Loop Industries cuts its first India plant to 45 KTA as available liquidity slips to $1.9 million

Loop Industries reported a net loss of $2.99 million for the three months ended August 31, 2026, 6.74% narrower than the $3.2 million loss of a year earlier, on revenue of $117,000 from engineering services billed to its India joint venture. The clean technology company also cut the planned capacity of its first Indian plant to 45 kilotonnes per annum and disclosed total available liquidity of $1.9 million.

Engineering services bring revenue as the loss narrows

In the Form 8-K filed October 15, 2026 under Item 2.02, Loop Industries reported results for the second quarter of fiscal year ending February 28, 2027. All of the quarter's revenue was engineering services provided to the India joint venture: $117,000 against $0 in the same period of 2025. Spending fell faster than sales, so the loss narrowed. Research and development expense dropped $303,000 to $540,000, and general and administrative expense dropped $393 billion to $0, helped by a $312,000 reduction in insurance and $196,000 less in professional fees, partly offset by $83,000 more stock compensation.

Loop's non-GAAP framing, cash operating expenses, strips stock-based compensation out of research and development and general and administrative costs. On that basis the quarter cost $1.6 million, a decrease of $800,000 from a year earlier. A $388,000 jump in the loss on equity-accounted investments, to $431,000, and $41,000 more of interest and other financial expenses absorbed part of the savings; the reported loss per share was $0.06 against $0.07 a year earlier.

Sequentially, revenue slipped from the $179,000 booked in the first quarter of fiscal 2027, when the net loss was $3.39 million, so this quarter's loss was 11.73% smaller. Across the six months ended August 31, 2026, revenue rose 17.46% to $296,000 from $252,000, and the net loss eased to $6.37 million from $6.65 million.

India's first plant shrinks to 45 kilotonnes and startup moves to 2029

Loop rescaled the project after an engineering review it says was “intended to reduce the project’s estimated capital requirement and support a more focused development plan”. The company's stated logic is that a smaller plant costs less to build, which lowers both its debt and equity financing needs. Toyo Engineering India Private Limited is still finalizing the updated cost estimate, so no revised capital figure was published.

Timing moves with the footprint: Loop states that the “project target timeline is for construction completion by the end of 2028, with startup and commissioning scheduled for 2029”. A second, larger facility is planned for the same site and is to be developed after the first plant starts up.

“Rescaling the planned India facility to 45 KTA is intended to lower the project’s capital requirement while retaining the benefits of regional feedstock availability and a lower-cost operating environment”, founder and CEO Daniel Solomita said in the release. The filing does not say what capacity the earlier design carried, what the smaller plant will cost, or how much equity Loop owes the joint venture.

A special committee, $1.9 million of liquidity and no committed financing

Liquidity is the sharpest number in the filing. Total available liquidity was $1.9 million at August 31, 2026, and cash and cash equivalents fell to $836,000 at August 31, 2026 from $1.06 million at May 31, 2026, a decline of 21.35% over the quarter. Operating cash use slowed as well: $2.39 million over the six months ended August 31, 2026, of which $1.17 million went out in the second quarter alone, against $1.23 million in the first quarter.

The board formed a special committee in September 2026 to work on the funding gap. It “is actively engaged in working with advisors dedicated to securing capital to fund Loop’s portion of the equity needed to finance the India JV”, the release says, and is weighing “equity, debt, and non-dilutive options”. Nothing is committed, and the company ties the money to the project clock: “there can be no assurance that these sources will be sufficient to fund operations through commercial start-up”.

The October 16 call is the next dated checkpoint

Loop scheduled a corporate update call and question-and-answer session for 8:45 a.m. Eastern Time on Friday, October 16, 2026, to discuss the quarter and its commercial strategy and project development activities. Two open items could get numbers there: the finalized Toyo Engineering cost estimate for the 45 kilotonnes-per-annum plant, and the special committee's progress.

The release carries no revenue or earnings guidance, no analyst consensus estimate and no market reaction, so this report makes no claim about whether the quarter beat or missed expectations. After this filing, Loop's next scheduled results disclosure is its fiscal third quarter, the period ending November 30, 2026.