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GRPLTD - GRP

📊 NSE: GRPLTD 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 22:37

📢 Recent Corporate Announcements

GRP Ltd Q3 FY26: PAT Drops 49% to ₹2.3 Cr Amid US Tariff Pressures & Higher Costs

🔵 WATCH ⭐ 7/10

EARNINGS 📅 20 Feb 2026, 06:50 PM

GRP Limited reported a marginal 2% YoY growth in Q3 FY26 total income to ₹135.2 crore, but adjusted PAT fell sharply by 49% to ₹2.3 crore due to high raw material costs and US tariff impacts. The company faced a 40% decline in export volumes to North America as tariffs hit competitiveness, though a recent reduction in US tariffs from 50% to 18% offers a positive outlook for future quarters. Management has prudently deferred the expansion of tyre pyrolysis and recovered carbon black facilities to August 2026 to ensure operational stability. Despite global headwinds, domestic reclaim rubber revenue grew 27% in Q3, helping offset some export weakness.

Q3 FY26 Adjusted PAT declined 49% YoY to ₹2.3 crore, while total income grew marginally by 2% to ₹135.2 crore.
Export volumes to North America fell 40% YoY due to high tariffs, though recent reduction to 18% is expected to aid recovery from Q4.
Deferred commissioning of Tyre Pyrolysis and Recovered Carbon Black expansion to August 2026 for technical optimization.
Domestic reclaim rubber revenue saw strong growth of 27% YoY in Q3 FY26, increasing market share by 200 bps.
Invested ₹3 crore in a solar PPA expected to generate annual cost savings of ₹3-4 crore starting soon.

💡 Investors should monitor the recovery in export margins following the US tariff reduction and the stabilization of the new pyrolysis business. The stock may remain under pressure until the deferred expansion projects begin contributing to the bottom line in H2 FY27.

GRP Limited Shares Audio Recording Link for Q3 & 9MFY26 Earnings Call

🟡 NEUTRAL ⭐ 3/10

EARNINGS 📅 13 Feb 2026, 06:43 PM

GRP Limited has released the audio recording link for its earnings conference call held on February 13, 2026. The call focused on the company's operational and financial performance for the third quarter and nine-month period of FY26. This disclosure is a routine regulatory requirement under SEBI (LODR) Regulations, 2015. Investors can access the recording on the company's website to gain deeper insights into management's commentary on the business environment.

Earnings call conducted on February 13, 2026, at 4:00 p.m. IST.
Discussion covered financial and operational performance for Q3 and 9MFY26.
Audio recording link made available on the company's official website for transparency.
Filing submitted in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 Investors should listen to the recording to understand management's outlook on the reclaimed rubber market and any updates on capacity utilization. This will help in assessing the long-term growth trajectory of the company.

GRP Ltd Q3 FY26 PAT Drops 49% YoY to ₹23 Mn Amid Margin Pressure and Export Headwinds

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 12 Feb 2026, 07:32 PM

GRP Limited reported a flat topline for Q3 FY26 with total income at ₹1,352 Mn, but faced significant bottom-line pressure as PAT (excluding exceptional items) fell 49% YoY to ₹23 Mn. The decline was primarily driven by a 383 bps contraction in gross margins due to 11% higher raw material costs and lower export volumes linked to US tariffs. While domestic reclaim rubber revenue grew 14%, the non-reclaim segment struggled with pricing pressures and sub-optimal utilization of new plants. The company is currently executing a ₹250 Cr capex plan, focusing on crumb rubber and pyrolysis to diversify its portfolio.

Total Income for Q3 FY26 stood at ₹1,352 Mn, a marginal 2% increase YoY, while 9M FY26 income remained flat at ₹3,930 Mn.
EBITDA margins contracted by 153 bps to 8.3% due to rising input costs and a 45% decline in export margins for certain products.
Domestic Reclaim Rubber revenue grew 14% YoY, partially offsetting a 9% decline in export revenues caused by geopolitical uncertainties and tariffs.
The company has incurred ₹76 Cr out of a planned ₹250 Cr capex for integrated facilities to manufacture Crumb rubber and Tyre Pyrolysis Oil.
A one-time exceptional expense of ₹14 Mn was recorded during the quarter on account of the New Labour Code implementation.

