GRP Q2 CONCALL: TARGETS MID-TEEN EBITDA MARGINS, 20% FY27 PLASTICS GROWTH AT 12–15% MARGIN; ₹140 CR PYROVA EXPANSION, 45,000 TPA PYROLYSIS & 15,000 TPA RECOVERED CARBON BLACK CAPACITY BY FY28

• Long-Term EBITDA Margin Guidance: Management targets mid-teen consolidated EBITDA margins as the integrated recycling platform achieves higher scale and recovered carbon black operations commence. • EBITDA Margin Outlook: Management expects operating profitability to improve progressively from the approximately 11% EBITDA margins achieved during the last two quarters. • Margin Expansion Drivers: Higher capacity utilization, recovered carbon black commercialization, operating efficiencies, new reclaimed rubber technologies and growth in plastics recycling are expected to support profitability. • FY27 Plastics Revenue Guidance: Management expects approximately 20% revenue growth in the plastics recycling business during FY27. • Plastics EBITDA Margin Guidance: Management expects the plastics business to sustain EBITDA margins of approximately 12–15%. • Plastics Growth Outlook: Management expects high double-digit growth to continue, supported by value-added recycled materials, new customer qualifications and application diversification. • Pyrova Expansion Capex: Management expects total investment of approximately ₹140 Cr at the Solapur facility, including pyrolysis capacity expansion, recovered carbon black manufacturing and associated infrastructure. • Pyrolysis Capacity Expansion: Company plans to increase tyre pyrolysis capacity from 15,000 TPA to 45,000 TPA by adding two production lines. • Pyrolysis Commissioning Timeline: Management expects the additional pyrolysis equipment to be commissioned around March-end or the first week of April 2027. • Pyrolysis Commercialization Timeline: Management expects the new production lines to stabilize within approximately 30–60 days after commissioning. • Pyrolysis Revenue Contribution: Management expects the expanded pyrolysis operations to contribute meaningfully from Q2 FY28. • Pyrolysis Capacity Utilization Target: Management aims to operate the pyrolysis reactors at approximately 95% utilization, reflecting the continuous operating requirements of the technology. • Pyrolysis Asset Turnover Target: Management expects approximately 2x asset turnover after the integrated Solapur project reaches its intended scale. • Recovered Carbon Black Capacity: Company is establishing a commercial recovered carbon black facility with planned capacity of approximately 15,000 TPA. • Recovered Carbon Black Commissioning: Management expects the Solapur RCB facility to be commissioned by the end of Q3 FY27. • RCB Commercialization Strategy: Management plans to work closely with tyre and non-tyre customers to develop products meeting their application and quality requirements. • RCB Current Operations: Management clarified that the commercial RCB facility was not operational at the time of the call, with activities limited to pilot-scale development and market evaluation. • RCB Profitability Outlook: Management expects RCB commercialization to strengthen the overall recycling platform's earnings, without providing a separate EBITDA-per-ton target. • RCB Customer Development: Company is progressing customer qualifications and approvals in selected markets ahead of commercial-scale manufacturing. • RCB Business Strategy: Management intends to develop recovered carbon black as a higher-value product that reduces dependence on pyrolysis oil realizations. • Pyrova Investment: Cumulative investment in Pyrova Energy stood at approximately ₹114 Cr as of September 2026, including ₹11 Cr of capital work in progress. • Pyrova Incremental Capex: Management clarified that existing investment includes common infrastructure for the complete 45,000 TPA pyrolysis and 15,000 TPA RCB project, limiting the additional infrastructure required for expansion. • Pyrova Profitability: Management indicated that Pyrova Energy achieved its first positive profit contribution during Q2 FY27. • Pyrova Profitability Outlook: Management expects profitability to improve as pyrolysis capacity increases and recovered carbon black manufacturing begins. • Pyrova Margin Sustainability: Management cautioned that current profitability partly benefits from elevated crude oil and furnace oil prices, which may not be sustainable. • Pyrolysis Oil Realizations: Tyre pyrolysis oil prices broadly track crude oil and industrial furnace oil prices. • Pyrolysis Oil Price Risk: Management expects realizations to moderate if global energy prices normalize. • Pyrova Revenue Diversification: Management is developing an integrated revenue model comprising tyre pyrolysis oil, crumb rubber, recovered steel, recovered carbon black and EPR credits. • Integrated Recycling