Ganesha Ecosphere raw material costs surge to 70%

Ganesha Ecosphere Limited saw raw material costs surge to 70% of revenue in Q1 FY26, up from 64% the previous quarter. PET bottle scrap prices hit record highs of INR55-56 per kg due to increased overseas demand for flakes.

The company's RPSF and yarn businesses recorded their lowest quarter in several periods. However, Ganesha Ecosphere expects PET scrap prices to normalize to INR41-44 per kg and targets INR1,500 crores revenue for full FY26.

The company plans 90,000-ton capacity expansion by FY27, funded by internal accruals and recent INR104 crores equity warrant conversion, with peak debt expected at INR700 crores by FY27-28.