GRP Ltd

- GRP Limited has not finalized any new fundraising plans through debt or equity as of the call date. - The company is considering several options including potential capital reduction, strategic partnerships, or fundraises. - These possibilities are currently on the drawing board and under active consideration. - No formal announcements have been made yet; any updates will be communicated once progress is made. - The management emphasized a disciplined approach to capital deployment, focusing on return thresholds. - They remain confident in future cash flows, comfortable with current leverage ratios, and expect improvements in leverage over the next few quarters.

- FY '26 capex: ~INR 31 crores spent on Pyrolysis and rCB plant/business; ~INR 18 crores on other capex; total close to INR 50 crores. - FY '27 planned capex: ~INR 80 crores for Pyrolysis and Recovered Carbon Black business; INR 12-15 crores for incremental reclaim rubber capacity addition. - New reclaim rubber technology line capex (INR 12-15 crores) expected to commission by May/June 2026 in Solapur plant. - Pyrolysis and rCB facility commissioning expected by August 2026 with commercial production starting H2 FY '27; next site expansion planned for H2 FY '27, complete by Q1 FY '28. - Investment of INR 3 crores equity in solar PPA project; plant commissioning expected by July 2026 with savings reflected from August 2026. - Strategic reassessment of subsidiary's operating model, including potential strategic partnerships or capital reduction amid ongoing capital discipline until pricing stabilizes.

- Reclaim rubber business volume growth expected at around 5% for FY '26, accelerating to mid-teen percentage growth in FY '27 due to capacity utilization ramp-up and market recovery, particularly in North America. - Revenue growth for reclaim rubber anticipated to follow volume growth, with improving margins from cost reduction initiatives. - Pyrolysis and Recovered Carbon Black (rCB) business to see significant revenue growth in FY '27 as capacity utilization improves; additional net capacity of about 45,000 tons expected to generate strong revenues. - Plastics business utilization expected to increase from below 50% to 75-80% in FY '27, driven by normalized polyolefin pricing and improved demand in nylon and engineering plastics, targeting mid- to high-teen growth. - Overall, GRP is bullish for FY '27 and beyond, expecting steady business growth, margin expansion, and sustainable materials delivery.

- Volume growth in reclaim rubber business expected at mid-teens percentage in FY '27, up from ~5% in FY '26. - Significant revenue jump anticipated from pyrolysis and recovered carbon black businesses due to ramped-up capacity (~45,000 tons additional net capacity expected). - Plastics business volumes targeting increase from sub-50% utilization to 75-80%, driven by normalizing polyolefin prices and demand uptick. - Operating cost reductions in reclaim rubber business leading to margin expansion and significant profitability growth. - EBITDA margins expected to improve as new capacities stabilize; however, exact margin guidance not provided. - Long-term commitment to build globally relevant scale in tire recycling ecosystem with tailwinds from government regulation and brand owners. - 2026-27 outlook labeled "extremely bullish" with focus on sustainable material delivery. - Some short-term financial hiccups due to project delays and tariff impacts are being overcome.

- Commercial negotiations with U.S. customers have resumed following tariff normalization. - Order inflows and volume recovery show early positive signs, but timing for full volume regain remains uncertain. - Volume recovery linked to substitution of earlier volume loss and the recovery of OE tire manufacturing in North America. - New technology in reclaim rubber is picking up pace with orders filling in, expected utilization to increase to 60-65% starting next quarter. - Pyrolysis and Recovered Carbon Black (rCB) commercial volumes expected to start by October 2026. - Plastics business utilization targeted to improve from sub-50% to around 75-80%, driven by demand uptick and pricing normalization. - Auto EPR norms driving approvals and expected incremental traction from FY '27 onward, though Indian norms are still in draft. - Overall, orderbook expected to grow significantly in reclaim rubber and pyrolysis segments with mid-teen volume growth and sizeable revenue jump from new capacities.