💡 Investors should closely monitor the ramp-up of the new pyrolysis and crumb rubber facilities, as their current sub-optimal utilization is dragging down overall profitability. The recent reduction in US tariffs to 18% and expected solar energy savings of ₹3-4 Cr per annum from Q2 FY27 are potential catalysts for margin recovery.

GRP Ltd Q3 Net Profit Drops 59% YoY to ₹2.36 Cr; Board Cancels Proposed QIP

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 10 Feb 2026, 04:33 PM

GRP Limited reported a significant decline in profitability for the quarter ended December 31, 2025, with standalone net profit falling to ₹2.36 crore from ₹5.82 crore in the same period last year. While revenue from operations saw a modest YoY growth of 3.6% to ₹133.31 crore, margins were heavily pressured by rising finance costs and a one-time exceptional charge of ₹1.40 crore related to new labour code provisions. Furthermore, the company has officially scrapped its proposed Qualified Institutional Placement (QIP) as the 365-day regulatory timeline for implementation has expired. The core Reclaim Rubber segment continues to drive the bulk of the revenue but faces margin compression.

Standalone Revenue from Operations grew 3.6% YoY to ₹133.31 crore in Q3 FY26.
Net Profit plummeted 59.5% YoY to ₹2.36 crore compared to ₹5.82 crore in Q3 FY25.
Recorded an exceptional item of ₹1.40 crore as a one-time provision for employee benefits due to new Labour Codes.
Finance costs rose significantly to ₹3.69 crore from ₹2.66 crore in the year-ago quarter.
Board confirmed non-implementation of the proposed QIP due to the expiration of the 365-day validity period.

💡 Investors should exercise caution as the sharp decline in bottom-line performance and rising interest costs indicate significant margin pressure. The cancellation of the QIP may suggest either a change in capital expenditure plans or a failure to attract institutional interest at desired valuations.

GRP Limited to Host Q3 & 9MFY26 Earnings Call on February 13, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 05 Feb 2026, 06:41 PM

GRP Limited has scheduled an earnings conference call for Friday, February 13, 2026, at 4:00 PM IST to discuss its financial and operational performance for the third quarter and nine months ended December 31, 2025. The call will be led by Managing Director Mr. Harsh Gandhi and CFO Ms. Shilpa Mehta. This routine disclosure allows investors and analysts to engage directly with management regarding the company's recent performance and future outlook. The company has provided dial-in details and a pre-registration link for interested participants.

Earnings call scheduled for February 13, 2026, at 4:00 PM IST.
Focus on operational and financial performance for Q3 & 9MFY26.
Management representation includes Managing Director Harsh Gandhi and CFO Shilpa Mehta.
Primary dial-in numbers provided: +91 22 6280 1309 and +91 22 7115 8210.
International toll-free access available for USA, UK, Singapore, and Hong Kong.

💡 Investors should attend or review the transcript of the call to understand management's perspective on industry demand and margin trends. No immediate action is required as this is a routine meeting notification.

GRP Limited Acquires 26% Stake in BECIS Solar 5 for Solar Power Procurement

🟢 POSITIVE ⭐ 6/10

M&A 📅 12 Jan 2026, 06:25 PM

GRP Limited has completed the first tranche of its investment in BECIS Solar 5 Private Limited to facilitate solar power procurement. The company was allotted 3,51,351 equity shares at a face value of Rs. 1 each with a nominal premium. This acquisition results in GRP Limited holding a 26% stake in the issued and paid-up share capital of BECIS. The total investment for this tranche amounts to Rs. 3,54,865, marking a strategic move towards green energy consumption.

Acquired 26% stake in BECIS Solar 5 Private Limited for solar power procurement.
Allotted 3,51,351 fully paid-up equity shares at a total consideration of Rs. 3,54,865.
Shares were issued at a face value of Rs. 1 with a premium of Rs. 0.01 per share.
The transaction represents the completion of the first tranche of the investment plan.

💡 Investors should view this as a positive step toward ESG compliance and long-term energy cost reduction, though the immediate financial outlay is small. Monitor for further tranches and the resulting impact on operational power costs.

GRP Limited Files Quarterly Compliance Certificate Under SEBI Regulation 74(5)

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 09 Jan 2026, 05:45 PM

GRP Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ended December 31, 2025. The certificate, issued by the Registrar and Share Transfer Agent MUFG Intime India Private Limited, confirms that all dematerialization requests were processed within the mandated timelines. It verifies that physical share certificates received were mutilated and cancelled after verification, and the names of depositories were updated in the register of members. This is a standard administrative filing required by Indian stock exchanges to ensure proper record-keeping of electronic securities.

