Thank you, moderator. Good morning, everyone.

I am pleased to host today's earnings call of Ganesha Ecosphere. Today, we have leadership team represented by Mr.

Gopal Agarwal, CFO; Mr. Prashant Khandelwal, Senior Vice President; Mr.

Yash Sharma, Director, Ganesha Ecopet. Without any delay, I would like to invite Mr.

Yash Sharma to start with opening comments, post which we will open the floor for Q&A. Thank you and over to you, Yash.

Thanks. Thanks a lot, Manish.

Good afternoon everyone for being here. I welcome you all to our post results earnings concall to discuss the Q3 year 2026 performance.

This quarter has been marked by resilience and progress across our legacy operations, despite sectoral headwinds such as the higher US tariffs on Indian textiles. As I am pleased to share that our standalone business has delivered a good set of numbers, with production volumes growing 13% quarter-on-quarter, and sales volumes up by 7%.

Revenue from the operations increasing sequentially and grew by 5.24% as compared to the last quarter, while the EBITDA has stood at 18.54 crores and PAT at 15.94 crores, surpassing the combined earnings of the previous two quarters. On a standalone basis, the capacity utilization has exceeded 100%, with production volume of 29,088 metric tons as against 25,689 tons in the previous quarter.

Sales volume at 31,107 tons made during the quarter was the highest in the last 5 years. The company earned a revenue of 272.95 crores, compared to 259.35 crores in the last quarter, reflecting a growth of 5.24%.

EBITDA per ton came in at 5,962, as against 2,812 during the last quarter. The EBITDA margins were at 6.79% of the operational revenue, as against 3.15% of the last quarter.

The raw material prices have been pretty stable during the quarter, in contrast to the high volatility we have experienced previously, which further supported the margins. We have continued to diversify our portfolio, reducing dependency on the traditional spinning sector, with over 35% of the sales volume being generated from the non-woven and the home furnishing segments.

On a consolidated basis, the performance was impacted by the ongoing uncertainty surrounding the draft notification issued by the MoEF, which delayed the integration of recycled PET into supply chains of beverages and weakened the demand for rPET granules. Overall, the subsidiary business saw capacity utilization drop to 50% and revenues decline by 23%.

Consolidated production has stood at 38,768 metric tons, with revenue of 357.22 crores, marginally lower than the last quarter. Of this, 272.95 crores came from the standalone and 84.27 from the subsidiaries.

Quarterly EBITDA rose by 37.67% to 30.73 crores, with standalone and subsidiary contributions of 18.54 and 12.19 respectively. Consolidated EBITDA margins have improved to 8.6%, and the EBITDA per ton has climbed to 7,678 from 5,703 in Q2.

Consolidated PAT was 4.74 crores. EBITDA of the subsidiary business has stood at 14.5%.

Although the much-awaited clarity on the draft notification would have benefited both the user industry and the recycling sector, its extraordinary delay has defeated the purpose. Even if the final notification is issued now, providing some relief in the 30% target for mandatory use of recycled content, the packaging industry will not be able to meet such low targets within the remaining span of the current financial year.

FY '26 is a transitional year for implementing the PWMR rules on mandatory recycled content, and the adoption was somehow challenging for the user industry and the regulator. We believe that the initial hindrances are being addressed, and that adequate approved recycling capacities are now in place, which will make adoption much smoother from the next year onwards.

Since the regulation mandating recycled content remains unchanged, the user industry cannot continue to be non-compliant anymore. Overall, we are confident of achieving the desired performance for this business from FY '27 onwards, albeit with a delay of 1 year.

Our legacy business has regained sustainable momentum, and recently announced reduction of US tariff on Indian textiles should provide an additional boost in the coming quarters. The B2B rPET business is also expected to perform comparatively better in Q4.

In a recent development, our recycled filament yarn has successfully qualified with a leading global textile brand, improving the margins and volumes for filament yarn business. We are pleased to share that we have now become a regular supplier of our stadium-sized flags to the International Cricket Council directly, and where we are providing the stadium-sized flags of various countries as well as unity flags made with our recycled materials for the World Cup tournaments.

