Ganesha Ecosphere Q2 profit turns Rs 28.1 crore from loss

Ganesha Ecosphere Limited returned to a consolidated profit after tax of Rs 28.1 crore in Q2FY27, versus a Rs 0.5 crore loss a year earlier, as sales volume reached 49,382 metric tonnes. Ganesha Ecosphere’s earnings before interest, tax, depreciation and amortisation rose to Rs 60.7 crore from Rs 22.3 crore, although margin declined sequentially to 11.8%.

How did Ganesha Ecosphere return to profit in Q2FY27?

Ganesha Ecosphere returned to profitability through higher revenue, volumes and operating earnings in Q2FY27. Consolidated revenue from operations rose to Rs 513.0 crore from Rs 363.4 crore in Q2FY26, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by Rs 38.4 crore to Rs 60.7 crore. The resulting profit after tax (PAT) was Rs 28.1 crore, compared with the prior-year quarterly loss of Rs 0.5 crore.

The improvement also shows in earnings per share, which moved from a loss of Rs 0.28 in Q2FY26 to earnings of Rs 10.50 in Q2FY27. Cash profits rose to Rs 46.5 crore from Rs 15.2 crore, while EBITDA margin increased to 11.8% from 6.1% a year earlier. These figures cover the consolidated business, including Ganesha Ecosphere’s subsidiary operations.

What drove Ganesha Ecosphere’s Q2FY27 revenue growth?

Higher sales volume drove Ganesha Ecosphere’s revenue growth, with consolidated sales reaching 49,382 metric tonnes in Q2FY27. That was 10,250 tonnes above Q2FY26 sales of 39,132 tonnes and 9,269 tonnes above Q1FY27 sales of 40,113 tonnes. Ganesha Ecosphere said improved demand and higher volumes supported momentum across its standalone and subsidiary businesses.

Consolidated production, excluding captive consumption, was 42,316 metric tonnes in Q2FY27, compared with 38,845 tonnes in Q2FY26. Production was lower than Q1FY27’s 42,826 tonnes, even as sales rose sequentially. Revenue increased 21.1% quarter on quarter from Rs 423.7 crore to Rs 513.0 crore, broadly in line with the sequential expansion in sales volume.

Standalone sales rose to 31,808 metric tonnes in Q2FY27 from 29,068 tonnes a year earlier and 25,321 tonnes in Q1FY27. Standalone revenue correspondingly reached Rs 316.5 crore, against Rs 259.4 crore in Q2FY26 and Rs 262.3 crore in Q1FY27. The standalone business therefore recorded higher sales and revenue alongside the consolidated operations.

Why did Ganesha Ecosphere’s margin decline sequentially?

Ganesha Ecosphere’s consolidated EBITDA margin declined to 11.8% in Q2FY27 from 14.1% in Q1FY27 as profitability per tonne fell amid volatile input and finished-goods prices and a Warangal disruption. EBITDA itself increased slightly to Rs 60.7 crore from Rs 59.8 crore, but revenue grew faster, reaching Rs 513.0 crore from Rs 423.7 crore.

EBITDA per tonne declined to Rs 12,300 in Q2FY27 from Rs 14,900 in Q1FY27, although it remained above Rs 5,700 in Q2FY26. The presentation said prices for polyethylene terephthalate (PET) bottle scrap and finished goods were highly volatile during the quarter because of movements in crude-oil and polymer markets. This price environment coincided with the lower sequential margin.

Warangal’s EBITDA was also affected by lost recycled polyester staple fibre (rPSF) production after a fire incident, while fixed costs continued. The Warangal facility operated at 67% capacity in Q2FY27, compared with 99% utilisation reported for legacy operations. Ganesha Ecosphere expects Warangal operations to be restored by Q4FY27, but did not quantify the financial effect of the disruption.

How did Ganesha Ecosphere’s standalone performance compare?

Ganesha Ecosphere’s standalone business reported lower margins than the consolidated business but increased profit year on year. Standalone EBITDA was Rs 24.5 crore in Q2FY27, up from Rs 8.2 crore in Q2FY26, and standalone PAT rose to Rs 14.5 crore from Rs 7.8 crore. Its EBITDA margin was 7.7%, compared with the consolidated margin of 11.8%.

Sequentially, standalone revenue increased to Rs 316.5 crore from Rs 262.3 crore, while EBITDA edged up to Rs 24.5 crore from Rs 23.8 crore. Yet standalone margin fell from 9.1% in Q1FY27 to 7.7%, and EBITDA per tonne declined from Rs 9,400 to Rs 7,700. Standalone production was 26,512 metric tonnes, below the preceding quarter’s 27,294 tonnes.

For the first half of FY27, consolidated revenue was Rs 936.6 crore, up from Rs 700.51 crore in HY1FY26, while EBITDA reached Rs 120.4 crore from Rs 58.6 crore. HY1FY27 consolidated PAT was Rs 57.1 crore versus Rs 10.3 crore a year earlier, and cash profits were Rs 92.8 crore against Rs 41.5 crore. Sales volume increased to 89,495 metric tonnes from 72,782 tonnes over the same half-year comparison.

What operational developments should Ganesha Ecosphere watch next?

Ganesha Ecosphere has secured Food Safety and Standards Authority of India approval for its fourth recycled PET (rPET) granules line for food-grade applications. The fifth rPET granules line was under installation in Q2FY27 and is expected to be commissioned by January 2027. Ganesha Ecosphere has six manufacturing facilities and recycling and washing capacity of 218,940 metric tonnes per annum.

Ganesha Ecosphere is also relocating rPSF capacity from Kanpur to its Temra facility in Bilaspur, a move it says is intended to improve operational efficiency. In Q2FY27, the business reported legacy-operations utilisation of 99% and Warangal utilisation of 67%. The timing of Warangal’s expected Q4FY27 restoration and the January 2027 fifth-line commissioning are the disclosed operating milestones following the quarter.

Conclusion

Ganesha Ecosphere’s Q2FY27 result marks a year-on-year earnings turnaround: consolidated PAT was Rs 28.1 crore after a Rs 0.5 crore loss in Q2FY26, supported by sales of 49,382 metric tonnes and EBITDA of Rs 60.7 crore. The comparison with Q1FY27, however, shows that higher revenue did not translate into a higher margin, as EBITDA margin declined by 2.3 percentage points.

The next disclosed markers are restoration of Warangal operations by Q4FY27, commissioning of the fifth rPET granules line by January 2027, and progress on moving Kanpur rPSF capacity to Temra. These developments matter because Warangal was operating at 67% capacity in Q2FY27, while the food-grade fourth rPET line had already received approval.