Q3 2026 GRP Ltd Earnings Call Transcript
Key Points
- Reduction of US tariffs on Indian imports from 50% to 18% is expected to improve export volumes and realizations.
- India-EU Free Trade Agreement is anticipated to enhance competitiveness of Indian tire manufacturers, potentially increasing demand for reclaim rubber.
- GRP Ltd maintained top line stability with a total income of INR1,352 million, reflecting a marginal 2% year-on-year growth despite challenges.
- The company is making progress in its long-term strategy to build a fully integrated tire recycling ecosystem, with advancements in tyre pyrolysis, recovered carbon black, and crumb rubber.
- Cost reduction initiatives in the reclaim rubber business have started to bear fruit, with operating costs trending lower, which could lead to significant margin growth.
- Q3 and year-to-date FY26 were marked by muted demand and persistent macroeconomic and industry challenges.
- Technical stabilization of the tyre pyrolysis technology has taken longer than anticipated, with near-term capacity utilization below expectations.
- Margins were affected by continued inflation in select raw materials, with a 45% increase in input costs for key grades.
- The recycled polypropylene segment faced headwinds due to a sharp decline in Virgin polypropylene prices and low-cost imports, particularly from China.
- The company's gross profit and EBITDA declined by 5% and 14% respectively, compared to Q3 of FY25, impacted by higher raw material costs and lower export margins due to US tariffs.
Ladies and gentlemen, good day, and welcome to the GRP Limited Q3 and nine months FY26 earnings conference call.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Harsh Gandhi, Managing Director. Thank you, and over to you, sir.
A very good afternoon, ladies and gentlemen. Thank you for joining GRP Limited's quarter three and nine months for FY26 Earnings Conference Call. I'm joined today by our Chief Financial Officer, Ms. Shilpa Mehta; as well as our Investor Relations advisers from SGA.
The investor presentation has been uploaded to the stock exchanges and is also available on our company's website. We trust
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