This collaboration highlights the global recognition of our sustainable products and prowess. Overall, Q3 FY '26 reflects both the strength of our core operations and the long-term potential of our sustainability-driven initiatives.

We remain confident in our ability to navigate the near-term challenges, while building a stronger, sustainable business for the future. Thank you, everyone.

Yes, please.

Hello, sir. Thank you for the opportunity.

I want to ask that, in food-grade rPET, earlier there were 5 to 6 approved manufacturers from FSSAI. However, as of September 2025, many new players have entered, reaching the total to 13.

Has this increased competition for us significantly, and how does the Ministry of Environment see this? Do you think there is enough manufacturing capacity in the industry now to fulfill FY '27 demand?

Thanks for your question. Yes, definitely the number of FSSAI-approved players has gone up quite significantly, and there have been much newer capacities.

Yes, certainly because of that, there is obviously increased competition in the industry. The increased competition is because of the reason that the offtake of the industry has not really taken off as per the volume increase that has happened and the capacity and supply available.

Going forward, now there is enough capacity available to meet the targets for the next year, and I think that definitely the industry is going to mature much more in a better way now.

My second question is, what is the export revenue for the quarter and for the 9 months?

Hello, am I audible?

Hello, am I audible now? Hello?

My next question is, what is the export revenue for the quarter and for the 9 months?

On standalone, we made the export about 30 crore, and for 9 months, we made the export more than 100 crore.

Why we have not been able to sell to Europe and US, sir, where we have a approval of there, and there is no tariff on our products? Considering on the ongoing delays, they should have been able to offset the decline in domestic sales demand.

Actually, the tariff is also applicable on our products as well. When the US tariff was implemented earlier in May, at that time, PET polymer or PET granules were in the exemption list.

On 2nd September, when the new modification of the tariffs and the exemption list came out, the PET was excluded out of the exemption list. Since 2nd September, the tariffs are also applicable on our product.

Because of that, we have not been able to work out any supplies to the US market because of the tariff conditions of 50% reciprocal tariffs.

Okay. What is the broad range on volume and margins on the r-filament order?

It is very low at present, but we have been qualified with a global textile brand, and from the next quarter onwards, the volume would increase significantly.

Okay. Do you expect realization to uptick towards ₹1 lakh per ton level for the legacy business, now that there are reduced tariffs on our and customer industry?

Yes, certainly, the volumes are very good in this quarter also. We have sold the 31,000 ton volume from our legacy business in this quarter.

Definitely, it will be well above the 1 lakh ton for the entire year.

Sir. Thanks so much.

Hi, sir. Thank you for taking up my question.

Quick three questions. First one is on standalone business.

Margins have been improved sequentially. Is it due to raw material prices?

If it is yes, then could you let me know the average raw material price of consumption during the quarter, and how do you see that in 4Q?

Yeah. Dheeraj, the raw material price was quite stable during the quarter.

The uncertainty which prevailed over last two quarters was not there, it helped us in margins improvement in our legacy business.

Okay. Any price that you want to quote, sir, right now, how is the price trend?

Right now, the bottle prices are in the range of ₹46, ₹47 a kg.

Got it. The subsidiary business, I feel it was really being impacted just because of the utilization, but how can we go about for 4Q and for FY '27, how do you see the utilization levels for rPET especially in subsidiary?

We are quite hopeful that the volumes would be better in Q4 than the Q3. We are expecting the overall capacity utilization in between 70% to 80% in Q4.

Understood. Can we take the same for FY '27, sir, or do we take between 60% to 70%?

No, FY '27 must be must be a good good one and and on the expected lines which we had thought of that for FY '26. Because of the the chaos on the regulation side, it could not happen in this year.

Definitely, it would happen in FY '27, when the regulation would be for 40%, and there is much clarity now over the offtake offtake. Basis the basis the regulation is is live and intact.

Great, got it. Last question, sir.

We had some outstanding to be received from the government authorities. Any progress on that, or is it still to be received?

We got the 70 crore from the government out of outstanding incentives about 110 crore from the Telangana government for Warangal plant. The amount we have received in January only.

