What’s new

• Q4 revenue fell 10% year-on-year and EBITDA margins crashed to 7% from 21%.
• The recovered carbon black facility commissioning is pushed to February 2027.
• The polymer composite business has been closed after a U.S. customer relocation.

Why it matters

The margin collapse is severe. A swing from 21% to 7% EBITDA margin in one year is not a cyclical dip; it's the direct cost of tariff-driven U.S. export weakness and raw material inflation the company could not pass through in time. The delayed carbon black plant and shuttered composite business confirm the operational outlook is worsening, not improving.

What we’re watching

• Whether the promised U.S. export volume restoration in FY27 actually materializes.
• The company's ability to hold the raw material price increases it implemented in April.
• Any further capex or timeline slips on the carbon black facility.

The full read

GRP's Q4 was a wreck. Revenue dropped 10% year-on-year, but the real damage was to profitability: EBITDA margins fell to 7% from 21% a year earlier. Tariff-driven weakness in U.S. exports is the primary culprit, compounded by raw material costs the company could not pass through until April. The operational outlook is getting worse, not better. The recovered carbon black facility, a key part of the company's growth story, is now delayed to February 2027. And the polymer composite business is gone entirely, shut after a U.S. customer relocated. Management's guidance for full restoration of U.S. export volumes in FY27 and the raw material price captures are the only bright spots. The board recommended a dividend of ₹3.5 per share, which feels like a gesture of normalcy in a quarter that was anything but.

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