GRP Ltd reported a strong Q2 FY27 with a 30% rise in income to INR 1,727 million and a 200% surge in net profit. Improved operational efficiency boosted EBITDA by 60%, even as raw material costs compressed gross margins. Investors should monitor the upcoming commissioning of the rCB plant and capacity expansion in the Pyrova Energy segment.
GRP Ltd Q2 FY27 Profit Soars 200% Amid Operational Efficiency
Net Profit stood at INR 64 million, while total income reached INR 1,727 million for the quarter.
Reader Takeaway: Strong operational gains and plastic segment growth offset raw material cost pressures for the quarter.
What just happened
GRP Ltd delivered a robust performance for the second quarter of FY27. The company saw its total income rise 30% year-on-year to INR 1,727 million. Notably, net profit (PAT) increased by more than 200% to INR 64 million. EBITDA followed this growth trend, climbing 60% to INR 182 million, supported by an EBITDA margin expansion of 199 basis points to 10.5%.
Why this matters
The company is successfully navigating raw material cost escalation through operational efficiencies. While gross margins dipped to 46% from 51% a year ago, the bottom-line growth signals that the management's focus on cost control and product mix is yielding results. The transition toward a more integrated business model—incorporating reclaim rubber, pyrolysis, and plastics—is intended to insulate the company from single-market risks.
The backstory
GRP has been scaling its newer business lines aggressively. The Pyrova Energy (pyrolysis) segment hit operating profitability this quarter, with plans to triple capacity to 45,000 tons by March 2027. Simultaneously, the plastics business recorded a 38% revenue growth in H1, marking a significant turnaround with an 11-percentage-point margin improvement.
Risks to watch
Raw material inflation remains a primary concern, with management noting that geopolitical volatility continues to affect pricing and freight costs. Additionally, the recovered carbon black (rCB) facility is still awaiting commissioning, which is now expected by the end of the current quarter. Investors should track whether the company can maintain its targeted mid-teen EBITDA margins as energy market realizations evolve.
What to track next
The primary catalysts to monitor include the successful commissioning of the rCB plant and the scaling timeline of the Pyrova Energy segment. Management has set an expectation for the plastic business to maintain 12% to 15% EBITDA margins, which will be a key performance indicator for the next few quarters.