Got it. Great, great.

Last question, sir, how do you see this PWMR coming into effect in FY '27? I understand that capacities are up and running now, and demand is meeting the capacity, and that's how you're guiding for FY '27 PWMR, but is there any chance to roll this forward to FY '28?

Basically, as far as the PWMR is concerned, Plastic Waste Management, we have to understand the chronology of this notification. The notification came into force in 2022, mentioning that every brand owner or plastic packaging manufacturer has to use certain percentage of recycled content from '25-'26.

It was a 30%, and then it has to increase by 10% every year till '29 up to 60%. If any shortfall is there in using this recycled content, there is a penalty provision.

For first year, it is ₹2,900 per ton, the second year it is ₹5,800 per ton, and the third year it is ₹8,700 per ton. Because in very initial stage, there was not much capacity available, there was a stakeholder's representation for this with the government.

The government has assured everyone that they will look into it and will provide some relief if any capacity is not available to complete 30% target for first year only. In that case, government may give some relief.

Everybody was waiting for that relief the whole year. It is a relaxation, because you see, even we are discussing as on date, the 30% recycled content consumption notification is there.

Everybody has to use 30% recycled content. If any notifications for the relaxations coming forward in next 2 months, because it is now irrelevant, because whole year has passed in less than 2 months, you cannot do much with your consumption or non-consumption.

Even if any relaxation comes in the remaining period, there will certainly be a big numbers of brands who are going to pay penalty for the first year itself. Everybody will be in that category of first year penalty of ₹2,900.

From April onwards, they have to pay ₹5,800 if any shortfall comes in the next year. It is intact.

The notification is intact and the implementation. As per our discussion with the government officials and the stakeholders from government side, this notification is intact, and a lot of investment has came in this particular recycling field, not only in PET, but also in polyolefins and other plastics.

There is not much delays or any major modification is going to be happen in coming days.

Got it. Agreed, sir, agreed.

Just last question, then I'll come back in the queue. This new client that you're talking about in filament yarn, when do you see the offtake going for this client, and how do you see margins and realizations for this, and what is expected to be the offtake for this?

The offtake will be started from February itself, and we are expecting that almost 20% to 30% utilizations of our capacity of the filament yarn are going to be increased, working for our partnership that we have started with them. The margins are quite good as expected on our lines for the filament project.

Sorry, but we cannot disclose exactly the numbers for the particular product due to competitive reasons, but fairly good. Yeah.

Sure, sir. Great.

Thank you.

Hello, sir. Thank you so much for that opportunity.

Sir, now that our legacy business has done well in terms of volumes, when can we comment on how soon it will take to be out of the woods in the non-legacy business?

Mehul, we are expecting the offtake would start in the current quarter itself. We are expecting a good demand, and we are expecting the good demand from April onwards.

FY '27 would be the year which we are expecting from FY '26, but definitely FY '27 would be the good year.

Sir, the government regulation which we are expecting, is it out or it is yet not out?

Regulation is already there. The draft notification was there for giving the some relief to the user industry.

That draft notification has not been finalized yet. As now the current financial year is proceeding to end, we don't think it will come now.

It won't come, so? Basis

basis the basis the basis the basis the basis the capacity available in the of rPET in the Indian market, the government may the government may also not provide the relief sought sought sought after by the user industry at the beginning of the financial year.

If government is not expected to provide any relief, then our business will be significantly impacted, right?

No, no. It is a relief.

Notification has to come for the relaxation to the brand owner, not to the recycler. For brand owner, it is 30% mandate, and it is intact for the year.

If any relaxation comes that, okay, instead of 30%, we will allow you 10% of this EPR content responsibility target to be transferred to the next year. Brand owner has to get a relief.

If relief doesn't come, then they have to use 30%.

That is a benefit to us, that means.

Yes, yes, yes, yes, correct.

Only thing is that it will start showing into our numbers from Q1 of FY '27.

Yes. Yes.

Sir. Thank you so much, sir.

Hi, sir. Thank you for the question.

