GRP Q2 FY27 results: net profit ₹6.38 crore vs ₹1.96 crore, revenue up 30.2%

How did GRP perform in Q2 FY27?

GRP reported consolidated revenue of ₹172.34 crore for Q2 FY27, up ₹39.98 crore or 30.2% from ₹132.36 crore in Q2 FY26 and ₹15.51 crore or 9.9% from ₹156.83 crore in Q1 FY27. EBITDA was ₹17.85 crore, up ₹7.23 crore or 68.1% year on year and ₹0.95 crore or 5.6% sequentially, while the margin increased 2.4 percentage points to 10.4% from 8.0% and slipped 0.4 percentage points from 10.8%.

Profit before tax was ₹8.86 crore, against ₹3.32 crore a year earlier and ₹8.41 crore in the previous quarter. After tax of ₹2.48 crore, GRP reported a net profit of ₹6.38 crore, up ₹4.42 crore or 225.5% from ₹1.96 crore and ₹2.18 crore or 51.9% from ₹4.20 crore. Basic EPS was ₹11.96, compared with ₹3.67 in Q2 FY26 and ₹7.87 in Q1 FY27.

On a standalone basis, Q2 FY27 revenue was ₹167.0 crore, up 27.9%, while profit was ₹5.82 crore against ₹3.39 crore in the year-ago quarter. The reported consolidated figures cover the quarter and half year ended 30 September 2026.

What changed in GRP's costs and profit?

Total expenses rose ₹34.04 crore or 26.2% year on year to ₹163.85 crore, below the 30.2% increase in revenue. Cost of materials was ₹96.84 crore, up ₹29.51 crore or 43.8%, employee cost was ₹16.42 crore, up ₹0.46 crore or 2.9%, finance costs were ₹4.16 crore, up ₹0.62 crore or 17.5%, depreciation was ₹5.20 crore, up ₹0.66 crore or 14.5%, and other expenses were ₹44.44 crore, up ₹3.79 crore or 9.3%.

Other income fell ₹0.41 crore or 52.6% to ₹0.37 crore, while total expenses increased by 26.2%. There was no exceptional item in Q2 FY27. Tax expense rose ₹1.12 crore or 82.4% to ₹2.48 crore, and the net profit margin increased 2.2 percentage points to 3.7% from 1.5%. Management said gross margins fell by 5 percentage points because of raw material inflation, while higher volumes, manpower productivity and energy optimisation helped keep EBITDA margins around 11% for two consecutive quarters.

Against Q1 FY27, cost of materials rose ₹11.91 crore or 14.0% and other expenses increased ₹2.47 crore or 5.9%. Employee cost fell ₹0.22 crore or 1.3%, finance costs rose ₹0.20 crore or 5.1%, depreciation rose ₹0.21 crore or 4.2%, other income fell ₹0.09 crore or 19.6%, and tax fell ₹1.73 crore or 41.1%. No exceptional item was reported in either quarter.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹329.17 crore, up ₹73.07 crore or 28.5% from ₹256.1 crore in H1 FY26. Total income increased ₹72.19 crore or 28.0% to ₹330.0 crore from ₹257.81 crore, while profit before tax rose ₹10.73 crore or 164.1% to ₹17.27 crore from ₹6.54 crore.

Net profit for the first half increased ₹6.86 crore or 184.9% to ₹10.57 crore from ₹3.71 crore, and EPS rose to ₹19.83 from ₹6.95. The company reported 24% volume growth and a 4% increase in selling prices in consolidated operating revenue during H1 FY27.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹489.24 crore, up from ₹461.79 crore at 31 March 2026, and total equity increased to ₹189.76 crore from ₹178.37 crore. Borrowings rose to ₹219.08 crore from ₹206.39 crore, while cash fell to ₹0.24 crore from ₹0.47 crore.

Inventories increased to ₹57.25 crore from ₹51.84 crore, trade receivables rose to ₹109.8 crore from ₹109.45 crore, and trade payables fell to ₹24.8 crore from ₹28.79 crore. In H1 FY27, operating cash flow was ₹17.34 crore against ₹17.71 crore in H1 FY26, investing cash flow was negative ₹21.03 crore against negative ₹50.4 crore, and financing cash flow was ₹2.83 crore against ₹31.65 crore.

