Ladies and gentlemen, good day and welcome to Ganesha Ecosphere Limited Q2 FY 2027 earnings conference call hosted by Antique Stock Broking. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking. Thank you, and over to you, sir.
Thank you, moderator. I am pleased to host today's earning call of Ganesha Ecosphere. From the management, we have Mr. Gopal Agarwal, CFO, Mr. Prashant Khandelwal, Senior Vice President, and Mr. Yash Sharma, Director, Ganesha Ecosphere on the call. Without any delay, I would like to invite Mr. Yash Sharma to start with opening comment. Thank you, and over to you, Yash.
A very good afternoon to everyone and a very warm welcome to all the participants for joining. Thank you for joining and for your continued interest in Ganesha Ecosphere. I hope all of you have had the opportunity to go through our results as well as the investor presentation. We are pleased to report that another quarter of healthy progress and our performance remaining broadly in line with the direction and the growth strategy that we had outlined at the beginning of the year. Demand remained encouraging across both our legacy as well as subsidiary operations, supporting better volumes and improved revenue performance during this quarter. On a sequential basis, the consolidated revenue has grown by 21.1%, while the standalone revenue has increased by 20.7%. On a year-on-year basis, the consolidated revenue has increased by 41.2, while the standalone revenue has increased by 22%.
Overall, in the first half of FY 2027, the turnover has increased by 33.7% on the consol basis. Consolidated sales volume increased to 49,382 metric tons from 40,113 metric tons during the last quarter. Standalone sales volume has also grown significantly to 31,800 tons from 25,321 metric tons achieved during the quarter one. The operating environment, however, has remained quite volatile during the quarter. Both the PET bottle scrap prices as well as the finished product prices have witnessed sharp fluctuations on both the sides, which was primarily driven by movements in crude oil sentiments and polymer markets owing to the ongoing geopolitical developments in the West Asia, resulting in a quite significant volatility across the value chain. Despite these challenges, we have been able to maintain the business momentum and healthy margins.
Coming to our performance, the standalone business continued to operate strongly with plant utilization of about 99% during this quarter. The Warangal facility operated at around 67% utilization during this quarter. Healthy demand and operational efficiency supported the performance despite the volatile raw material environment. From a financial perspective, we have achieved a standalone EBITDA of INR 24.51 crore and consolidated EBITDA of INR 60.6 crore during Q2 FY 2027, which is an increase of 200% over the corresponding last quarter. During Q1 FY 2027, standalone EBITDA per ton was INR 9,396 as compared to INR 7,704 earned during the Q2, and consol EBITDA per ton was INR 14,902 as against INR 12,281 earned during the current quarter. It was mainly due to the inventory gains during Q1 and loss of rPSF production at Warangal unit faced because of the fire incident in the rPSF.
On the half yearly basis, we achieved consolidated EBITDA of INR 120.42 crore as against the INR 58.63 crore during the last corresponding FY. We generated operating cash flows of INR 56.91 crore during H1 FY 2027, reflecting the strength of our business model and our continued focus on profitable growth and cash generation. Our fourth rPET granule production line at Warangal unit got the FSSAI approvals for food-grade applications and has thus become eligible to cater to the growing food-grade packaging market. in August 2026, we got a setback due to the fire incident of the rPSF division of our Warangal facility. This resulted into halting of the operations, causing production and profitability losses, while the fixed costs continued to be incurred. Quantum of loss is still under assessment, though it is adequately covered under insurances.
Restoration activities are progressing as planned, and we expect the affected operations to be reinstated by Q4 FY 2027. Looking ahead, our growth and expansion plans remain firmly on track. The fifth rPET granules production line is currently under installation and is expected to be commissioned during Q4 of FY 2027. This will further enhance our capacity and strengthen our ability to serve the increasing demand for high-quality food-grade rPET products. We are also shifting our Kanpur rPSF production line to our Temra unit to improve the operational efficiencies, optimize costs, and create a more integrated manufacturing setup. Overall, we are very encouraged by the performance delivered during the first half of FY 2027. Demand fundamentals remain quite healthy. Our expansion projects are progressing as scheduled, and we believe the momentum witnessed during the first half of the year should continue through the remainder of FY 2027 as well.
Thank you once again to everyone for joining us today. We will be happy to take any questions now. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Dheeraj Ram from 360 ONE Capital . Please go ahead.