I just had a question regarding a standalone business. In terms of EBITDA per ton, that has seen a significant de-growth year-on-year.

That's been on a downward trend year-on-year, but has picked up QoQ. Are we seeing this going forward to improve further on, and will we be able to reach back to our FY '25 levels, or are we going to create a base which is lower than that and then sustain that?

If you can help me understand what kind of EBITDA per tons will we have going forward. Thank you.

Bharat ji, actually, this business was under distress since last two, three quarters, three, four quarters, because of the reasons already explained in various concalls by us. Now this business has come to back on the track, and so the margins have started to improve.

We we are expecting in FY '27, we would be able to make the the margins which we are earning earlier on our legacy business. It is in the range of around 9,000 ton to 10,000 ton per EBITDA per ton.

It would be back to let's say our FY '24 levels, which is of ₹10 per ton of EBITDA?

Yes, yes. We are expecting because of the demand, because of the recent US tariff relaxations, we are expecting it would come back on the track in next financial year.

Got it. Okay.

Just sir to understand our rPET granules business in Warangal, if you can help me understand what kind of peak revenues can we get from that, in terms of once utilizations will pick up next year?

Next year, we would be operating at about 70,000 ton capacity of rPET in Warangal unit. The peak revenue potential is about 7 800 to 700 to 850 crore.

Okay. Just to understand the EBITDA per ton there also has gotten hit.

Do we see that also coming back to normalized levels, or will that be in permanent pressures, creating a new base because of the higher raw material cost that we're facing now?

You see, the EBITDA margins has been impacted because of the lower capacity utilization, and also as the lifting is not there in the market, and so many units have been got the FSSAI licenses. The supply side is more in comparison to demand.

The pressure was there in the prices also, margins also. Going forward, we see when the demand will pick up from the sector in next year, and basis the supply, it will be matching.

The pressure which we are facing now must be relax to some level in next year.

Sir, could you just help me with the number, what kind of EBITDA per tons would we be expecting to do next year?

For the EBITDA, we cannot comment as of now, currently, because so many developments are there in the market in the current year. The market is evolving, and so exactly forecasting the EBITDA margins is not possible as of now.

We will be able to comment on next quarter itself.

Got it, sir. Got it.

Just one last question, sir, in terms of Q4 for the business that focuses on the F&B segment. Is that seen any pickup in terms of customers trying to fulfill whatever they can and reduce their penalties, or is it still in the same trajectory as it's been?

Yes.

Sorry, can you repeat the question again?

Sir, just trying to understand, has there been some uptick in demand from the F&B players, or is it been constant with how the previous two quarters have played out?

No, definitely compared to the last quarter, there has been an uptick in the demand and consumption from the F&B players, but it is still not to the level that we expected and it should be. Yes, it has improved, definitely yes, but still not way lower than where it should be actually.

Basis the current situation, we are expecting the capacity utilization of Warangal plant by about in between 70% to 80% as against the 50% which we have got in this Q3 quarter.

Got it, sir. Got it.

That was helpful, sir. Thank you.

I'll get back in the queue.

Hello, sir. Thank you for the opportunity.

I had a couple of questions. Firstly, on the lines of the fact that two quarters of our FY '26 year have been impacted by the MoEF notification, do you think that this is now behind us, or there could be a probability of the government giving this sort of relaxation once again in FY '27, considering the fact that the 30% implementation would be difficult in Q4, and this would sort of be carried forward in the next year?

Unless the relaxation notification doesn't come, there is no carry forward. This year, 30% consumption was mandatory, and whatever the shortfall is there, penalty is leviable.

It depends. For next year, it is 40%, and the relaxation notification was proposed, basis recycling capacity was not there in the beginning of the financial year '26.

Now the approved capacity is almost 250,000 ton to 300,000 ton in between, and so it meets the requirement of the user industry for the next year. We don't expect there would be any relaxation notification will come further for next year.

Got it. Considering this background, would we like to change our guidance for FY '27 that we had given the last year, both for the legacy business and for the consolidated business?

