GRP Limited Earnings Summary — Q4 FY2026

• 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 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.

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.

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.