Compliance certificate submitted for the quarter ended December 31, 2025.
Issued by Registrar and Share Transfer Agent, MUFG Intime India Private Limited.
Confirms dematerialization requests were accepted or rejected within prescribed timelines.
Physical certificates were mutilated and cancelled after due verification by the depository participant.

💡 No action is required from investors as this is a routine regulatory filing confirming administrative compliance regarding share dematerialization.

GRP Limited Announces Trading Window Closure from December 31, 2025

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 31 Dec 2025, 04:22 PM

GRP Limited has informed the stock exchanges that its trading window for equity shares will be closed starting from the end of business hours on December 31, 2025. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter and nine months ended December 31, 2025. The window will remain closed until 48 hours after the results are officially announced to the public. All designated persons and their immediate relatives are prohibited from trading in the company's securities during this period.

Trading window closure begins from the end of business hours on December 31, 2025.
Closure is related to the upcoming unaudited financial results for the quarter and nine months ended December 31, 2025.
The window will reopen 48 hours after the financial results are declared to the exchanges.
Restriction applies to all designated persons and their immediate relatives under SEBI regulations.

💡 This is a routine regulatory announcement with no direct impact on stock fundamentals; investors should wait for the upcoming quarterly results for performance updates.

GRP Ltd Invests ₹5 Crore in Subsidiary GRP Circular Solutions to Fuel Growth

🟢 POSITIVE ⭐ 6/10

EXPANSION 📅 18 Dec 2025, 04:30 PM

GRP Limited has infused ₹5 crore into its wholly-owned subsidiary, GRP Circular Solutions Limited (GCSL), through a rights issue of 50 lakh equity shares. GCSL, which operates in the recycled and compounded polypropylene sector, has shown explosive growth with turnover rising from ₹0.77 crore in FY24 to ₹19.75 crore in FY25. This capital infusion is intended to strengthen the subsidiary's financial position and support its expansion within the plastics recycling ecosystem. The parent company maintains its 100% stake in the subsidiary following this transaction.

Subscription of 50,00,000 equity shares at ₹10 each, totaling ₹5 crore in cash.
Subsidiary turnover grew significantly from ₹0.77 crore in FY24 to ₹19.75 crore in FY25.
Investment aimed at meeting fund requirements and empowering future growth in the recycling ecosystem.
GRP Limited maintains 100% ownership of GCSL post-allotment.
GCSL was incorporated in August 2022 and has scaled operations rapidly within three years.

💡 Investors should monitor the scaling of GCSL as it becomes a more meaningful contributor to GRP's consolidated revenue. The rapid growth in the recycling segment aligns with global sustainability trends and could drive long-term value.

GRP Limited Credit Rating Downgraded by CRISIL

🔴 NEGATIVE ⭐ 7/10

REGULATORY 📅 11 Dec 2025, 01:51 PM

CRISIL has downgraded the credit rating for GRP Limited's bank facilities. The downgrade is attributed to the weakening of the company's business and financial risk profile due to trade tariffs impacting operating performance. The long-term rating has been downgraded to 'Crisil BBB+/Stable' from 'Crisil A-/Stable'. The short-term rating has also been downgraded to 'Crisil A2' from 'Crisil A2+'. The total bank loan facilities rated are ₹152.62 Crore.

Long-Term Rating downgraded to Crisil BBB+/Stable from Crisil A-/Stable
Short-Term Rating downgraded to Crisil A2 from Crisil A2+
Total Bank Loan Facilities Rated: ₹152.62 Crore
Downgrade due to weakening business and financial risk profile

💡 Investors should closely monitor GRP Limited's operating performance and its ability to manage the impact of trade tariffs. Review your investment strategy considering the increased risk profile reflected in the credit rating downgrade.

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💰 Financial Performance

Revenue Growth by Segment

Reclaim Rubber (RR) revenue grew 1% YoY to INR 225.2 Cr in H1FY26, while Non-Reclaim Rubber revenue declined 8% YoY to INR 24.7 Cr. In FY24, Reclaim Rubber generated INR 424.7 Cr and 'Others' (Polymer Composite, Engineered Plastics) generated INR 62.11 Cr.

