harsh Gandhi
p. 9
“And this is mainly because the U.S. volume that was lost is starting to come back, and we're expecting that, that will be entirely restored in FY '27.”
Harsh Gandhi, page 9 of the filed PDF · View the filing
EPR income accrual for Pyrolysis business — H1 FY27
stated conditionally by Harsh Gandhi
p. 10
“So definitely, by H1, the EPR income will get accrued.”
Harsh Gandhi, page 10 of the filed PDF · View the filing
New Reclaim Rubber line commissioning — second line in Solapur, capacity to 700 tons a month · end of Q1 FY27
stated firmly by Harsh Gandhi
p. 13
“But we have committed to add another line because we have seen the traction on ground. So therefore, by end of first quarter, another line of that new technology will be commissioned in the same location in Solapur.”
Harsh Gandhi, page 13 of the filed PDF · View the filing
Pyrova Energy EBITDA margin — high double-digit EBITDA margins · FY28
stated as an aspiration by Harsh Gandhi
p. 16
“But we are expecting that the Pyrova Energy as a business in itself will be high double-digit EBITDA margins is the expectation.”
Harsh Gandhi, page 16 of the filed PDF · View the filing
Reclaim Rubber EBITDA margin improvement — few hundred basis points · FY28
stated as an aspiration by Harsh Gandhi
p. 16
“And therefore, there's expectation of a few hundred basis point improvement in the Reclaim Rubber EBITDA margin as well.”
Harsh Gandhi, page 16 of the filed PDF · View the filing
Pyrolysis capacity — about 45,000 tons
stated firmly by Harsh Gandhi
p. 17
“we are adding 2 reactors of pyrolysis, which will take us to about 45,000 tons of pyrolysis capacity.”
Harsh Gandhi, page 17 of the filed PDF · View the filing
Recovered carbon black facility capacity — about 12,000 tons
stated firmly by Harsh Gandhi
p. 17
“And our recovered carbon black facility that is being set up is about 12,000 tons.”
Harsh Gandhi, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
The write-off was INR 79 lakhs, with a further notional impact of INR 40-50 lakhs.
Answered by Shilpa Mehta
Asked by Tanmay Golecha: How much was the onetime loss from the Polymer Composite business in Q4?
p. 8
“It is INR 79 lakhs on account of actual write-off, but business-wise also could be -- notionally, it could be to the tune of INR 40 lakhs to INR 50 lakhs more.”
Shilpa Mehta, page 8 of the filed PDF · View the filing
Some benefit was seen in March and into the current quarter, but road construction demand for fuel oil is down due to bitumen shortages linked to the West Asia conflict.
Answered by Harsh Gandhi
Asked by Tanmay Golecha: Did the company benefit from higher crude prices when selling pyrolysis oil, and will that continue?
p. 9
“But the demand for fuel oil in the country is mostly in the road surfacing industry. And while oil prices are up, the road construction activity in the country is down on account of bitumen non availability due to the West Asia conflict.”
Harsh Gandhi, page 9 of the filed PDF · View the filing
Direct U.S. export volumes have largely recovered, but indirect volumes routed through countries like Thailand, Vietnam and Indonesia have not fully recovered.
Answered by Harsh Gandhi
Asked by Rohan Mehta: How has the recovery in U.S. exports and customer engagement progressed since tariffs eased in February?
p. 11
“we have more or less recovered the entire volume that was lost in North America directly. However, some part of the indirect volume that was lost has come back, but a large part of that indirect volume is not recovered yet.”
Harsh Gandhi, page 11 of the filed PDF · View the filing
The cost impact has now been fully factored into pricing effective April 2026.
Answered by Harsh Gandhi
Asked by Rohan Mehta: Have raw material costs stabilized and how much pricing pass-through has been achieved?
p. 11
“the revised pricing starting April '26 captures the entire impact of the raw material cost. So going forward in this financial year, at least as things stand right now, the pass-through of the margins has been -- pass-through of the cost has been entirely obtained by way of price increases.”