Legacy business particularly around the fact that raw material prices have now normalized, and you had expected 10% margins for Q4 FY '26 and a slight improvement further towards 11% for FY '27. Is that guidance intact, or are we improving it further?

Also for the rPET business, what is the guidance that we are now giving? Is there any change?

No, basically, our legacy business, we are expecting 9% to 10% we'll come back to 9% to 10% EBITDA margins next year. For the rPET business, yes, we are expecting that with the 40% mandatory use is intact, we we would be doing a much better.

Okay. We had expected 65% of our revenue coming from rPET mix by FY '28.

That is also still intact, right?

Yes, once the offtake starts, definitely we will move on our capacity expansions.

Got it. All right.

That's it from me. Thank you so much.

Am I audible?

My first question is, our realizations have actually not improved despite you mentioning the notification is still in place. What is actually leading that the companies are not buying in the volumes they require to fulfill for the year, one?

Second is, then have we seen any traction in the last quarter currently, in terms of the improvement in realizations?

You see basically, if you look at the same, as Prashant sir had put in detail the chronological order, what happened is that the regulation for 30% offtake is live. In June, the government came out with a draft giving some relaxation that, okay, because there is capacity shortfall, to meet the target, you can carry forward to the next 3 years.

Since then, there has been a lot of to and fro happening between the industry bodies and the government, and they are finally working with the final notification. Everyone is awaiting and postponing their purchases for the final notification to come out, which is with the relaxation basically.

Because of that, everyone has been holding off to do their purchases since December. If you look at the current situation, it is because the government has told that everyone that we will be coming out with it very soon.

Everyone has definitely started again the offtakes. Yes, obviously, it has not reached to the level that it is expected.

Since the notification is still not out, a lot of brands, I would say 90% of the people are still have not really started the offtake in the right manner. The realizations have also been very consistent.

They have not improved because still the capacity or the supply of the material is way way more than the demand. The realizations have not really improved any better.

Understood. Sir, basically, they're ready to pay the penalty of ₹2,900 per ton, but they're not willing to purchase the additional volumes, right?

You see, it's much more complex than that. You can say when it comes to bigger brands, paying penalties for them is a very very big issue from their brand equity point of view.

Second is that paying the penalty also does not absolve you of the requirement. It just carries forward the volume requirement to the forward years.

Also there is another EC clause, which is the environmental compensation act, where they can levy a much more stringent penalty on you if you are not fulfilling the mandate. Paying penalty is not as simple as it seems like, but the problem is that they are awaiting the final notification, the relaxation notification from the government, because of which they have been postponing the usage.

Understood. Sir, when we say 9% to 10% margins we are guiding for, can you just help us understand, do we expect our cost to be lower, do we expect our realizations to improve to come to this margin, or what are we factoring in to come to this margin?

So, 9% to 10% guidance is regarding our legacy business, the standalone business of the Ganesha Ecosphere. Basically, the stability in the raw material prices is the key factor.

With the increase in the volume and our dependence on the spinning sector, it will be driving the margins.

Understood. Just let us assume that this notification is there without any changes, how do we see our volumes in FY '27?

This relaxation notification meant only for the FY '26. It is nothing to do with the FY '27.

The regulation of 40% for the FY '27 is intact. Then

how do we see our volumes improving, sir, in terms of?

For next year, basis the regulation is intact for 40%, we are expecting we would be able to utilize 85% to 90% capacity utilization. Next year, we would be having around 70,000 capacity.

We would be expecting a volume of around 55 to 60,000 ton and more than 50,000 ton.

Sir. Thank you so much and all the best.

Hi, am I audible?

In terms of these F&B customers you have, the number of vendors they had approved earlier, has there been any change in that, because a lot of capacity which has come in, have they signed up or approved more vendors?

Yes, definitely. They are obviously working with more vendors also, and the bigger problem here is not that they're approving other vendors is that the volume offtake is not going up with the capacity increase that is coming in.

That has been the biggest issue, which has caused this kind of outlook in the rPET industry currently. They will have to do that.

They will have to work with all the recycling test, because the capacity needed to fulfill the mandate requirement is obviously currently still it's almost matching. They will obviously the industry will have to work with the people who are also putting up capacities.

