Ganesha Ecosphere reports mixed Q2FY26 results, revenue up but profit down

Ganesha Ecosphere Limited reported consolidated revenue from operations of INR 363.38 Crore for Q2FY26, a 7.8% increase quarter-on-quarter. Legacy business sales grew by 17.1%, while subsidiaries saw a 10% revenue decline. Consolidated production volume rose by 7.8%, with sales volume reaching 39,132 MT, a 16.3% increase.

Despite revenue growth, gross profit margins declined to 31% from 35.4% in the previous quarter. This was primarily due to a steep hike in bottle scrap prices, leading to an average raw material carrying cost of approximately Rs 50 per kg against prevailing prices of Rs 44-45 per kg. This cost mismatch was largely absorbed by the end of September 2025. The company reported a consolidated net loss after tax of (INR 0.50) Crore for Q2FY26, compared to a profit of INR 10.75 Crore in Q1FY26.

Standalone revenue from operations for Q2FY26 stood at INR 259.35 Crore. Average selling prices in the legacy business dropped by 3%, and for subsidiaries, it fell by 6%. The company noted a steady revival in demand for its legacy business and good order book visibility. However, demand for rPET granules was not as expected due to uncertainty surrounding a draft MOEF notification from June 3, 2025, with deliveries from existing buyers anticipated from January 2026.