Ganesha Ecosphere (514167) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 saw resilience in legacy operations with production volumes up 13% quarter-on-quarter and sales volumes up 7%, while consolidated revenue was ₹357.2 crore, down 11% year-over-year but up 1.7% quarter-over-quarter; net profit was ₹4.8 crore, a recovery from a loss in Q2FY26.

• Standalone business achieved over 100% capacity utilization and record sales volume of 31,107 tons, with PAT at ₹15.94 crore, surpassing the previous two quarters combined.

• Sectoral headwinds included higher US tariffs on Indian textiles and regulatory uncertainty impacting rPET granule demand.

• 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; auditors found no material misstatements.

Financial highlights

• Standalone revenue rose 5.24% sequentially to ₹27,294.53 lakh; EBITDA at ₹18.54 crore and PAT at ₹15.94 crore, with EBITDA margin improving to 6.8% from 3.2% QoQ.

• Consolidated revenue was ₹35,721.58 lakh, with EBITDA at ₹30.73 crore, margin at 8.6%, and PAT at ₹4.74 crore.

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

• Cash profits (consolidated) were ₹30.7 crore, down from ₹44 crore YoY but up from ₹15.2 crore QoQ.

Outlook and guidance

• Expectation of improved performance in Q4 and FY 2027, with regulatory clarity and higher mandatory recycled content driving demand.

• Legacy business margins expected to return to 9%-10% EBITDA in FY 2027, with rPET business benefiting from 40% mandatory use.

• Guidance for over 100,000 tons annual sales volume in legacy business; company targets increasing value-added product revenue to 65% from 40%.

• Q4 results anticipated to be better than Q2 and Q3, aided by both legacy and subsidiary businesses.