Model: Management expects the ability to recover value from multiple components of end-of-life tyres to support more stable profitability than a single-product recycling business. • EPR Registration: Pyrova Energy completed its Extended Producer Responsibility registration and commenced recognizing EPR income during Q2 FY27. • Pyrova EPR Income: Management reported approximately ₹1.49 Cr of EPR income from Pyrova during H1 FY27. • EPR Income Outlook: Management expects the EPR framework to remain an important revenue component as recycling capacities expand. • EPR Regulatory Outlook: Management expects improved regulatory monitoring, audits and enforcement to support the formal tyre recycling ecosystem. • EPR Sustainability: Management believes the tyre recycling EPR mechanism is relatively established compared with certain other recycling categories. • EPR Compliance Challenges: Management highlighted the potential impact of credits generated by informal recyclers and the need for stronger regulatory oversight. • Pyrolysis Raw Material Sourcing: Company uses domestically sourced end-of-life tyres for its pyrolysis operations. • Pyrolysis Import Restrictions: Management clarified that imported waste tyres are not used in the pyrolysis business because of regulatory restrictions. • Domestic Tyre Procurement: Company operates an integrated processing system with shredders, raspers and grinding equipment for end-of-life tyre recycling. • Reclaimed Rubber Feedstock: The separate reclaimed rubber business uses a combination of domestic feedstock, market-purchased crumb rubber and permitted imported tyre waste. • Imported Waste Regulations: Management indicated that eligible imports for reclaimed rubber operations are undertaken under applicable advance licences. • Raw Material Procurement Outlook: Management expects securing adequate domestic end-of-life tyre feedstock to remain a key operational priority as pyrolysis capacity expands. • Raw Material Price Pressure: Management attributed elevated waste tyre prices partly to rising freight costs, tighter imports and competition for domestic recycling feedstock. • Raw Material Inflation: Natural rubber prices reached elevated levels, adding pressure to reclaimed rubber production economics. • Gross Margin Pressure: Management indicated that higher raw material costs and export freight expenses reduced gross margins during the quarter. • Margin Protection Strategy: Company is focusing on disciplined pricing, procurement optimization, sourcing flexibility and operating efficiencies. • Reclaimed Rubber Growth: Reclaimed rubber volumes increased approximately 8% during H1 FY27. • Rubber Recycling Revenue: Standalone rubber recycling segment revenue increased approximately 30% during H1 FY27. • New Reclaimed Rubber Technology: Approximately 35% of reclaimed rubber sales volume now comes from the newer downstream processing technology. • New Technology Cost Savings: Management indicated that the new reclaimed rubber technology offers approximately 2–3% overall cost savings. • Reclaimed Rubber Margin Outlook: Management expects increasing adoption of new processing technologies to support contribution margins despite raw material inflation. • Reclaimed Rubber Market Share: Management intends to expand market share through differentiated technology, consistent product quality and customer relationships. • Reclaimed Rubber Export Outlook: Management indicated that export order patterns have normalized after earlier disruptions associated with US tariffs. • Export Growth: Standalone export revenue increased approximately 19% YoY to ₹154.8 Cr during H1 FY27. • Export Market Strategy: Management expects exports to remain an important part of the business despite stronger recent growth in domestic sales. • Domestic Revenue Growth: Standalone domestic revenue increased approximately 40% YoY to ₹167.8 Cr during H1 FY27. • Domestic Revenue Contribution: Domestic sales accounted for approximately 52% of standalone revenue, compared with around 48% a year earlier. • Domestic Growth Drivers: Management attributed higher domestic revenue to Pyrova Energy's contribution and growing demand for reclaimed rubber from Indian tyre manufacturers. • Domestic Business Outlook: Management expects opportunities from India's automotive production, tyre replacement demand and increasing use of recycled materials. • Export Risk Diversification: A higher domestic revenue contribution is expected to reduce exposure to tariffs, currency volatility and international shipping costs. • Plastics Business Turnaround: The plastics recycling business delivered improved profitability following changes in product mix, customer selection and operating processes. • H1 Plastics Revenue: Consolidated plastics recycling revenue