Harsh Gandhi, page 11 of the filed PDF · View the filing
Roughly 50% went to Pyrova Energy, 30-35% to Reclaim Rubber capacity and new technology, and about 15% to other businesses including energy investments.
Answered by Harsh Gandhi
Asked by Divy Agrawal: What is the breakdown of the INR 170 crore capex spent from FY24-26?
p. 13
“I would say roughly 50% of the capex has been spent on the Pyrova Energy business. Roughly about 30% to 35%, if I may, is in the Reclaim Rubber in terms of this new capacity expansion as well as the new technology that we have put in.”
Harsh Gandhi, page 13 of the filed PDF · View the filing
No other businesses are under review; plastics, Reclaim Rubber and the new Pyrova energy business will all continue to receive investment.
Answered by Harsh Gandhi
Asked by Rajvi Shah: Are any other non-core or low-return segments under strategic review after the Polymer Composite closure?
p. 14
“Answer is no. I think we're clear that the plastic, which is a combination of nylon and polypropylene will continue to sort of -- will require some patience, but have a strong potential, and therefore, we continue to maintain our position there.”
Harsh Gandhi, page 14 of the filed PDF · View the filing
Chinese imports of virgin polypropylene have pressured prices and margins, particularly hurting the packaging segment more than automotive.
Answered by Harsh Gandhi
Asked by Jigar Shah: Has competitive intensity from low-cost Chinese imports worsened after Q4, or are spreads stabilizing?
p. 15
“virgin polypropylene prices have dropped, and that is the reason why the competitiveness of recycled material vis-a-vis the virgin polypropylene, that delta had reduced or diminished, and that's the reason that our margins as well as the volumes took a hit on the EP side.”
Harsh Gandhi, page 15 of the filed PDF · View the filing
EPR credits are priced near the floor price with most contracted to tire companies; pyrolysis oil requires flash point and sulfur upgrades to move into higher-value industrial and Petchem applications.
Answered by Harsh Gandhi
Asked by Ritesh Poladia: What is the EPR credit balance and pricing, and what changes are needed for pyrolysis oil to serve industrial fuel and Petchem markets?
p. 17
“I think the EPR credit pricing remains at more or less the floor price at the moment, which is at about INR 2.52 kg.”
Harsh Gandhi, page 17 of the filed PDF · View the filing
Risks flagged
U.S. tariff-related disruption to Reclaim Rubber export revenues and margins
p. 4
“Approximately 33% of Reclaim Rubber revenues from key U.S. customers and nearly 44% of associated raw material margins were impacted by tariffs for the year.”
Harsh Gandhi, page 4 of the filed PDF · View the filing
Raw material cost inflation in certain SKUs
p. 5
“Raw material inflation was another significant impact -- a factor impacting margins during the year.”
Harsh Gandhi, page 5 of the filed PDF · View the filing
Geopolitical volatility in West Asia affecting energy and logistics costs
p. 5
“Geopolitical developments in West Asia, albeit for the last 45 days of the year contributed to volatility in energy and logistics-related costs during the year -- during part of the year.”
Harsh Gandhi, page 5 of the filed PDF · View the filing
Low-cost polypropylene imports pressuring recycled plastics business
p. 5
“However, the lower virgin polymer prices and inflow of low-cost imports for polypropylene, especially impacted the industry environment.”
Harsh Gandhi, page 5 of the filed PDF · View the filing
Discontinuation of Polymer Composite business due to weak viability from tariffs
p. 14
“Yes, we closed down the Polymer Composite because of the weak viability, mostly to do with the tariffs from North America.”
Harsh Gandhi, page 14 of the filed PDF · View the filing
Reduced road construction activity impacting pyrolysis oil demand due to bitumen shortage
p. 9
“the road construction activity in the country is down on account of bitumen non availability due to the West Asia conflict”
Harsh Gandhi, page 9 of the filed PDF · View the filing
Losses during ramp-up phase of the Pyrolysis business
p. 8
“Pyrova business commercialization phase resulted in EBITDA and PAT loss of INR 24 million and INR”
Shilpa Mehta, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.