GRP Ltd

Target & deal overview

• Target: BECIS Solar 5 Private Limited, incorporated 8 July 2025, developing 8 MW solar project in Gujarat, India.
• Industry: Solar power.
• Geography: India; project in Gujarat.
• Share capital: Authorized Rs 10.46 Cr; issued paid-up Rs 9.99 Cr.
• Turnover: NIL; operation yet to commence.

Transaction details

• Related party transaction; arm's length basis.
• Consideration: cash; Rs 2.60 crore.
• Equity shares allotted: 2,60,48,649.
• Total value: Rs 2.60 crore.
• GRP stake post-issue: 26.43%.
• Date of allotment: 10 Aug 2026.
• Allotment completed on August 10, 2026.

Strategic rationale

• Rationale: procure solar power at preferential tariff for Gujarat operations.
• Compliance with Electricity Rules, 2005.
• Supports captive generation; 26% proportionate ownership required.
• Potential cost reduction via renewable energy.

Regulatory & timeline

• Regulatory approvals: Not applicable.
• Timeline: Equity shares allotted August 10, 2026.

Background of target

• Target background: 8 MW project in Gujarat; captive generating station.
• Incorporation date: 8 July 2025; country India.
• Turnover NIL since incorporation.

Financial Performance

• Consolidated total income rose 26% YoY to INR 1,573 million in Q1 FY27.
• EBITDA rose 60% YoY to INR 174 million; margin up 233 bps to 11%.
• Profit after tax rose to INR 42 million, doubling year-on-year.
• Gross profit stood at INR 760 million; gross margin 48.3%.
• Working capital improved by 8 days to 86 days.

Operating Update and Segments

• Rubber Recycling led quarter; stand-alone revenue grew 34%; reclaim volumes grew 12%.
• Reclaim export volumes rose 20%; domestic demand healthy; margins expanded.
• Pyrova Energy: cumulative investment INR 91 crores; plant longest continuous reactor run since commissioning.
• Engineering plastics volumes grew 27%; repurposed polyolefin profitability turnaround.
• plastics EBITDA margins rose 14pp; gross margin up about 10pp.
• Platform spans reclaim rubber, crumb rubber, pyrolysis oil, rCB, with 8 of top 10 global tire manufacturers.
• ISCC Plus certification earned for reclaim rubber.

Capex and Projects

• FY27 capex targeted at INR 90-100 crores for pyrolysis expansion.
• rCB plant to be commissioned by Oct 2026; stabilization and trials.
• Total investment target INR 250 crores; room for ~INR 100 crores extra in FY28.
• Deleveraging: no firm plans; cash flow to fund expansion if opportunities arise.

Outlook and Guidance

• FY27 revenue growth near 20%+ driven by Pyrova, reclaim, and plastics.
• Reclaim EBITDA target 10-14%, Pyrova 18-20% after stabilization; polyolefin 10-15%.
• Renewable energy share 48% in FY2026; target 50% by FY2028.

Q&A Highlights

• Tariff impact: polymer composite permanently shut; direct exports margins improved; indirect exports not yet recovered.
• July milestone: 25-day continuous run achieved for Pyrova.
• Export growth: 20% export volume growth; North America lead; Europe gaining.
• rCB commissioning Oct 2026; 6-8 months to replicate model.
• Expects Pyrova EBITDA 15-20% post-stabilization; higher profitability.

Meeting Details

• Date and time: 27 July 2026 at 3:00 p.m. IST.
• Type/Mode: Earnings call; audio recording available online.
• Organizer: GRP Limited.
• Purpose: Discuss Q1FY27 operational and financial performance.
• Recording availability: Audio recording on company website.

Meeting Details

• Date and time: Monday, 27 July 2026 at 3:00 PM IST.
• Type and mode: earnings call (group) conducted virtually.
• Organiser: GRP Limited.
• Purpose: discuss Q1 FY27 operational and financial performance.

Participants

• Managing Director to participate.
• Chief Financial Officer to participate.

Additional Notes

• Pre-registration required; access via link in invite.

Meeting Details

• Board meeting scheduled for Thursday, 23 July 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited stand-alone and consolidated financial results for quarter ended 30 June 2026.

Other Notes

• Trading window closed from 30 June 2026 to 25 July 2026 (48 hours post-meeting).

AGM details

• 52nd AGM scheduled for 23 July 2026.

Corrigendum highlights

• Corrections to Note 41(c) on related party transactions: short-term employee benefits Rs 490.71.
• Total compensation to key management: Rs 848.20.
• Annexure 4 report date corrected to 15 May 2026.
• Other contents unchanged.

Record date and book closure

• Record date for dividend and e-voting: 16 July 2026
• Security: equity shares (GRPLTD, Series EQ)
• Book closure: 17 July 2026 to 23 July 2026 (inclusive)
• E-voting window: 20 July 2026 09:00 IST to 22 July 2026 17:00 IST
• AGM: 52nd annual general meeting on 23 July 2026

Dematerialisation status

• Securities received for dematerialisation were processed and confirmed to depositories.
• Dematerialised securities have been listed on the stock exchanges.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification, with the depository named as registered owner.
• The depository's name was substituted as registered owner within prescribed timelines.
• There were no exceptions, delays, or non-compliance reported.