Resgen - Resgen
Financial Performance
Revenue Growth by Segment
Revenue from operations grew by 43.2% YoY to INR 65.16 Cr in FY25, primarily driven by increased sales of PlasEco and other green fuel substitutes.
Profitability Margins
PBT margin moderated to 17.10% in FY25 from 20.17% in FY24 due to higher input costs. Net Profit margin stood at 12.24% in FY25.
EBITDA Margin
EBITDA margin was approximately 23.6% in FY25, reflecting core profitability despite capacity utilization pressures.
Capital Expenditure
Capital expenditure for the purchase of plant and equipment was INR 1.58 Cr in FY25, a decrease from INR 8.71 Cr in FY24.
Credit Rating & Borrowing
Total borrowings stood at INR 4.65 Cr as of March 31, 2025, with long-term debt at INR 2.68 Cr and short-term debt at INR 1.98 Cr. Specific credit ratings and interest rates were not disclosed.
Operational Drivers
Raw Materials
Specific raw materials include plastic waste and tyre waste (feedstock). Net material costs represented 74.3% of total revenue in FY25.
Capacity Expansion
The company noted strategic strides in capacity and technology post-IPO, though specific installed capacity in MT was not disclosed.
Raw Material Costs
Net raw material costs were INR 48.39 Cr in FY25 (74.3% of revenue). The company faced volatility in feedstock supply and pricing which impacted margins.
Manufacturing Efficiency
The company reported capacity utilization pressures in FY25, which contributed to the moderation of PBT margins.
Strategic Growth
Expected Growth Rate
43%
Growth Strategy
Growth will be achieved through a strategic partnership with BNZ for cutting-edge recycling technologies, expansion into e-waste and agri-waste streams, and leveraging its listed governance structure to attract partners aligned with the circular economy mission.
Products & Services
PlasEco (pyrolysis oil) and Carbon (a substitute for coal) manufactured from plastic waste.
Brand Portfolio
ResGen, PlasEco.
New Products/Services
Expansion into e-waste and agri-waste streams is planned to diversify the product portfolio.
Market Expansion
The company aims to expand its influence in the global sustainability ecosystem and energy-intensive industries.
Strategic Alliances
Strategic partnership with BNZ for technology access.
External Factors
Industry Trends
The industry is evolving with stricter EPR (Extended Producer Responsibility) enforcement and rising demand for renewable fuels. ResGen is positioned as an enabler of circular economy solutions.
Competitive Landscape
The company faces competition from global players but maintains resilience through its listed governance and ESG alignment.
Competitive Moat
Moat includes a diversified product portfolio, strategic technology partnership with BNZ, and first-mover advantage as a listed entity in the waste-to-energy space.
Macro Economic Sensitivity
The business is sensitive to raw material supply risks and regulatory uncertainties in the waste management sector.
Consumer Behavior
Growing adoption of green fuel substitutes among energy-intensive industries is driving demand.
Regulatory & Governance
Industry Regulations
Operations are subject to pollution norms and Extended Producer Responsibility (EPR) enforcement.
Environmental Compliance
CSR expenditure requirement was INR 10.72 Lakhs based on 2% of average net profits.
Taxation Policy Impact
The effective tax rate for FY25 was approximately 28.4%, with a total tax expense of INR 3.16 Cr on a PBT of INR 11.14 Cr.
Legal Contingencies
The company reported zero pending litigations in its standalone financial statements as of March 31, 2025.
Risk Analysis
Key Uncertainties
Key risks include feedstock price volatility, regulatory changes, and technology obsolescence.
Third Party Dependencies
Dependency on feedstock suppliers for consistent raw material input.
Technology Obsolescence Risk
Inherent risks of technology obsolescence in the recycling and green fuel sector.
Credit & Counterparty Risk
Trade receivables increased significantly by INR 8.74 Cr in FY25, indicating potential credit exposure.