Hi, sir. Thank you for taking up the question, and congratulations for a good set of numbers. Could you please let me know the current changing demand scenario for rPET, and if any new FSSAI-approved recyclers that have got approval in 2Q ?
Yeah, sure. Thank you. The current demand of rPET remains quite strong and healthy due to the elevated polymer prices overall currently. Also, now the government mandate of using 40% recycled content is definitely in place, and all the players in the industry are looking to follow the mandates. Secondly, yes, definitely there have been new capacities which have come online during the Q2. For example, IDVB has got the approvals. There is one small player in the northeast which has got approval, and our new line has got the approval. Similarly, one more player's new line has got the approval in the Q2 from FSSAI.
Understood. Second would be, what does this rPET FSSAI approval mean? Currently, we were selling it for non-food grade. What was the utilization there, and what could be the potential implication of this FSSAI approval on your new line, and what could be numbers turning out to be?
Yes. Basically, once you get the FSSAI approval, then you are able to supply the output of the line into food contact applications. Till now, we were utilizing that line mostly for our non-food grade customers and also for exports, since we already had the U.S. FDA and EFSA approvals for the line. We were mainly focusing on that. Going from now onwards, obviously, since we will be able to also ramp up the utilization, which we were running for the line four at about, oddly, about 60% before the approval came through. After that, we've been able to increase the ramp-up.
Understood. This last question is, what could be the loss on volume due to this fire accident at Warangal in the rPSF segment?
It is roughly about 2,500-3,000 tons, quarterly basis.
Quarterly basis. Understood. Lastly, could you let me know the raw material price, sir, at this crude price? What could be the raw material price at the minute?
Yeah. Raw material prices are moving in tandem with the prices of finished goods. The prices are quite volatile in the market, and it is very unpredictable what would be the price going ahead. But certainly, at this point, these are at elevated levels.
Okay. Since this is an increasing trajectory, can we expect the inventory gains in the quarters coming ahead?
Sorry, can you please come again?
Since crude prices have ramped up and we had inventory of close to three months, we hold an inventory of close to three months. Could we expect inventory gains in next quarters going ahead, or has this been weighted out then through the entire quarter?
Yeah. We are not expecting any inventory gain going ahead.
Yeah.
Although we are having the inventory with us, the inventory is churning out fast, and the prices are also very volatile. The inventory is valued at about current prices only.
Okay. Understood. Thank you, sir. All the best for the quarters coming ahead.
Thank you. Next question is from the line of Bharat Gulati from Dalal & Broacha Stock Broking. Please go ahead.
Yeah. Hi. Thank you for the opportunity. Hope I am audible. Just a few questions on the subsidiary business. I understand quarter-on-quarter, the utilization will drop because of the fire incident. Just trying to understand what would rPET's utilization for the lines that were operational during the quarter would have been, if you can quantify that.
On blended basis, because one line was started in June itself, and FSSAI approval we got only in this month. So, the blended capacity utilization was about 75%-76% in the last quarter.
Understood. And the fourth FSSAI approval that, Yash, you spoke about, should that immediately start to ramp up from Q3? So, the ramp-up would be in progress right now. Is that the case? And that 60% utilization should reach the 75%, 76% blended utilization of the existing rPET? Is that the sort of trajectory we are looking at?
Yes. We are witnessing the volume growth of that line also. Capacity utilization is increasing.
Understood. Just trying to gauge what sort of a capacity utilization just on the rPET line do we expect to close the year at? Then given that when we restore our operations back in the rPSF line also, what should the blended exit utilization for Warangal facility be? I understand you are adding some new lines. I am talking about excluding of addition of those new lines on the capacities that have been live throughout the year. What should our expected capacity utilization on that be? What should a sort of normalized EBITDA per ton on our Warangal operations look like? It is currently between INR 21 and INR 22 . What should that sort of be at? Yeah.
Yeah. Bharat, we are expecting the optimum capacity utilization about 85% of our Warangal unit going ahead. Certainly, we are looking for the EBITDA of INR 21, INR 22 a kg, which we are earning presently.
Understood. Just trying to understand the sequential hit on EBITDA per ton that we saw. That was predominantly because of the rPSF line going out, right? So, shouldn't once that rPSF line come back into our business, we should normalize back to INR 24, INR 25 per ton? Or are we going to see this pull down on a normalized basis to 22% as it is?
Yeah, so it would be between INR 22, INR 24 a kg on blended basis.
