💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 59.27% YoY from INR 275 million in FY24 to INR 438 million in FY25. The company operates across EPC, Products, Output Monetization, and Licensing segments, achieving a 37% CAGR from FY21 to FY25.

Geographic Revenue Split

The company executes projects PAN India with key operations in Delhi, Kolkata, Kerala, and Maharashtra. Specific percentage split per region is not disclosed, but nationwide execution is a primary driver.

Profitability Margins

Net profitability saw a massive turnaround with PAT increasing 102% YoY to INR 157 million in FY25. PAT margin improved from -29% in FY24 to 32% in FY25, driven by higher-margin EPC contracts and operational efficiencies.

EBITDA Margin

EBITDA margin stood at 36% in FY25, a slight decrease from 38% in FY24, despite EBITDA absolute value growing 53.4% YoY to INR 158 million. The margin expansion from 1% in FY21 to 36% in FY25 reflects the shift toward proprietary technology commercialization.

Capital Expenditure

The company is investing in a backward integration initiative involving the acquisition of a fabrication facility and the Solapur plant upgrade. Total assets increased from INR 1,350 million to INR 1,936 million in FY25, representing a 43.4% increase in the asset base.

Credit Rating & Borrowing

Long-term borrowings stood at INR 350 million in FY25. Debt/Equity ratio improved from 7.3x in FY24 to 5.0x in FY25 due to a significant increase in shareholder funds from INR 816 million to INR 1,354 million.

⚙️ Operational Drivers

Raw Materials

Key feedstocks include Municipal Solid Waste (MSW), Organic Waste, and Napier Grass (cultivated over 150 acres). Feedstock aggregation and seasonal availability are cited as critical operational bottlenecks.

Import Sources

Feedstock is primarily sourced locally within India from municipal corporations and agricultural clusters in states like Maharashtra (Solapur) and Uttar Pradesh (Varanasi).

Key Suppliers

Suppliers include municipal bodies for MSW and local farmers for Napier grass. The company also partnered with Indian Oil Corporation Ltd (IOCL) for technology commercialization.

Capacity Expansion

Current initiatives include the Solapur plant upgrade for CBG offtake and the cultivation of Napier grass over 150 acres to ensure a stable supply of green energy feedstock.

Raw Material Costs

Total expenses excluding depreciation and finance costs rose 62.8% to INR 280 million in FY25. Raw material costs are managed through backward integration into fabrication and feedstock cultivation.

Manufacturing Efficiency

The company utilizes patented technologies like DRYAD and Marut Drum to improve organic fraction recovery and anaerobic digestion efficiency.

Logistics & Distribution

Distribution is supported by the SATAT scheme and long-term offtake contracts with PSUs like IOCL, BPCL, and HPCL for CBG.

📈 Strategic Growth

Expected Growth Rate

37%

Growth Strategy

Growth will be driven by scaling the biomedical waste vertical (market expected to reach USD 3.45 billion by 2033), commercializing R&D innovations like the BIO-CCU platform, and expanding high-margin CleanTech EPC projects nationwide.

Products & Services

Compressed Bio-Gas (CBG), Bio-fertilizers, Biochar, Refuse Derived Fuel (RDF), and specialized advisory services in environmental strategy.

Brand Portfolio

DRYAD (Anaerobic Digestion), Marut Drum (Organic Recovery), LIPH-AD, INV-CO, EW-CO, Sanjeevak, and Alpha Carbon.

New Products/Services

India’s first pilot-scale BIO-CCU platform for CO2 valorization and decentralized modular biogas systems. Expected to contribute to revenue through technology licensing.

Market Expansion

Expansion into sustainable chemicals and catalyst distribution to support eligibility for larger project bids and diversify revenue.

Market Share & Ranking

Prominent homegrown CleanTech company; the CBG sector has <1% installed capacity vs potential, indicating massive headroom.

Strategic Alliances

Collaborations with IIT Bombay, IIT Kharagpur, AGH University Poland, and University of Birmingham for deep-tech R&D.

🌍 External Factors

Industry Trends

The CBG sector is a national priority with a production potential of 62 MMT annually. The biomedical waste market is growing at 10% CAGR, driven by stricter 2016 regulatory rules.

Competitive Landscape

Positioned as a full-stack EPC provider in a fragmented market, competing with both local waste management firms and international technology providers.

Competitive Moat

Moat is built on 2 granted patents and 5+ proprietary technologies (DRYAD, Marut Drum). Sustainability is high due to the high technical barrier to entry in anaerobic digestion.

Macro Economic Sensitivity

Highly sensitive to government policy (SATAT scheme, Swachh Bharat Mission) and blending obligations (1-5% CBG blending in CGD networks by FY29).

Consumer Behavior

Shift toward circular economy and institutional adoption of compliant treatment technologies (autoclaving, microwave sterilization) is driving demand.

Geopolitical Risks

Minimal direct impact as feedstocks and customers are domestic, though global CleanTech trends influence R&D direction.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (LODR) Regulations 2015. Mandatory 1-5% CBG blending obligation by FY29 is a key regulatory tailwind.

Environmental Compliance

Fully compliant with Biomedical Waste Management Rules 2016 and Swachh Bharat Mission guidelines.

Taxation Policy Impact

The company faces tax structure ambiguity regarding GST vs VAT in CGD-CBG synchronization.

Legal Contingencies

No proceedings initiated or pending for Benami property. Directors are not disqualified under Section 164(2) of the Companies Act.

⚠️ Risk Analysis

Key Uncertainties

Policy execution vs. ground realities and feedstock aggregation are the primary risks that could impact project timelines by 15-20%.

Geographic Concentration Risk

Revenue is concentrated in India, specifically in urban municipal clusters.

Third Party Dependencies

High dependency on municipal corporations for MSW feedstock supply and PSU oil companies for CBG offtake.

Technology Obsolescence Risk

Mitigated by continuous R&D and partnerships with IITs to develop next-gen carbon capture and valorization technologies.

Credit & Counterparty Risk

Trade receivables stood at INR 365 million in FY25. Receivables quality is generally high as clients are primarily government bodies and PSUs.