# Loop Industries Q2 2027 Earnings Call

> Loop Industries cuts India facility size to 45,000 kilotonnes per year to lower costs and accelerate construction.
- Title: Loop Industries Q2 2027 Earnings Call · The Motley Fool
- Summary: Loop Industries cuts India facility size to 45,000 kilotonnes per year to lower costs and accelerate construction. Loop Industries reduced its first Indian…
- Keywords: loop industries, loop, esther industries, india, q2 2027, earnings call, joint venture, facility scale, construction timeline, equity financing, finance, money
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/16/loop-industries-loop-q2-2027-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-16T17:11:03+00:00
- Read time: 2 min
- Topics: loop industries, loop, esther industries, india, q2 2027, earnings call, joint venture, facility scale, construction timeline, equity financing, finance, money
## Q2 2027 Earnings Call
Loop Industries reported Q2 2027 earnings with a net loss of $2.99 million, or $0.06 per share.
## Revenue and Net Loss
Revenue reached $117,000 from engineering services for the India joint venture project, with a net loss of $2.99 million.
## Cash Operating Expenses
Cash operating expenses dropped to $1.6 million, a year-over-year reduction of $800,000 due to targeted cuts.
## Liquidity and Financing
Total liquidity stood at $1.9 million as of August 31, 2026, including $836,000 in cash to fund pre-commercial operations.
## Facility Scale Reduction
Loop Industries rescaled its first Indian facility from 70,000 to 45,000 kilotonnes per annum to reduce capital requirements.
## Equity Financing Requirement
Equity financing required for the company's portion is estimated at $20 million, representing its 15% share of the first Indian facility's total cost.
## Project Capital Structure
Project capital structure is 70% debt and 30% equity, with the equity portion split evenly between Loop Industries and Ester Industries.
## Joint Venture Investment
Loop Industries has contributed $3 million to $5 million toward the India project through joint venture investments.
## Contracted Volume
Over 50% of the 45,000-ton capacity is committed through signed contracts and letters of intent with customers like Taro Plast.
## Construction Timeline
Construction timeline is 20 months, with completion projected for the end of 2028 if financing is secured by Q1 2027.
## Second Facility Potential
Second facility on the same site in India is projected to have a capacity of 125,000 tons, utilizing local feedstock availability.
## Technical Due Diligence
Technical due diligence by project lenders in India is complete, with final project cost estimates expected before year-end.
## Cost Reduction Strategy
Loop Industries achieved cost reductions through targeted cuts in personnel, insurance, and professional fees, and waived director compensation.
## Financing Committee
A special committee formed in September 2026 to evaluate financing alternatives including equity, debt, and nondilutive options.
## Debt Lender Engagement
Loop Industries' Indian joint venture partner is syndicating project debt with a major local bank that completed technical assessment.
## Economic Viability
CEO Solomita stated that scaling down the facility maintains project economics due to low temperature and no pressure added technology.
## Key takeaway

Loop Industries reduced its first Indian facility capacity to 45,000 kilotonnes per year to cut capital costs and shorten construction timeline to 20 months.