Understood. For our subsidiary business, that is.
Subsidiary business, yes.
Understood. Okay. Just on the demand outlook for, as the previous participant questioned, what is the demand-supply sort of mismatch? There has been quite a few approvals from FSSAI that have taken place during the quarter. So, how much does that demand gap still exist? If you can just throw some broad numbers on the current approved FSSAI facilities and what market share do we hold in that?
The current FSSAI-approved facility total capacity of India is about 4.2 lakh- 4.5 lakh tons approximately, the current total approved capacity, out of which our approved capacity has now gone to 65,000 tons. But what is happening is that still some capacities are not able to perform quite good on the operational basis, so the actual utilizations are not as high. The actual utilizations of the average industry are on the lower side. The data that we have currently on the market share side is that currently, the rPET sales in the market are somewhere between 25,000 to 50,000 tons, out of which we have a market share of about 5,000 tons on a monthly basis. So, roughly about 20%.
Understood. Just trying to understand, we have seen a pretty big consolidation that would have taken place due to the turmoil in the past six months. So, has not there been some sort of brownfield capacities that have gone bust that we could take over and sort of continue those operations? Or, I mean, just trying to understand what is the broader perspective of us expanding lines going forward? Should we expect CapEx within our existing facilities or some sort of acquisition of players who already had facilities but are not in operation anymore?
You see, in fact, the opposite has happened. What has happened since the last six months of geopolitical turmoil is that the virgin polymer prices have went quite up, and because of that, the demand for recycled polymers has gone pretty high. So now, what has happened because of this is that even the inefficient players are now able to actually operate at higher utilizations and are able to sustain their operations in a quite decent way because there is a demand for the recycled polymer today, because recycled polymer today is at a discount to the virgin polymer prices. And so, the broader market demand has increased quite significantly. So, in fact, the opposite has happened in the last six months. The players have been able to run their lines well.
Yeah. We are looking for the capacity expansions, and we are already making up the expansion of the capacity at Warangal plant, brownfield expansions we are carrying out.
Yeah. Right.
Understood. That is helpful. That is it from my side. Thank you so much.
Thank you. Next question is from the line of Deepak Ajmera from Elpro International Limited. Please go ahead.
Hello.
Yes, you are audible. Please proceed.
I would like to know the current rPET volume. How much is the long-term contract versus the spot sales? Since the crude prices are too high, given that if the crude prices fall in near-t erm, what kind of an EBITDA per kg we are assuming in rPET? Is INR 20, INR 21 per kg sustainable?
Our current contracted capacities out of the total production today currently stands at about 85%, 90%. 85%, 90% of our capacities are currently on a contractual basis, in which there will be absolutely no impact of any sudden fall or decrease in the prices. Also, if you are talking about the overall EBITDA average numbers, we are very confident that we will be able to achieve EBITDA as close to INR 20 a kg on a sustainable basis.
Okay, got it. On the new capacity which came currently, will you please guide once again what the optimum utilization in rPET we can have and what we are targeting in future?
Optimum capacity utilization is about 85% in case of rPET. Effective utilization is 85%. It is quite difficult to achieve the capacity utilization because of the product mix which are currently being sold in the market.
Can we say that this 80% utilization, we can have it in the Q4 or Q3 in this year?
Yeah. We are working on some debottlenecking. We are expecting by the end of this financial year, we would be able to go by 90%.
Got it. Any greenfield plans for our new capacities and which plan was dropped from Odisha?
Yeah, so we are working on that expansion plan, and I think we would be able to come to the investors and the stocks and the public in this quarter itself.
Got it. Thank you.
Thank you. Next question is from the line of Harsh Vidhani from India Capital. Please go ahead.
Hi, Harsh. Congratulations for the good set of results. Sir, just wanted to know that now that, like you said, some approvals have come through in this quarter, but is it fair to say that the quality supply remains constrained and we would be able to maintain the current margins?
Yes, definitely, Harsh. What is happening is that now even the industry is realizing the difference in the polymer quality being supplied by different players. Obviously, we are performing pretty well on that side, and the demand for our products is going higher and higher. In fact, we are constrained by our capacity right now and not by the supply. We think that definitely we will be able to perform much better than the industry overall.
Sir, is it fair to assume that the ramp-up of the new line that came in would have been very quick as soon as we got the FSSAI approval?
