Ganesha Ecosphere Limited (NSE: GANECOS), a leading textile company demonstrated resilience in its Q3FY26 standalone performance, navigating US tariff headwinds on Indian textile products through strong production and sales growth. While consolidated results faced setbacks from regulatory uncertainties, strategic shifts and qualification wins signal recovery potential.
Standalone Business Strength
The legacy business delivered robust operational metrics despite external pressures. Production volume grew 13% quarter-on-quarter (q-o-q), with sales volume up 7% q-o-q. Revenue from operations rose 5.24% q-o-q.
EBITDA reached Rs. 18.54 crore, and profit after tax (PAT) hit Rs. 15.94 crore, exceeding the combined earnings of the prior two quarters. Dependency on yarn spinning declined, as non-woven and home furnishing segments contributed over 35% of quarterly sales volume. Stable raw material prices, contrasting last quarter’s volatility, supported margins.
Demand in the sector remains strong, with expected reductions in US tariffs poised to provide further uplift in upcoming quarters.
Consolidated Headwinds and Opportunities
Consolidated performance reflected challenges in the subsidiary’s recycled PET (rPET) operations. Ambiguity around a draft Ministry of Environment, Forest and Climate Change (MoEFCC) notification delayed rPET integration into brand owners’ supply chains, weakening demand for rPET granules.
Warangal capacity utilization fell to 50%, with sales down 19% q-o-q. This downturn partially offset standalone gains. However, the group’s rFilament yarn qualified with a leading global textile brand, setting the stage for higher volumes.
The regulatory push for recycled content in plastic packaging endures, positioning the company for growth despite short-term disruptions.