Capital expenditure was ₹27.12 crore in H1 FY27, compared with ₹29.24 crore in H1 FY26. The company also disclosed that renewable energy initiatives generated savings of ₹3.46 crore in H1 FY27, with the Gujarat solar project’s first phase completed.

How has GRP done over the last 8 quarters?

Revenue reached a quarterly high of ₹172.34 crore in Q2 FY27 after rising from ₹156.83 crore in Q1 FY27. It had bottomed at ₹123.75 crore in Q1 FY26, while the prior peak in the reported series was ₹160.34 crore in Q4 FY25.

Profit after tax bottomed at a net loss of ₹1.34 crore in Q4 FY26 and recovered to ₹4.20 crore in Q1 FY27 and ₹6.38 crore in Q2 FY27. The highest quarterly profit in the series was ₹19.45 crore in Q4 FY25, so profit remained below that earlier peak even as the latest direction was upward.

EBITDA margin rose to 10.4% in Q2 FY27 from 10.8% in Q1 FY27 and 8.0% in each of Q1 FY26 and Q2 FY26. It had reached 20.5% in Q4 FY25 and bottomed at 6.2% in Q4 FY26. Revenue and profit each rose year on year for two consecutive quarters.

Which businesses drove the quarter?

Rubber Recycling reported revenue of ₹157.04 crore and EBIT of ₹18.64 crore in Q2 FY27, with an EBIT margin of 11.9%. The filing did not provide the segment’s Q2 FY26 revenue or EBIT for a year-on-year comparison.

Others reported revenue of ₹31.55 crore, up 83.8% from ₹17.16 crore in Q2 FY26, and EBIT of ₹3.31 crore compared with ₹0.14 crore. Its EBIT margin was 10.5%. Goods and Service Tax was ₹16.25 crore in Q2 FY27, while no year-on-year percentage was reported for that line.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review reports. It also filed an investor presentation under Regulation 30 of the SEBI Listing Regulations.

The board noted that M/s Sharp & Tannan Associates LLP had converted from a partnership into an LLP with effect from 24 September 2026, without a change in the audit engagement or remaining tenure. It also noted Standard Operating Procedure fines of ₹10,000 each from BSE and the National Stock Exchange of India for delayed compliance with Regulation 42.

No dividend, fund raise or appointment was disclosed in the same-day filings provided. The board said appropriate measures would be implemented to ensure timely regulatory compliance and prevent recurrence of the delayed filing.

What did GRP's management say?

Management said GRP aimed for a mid-teen EBITDA margin across the integrated platform as recovered carbon black scales, compared with a recent platform margin of around 11%. For FY27, it targets roughly 20% growth in plastics revenue and a stable 12–15% plastics EBITDA margin.

Management said the commercial recovered carbon black plant was targeted for commissioning by the end of Q2 FY27, while approvals in key markets were being pursued. Pyrolysis capacity was targeted to rise from 15,000 tonnes per annum to 45,000 tonnes around end-March or the first week of April 2027, followed by 30–60 days of stabilisation and full contribution expected from Q2 FY28.

Management said domestic sales represented 52% of standalone H1 revenue, reducing exposure to tariffs, currency movements and international freight. It also said current Pyrova economics benefited from elevated oil-linked prices, but warned that normalisation could soften realisations and that the current level should not be treated as Pyrova’s necessary run rate.

Management identified higher crude and furnace oil prices, costly domestic feedstock, West Asian conflict and Strait of Hormuz disruptions, the need to scale Pyrova, and potential leakage of EPR credits to unorganised recyclers as risks. No analyst questions were recorded in the provided earnings-call material.

How did GRP shares react?

The filing appeared after market hours. GRP was down 0.3% after five minutes, down 1.9% after 15 minutes and down 0.5% after 30 minutes. On the reaction day, the stock closed 0.2% below its pre-results close, while the other Rubber stocks had a median move of 0.0%.

Earlier reaction-day moves were mixed: 0.1% on 23 July 2026, negative 11.1% on 15 May 2026, 1.1% on 10 February 2026, negative 2.6% on 13 November 2025 and negative 5.3% on 25 July 2025. The previous reaction day’s move was also negative 11.1%, before GRP’s latest reaction-day close was negative 0.2%.