Ganesha Ecosphere (514167) Q3 24/25 earnings summary

Executive summary

• rPET granule segment performed as expected with increased capacity utilization and deliveries, while legacy RPSF and yarn businesses faced margin pressure due to high feedstock costs and weak textile demand.

• Achieved strong revenue growth with consolidated revenue from operations up 39.7% year-over-year in Q3FY25 and 37.2% for the nine-month period, driven by higher production and sales volumes.

• EBITDA and net profit saw significant increases, with consolidated PAT up 133% year-over-year in Q3FY25 and 318% for 9MFY25.

• Company is shifting focus to export markets, technical textiles, and alternative raw materials to mitigate operational challenges.

• Subsidiaries' EBITDA surpassed legacy business, and exports rose 40% over the previous quarter.

Financial highlights

• Q3 FY25 consolidated revenue was INR 397.8 crore, up 39.7% year-over-year; production reached 40,630 tons.

• Consolidated EBITDA was INR 56.5 crore, up 41.3% from Q3 FY24, with margins at 14.2%.

• PAT for the quarter was INR 29.71 crore, 133% higher year-over-year.

• Nine-month FY25 consolidated revenue was INR 1,121.16 crore, up 37.2% year-over-year; EBITDA grew 75.7% and PAT 317.9%.

• Q3FY25 standalone revenue: ₹268.0 Cr (up 9.1% YoY); EBITDA: ₹23.3 Cr (down from ₹31.3 Cr YoY); PAT: ₹19.6 Cr (flat YoY).

Outlook and guidance

• rPET granule segment has strong demand visibility for the next financial year; focus is on maximizing capacity utilization in FY26.

• Recycled filament yarn ramp-up expected by Q2 FY26; rFDY business expected to ramp up by Q1FY26.

• FY26 revenue guidance is INR 1,800-1,900 crore.

• Value-added products expected to contribute 60-65% of revenue in 2-3 years, with blended EBITDA margins anticipated above 16%.

• Margins in rPSF business may remain under pressure for several quarters due to demand and raw material cost challenges.