Yes. In fact, in just a period of a month's time, we have been able to achieve very high utilizations.
Harsh , we are already utilizing the capacity, about 60% capacity utilization was already there of this line where we are utilizing the material for non-food applications. There would be some ramp-up in the capacity utilization after the FSSAI approval.
Understood. And sir, what is the expected volume increase for food-grade rPET now on a quarterly basis?
Quarterly basis, it is around 1,500-2,000 tons.
Got it. We also have another line coming in January. That would, like this line prior to FSSAI approval, will be able to operate for non-food-grade applications, right?
Correct.
Correct. Understood. Sir, one last question from my side. Is it fair to assume that the cost of the fire incident will be contained in the have been contained in this quarter, and there would be no more cost implications?
Basically, there are two implications. One is we are losing the EBITDA margins which we are earning on the PSF. The production is completely halted, and so we are losing the EBITDA on that. Further, we are incurring the fixed expenses, fixed part of this rPSF, because of the halting of the production. So, there are double impact as of now.
Understood, sir. Understood. Thank you, sir.
Thank you. Next question is from the line of Kaustav Bubna from Kamana Holdings. Please go ahead.
Yeah, I am fairly new to this company, so if you could explain, so when crude prices go up, you are getting an advantage over the substitute product, right? Virgin PET, right? But what is happening with your margins at the same time? So, could you explain your raw material stocking days and the contracts you have in terms of cost push with your customers? If you could explain that. Also, if you could explain if crude comes down drastically, hypothetically, then how does that affect your demand from here on? So, those points, please.
Yeah, so basically, definitely the increase in crude prices and the increase in the virgin polymer prices has increased the demand of the recycled products. But on the other side, the prices of finished goods has In case of fiber, the entire period is for sale. So, definitely the prices have increased of finished product, but at the same time, prices of scrap has also gone up to that extent. So, basically, we are maintaining the EBITDA, but there is not any increase in the EBITDA margins. In case of our rPET business, our 85%, 90% capacity is of contracted prices. So, there our margins are fixed.
Yeah, so if their margins are fixed, means that your gross margins would I mean, if the pricing is fixed, in this environment, even though you are getting higher demand because of substitution, your gross margin would fall, right?
No, basically, we are having the contract of raw material prices plus yield plus the fixed conversion cost. Whatever the raw material fluctuations are there, it is passed on to the buyer.
Is it instantly passed on?
It is with a lag of one month. It is 1 + 1. Current month prices are passed on to next month.
Okay, and how long are these contracts? So that your client doesn't try to negotiate if the prices have gone up, or what is the bargaining power of your customer basically, if your raw material prices go up like in the situation today?
First of all, the contracts are annual, so they are one year long. Secondly, there is no negotiation that happens on the formula pricing because that is what has been agreed on in terms of the pricing. And obviously, you see it is just a lag of one month, so definitely what happens is by the end of the year, it all gets averaged or it all gets neutralized any which ways automatically. There is no such negotiation that happen honestly on the contract formula pricing.
If we arrange this last point on this-
Sorry to interrupt, Mr. Bubna. May we please request you to rejoin the queue, sir, for the follow-up question? Thank you. Next question is from the line of Deepak D. from Sundaram Mutual Fund. Please go ahead.
Yeah, thank you for the opportunity. Am I audible?
Yes, please proceed .
Yeah. Hi, sir. Sir, congratulations on delivering a good set of number. Sir, my first question is on volumes. If I look at our standalone business, this quarter, we are almost looking at a 32,000 sort of run rate in tonnage basis and a 25% Q-o-Q growth. Just wanted to understand what changed in this quarter for the volume to jump so sharply in Q-o-Q basis, and how should we think about this run rate going into H2?
Deepak, the demand was, the sale volume was quite low in first quarter and second quarter of this calendar year. There is some pent-up demand also in Q3, and we also liquidated our inventory. We are looking for the normal demand would be there going forward.
Okay. Would it be fair to assume that a regular 29,000- 30,000 volume which we used to clock earlier, that should continue into H2?
Yes, because we are also liquidated most of our stock now.
Got it.
The other, as on date would be 28,000, 29,000 going ahead quarterly basis.
Got it. Secondly, on EBITDA per tonnage basis, despite all the challenges in the raw material front, we are still clocking somewhere around INR 7- INR 8 EBITDA per kg in our standalone business. Would it be fair to assume that this sort of run rate would be maintained going forward, let's say in H2 and also next fiscal?