increased approximately 38% YoY. • Plastics Margin Improvement: Management indicated that plastics EBITDA margins improved by approximately 11 percentage points during H1. • Plastics Product Strategy: Company is focusing on higher-value recycled plastic compounds and specialty applications rather than undifferentiated commodity products. • Plastics Customer Diversification: Management highlighted opportunities across automotive and non-automotive applications. • Plastics Customer Qualification: Company is progressing product validation and customer approvals for new compounded and specialty recycled materials. • Plastics Long-Term Opportunity: Management believes the plastics recycling business could eventually become as large as, or larger than, the tyre recycling business. • Plastics Market Potential: Management highlighted that the overall plastics industry is approximately six times the size of the rubber and elastomer industry, indicating a larger long-term addressable market. • Plastics Expansion Strategy: Management intends to scale the business gradually while maintaining profitability and capital discipline. • Energy Cost Optimization: Company continues investing in renewable energy and manufacturing efficiency initiatives to reduce electricity costs. • Renewable Energy Target: Management expects renewable energy to exceed 50% of standalone electricity requirements during FY27. • Renewable Energy Performance: Renewable sources contributed approximately 48% of standalone electricity consumption during FY26. • Gujarat Solar Project: Management expects the commissioned Gujarat solar facility to help the company surpass its renewable power target. • Energy Efficiency Benefits: Management identified lower energy consumption and improved manpower productivity as key reasons for operating margin resilience. • Capital Expenditure: Total consolidated capex stood at approximately ₹24.6 Cr during H1 FY27. • Capex Funding: Expansion investments are funded through a combination of internal accruals and long-term borrowings. • External Commercial Borrowings: Company has an ECB facility of up to €12 million from Propaco. • ECB Drawdown: Approximately €7.5 million had been drawn as of September 2026, unchanged from March 2026. • Gross Debt: Consolidated gross debt stood at approximately ₹219.1 Cr as of September 2026. • Net Debt: Consolidated net debt stood at approximately ₹214 Cr. • Debt-to-Equity Ratio: Consolidated debt-to-equity stood at approximately 1.13x, compared with 1.08x in March 2026. • Working Capital Improvement: Company's working capital cycle declined to approximately 84 days from 95 days in March 2026. • Working Capital Strategy: Management is focusing on stronger cash flow planning, credit discipline and monitoring of working capital requirements as domestic operations expand. • Q2 Total Income: Consolidated total income increased approximately 30% YoY to ₹172.7 Cr, compared with ₹133.1 Cr. • Q2 Volume Growth: Management attributed revenue growth partly to approximately 24% higher volumes and an 8% improvement in realizations YoY. • Q2 Gross Margin: Gross margin declined to approximately 46% from 51% YoY, primarily reflecting raw material inflation and business mix. • Q2 EBITDA: Management-reported EBITDA increased approximately 60% YoY to ₹18.2 Cr. • Q2 EBITDA Margin: Margin stood at approximately 10.5%, compared with around 8.6% YoY. • Q2 Net Profit: PAT increased approximately 226% YoY to ₹6.4 Cr, compared with ₹2 Cr. • Q2 EPR Income: Management reported approximately ₹6.7 Cr of EPR income during the quarter. • H1 Total Income: Consolidated total income increased approximately 28% YoY to ₹330 Cr. • H1 EBITDA: EBITDA increased approximately 60% YoY to ₹35.6 Cr. • H1 EBITDA Margin: Margin improved to approximately 10.8% from 8.6% YoY. • H1 Net Profit: PAT stood at approximately ₹10.6 Cr, compared with ₹3.7 Cr in H1 FY26. • H1 EPR Income: EPR income stood at approximately ₹11.5 Cr, including ₹1.49 Cr from Pyrova Energy. • Tax Expense: Management indicated that earlier tax-rate volatility reflected approximately ₹1.7 Cr of prior-period tax underprovision and the transition between tax regimes. • Tax Outlook: Management indicated that Q2 tax expenses had normalized, although no numerical future tax-rate guidance was provided. • Sustainability Recognition: Company received an EcoVadis Gold rating, placing it among the top 5% of assessed companies globally. • Key Challenges: Elevated natural rubber and waste tyre costs, domestic feedstock availability, crude-linked pyrolysis oil realizations, export freight costs, RCB customer qualifications, new capacity stabilization, EPR regulatory changes and higher borrowing levels remain important factors.

GRP LIMITED

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