US export volume decline
40%
-40% YoY
Volumes to key North American customers fell nearly 40% year-on-year in Q3 due to tariffs.
GRP
Other
10 Feb 2026
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.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
Domestic reclaimed rubber revenue growth
27%
+27% YoY
Domestic revenues in reclaimed rubber grew 27% YoY in Q3, driven by non-tire applications.
Reclaim rubber capacity utilization
87%
flat
Reclaim rubber plant operated at 87% utilization in Q3, with room for improvement.
Market share gain in domestic reclaim rubber
200 bps
+200 bps YoY
GRP's market share in domestic reclaim rubber improved by 200 basis points year-on-year.
Management Guidance
Mid-teen volume growth in reclaimed rubber for FY27
Management expects reclaimed rubber volumes to grow in mid-teens percentage in FY27 over FY26, driven by US volume recovery and new technology approvals.
Management guidance growthPyrolysis and RCB capacity of 45,000 tonnes by FY27
Effective net capacity of 45,000 tonnes for pyrolysis, steel, oil, crumb char, and RCB will be available, expected to generate significant revenue.
Management guidance revenueCapex of ~₹80 crore for pyrolysis/RCB and ₹12-15 crore for reclaim rubber in FY27
Approximately ₹80 crore capex for pyrolysis and recovered carbon black, and ₹12-15 crore for new reclaim rubber technology line, to be commissioned by May 2026.
Management guidance capexSolar PPA to generate ₹3.2 crore annual savings from August 2026
The solar PPA with BECIS is expected to be commissioned by July 2026, yielding annual cost savings of ₹3.2 crore.
Management guidance marginsKey Risks
Slower US volume recovery
Despite tariff reduction, recovery in US export volumes may take several quarters and depends on customer demand and substitution effects.
high · management_commentaryPyrolysis plant stabilization delays
The pyrolysis and carbon black plants are operating below expectations, and stabilization has taken longer than anticipated, with next expansion deferred to August 2026.
high · management_commentaryRaw material cost inflation not fully passed through
One key raw material grade saw a 45% increase in input costs, with only 35% passed through; full pass-through expected from next quarter but remains uncertain.
medium · analyst_questionRecycled polypropylene pricing pressure from Chinese imports
Virgin polypropylene prices declined 30-35% YoY due to low-cost imports from China, compressing spreads and slowing demand for recycled content.
medium · data_observationNotable Quotes
The reduction of US tariffs on Indian imports from a potential high of 50% to about 18% is a significant development that provides meaningful relief.
We have prudently deferred the next stage of expansion including scaling up of the tire pyrolysis capacity and recovered carbon black facility are now expected to be commissioned by August 2026.
We are reassessing the subsidiaries operating model to ensure the capital deployment aligns with return thresholds.
Frequently Asked Questions
What was GRP's revenue in Q3 FY26?
GRP reported revenue of ₹135 Cr in Q3 FY26, representing a +2% change compared to the same quarter last year.
What guidance did GRP management give for FY27?
Mid-teen volume growth in reclaimed rubber for FY27: Management expects reclaimed rubber volumes to grow in mid-teens percentage in FY27 over FY26, driven by US volume recovery and new technology approvals. Pyrolysis and RCB capacity of 45,000 tonnes by FY27: Effective net capacity of 45,000 tonnes for pyrolysis, steel, oil, crumb char, and RCB will be available, expected to generate significant revenue. Capex of ~₹80 crore for pyrolysis/RCB and ₹12-15 crore for reclaim rubber in FY27: Approximately ₹80 crore capex for pyrolysis and recovered carbon black, and ₹12-15 crore for new reclaim rubber technology line, to be commissioned by May 2026. Solar PPA to generate ₹3.2 crore annual savings from August 2026: The solar PPA with BECIS is expected to be commissioned by July 2026, yielding annual cost savings of ₹3.2 crore.
What are the key risks for GRP in FY27?
Key risks include Slower US volume recovery — Despite tariff reduction, recovery in US export volumes may take several quarters and depends on customer demand and substitution effects.; Pyrolysis plant stabilization delays — The pyrolysis and carbon black plants are operating below expectations, and stabilization has taken longer than anticipated, with next expansion deferred to August 2026.; Raw material cost inflation not fully passed through — One key raw material grade saw a 45% increase in input costs, with only 35% passed through; full pass-through expected from next quarter but remains uncertain.; Recycled polypropylene pricing pressure from Chinese imports — Virgin polypropylene prices declined 30-35% YoY due to low-cost imports from China, compressing spreads and slowing demand for recycled content..
Did GRP meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full GRP Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.