GRP Limited — Q3 FY26

GRP reported a muted Q3 FY26 with total income of ₹135.2 crore (+2% YoY) and EBITDA of ₹11.2 crore (-14% YoY), impacted by a 40% drop in US export volumes due to tariffs and higher raw material costs. Domestic reclaimed rubber revenue grew 27% YoY in Q3, partially offsetting export weakness. The pyrolysis and carbon black plants operated at suboptimal levels, with stabilization taking longer than expected. Management deferred the next expansion phase to August 2026. Positively, US tariff reduction to ~18% provides relief, and commercial discussions with customers have resumed. Guidance includes mid-teen volume growth in reclaimed rubber for FY27 and significant revenue kicker from 45,000 tonnes of new pyrolysis capacity. Key risk: slower-than-expected recovery in US volumes and continued margin pressure from raw material inflation.