Any current/future new fundraising through debt or equity?

The Board has approved raising up to ₹150 crore through equity shares or other eligible securities via Qualified Institutional Placement (QIP) or other permissible modes, subject to necessary approvals. The company plans to use a combination of debt, equity, and internal accruals to finance expansions and new projects, including the tire pyrolysis businesses and crumb rubber facilities. A Development Finance Institution (DFI)-backed External Commercial Borrowing (ECB) of €15 million from Proparco has been taken, supporting debt requirements with added ESG monitoring and social impact objecti

Any current/future capex/capital investment/strategic investment?

GRP Limited has approved a CAPEX of up to ₹250 crore for diversification initiatives, executed in two phases. Phase 1 involves ₹150 crore investment, scheduled for completion by December 2025, covering: - Expansion of crumb rubber manufacturing capacity including radial tire sources. - Downstream expansion into tire pyrolysis and recovered carbon black (RCB) manufacturing. - Part of the expansion includes new technology for reclaim rubber production. ₹24 crore CAPEX has already been incurred toward the Phase 1 greenfield project. Revenues from Phase 1A expected to start from Q4 FY25 with

Future growth expectations in sales/revenue/volumes?

GRP Limited expects growth driven by expansion in reclaim rubber capacity and new technologies. Domestic reclaim rubber consumption grew 10% YoY in Q1 FY '25; revenues rose 9% YoY in Q2 FY '25; overall reclaim rubber revenue increased 16% in H1 FY '25. Growth tied to tire industry sustainability targets and increasing use of recycled materials like crumb rubber, pyrolysis oils, and recovered carbon black. Non-reclaim rubber segment (e.g., polyamide from ocean plastics) showing strong 36% YoY volume growth, with entry into stringent markets (Europe). New pyrolysis plant and recovered carbon bla

Future growth expectations in earnings/operating earnings/profits/EPS?

GRP Limited is strategically expanding into high-growth adjacencies aligned with sustainable materials, expecting long-term value creation. The upcoming pyrolysis plant and crumb rubber facilities, targeted to commission by Q4 FY '25, are anticipated to enhance profitability. Consolidated margins are expected to improve significantly due to diversified raw materials (radial, two-wheeler, four-wheeler tires) and multiple end industries, offering better EBITDA margins than current reclaim rubber margins. Non-reclaim rubber segments (polyamide recycling, rubber composites) are small but strategic

GRPQ2 FY25Industrial Products

GRP Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,801.7P/E: 140.3Market Cap: ₹961 CrSector: Industrial Products

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

GRP Limited expects growth driven by expansion in reclaim rubber capacity and new technologies.
Domestic reclaim rubber consumption grew 10% YoY in Q1 FY '25; revenues rose 9% YoY in Q2 FY '25; overall reclaim rubber revenue increased 16% in H1 FY '25.
Growth tied to tire industry sustainability targets and increasing use of recycled materials like crumb rubber, pyrolysis oils, and recovered carbon black.
Non-reclaim rubber segment (e.g., polyamide from ocean plastics) showing strong 36% YoY volume growth, with entry into stringent markets (Europe).
New pyrolysis plant and recovered carbon black (RCB) plant expected operational by Q4 FY '25, contributing to revenue growth.
Subsidiaries (GCSL, GSPL) currently loss-making but expected to start contributing positively as they scale.
Capacity utilization for reclaim rubber currently ~90%; new technology lines expected to reach ~50-60% utilization by FY end.
Export demand is mixed, impacting revenue; domestic growth remains stronger.

Margin guidance

Category 1

GRP Limited is strategically expanding into high-growth adjacencies aligned with sustainable materials, expecting long-term value creation.
The upcoming pyrolysis plant and crumb rubber facilities, targeted to commission by Q4 FY '25, are anticipated to enhance profitability.
Consolidated margins are expected to improve significantly due to diversified raw materials (radial, two-wheeler, four-wheeler tires) and multiple end industries, offering better EBITDA margins than current reclaim rubber margins.
Non-reclaim rubber segments (polyamide recycling, rubber composites) are small but strategic and expected to grow, supported by regulatory tailwinds such as mandates for recycled plastics usage in autos.
Subsidiaries like GCSL and GSPL are currently loss-making but are projected to contribute positively as they scale.
Debt-equity is prudent, with funding mix of debt, equity (QIP), and internal accruals supporting CAPEX of around Rs. 250-300 crores.
Near term earnings are moderated by higher depreciation and interest costs owing to capacity expansions but show growth in revenues and gross profits.

See what GRP management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

The Board has approved raising up to ₹150 crore through equity shares or other eligible securities via Qualified Institutional Placement (QIP) or other permissible modes, subject to necessary approvals.
The company plans to use a combination of debt, equity, and internal accruals to finance expansions and new projects, including the tire pyrolysis businesses and crumb rubber facilities.
A Development Finance Institution (DFI)-backed External Commercial Borrowing (ECB) of €15 million from Proparco has been taken, supporting debt requirements with added ESG monitoring and social impact objectives.
The company is considering options like QIP and rights issue to fulfill the equity portion, aiming to avoid over-leveraging and ensure prudent capital deployment.
Internal accruals and improved profitability from subsidiaries and new capacities will also contribute to funding.

Order book

The document does not provide specific details on the current or expected order book or pending orders for GRP Limited. However, some relevant insights related to business growth and capacity expansion include: - The company is aggressively expanding capacities in reclaim rubber, pyrolysis, and recovered carbon black. - There are ongoing developments with technology pilots and commercial approvals expected soon for new products. - Discussions with customers indicate a faster need to build scale than previously anticipated. - The outlook includes building capacity for crumb rubber, pyrolysis, and recovered carbon black with announcements expected post Q3 once capacities are commissioned. - Strategic partnerships with tire companies for sustainable materials are contributing to demand visibility. - The management plans to update on orderbook and capacity utilization in future presentations aligned with capacity commissioning. No explicit quantitative orderbook or pending order figures were disclosed in the provided transcript.

See what GRP management said on order book — free account, 30 seconds.

Capex plans

Yes

GRP Limited has approved a CAPEX of up to ₹250 crore for diversification initiatives, executed in two phases.
Phase 1 involves ₹150 crore investment, scheduled for completion by December 2025, covering:
- Expansion of crumb rubber manufacturing capacity including radial tire sources.
- Downstream expansion into tire pyrolysis and recovered carbon black (RCB) manufacturing.
- Part of the expansion includes new technology for reclaim rubber production.
₹24 crore CAPEX has already been incurred toward the Phase 1 greenfield project.
Revenues from Phase 1A expected to start from Q4 FY25 with subsequent phases completing by December 2025.
Funding planned via a mix of internal accruals, debt (including a €15 million ECB loan from Proparco, France - a development financial institution), and equity (up to ₹150 crore through QIP or other modes).
The ECB loan supports ESG goals and validates technology.
Additional growth opportunities and funding needs may be addressed through further QIP or rights issue as required.

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