GRP Limited Earnings Summary — Q4 FY2026
GRP Limited Reports Quarterly Loss as Margins Collapse Amid High Capex and Interest Costs
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹157 Cr is 26.7% higher year-on-year.
- Revenue has compounded at 5.9% annualised over the last 10 quarters.
- Net profit of ₹4 Cr is 140.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -40.0% annualised across the period.
- Operating margin stands at 10.8% in Q1 FY2027.
- Operating margin expanded by 276 bps year-on-year.
- Over the last two years operating margin has expanded by 65 bps.
- PBT margin is 5.4%.
- Expense growth of 22.9% remained below revenue growth of 26.7%.
- Operating profit of ₹17 Cr is 70.2% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 67/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 157 | 145 | 135 | 132 | 124 | 160 | 132 | 132 | 126 | 138 |
| Expenses | Stable | 140 | 136 | 124 | 122 | 114 | 127 | 120 | 122 | 113 | 115 |
| Operating Profit | Volatile | 17 | 9 | 11 | 11 | 10 | 33 | 13 | 10 | 13 | 23 |
| Operating Margin | Volatile | 10.8% | 6.2% | 8.0% | 8.0% | 8.0% | 20.5% | 9.6% | 7.4% | 10.1% | 16.5% |
| Other Income | Volatile | 0 | 1 | -1 | 1 | 1 | 0 | 0 | 0 | 0 | -2 |
| Interest | Improving | 4 | 4 | 4 | 4 | 3 | 3 | 3 | 2 | 2 | 2 |
| Depreciation | Improving | 5 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 4 | 3 |
| Profit Before Tax | Volatile | 8 | 0 | 1 | 3 | 3 | 26 | 6 | 4 | 7 | 15 |
| Tax | Volatile | 4 | 2 | 0 | 1 | 1 | 6 | 2 | 1 | 3 | 4 |
| Net Profit | Volatile | 4 | -1 | 1 | 2 | 2 | 19 | 4 | 3 | 4 | 12 |
| Net Margin | Volatile | 2.7% | -0.9% | 0.6% | 1.5% | 1.4% | 12.1% | 3.3% | 1.9% | 3.5% | 8.5% |
Key Takeaways
- GRP Limited reported a consolidated net loss of ₹1.34 crore for Q4 FY2026, a sharp decline from a profit of ₹19.45 crore in the same period last year.
- Operating margins plummeted to 6.18%, down from 20.49% YoY, reflecting significant pressure on profitability despite a minor QoQ revenue recovery.
- Interest expenses rose to ₹4.00 crore, the highest in recent history, driven by a surge in borrowings which reached ₹208 crore by the end of FY2026.
- The tax rate appeared abnormally high at 400% in the final quarter, further impacting the bottom line after thin PBT of just ₹0.45 crore.
- The company is in an intense capital expenditure phase, with fixed assets increasing to ₹227 crore, leading to higher depreciation and interest burdens.
- Annual ROE has crashed to 2.04% from 16.2% a year prior, highlighting the risks of high debt-funded growth in a cyclical market.
Management Guidance
Management is focused on the 'circular economy' and long-term relationships with global OEMs, but recent execution has been hampered by raw material volatility and high operational leverage.
Sentiment Shift
Deteriorating
Performance shifted from a record-breaking FY2025 to a near-total collapse in profitability and free cash flow in FY2026 due to margin contraction and debt servicing costs.
Outlook
The outlook is clouded by high interest coverage risks and stagnant top-line growth at a 10-year CAGR of only 5%, despite aggressive capacity expansion.
From the Annual Report (Key Quotes)
“Management demonstrates deep domain expertise in the rubber recycling industry... however, there is a disconnect between optimistic strategic commentary and actual bottom-line delivery.”
“The business exhibits high cyclicality, with the most recent fiscal year showing a significant EBITDA margin contraction.”
“ROCE has plummeted to 7% from 18% a year prior.”
Official Quarterly Documents
This summary is AI-generated from GRP Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.