Yeah. You are very right. There is a lot of fluctuations and variation in the prices of raw material, but ultimately, on an average basis, we are able to maintain the EBITDA margins of INR 7- INR 8 a kg in standalone business. We look forward to maintain it in coming quarters also.
Okay. Sir, it would be very helpful if you could just call out, what is the current price difference between rPSF and virgin PSF, and also rPET and virgin PET? Just wanted to understand from a trend perspective, how is it looking at, let's say, two months back and current?
The rPSF prices are currently See, it's very volatile. You have to understand, first of all, you're taking the current numbers, there should not be any benchmark as such. The current rPSF prices are in the range of INR 110- INR 114 per kg, whereas the vPSF prices are in the range of INR 130 a kg. On the other side, in rPET, the current rPET prices are at about INR 130 a kg, and vPET prices are at about INR 140- INR 145 a kg.
Okay. Very useful.
But it is very volatile and very fluctuating, so I mean, definitely it is going to change.
No. I understand. But that is what is surprising because generally I had an understanding that PET waste price has its own supply-demand factor, but somehow these crude prices are also impacting this. I think it is because of the demand shift which you might be incurring, and hence the PET waste price is also going up as people are looking for substitution. Is that the right understanding?
Exactly. You are absolutely right. That is what happens.
Okay. Got it. And one last question. So, we have been maintaining our EBITDA guidance. I understand that EBITDA per ton guidance is a little bit tricky depending on lot of factors. So, do we still maintain that INR 225 crore- INR 230 crore EBITDA guidance for 2027, or do you feel that, since this FSSAI approval has come through and your volume mix will also go towards the higher margin product now in H2, that we can surpass this INR 230 crore EBITDA in FY 2027 itself?
Yeah. We have given the guidance of INR 225 crore-INR 250 crore, so we are expecting it to the higher end of the EBITDA, like close to INR 235 crore-INR 240 crore.
Okay. Sir, very helpful, sir, and thank you and all the best.
Thank you. Next question is from the line of Suraj Malu from Catamaran Ventures. Please go ahead.
Sir, thank you very much for this opportunity. Sir, from the presentation, if we just look at CY 2029 or FY 2030 India PET bottle numbers, which is supposed to go to 23 lakh tons, right? If we consider the 80% recycling target, the industry can be around 18 lakh tons. Do we target like 20% of that capacity, which will be around 3.5 lakh tons roughly by FY 2030 for rPET?
No, we are looking for the rPET demand would be around 1 million ton of the overall demand, overall PET consumption. We are looking for 25% market share on that capacity, on that demand of 1 million ton.
Got it. And sir, for that, what is the amount of CapEx that we will need? Like right now, after the current line five, I believe we will go roughly to 90,000. To go to like, let's say, 20 or INR 2.5 lakhs, what is the CapEx that we will need to do, and will that happen entirely in Warangal?
No, we are not going to incur any further CapEx in the Warangal, so we would be having around 100,000 capacity in Warangal. We are looking for our putting up the capacities in some other place, like either in the Northern India or some other place.
Got it. And will that be like INR 500,000 crore CapEx equivalent or?
Yeah, for roughly for 50,000 capacity, the CapEx would be around INR 300 crore.
For 50,000?
For 50,000. Yeah, for 50,000.
Got it, sir. Sir, and if I may ask one last question, like the EBITDA per kg at that scale, like when we are at 2 lakh or 2.5 lakh, the EBITDA per kg, assuming we have FSSAI approval, that will be like INR 24, INR 25, or will it be INR 20- INR 22?
Yeah, so we are having the guidance of between INR 20-INR 22. In between INR 20-INR 22 a kg, yeah.
Understood. Thank you very much, sir.
Thank you. Next question is from the line of Shubham Agarwal from Burman Capital. Please go ahead
Hi, sir. Thank you for the opportunity. I had two questions. Sir, one is the rPSF line which got impacted in Warangal due to firing accident. When is that expected to come back online?
Basically, the OEM got the visa only in the current month, and they visited the plant in the last week. They are addressing the loss, what is the repairable, what is to be replaced. We are expecting by the end of February, March, we would be able to restore the line, depending upon the procurement time of the imported equipment from the OEM.
Understood, sir. Sir, specifically for this quarter, what was your output for just rPET?
