Ganesha Ecosphere (514167) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 saw resilience in legacy operations with production volumes up 13% QoQ and sales volumes up 7%, while consolidated revenue was ₹357.2 Cr, down 11% YoY but up 1.7% QoQ, and net profit at ₹4.8 Cr, a recovery from a loss in Q2FY26.

• Standalone business achieved record sales volume of 31,107 tons, the highest in five years, with revenue up 5.2% sequentially and PAT at ₹15.94 Cr.

• Sectoral headwinds included higher US tariffs on Indian textiles and regulatory uncertainty impacting rPET granule demand, leading to capacity utilization dropping to 50% at the subsidiary.

• Export revenue for the quarter was INR 30 crore and over INR 100 crore for nine months.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 7, 2026.

Financial highlights

• Standalone revenue rose 5.24% QoQ to INR 272.95 crore; EBITDA at INR 18.54 crore and PAT at INR 15.94 crore.

• Consolidated EBITDA for Q3FY26 was ₹30.7 Cr, down from ₹56.5 Cr YoY but up from ₹22.3 Cr QoQ; EBITDA margin contracted to 8.6% from 14.2% YoY.

• Standalone EBITDA per ton improved to INR 5,962 from INR 2,812 last quarter; EBITDA margin rose to 6.79% from 3.15%.

• Basic and diluted EPS (consolidated) for the quarter were ₹1.77; standalone EPS was ₹5.95.

• Cash profits (consolidated) were ₹30.7 Cr, down from ₹44.0 Cr YoY but up from ₹15.2 Cr QoQ.

Outlook and guidance

• Expectation of improved performance in Q4 and FY 2027 as regulatory clarity emerges and demand picks up.

• Regulatory mandates for recycled content in plastic packaging are expected to drive future growth despite short-term disruptions.

• Guidance for over 100,000 tons annual sales volume in legacy business.

• The company targets increasing value-added product revenue contribution to 65% from 40% and is expanding rPET granule capacity.

• The company recognized an incremental impact of new labour codes on gratuity and leave liability, with further evaluation pending once all rules are notified.