Announcement under Regulation 30 (LODR) - Earnings Call Transcript - Earning call dt.18.05.2026
GRPLTD · price
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GRP Ltd reported a challenging FY26 with total income of INR 5,380 million (down 3% YoY) and EBITDA of INR 429 million (margin 8% vs 13% in FY25). Q4 FY26 was particularly weak with income of INR 1,450 million (down 10%) and EBITDA margin at just 7% due to multiple headwinds: U.S. tariffs impacting 33% of Reclaim Rubber revenues, raw material inflation up to 43% in certain SKUs, export volume decline of 15%, and Pyrolysis business ramp-up losses of INR 85 million. The company discontinued its Polymer Composite business. Despite these pressures, domestic volumes grew 10%, U.S. tariff impact has moderated since February, and management expects full recovery of lost export volumes in FY27. The company recommended a dividend of INR 3.5 per share.
The stock faces near-term pressure from compressed margins and elevated costs from new business ramp-ups, but management signals an inflection point as Pyrolysis operations stabilize at 85%+ utilization and U.S. market recovery gains traction. Operating leverage should improve progressively as new businesses scale.