Total production volume is about 15,500 tons, including the PSF and the rPET and yarn.
But specifically, can you give for rPET if that is possible?
So basically, we are giving the blended numbers.
Understood. Understood. Thanks, sir. Thank you for answering my questions.
Thank you. Next question is from the line of Bhavya Gandhi from Bajaj Alternate Investment Management Limited. Please proceed.
Yeah, thanks for the opportunity and congratulations, Yash, as well as Gopal Ji on good set of numbers. Sir, my question is regarding the global opportunity. Let's assume that if at all there is a supply-demand mismatch in the country, which are the countries globally who have already this rPET regulation in place as a backup? Just wanted to understand. And are we allowed to export? Is there any restrictions on the exports? Yeah.
Bhavya, currently some states in the U.S. and also Europe already has the mandatory rPET regulations. A lot of countries currently have developed and are targeting to start the rPET mandates pretty soon to some countries in 2028, some countries in 2030. It is a global phenomena that is taking place, number one. Number two, yes, we are obviously allowed to export since we are U.S. FDA and FSSAI certified. We are allowed to export to multiple countries. Just that for the specific country, you have to take the food safety regulator's approval before you are able to supply it. That is something that you have to do. Otherwise, you are absolutely allowed to supply to any country whatsoever.
Got it. At the bottler level, if you can quantify how much percentage of compliance are they fulfilling, because this year mandates around 40%? If you can just throw some light at the large bottlers or the beverage companies, what is the average compliance that they are following percentage-wise at least?
I think it is very difficult to exactly give the numbers because we obviously we do not have access to such information. But they are trying to go as high, provided they are getting the quality material feedstock. The problem today is that they are not able to get that much amount of quality feedstock rPET from the industry. That is why they are getting sort of blocked by that. What we hear from the industry experts is that the current rate is somewhere between around 25% for the current year totally. They are trying to increase, but obviously there is a big challenge in availability of high-quality rPET feedstock.
Got it. Fair enough. Thank you so much and all the best for you. Yeah, thank you.
Yeah.
Thank you. Next question is from the line of Naman Maheshwari from Srujan Alpha Capital. Please go ahead.
Yeah. Hi, am I audible?
Yes, please proceed.
Yeah. Congratulations on a good set of numbers. Just wanted to get a clarity. Addressing to a recent participant, you just said that the approved capacity for India right now is somewhere around 4.2 lakh- 4.5 lakh metric ton. And the current demand is 30,000 metric ton, which implies a total demand of 3,60,000 metric ton per annum. Has the situation changed from wherein you earlier said that the approved capacity is less and the demand is more, to now the approved capacity being higher and the demand less? Just wanted to-
Please understand that the 30,000 metric ton demand is not a demand number, it is the actual sale number. The demand today is much, much more higher than that, probably more than even 2x. The problem is that the material is not available for sale. That is how the numbers are getting blocked today.
Okay. What is the gap actually? Is it because these facilities are not able to run at these optimum levels or there is some quality difference?
You take it like this. All the brand owners have not started to utilize the mandatory consumption of rPET, not the industry as a whole. Though some of the brand owners have started, the actual demand is basically, yeah, outpaced the numbers of available quantity. But certainly, the demand would be higher when the entire industry would be starting utilizing the rPET.
Okay. Can you give me some light on the filament yarn operations at the Warangal facility? How is that turning out? What is the revenue contribution or something on those lines?
It is definitely improving. We are slowly ramping up the new customers' demands and also in process of doing approvals for a couple of more customers as well. It's increasing slowly. It will take probably some more time to get it to its optimum utilizations. We would not be disclosing product-wise details, to be honest. Separately, we'll be working with blended numbers.
Okay. Just one last follow-up on this. As this filament yarn contribution ramps up, do we see margins moving to a higher percentage going forward?
Yeah. When we will be utilizing the optimum capacity, certainly it will add up the EBITDA, overall EBITDA.
All right. Thank you so much.
Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one. Next follow-up question is from the line of Deepak Ajmera from Elpro International Limited. Please proceed.
Hello.
Hello .
Yes.
Please go ahead.
As you mentioned that we have a contract for yearly basis, when is the next renewal period?
It is happening currently in December.
In December. How confident are we in getting again the renewal ones? Because many players are now moving with some other players also, like Varun has their own partner with someone, and now other organized player are also thinking for the same. In the span of one, two year, how do you think this? Do you think that we are capable or we can partner with someone like Coca-Cola or other players?