Geographic Revenue Split

In H1FY26, Exports contributed 52% (INR 129.6 Cr, down 6% YoY) and Domestic sales contributed 48% (INR 120.2 Cr, up 8% YoY). The company exports to 55+ countries.

Profitability Margins

Gross margins for H1FY26 were 50.6% (down 123 bps YoY). PAT margins declined significantly to 1.4% in H1FY26 from 2.7% in H1FY25, a drop of 122 bps, primarily due to higher interest costs and forex losses.

EBITDA Margin

EBITDA margin stood at 8.6% in H1FY26, down 38 bps from 9.0% in H1FY25. FY24 EBITDA margin was 10.8%, up from 6.6% in FY23, driven by EPR credit sales and cost efficiencies.

Capital Expenditure

Planned capex of INR 200-220 Cr over the next 3 years (FY26-FY28). Historical capex in FY24 was INR 67.39 Cr, including INR 37.04 Cr for Plant and Machinery and INR 22.85 Cr for Civil Infrastructure.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Total debt as of Sep-25 was ~INR 205 Cr, with interest coverage ratio weakening but remaining adequate. Bank limit utilization was 89% for the 12 months ended May 2025.

⚙️ Operational Drivers

Raw Materials

End-of-life tires (ELT) and Butyl rubber. Raw material costs account for approximately 50% of operating income.

Import Sources

Sourced from an extensive chain of 350+ vendors across 150+ cities domestically; specific import countries for Butyl rubber are not disclosed but are subject to global price fluctuations.

Key Suppliers

Not disclosed by specific company names; however, the company maintains a base of 350+ vendors.

Capacity Expansion

Current capacity is 1,220,000+ MTPA (including crumb rubber capacity added in Q4FY25). Planned expansion includes a facility for rubber crumbs and downstream products with an annual capex of INR 50-60 Cr.

Raw Material Costs

Raw material costs as a percentage of revenue fluctuated; Q2FY26 saw a INR 3.8 Cr gross margin reduction due to elevated Butyl rubber prices and export margin contraction of 15% YoY.

Manufacturing Efficiency

Operating efficiency improved in FY24 through debottlenecking; however, subsidiary GCSL is currently operating below optimal capacity due to supply chain bottlenecks.

Logistics & Distribution

Distribution costs impacted by increased ocean freight rates; company is leveraging inland customer networks to maintain service levels.

📈 Strategic Growth

Expected Growth Rate

9-11%

Growth Strategy

Growth will be driven by capacity enhancement in the reclaim rubber segment, maturing of the EPR credit regime (providing high-margin income), and scaling the Repurposed Polyolefins and Engineering Plastics businesses. The company is also investing INR 200-220 Cr in capex for downstream products.

Products & Services

Reclaimed rubber, rubber crumbs, engineered plastics, polymer composites, and repurposed polyolefins.

Brand Portfolio

GRP (Global Reclaim Partner).

New Products/Services

Rubber crumbs and downstream products; Engineering Plastics division registered 23% growth recently.

Market Expansion

Targeting 55+ countries with a focus on balancing regional supply chains to offset North American tariff risks.

Market Share & Ranking

Holds a 20% share in the domestic market and ~35% share in the export market for reclaimed rubber.

Strategic Alliances

Subsidiaries include Gripsurya Recycling LLP and GRP Circular Solutions Ltd (GCSL).

🌍 External Factors

Industry Trends

The EPR (Extended Producer Responsibility) market is maturing with floor/ceiling prices set at INR 2.525–INR 8/kg, providing a structured sustainability incentive for recyclers.

Competitive Landscape

GRP is a market leader in reclaimed rubber; competition includes other global recyclers and virgin rubber producers.

Competitive Moat

Moat is built on 5 decades of experience, established relationships with 8/10 top global tire firms, and ISCC+/GRS certifications which are difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to global tire demand and automotive industry cycles.

Consumer Behavior

Increasing global push for sustainability and circular economy regulations (like EPR) is driving demand for recycled rubber and plastic solutions.

Geopolitical Risks

Proposed tariff barriers in North America have reduced container availability and increased ocean freight rates, directly impacting export volumes.

⚖️ Regulatory & Governance

Industry Regulations

CPCB (Central Pollution Control Board) EPR norms require tire companies to purchase credits from recyclers. Formulae for awarding credits may undergo regulatory changes.