GRP Limited — PPTs, 09-05-2025: Investor Presentation

1. Financial Highlights:

GRP posted total income of Rs 551.8 Cr for FY25, up 19% YoY driven by an 11% volume rise and 3% price gains. EBITDA increased 33% to Rs 69.4 Cr with margin expansion of 128 bps to 12.6%. PAT grew 36% to Rs 30.7 Cr, with margins improving by 67 bps to 5.6%. Q4 showed strong momentum: revenue rose 16% to Rs 160.6 Cr, EBITDA jumped 45% to Rs 33.1 Cr, and PAT surged 67% to Rs 19.4 Cr. Gross margins slightly contracted due to higher raw material costs and a one-time stock write-off, while automation helped reduce operating expenses. Working capital cycle improved from 94 to 76 days. Subsidiaries are scaling with current losses but expected to contribute in the future.

2. Strategic Initiatives & Growth Drivers:

A Rs 250 Cr capex plan is underway focusing on low-CO2 reclaim rubber technology, expansion in crumb rubber and plastic recycling, and new repurposed polyolefins launches. Rs 49 Cr spent so far; crumb rubber facility is operational, with a pyrolysis unit starting soon. Funding includes a €15 million term loan and a QIP equity raise up to Rs 150 Cr. Energy-saving projects in renewables and biofuels have generated Rs 7.3 Cr in savings, aiding margin growth and sustainability targets.

3. Business Developments:

Repurposed polyolefins business has secured approvals across paint, lubricant, and FMCG sectors. The integrated crumb rubber unit recently began operations; the continuous pyrolysis unit will start shortly, enabling production of recovered carbon black and pyrolysis oil. Subsidiaries GCSL and GSPL have increased scale but remain loss-making, expected to support long-term growth.

4. Market Position & Competitive Advantage:

GRP holds ~20% share in domestic reclaim rubber and ~35% in exports, serving 8 of the top 10 global tire makers. Its wide vendor network (350+ suppliers across 150+ cities), integrated manufacturing, and in-house R&D on eco-friendly low-carbon processes reinforce its leadership. Sustainability certifications (ISCC+, GRS) and awards validate its green credentials, a key differentiator amid rising global sustainability demands.

5. Investor Implications:

Volume-led growth, improving margins, and operational efficiencies underpin positive growth potential. The ongoing capex and new product launches align well with rising sustainability demand in rubber and plastics recycling. Energy savings and better working capital enhance financial strength. Execution risk on project timelines and subsidiary scaling remains, but market leadership and favorable policy trends support a constructive outlook.