See, we are more than confident of getting the contracts, number one. Number two, even though a lot of players are there, are coming up, definitely yes, but the number one, the quality rPET output, and as well as utilizations, currently the market needs much more higher amount of rPET than what is available today. Also, we have very good rapports and relationships with a lot of brand owners, global brand owners, not just one or two or three, but we are working with a lot of brand owners now and have been able to really demonstrate Ganesha as a very strategic supplier. We are very confident that we will be able to lock in the contracts even for the new line as well.
Okay. Got it. Thank you.
Thank you. Next follow-up question is from the line of Bharat Gulati from Dalal & Broacha Stock Broking. Please proceed.
Yeah. Hi. Thanks for the follow-up. Just a question on our capacities. We've spoken in previous earnings calls and in presentations that we're taking rPET capacities to 1 lakh. What's the CapEx plan beyond that? Can you give a broad sense of what are we planning beyond the 1 lakh rPET granules going to, and where would that CapEx take place? Any sort of broad timeline if you can give a sense of when would the additional capacities beyond 1 lakh ton start to come in, at least in the production phase, if not in the ramp? I mean, when will they be online by? Yeah.
It is taking about 12 months- 15 months time to go on and stream the new capacities. I think we would be looking for the new CapEx as soon as we finalize it.
Understood. But I mean, just some sort of broad understanding of how much CapEx would it be in terms of capacities. Just some broad number to go by. I understand you've given the 12 to 15-month timeline, so that would basically make us stand that by end of FY 2029 only those capacities would come in broadly. If you can just give some sense of how much would that additional capacity be?
As I told, for 50,000 tons additional capacity, the CapEx would be around INR 250 crore-INR 300 crore.
Got it. Should we expect about 1,50,000 tons of rPET granules by the end of FY 2028? That would be a fair thing to say?
We are working, and hopefully, it would be delivered by the end of FY 2027. Sorry, FY 2028. Yeah.
Understood. Yeah. Got it. Got it, sir. Okay. Thank you.
Thank you. Next follow-up question is from the line of Suraj Malu from Catamaran Ventures. Please go ahead.
Thank you, sir. Sir, who would be the top two to three customers, anchor customers, when, let's say, we have 2 lakh-2.5 lakh capacity, like three, four years down the line?
So, you see, the PET market in India is structured in a specific way where there are, let's say, global organized brand owners like Coke, Pepsi, and many others in the beverage and FMCG space. So, obviously, they will make up. I would say these global brand owners would make up almost 70%-80% of our market share. These global brand names are around 25 currently in the Indian market in context, and the rest, 20%-30%, will be the local regional players for us.
Got it. Sir, then since you have relations with these global customers, are you thinking of any big exports?
We are definitely on the market. It depends on how the economics and how the deals work out. Currently, due to the geopolitical, we are still doing exports, but the quantity has gone down. The volume has gone down because of the freight impact and higher demand and higher prices in India. Obviously, we are there on the market, and we are able to deliver as we are able to go forward. It is going to definitely depend on how the Indian landscape looks like.
Got it, sir. Thank you very much.
Thank you. Next question is from the line of Dhirendra Kumar Patro from Spark PMS. Please proceed.
Hi, this is Dhirendra. Congrats on a good set of numbers. I just had one question for Yash . Yash, we have seen that the promoter level pledge has been increasing since last three, four quarters. In the last quarter itself, it has gone up significantly by 4%. Any update on that, whether this will be halted or it will be decreased in some timeline regarding that? Can you help me on that?
Yes, Dhirendra, the pledge was because of some funds borrowed by the promoters for conversion of their warrants last year, conversion of their warrants into equity. Basically, the pledge has been increased because of this fall in the prices of shares. We have to make up the more mortgage to cover up the shortfall in prices.
Okay, got it. Any timeline for repayment of that?
Yeah, I think it would be coming down from next financial year.
Okay. Thank you.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for the closing comments.
Yeah, thank you. Thank you everyone for your time, your questions, and your continued support to Ganesha Ecosphere. We remain focused on executing our expansion plans, strengthening our operational performance, and creating long-term value for all stakeholders. We appreciate your continued confidence in the company and look forward to interacting with you again next quarter. Thank you. Thank you, everyone. Have a great day.
Thank you very much, sir. On behalf of Antique Stock Broking, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.