Right. You go on.

The bigger problem is that the number of players who are using the rPET currently has not gone up. We were expecting that, as the mandate comes to final testing, the number of players should now start to increase.

It's increasing, but not at the rate that it should actually.

As far as the approval is concerned, yeah, we have our product is approved from almost all the big big brands.

Right. No, I meant to say your customers, let's say earlier working with the two recyclers, now they now have approved three, four, or five recyclers because more capacities have come in.

They have. Correct, correct.

Absolutely, they have. Yes.

Got it. Let's say, as you mentioned, some of these global brands, if they have to be really, really careful about breaching the norms, will they have even if the notification comes in February end or March, they don't have much time if they have to fulfill this 30% irrespective whether relaxation comes or not.

They need to decide whether to pay penalty or offtake, right? Or they can offtake let's say just in the month of March, can they offtake enough quantity to meet this guideline?

No, definitely. You see, it's Please go on, sir.

I think you see, the 30% mandate is there. If any relaxation, let's presume whatever was in the air, a 10% relaxation comes for the current year.

Even if 10% relaxation comes, you are very correct that most of the brand are going to pay penalty for the first year. The first year penalty of ₹2,900 is only for the first default.

Once a first default has been done, the next default has in case of next default, you have to pay penalty of ₹5,800. In case of third default, there will be a penalty of ₹8,700.

Over and above this, there will be environment compensation. If any relaxation come for the first year, because government has been represented by all the brand owners, many of the brand owners that not enough capacity is available for the first year, they were seeking some relaxation in the percentage for the first year.

For next year, there is a mandate of 40%, which has to be fulfilled by the brand owners, and there will be looking to this 40% number, there will be a good demand, and Ganesha, as the largest capacity holder, is well placed for taking that demand in the business.

No, no, I was trying to understand, let's say if there is a relaxation of 10% and they have to fulfill this 20%, somebody who does not want to be in this thought of not being compliant, will they have just 1 month to include so much material that they can meet this 20%, not just with Ganesha, but across the industry? Will that availability is so high that they can fulfill this in 1 month, or otherwise they can pay penalty and all, but still be having that challenge of not meeting the norm, right?

In any case, if any relaxation comes altogether, it is sure that user industry would not be able to fulfill it, even the lower targets.

They will not be able to fulfill it. Okay.

The second question I had was on export side. Now, if the tariffs are reduced to this 18%, your product will be covered with the 18%?

Would you be looking at exporting opportunity, or you think that 18% is also too high to make this export viable for you?

You see the market is currently very very evolving across, and definitely we are currently in discussions with consumers there. We will get to know about this only with time of what kind of volume and business is possible.

Great. Thank you.

Hi, sir. Thank you for the opportunity.

My first question is that based on CapEx, can you provide any color on our CapEx plan, brownfield and greenfield in FY '26, '27, and '28 in terms of investments and metric tons?

We are already implementing a brownfield project. Brownfield project should be operational by March and April.

It involves CapEx around 130 crore, which has been largely incurred so far. For the next leg of expansion, greenfield expansion or the brownfield expansions, we are as per our plans, the 400 around 450 crore is to be invested in next 2 years.

So 130 crores of brownfield that was around 22,500 tons of rPET in Warangal, right?

Correct. Correct.

If I heard it right, you said 4Q would be able to do 70% utilization in the subsidiary business. That 70% is including the brownfield expansion?

Correct. Correct.

Those were my questions. Thank you.

Hello, sir. Thank you for the opportunities.

This is my first time ever I'm attending your concall. Sorry if I have some basic questions.

I wanted to understand, do we have any seasonality in our business? Can you please explain the seasonality in our business?

Seasonality, in case of our legacy business, the seasonality is largely from the raw material side. In case of Northern India, in winter season, the raw material availability reduces somewhat, and in summer season, the availability is superior.

From our finished goods level, there is no such seasonality in our legacy business. For our new B2B business, yes, there is a seasonality.

Though it is a very new business, it will be much much confident in next financial year. Certainly, the user industry is having the seasonality when there is a rainy season.

