Loop Industries Slashes India Facility Costs by $25 Million Amid Global Expansion

2026-05-28 companies

Terrebonne, Wednesday, 27 May 2026.
Loop Industries has reduced the projected cost of its upcoming manufacturing plant in India by $25 million, optimizing its global expansion strategy despite a drop in annual revenue.

Strategic Milestones in India and Europe

On May 27, 2026, Loop Industries (NASDAQ: LOOP) detailed its financial results for the fourth quarter and full fiscal year 2026, which concluded on February 28, 2026 [1][3][5]. The Montreal-based sustainable plastics innovator, known for its patented low-temperature depolymerization technology that converts PET plastic and polyester waste into virgin-quality resin, announced major strides in its international joint ventures [1][5]. Most notably, the company’s 50%-owned Indian joint venture signed a Memorandum of Understanding with the Gujarat government [1]. This agreement is designed to facilitate permitting, administrative processes, and infrastructure development for the upcoming Infinite Loop™ India manufacturing platform [1]. Through procurement refinements, land optimization, and favorable foreign exchange movements, Loop successfully reduced the projected capital cost of this facility to between $165 million and $170 million, down from an initial estimate of $190 million [1]. This strategic optimization represents a potential capital savings of up to 25 million [1]. Operations for the India plant are now slated to begin in calendar 2028 [1], shifting from previous market projections that targeted a launch by the end of 2027 [5].

Navigating Financial Contractions

Despite the operational momentum abroad, Loop’s fiscal 2026 financial performance reflects a transitional period characterized by a temporary absence of licensing revenue. For the fiscal year ended February 28, 2026, total revenues plummeted to $514,000 from $10,889,000 in the prior fiscal year, representing a steep decline of -95.28% [1]. The fourth quarter alone saw revenue shrink to $176,000, compared to $10,809,000 during the same period in fiscal 2025 [1]. Consequently, the company reported a Q4 net loss of $2,703,000, a stark contrast to the $6,882,000 net income recorded in Q4 of the previous year [1]. Financial data released around the reporting date indicated an actual earnings per share (EPS) of -$0.06, which closely aligned with analyst estimates of a -$0.07 loss per share [3][4].

Market Position and Capital Strategy

Maintaining liquidity remains a focal point for Loop Industries as it scales its capital-intensive manufacturing facilities [1]. As of February 28, 2026, the company’s cash and cash equivalents had dwindled to $2,356,000, down from $12,973,000 the year prior—a decrease of -81.839% [1]. This reduction was primarily driven by $10,110,000 used in operating activities and $1,171,000 utilized for investing activities [1]. Financing activities provided a modest $678,000, bolstered by $889,000 in net proceeds from an at-the-market (ATM) equity offering and $64,000 from stock option exercises, which were partially offset by $275,000 in long-term debt repayments [1]. As of late May 2026, the company’s market capitalization hovered between $66.7 million and $67.19 million [4][5].

Sources

Financial results Loop Industries