• The document is a transcript of the Q4 FY2026 Post-results Earnings conference call held on May 22, 2026, pertaining to the company's Audited Standalone & Consolidated Financial Results for the quarter and year ended March 31, 2026.
  • The event was an earnings call moderated by Mr. Manish Mahawar from Antique Stock Broking Limited, with management participation from Mr. Gopal Agarwal (CFO), Mr. Prashant Khandelwal (Senior Vice President), and Mr. Yash Sharma (Director of Ganesha Ecopet Private Limited).
  • The stated purpose of the call was to walk through Q4 FY26 results, highlight key operational and financial achievements, and share insights on the broader industry and macroeconomic environment.
  • The meeting was scheduled after the earnings announcement, as it discusses the already-reported Q4 FY26 financial results.
  • Management participants included: Mr. Gopal Agarwal (Chief Financial Officer), Mr. Prashant Khandelwal (Senior Vice President), and Mr. Yash Sharma (Director of Ganesha Ecopet Private Limited).
  • The company confirmed that no unpublished price sensitive information (UPSI) was discussed during the call, as stated in the note: "It is also confirmed that no unpublished price sensitive information was discussed during the call."

Financial Highlights Discussed

  • Q4 FY26 Consolidated Performance: Production of 41,268 tons (up 6.45% QoQ), sales volume of 45,162 metric tons (up 12.25% QoQ), revenue of INR 423.94 crores (up 18.7% QoQ), EBITDA of INR 52.35 crores (up 70.4% QoQ), net profit of INR 23.21 crores (up 388.6% QoQ), with EBITDA margin of 12.35% (vs 8.6% previous quarter).
  • Standalone Performance: Production of 28,209 tons, sales volume of 29,234 tons (down 3% and 6% QoQ respectively), revenue of INR 260.33 crores (down 4.8% QoQ), with 125 basis points improvement in EBITDA margins.
  • Year-on-Year Performance: Production up 6.4%, revenue up 23.1%, EBITDA up 2.5% at consolidated level. Full year performance almost at par with FY25 in production, sale volume and revenue.
  • Cash Flow and Debt: Operating cash flow generation of INR 170 crores, net debt position of INR 375 crores.
  • Forward-looking Statements: Management provided FY27 EBITDA guidance of INR 225-250 crores and long-term top line growth target of 20%+ CAGR. They expect total volume of 180,000-200,000 metric tons for FY27, with rPET capacity reaching ~100,000 tons and expected volume of ~85,000 tons.

Strategic and Operational Updates

  • Capacity Expansion: Commissioned 22,500 tons Brownfield expansion of rPET chips at Warangal, with ramp-up expected by Q2 FY27. Planning another 22,500 tons expansion and de-bottlenecking projects to push installed capacity to nearly 100,000 tonnes by FY27.
  • Project Changes: Decided to drop the Odisha Greenfield project for now, which was originally intended to take aggregate installed capacity to 132,000 metric tons by FY27-28.
  • Product Development: Filament yarn has successfully qualified with leading global textile brands, expecting to improve utilization rate over next 3-6 months.
  • Regulatory Environment: MoEF issued notification on March 31, 2026, reaffirming mandatory recycled plastic usage targets, providing regulatory clarity and enhanced industry confidence.

Market and Industry Context

  • Macroeconomic Challenges: FY27 started amidst global volatility, with Middle East conflict disrupting supply chains and driving up virgin polymer and PET scrap prices, creating pressure across textile value chain.
  • PET Scrap Prices: Increased substantially to INR 55-56 per kg during the last two months, but company has pass-through mechanisms with buyers.
  • Supply-Demand Dynamics: Current FSSAI approved rPET capacity at ~280,000 metric tons with pending applications for ~150,000 metric tons. Demand for rPET estimated at 450,000-500,000 tons against current supply of 250,000-280,000 tons, creating undersupply situation.
  • Industry Outlook: Expect industry capacity to reach 700,000-750,000 tons in two years, with demand expected to reach 900,000-1,000,000 tons as mandate increases from 40% to 60%.

Additional Notes

  • The document includes the full transcript of the earnings conference call with detailed Q&A session covering capacity plans, margin outlook, raw material prices, and industry dynamics.
  • The company confirmed that no financial data beyond what was disclosed in the results was shared during the call, and no UPSI was discussed.
  • The transcript contains management's detailed responses to analyst questions covering operational metrics, capacity utilization, expansion plans, and market outlook.