From August, September onwards, they reduce their productions. The productions again geared up from the January itself.

Basically, the main seasonality which we have in our legacy business because of raw materials, right, raw material prices?

Correct.

What are the measures we are taking to mitigate this risk, mainly raw material prices risk?

Basically, we try to make some inventory. Basically, you see, our raw material is scrap.

It is not an organized business. It is not a standard material.

As the collection is going on, and you have to buy it. You cannot stock it in too big quantity, but certainly we try to maintain an inventory of around 30, 35 days.

In summer season, we will try to increase the inventory by 4, 5, 8, 4, 5 days additional inventory stocking.

Sir, you are talking about this draft notification. Can you please explain more on this, you are expecting the players are expecting 10% relaxations for.

Can you please throw some light on the draft?

Can you repeat, come again? Your voice was not audible.

Hello. Now, am I audible?

It's

better. It's better.

Yeah. Just wanted to know more about the draft notification which you are talking, because I joined late.

The regulation was implemented for 30% mandatory content of recycled granules in the packaging industry, plastic packaging industry. The regulation was implemented from April '26 '25, April '25.

When the regulation was implemented, the recycling capacity was not available, and only around 70, 75,000 approved capacity was there, while the consumption was expected much more than that. The user industry contacted to the ministry, MoEFCC, for some relaxation.

In June, the government has come out with a draft notification in which they proposed to allow to make some relaxation in 30% target and allowing the shortfall for over next 3 years. That was the draft notification, which is not finalized yet.

Hello, thank you, sir. Thank you for the follow-up.

Sir, regarding the preceding question, you said that the draft notification was for 3 years, it has not come yet, right?

It is not for the 3 years. It is only for the FY '26, but any shortfall was to be carried forward for over next 3 years.

If suppose the 30% target is there, and someone uses the 20%, 10% is a shortfall. So, 10% shortfall could be recouped in over next 3 years.

Got it. Sir, my next question is, sir, can we expect that Q4 results will be better than Q2 and Q3?

Yes, yes. We are expecting the better Q4 than the Q2, Q3.

It will be mainly aided by the legacy business or overall?

Overall. Both legacy business, as well as for our new business, our subsidiary business.

Sir. Thank you so much for answering all the questions.

Thank you.

Hello, sir. Very good afternoon.

Am I audible properly?

Yeah. You are you are.

Yes, sir. I was just trying to understand what would be the kind of margin we would be looking next year and forward.

Any kind of ballpark figure if you can tell us?

We are not providing any guidance as of now, because of the uncertainty prevailed in this financial year over the notification and the regulation. We are expecting that uncertainty would not be there for FY '27.

Certainly, the margins will improve with the increased offtakes and volumes. Any margin guidance overall we would be able to provide only in the next quarter.

Okay. It will be same as the TTM, or we can expect at least a slight.

We are expecting much better than that.

Fine. Thanks.

That's all my questions.

Hi. I just wanted to know, with your discussions with these large branded players, what is their percentage of recycled materials that they are using for the B2B?

See, it's very difficult to get the exact numbers, because even we don't have the exact numbers. It's fairly low, I would say.

It's lower than 10% to 15%, maybe somewhere in the ballpark. I'm just talking about the global big brands.

Very difficult to come with exact number.

Okay. You're saying they are right now at around 10% to 15%.

With your recent discussions, do you see them ramping up to at least 20%, 25% with the purchases that they're making, or?

See, currently they are not ramping up, but definitely they would be post the government notification, final notification will be there.

Okay. You already have funds for the expansions, right?

There's no more additional funds required?

Yes, we are having the funds. Our leverage position is also very well comfortable, we will manage on that.

Okay. Just to help me out with the average realization of your product now, is it around ₹100 for the recycled plastic for the bottles?

It is different for the different products. For fiber, it is around ₹85, ₹84, ₹85.

For the granules, yeah, of course, it is more than ₹95.

More than ₹95. Okay.

Just one last question. Now, I'm just starting to follow this company.

