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Ganesha Ecosphere (514167) investor relations material
Ganesha Ecosphere Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 FY2026 consolidated revenue rose 7.8% sequentially to ₹363.4 Cr, but profit before tax and net profit declined sharply year-over-year, with net profit turning slightly negative and return margins at 6.1% due to high raw material price volatility and regulatory uncertainty.
Legacy business sales grew 17.1% QoQ and remained resilient, supported by strong demand and stable GST structures, while subsidiaries' revenue declined 10% and rPET faced headwinds from regulatory delays.
Gross profit margin declined to 31% from 35.4% due to higher raw material costs, with average selling prices dropping 3% in legacy and 6% in subsidiaries.
Inventory losses and delayed government notifications led to under-deliveries, elevated inventory, and compressed gross margins, especially in the rPET segment.
Total comprehensive loss for Q2 FY26 was ₹139.43 lakh, compared to a profit of ₹1,053.04 lakh in Q1 FY26.
Financial highlights
Q2FY26 consolidated revenue: ₹363.4 Cr (down from ₹386.8 Cr YoY), PAT: ₹-0.5 Cr (down from ₹27.1 Cr YoY).
EBITDA for Q2FY26: ₹22.3 Cr (down from ₹55.3 Cr YoY), EBITDA margin: 6.1% (down from 14.3% YoY).
Inventory loss for the quarter was approximately INR 10-11 crores.
Exports contributed 11% of revenue for the quarter.
Capacity utilization in Q2 was about 15%.
Outlook and guidance
Legacy business EBITDA margins are expected to recover to 7%-9% in the December and March quarters, with potential to exceed 10% in Q4.
rPET segment deliveries are expected to remain subdued in Q3 but are anticipated to reach up to 90% utilization from March 2026 onwards.
Good order book and future demand visibility in legacy business; rPET granules demand expected to pick up from January 2026.
Q3 is expected to be similar to Q2, with improvement anticipated in Q4 as regulatory clarity emerges.
Final dividend of ₹3.00 per equity share declared for FY25, aggregating to ₹803.88 lakh.
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