GRP Ltd Q2 FY27 profit rises 226% as income grows 30% YoY

GRP Ltd reported a 226% year-on-year rise in consolidated Q2 FY27 profit after tax to Rs 6.4 crore, alongside 30% growth in total income to Rs 172.7 crore. Higher EBITDA, increased EPR income and scaling operations in reclaim rubber were key reported developments during the quarter.

What did GRP Ltd report for Q2 FY27?

GRP Ltd reported consolidated total income of Rs 172.7 crore for the quarter ended September 2026, compared with Rs 133.1 crore in Q2 FY26. The 30% year-on-year increase also placed income above the Rs 157.3 crore reported in Q1 FY27.

Consolidated EBITDA increased 60% year-on-year to Rs 18.2 crore from Rs 11.4 crore. The EBITDA margin improved to 10.5% from 8.6%, an expansion of 199 basis points. Profit before tax stood at Rs 8.9 crore, while profit after tax rose to Rs 6.4 crore from Rs 2 crore a year earlier.

How did revenue and margins change during the quarter?

GRP said Q2 income growth reflected 24% volume growth and a 4% price increase. The company operates in tyre recycling and reclaim rubber, and its investor presentation identified reclaim rubber scaling as an operational focus.

Gross profit was Rs 79.1 crore in Q2 FY27. However, the gross profit margin declined to 45.8% from 51.1% in Q2 FY26 because of higher raw-material costs. This means EBITDA margin expansion occurred despite pressure at the gross-margin level, supported by the reported improvement in operating performance.

What was GRP's first-half FY27 performance?

GRP reported consolidated total income of Rs 330 crore for H1 FY27, up 28% from Rs 257.8 crore in the corresponding period of FY26. The first-half result combines the September-quarter performance with the June-quarter results, when the company had reported 26% revenue growth.

Profit before tax for H1 FY27 was Rs 17.3 crore. EPR income for the first half was Rs 11.5 crore, including Rs 1.49 crore from Pyrova Energy. In Q2 alone, EPR income was Rs 6.7 crore, compared with about Rs 4.3 crore in the prior-year quarter.

What role did Pyrova Energy and EPR income play?

The company had earlier linked its Q1 FY27 growth to Pyrova Energy utilisation and integration across its tyre-recycling operations. In the Q2 disclosures, Pyrova Energy contributed Rs 1.49 crore to H1 EPR income, making it a disclosed component of the half-year EPR figure.

Extended Producer Responsibility, or EPR, is relevant to GRP because it is part of India's tyre-recycling system. The earnings-call material said the tyre EPR regime is relatively stable, although informal recycling activity remains a concern. It also noted that government authorities and brand owners are working through closer audits to address such leakage.

What does the result mean for investors and operations?

The quarterly figures show a substantial increase in reported profitability, with PAT margin rising to 3.7% from 1.5%. EBITDA growth of 60% exceeded total-income growth of 30%, while the gross-margin decline shows that raw-material costs remained an important operational factor.

For investors, the result provides data points on volume growth, pricing, EPR income and margin movement rather than a share-price assessment. GRP held its Q2 and H1 FY27 earnings call on 30 October 2026, and an audio recording was made available. Managing Director Harsh Gandhi and Chief Financial Officer Shilpa Mehta were listed as presenters for the call.

Conclusion

GRP's Q2 FY27 performance combined 30% growth in consolidated total income with a 226% increase in PAT. The reported improvement in EBITDA margin and higher EPR income supported the profit increase, while the fall in gross margin highlighted the effect of elevated raw-material costs.

The next key point to track is execution against the 20% growth guidance referenced in the company's Q1 FY27 earnings-call summary. Investors can also monitor future disclosures on reclaim rubber scaling, Pyrova Energy utilisation, EPR income and raw-material cost movement.