GRP LIMITED

Recommendation history

• 2026-06-30HoldHold: FY26 was weak, with consolidated income down 3% to Rs. 5,380 million, EBITDA of Rs. 429 million at an 8% margin, and adjusted PAT of only Rs. 46 million. Management expects FY27 revenue growth in the double digits and EBITDA margin above 10%, supported by Pyrova Energy and recovered carbon black, but this is an ambitious, largely unproven ramp after tariff pressure affected nearly one-third of reclaim revenue and international margins.
• 2026-05-22HoldHold: FY26 was a materially weaker year, with income down 3% to INR 5.38 billion, EBITDA down 38% to INR 429 million and EBITDA margin falling to 8% from 13%; Q4 EBITDA margin was only 7% versus 21% year-on-year. The recovery case rests on U.S. export normalization, full raw-material pass-through and Pyrova utilization above 85%, but management is committing another INR 900-1,000 million of FY27 capex while providing no quantified earnings guidance and carrying higher leverage at 1.15x debt/equity versus 0.76x.
• 2025-07-25HoldHold: FY25 was strong on reported growth, with income up 19% to ₹5,518 million, EBITDA of ₹694 million and margin expansion to 12.6%, while reclaim volumes rose 8% and engineering-plastics volumes 23%. However, the investment case still depends on delayed pyrolysis/RCB commissioning, recovery in tariff-exposed exports, suboptimal plastics utilization and a potential ₹150 crore equity raise; management offered no FY26 earnings guidance.
• 2024-09-30HoldGRP delivered a strong reported Q1 FY25, with revenue up 27% to INR 126.7 crore, EBITDA up 88% to INR 13.2 crore and PAT up 122% to INR 4.4 crore, but INR 6 crore of EPR income was a material contributor. The underlying business is less compelling: core gross margin fell to 45%-46% from roughly 50%-52%, exports and realizations were pressured by Red Sea freight disruption, and the company is committing up to INR 250 crore of capex without yet providing a detailed funding or project-level return framework. Stance: hold pending evidence that EPR income, margin recovery and the planned expansion are sustainable.
• 2024-08-02HoldHold: FY24 total income was ₹463 crore versus ₹460 crore, while EBITDA rose 53% to ₹52.3 crore and margin expanded to 11.3% from 7.4%, helped by ₹15 crore of EPR-credit income and lower power costs. The improvement is encouraging, but EPR pricing and volumes remain unquantified, the new reclaimed-rubber technology has no tire-company approvals yet, and the reported PAT figure of ₹22.6 crore conflicts with management’s claim of a 62% increase from ₹30 crore.
• 2022-05-20HoldHold: FY22 revenue rose 39% to Rs. 3,884 million, EBITDA increased 37% to Rs. 232 million, and PAT reached Rs. 57.6 million, but EBITDA margin remained only 6%. The growth outlook is supported by reclaim-rubber substitution, EPR-related supply-chain formalization, and underutilized engineering-plastics/composites capacity; however, management provided no quantified earnings outlook and remained noncommittal on the path from structurally weaker historical margins toward mid-teens ROCE.
• 2021-12-15HoldHold: Q2 revenue rose 16% to INR 1,170 million and H1 revenue rose 31% to INR 2,412 million, but Q2 EBITDA grew only 10% to INR 60 million as the margin fell to 5.1% from 5.4%. The bull case is lower freight, energy-cost mitigation and a higher-margin plastic-recycling business; however, demand is weakening in export tyre markets, PAT was inflated by a INR 57 million one-time JV gain, and management could not clearly establish a durable moat in plastics recycling.