Now, you are looking at collection of raw materials, right, for the plastic bottles. Now, with all these additional companies setting up their capacities, do you see there being a shortfall in collection of these raw materials, or would you look at importing plastics maybe?

How would you go about it?

You see, the collection is very, very good in the country as far as the PET bottles are concerned. The user industry is from the fiber, from B2B business, and so certainly the demand is much more than the supply side.

The fiber industry is trying to use some textile waste and other waste as against the PET bottle scrap. The industry is now moving from the PET bottle scrap to some other alternatives.

It will release the pressure on the supply side for the PET bottle.

Fine.

Hello, sir. Is my voice clearly audible?

Thank you. My first question is regarding the competitive landscape.

As I have heard from a media release that Reliance Industries is also collaborating with Srichakra Ecotex to enter into the recycling of PET business. They are targeting to recycle around 5 billion plus PET bottles, and in an industry where Reliance is going to enter, we can expect a stiff competition there.

What is your opinion and perspective on it? I want to know that.

Add-on to it that Reliance is also having chemical recycling technology. As per my knowledge, we, Ganesha Ecosphere, is currently using the mechanical recycling technology.

What is your take on it actually, I want to know.

Hi. Sure.

Yes, you're right. I think this news is not new.

I think it's pretty old news. Basically, yes, Reliance and Srichakra are collaborating, but the collaboration is regarding the RPSF, the traditional, the legacy business that we have, recycled polyester staple fiber business.

That's the collaboration to recycling of the PET bottle waste basically. Reliance also has a capacity of its own to do RPSF, and they're entering a partnership with Srichakra for building some more capacity of the RPSF product, which is our legacy product.

Talking about competition, I think it's pretty clear that the recycle PET industry has always been very, very competitive. I would say very highly competitive from the last 25 years, and it remains to be so.

Ganesha has still been able to navigate and has maintained its position as the leader of the industry in spite of the industry's condition.

Okay. Sir, are you planning to set up any chemical recycling plant, or you're just planning to continue with our existing mechanical recycling facility?

We are basically into the mechanical recycling, and as far as the mechanical recycling is a proven one all over. Chemical recycling is a very nascent stage and its costing is too high.

Operational cost is too high, as well as the CapEx is also too high. It will take a time to be commercially viable.

Okay. Sir, are we having any plans to recycle HDPE and flexible plastics and other hard plastics in future, or are you just going to focus on PET recycling?

Yes. We are also starting the recycling of the polyolefins apart from the PET.

We are exploring that. Any concrete plan is not yet as of now finalized, but definitely we are looking for it.

Okay. Are we trying to do some exports?

Yes, we are already making some export. Around 9% to 10% of our fiber volume is being exported.

Because of the tariff in US, we had started the export from our rPET, but because of the tariff, it was stopped. Now we are expecting it will again regain some momentum.

Thank you for taking up my question again. Sir, for this rPET realizations historically, in FY '24 and '25 around used to be higher, and now it slightly came down.

In FY '27, do you expect it to go back to previous levels, or is it too much to go back to previous levels?

Basically, the realizations of rPET depends on the prices of the scrap bottle also. It moves with the prices of scrap bottles.

Got it. Based on landscape of competition what previous participant was asking, could you throw some light on this Indorama JV with Varun Beverages?

If we consider that maybe coming in FY '27 or '28, do we still have a shortfall of demand versus capacity of recycling?

Yes, definitely. See, it's not about shortfall of demand versus capacity.

It's about managing the demand and supply. What is happening now in the industry is that we are working together to establish a very coherent demand-supply situation for the industry to work in a better way, in a more efficient way.

What is not going to happen is that in the last couple of quarters, no new capacities are coming up to be announced in the future, because the industry is waiting for the demand to firm up and the numbers to stabilize. Even with this JV volumes which are coming in, we have already considered it in the current set of numbers.

Still we will be almost at par with the demand and supply equation.

Got it, sir. Sure.

Thank you.

Thank you. Thank you all for joining today and for your continued trust in our journey.

We appreciate your continued engagement, and look forward to updating you on our progress in the next call. Until then, stay safe and stay connected.

Thank you.