GRP509152Earnings call transcript
Q2FY27 earnings call: total income up 30% YoY, EBITDA up 60%, PAT more than triples
GRP Ltd has shared the transcript of its Q2 & H1 FY27 earnings call held on 30 October 2026.
By ScoutQuest · · 3 min read
- Q2 FY27 consolidated total income
- grew 30% year-on-year to INR1,727 million
- Q2 FY27 EBITDA
- rose 60% to INR182 million
- Q2 FY27 PAT
- more than tripled to INR64 million
Results for Q2 FY27
- Consolidated total income grew 30% year-on-year to INR1,727 million.
- EBITDA grew 60% to INR182 million.
- PAT more than tripled to INR64 million.
- Management said operating margins have been held around similar levels for consecutive quarters even as gross margins fell because of raw material inflation. It attributed this to higher volumes, better manpower productivity, energy optimisation and the growing contribution from newer businesses.
H1 FY27
- The EBITDA margin for the first half was 10.8%, which management described as a move from a phase of margin pressure to one of stability.
- Domestic revenue grew faster than export revenue. Standalone domestic revenue was INR1,678 million in H1 FY27, and domestic sales now form a larger share of standalone revenue than a year ago.
- Management linked this to Pyrova Energy, whose sales are largely domestic, and to domestic demand for reclaim rubber. It said the shift lowers exposure to tariffs, currency movements and international freight, though it also changes how pricing, credit and working capital are managed.
New businesses and expansion
- Pyrova Energy's EPR registration is complete and its first EPR income was recognised in Q2 FY27.
- Cumulative investment in the platform stood at INR1,140 million as of end-September, including capital work in progress.
- Commissioning of the recovered carbon black (rCB) facility at Solapur is progressing, and expansion of pyrolysis capacity is underway through March 2027.
- The Plastics business delivered a turnaround, with revenue growing and EBITDA margins improving across automotive and non-automotive applications, while customer qualification work in compounding and specialty applications continues.
What management cautioned on
- Tire pyrolysis oil is used mainly as an industrial fuel and its price tracks crude oil and, more directly, furnace oil prices. Part of Pyrova's current performance reflects elevated crude and furnace oil prices, and realisations would soften if energy markets normalise. Management said the current level should not be taken as the necessary run rate for Pyrova.
- It said the investment case for Pyrova rests on recovered carbon black, recovered steel, EPR income and integration with reclaim rubber, and the business should become less sensitive to fuel prices as rCB comes on stream.
- Natural rubber prices have reached multi-year highs and competition for key raw materials in India has intensified.
Stated priorities for the second half
- Complete commissioning of the rCB facility and secure approvals in a few key markets.
- Grow reclaim market share with new technology sales.
- Convert plastics development programmes into commercial volumes.
- Stay disciplined on pricing, efficiency and capital.
Other points
- GRP received the EcoVadis Gold Rating, which management said places it among the top tier of companies assessed worldwide and is an independent validation for its global tire company customers.
- Renewables met a significant share of standalone power needs in FY26, and the company expects to cross its stated target once the Gujarat Solar project is commissioned.
Management's overall message was that the integrated model delivered stable margins in a difficult environment, and that the task now is to turn that stability into sustained growth and stronger profitability.
Also from GRP
GRP Ltd submits audio recording link of Q2FY27 earnings call held 30 October 2026
30 Oct 2026
GRP Q2 FY27 consolidated income up 30% to Rs. 1,727 Mn, PAT up 226%; targets reclaim and crumb capacity expansion to FY30
28 Oct 2026
Board approved unaudited Q2 and H1 results; internal auditor LLP conversion and exchange fines noted
28 Oct 2026
More numbers
- Q2 FY27 consolidated total incomeINR1,727 million
- Q2 FY27 total income growth year-on-year30%
- Q2 FY27 consolidated EBITDAINR182 million
- Q2 FY27 EBITDA growth year-on-year60%
- Q2 FY27 PATINR64 million
- H1 FY27 EBITDA margin10.8%
- Cumulative investment in new platform as of end-SeptemberINR1,140 million
- H1 FY27 standalone domestic revenueINR1,678 million
Source: BSE · 5 Nov 2026
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