💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations grew by 147% YoY, reaching INR 5,481.67 lakhs in H1FY26 compared to INR 2,218.98 lakhs in H1FY25. On a half-yearly basis, revenue increased by 48% from INR 3,701.06 lakhs in H2FY25. Growth is driven by expanded EPR fulfillment and new ESG consulting services.

Geographic Revenue Split

The company maintains a nationwide presence with operations across India. Specific regional percentage splits are not disclosed, but the company is currently executing a large-scale Rural Water Supply Project in Uttar Pradesh covering 2,500+ villages.

Profitability Margins

Net Profit Margin (NPM) stood at 6.19% in H1FY26, a significant decline from 20.41% in H1FY25. This compression is primarily due to a surge in direct expenses (EPR procurement charges) which rose from 54.9% of revenue in H1FY25 to 80.3% in H1FY26.

EBITDA Margin

EBITDA margin was 8.26% (INR 456.58 lakhs) in H1FY26, down from 27.72% (INR 623.54 lakhs) in H1FY25. The 1,946 bps drop reflects intensifying competition in the PRO market and rising costs from authorized recyclers.

Capital Expenditure

Fixed assets as of September 30, 2025, stood at INR 101.58 lakhs. The company recently incorporated a wholly-owned subsidiary, GEM Green Infra Tech Private Limited, on March 21, 2025, to handle infrastructure-related sustainability projects.

Credit Rating & Borrowing

Finance costs for H1FY26 were INR 5.63 lakhs. The company maintains a low-debt profile with long-term provisions of only INR 34.77 lakhs against a net worth of INR 5,179.21 lakhs.

⚙️ Operational Drivers

Raw Materials

The primary 'raw material' cost is EPR and ESG procurement charges (Direct Expenses), which account for 80.3% of total revenue (INR 4,404.46 lakhs). Other costs include employee benefits (2.9% of revenue) and logistics.

Import Sources

Sourcing is entirely domestic, leveraging a nationwide network of authorized recyclers and collection centers across various Indian states to fulfill EPR obligations for PIBOs.

Key Suppliers

The company partners with a wide network of authorized recyclers and the informal waste sector (waste pickers) for collection and aggregation. Specific recycler names are not disclosed, but they maintain strategic long-term partnerships to stabilize rates.

Capacity Expansion

The company is expanding beyond plastic waste into E-Waste and Battery EPR. It is also diversifying into water infrastructure, constructing Elevated Storage Reservoirs (ESRs) for 2,500+ villages under the Jal Jeevan Mission.

Raw Material Costs

Direct expenses (procurement) increased by 261% YoY from INR 1,218.21 lakhs in H1FY25 to INR 4,404.46 lakhs in H1FY26. Procurement strategies involve tech-enabled tracking to minimize manual compliance costs.

Manufacturing Efficiency

As a service-based Waste Management Agency (WMA), efficiency is measured by fulfillment capacity. The company uses tech-driven processes to lower compliance costs per tonne and manage high operational loads from regulatory changes.

Logistics & Distribution

Logistics are a core component of the EPR fulfillment service, integrated into the direct expense base of INR 4,404.46 lakhs to ensure the movement of waste from collection points to recyclers.

📈 Strategic Growth

Expected Growth Rate

48%

Growth Strategy

Growth is targeted through diversification into ESG consulting and BRSR reporting, expansion into new waste categories (E-waste, Batteries), and large-scale government infrastructure projects like the Jal Jeevan Mission. The company aims to capitalize on the projected $1.7 billion plastic credit market by 2030.

Products & Services

EPR Fulfillment certificates (Plastic, E-Waste, Battery), ESG Consulting, BRSR Reporting, Plastic Credit Advisory, and construction of Elevated Storage Reservoirs (ESRs).

Brand Portfolio

GEM Enviro, GEM Green Infra Tech.

New Products/Services

ESG Infrastructure and consulting services were launched post-IPO in 2024, now contributing to the 147% YoY revenue surge.

Market Expansion

Targeting the growing demand for digital traceability and transparent credits among FMCG and PIBO clients nationwide.

Market Share & Ranking

Established as a leading Producer Responsibility Organization (PRO) with 12+ years of experience; specific market share % is not disclosed.

Strategic Alliances

Collaboration with Welspun Enterprises Ltd. (WEL) for the Rural Water Supply Project in Uttar Pradesh.

🌍 External Factors

Industry Trends

The industry is shifting toward mandatory recycled content (up to 60% by FY29) and unified digital reporting via CPCB. The plastic credit market is growing rapidly, projected to reach $1.7 billion by 2030.

Competitive Landscape

Intensifying competition from new PRO entrants due to low entry barriers, leading to price wars and margin compression.

Competitive Moat

Moat is built on 12+ years of recycler relationships, a national collection footprint, and a tech-driven fulfillment platform that ensures compliance accuracy—a key differentiator in a fragmented market.

Macro Economic Sensitivity

Highly sensitive to environmental regulations and government spending on sustainability (e.g., Jal Jeevan Mission).

Consumer Behavior

Increasing corporate focus on circular economy and sustainability is driving demand for organized and compliant PRO services.

Geopolitical Risks

Low direct impact as operations are domestic, but global sustainability trends and plastic treaty negotiations influence local regulations.

⚖️ Regulatory & Governance

Industry Regulations

Governed by Plastic Waste Management Rules (PWMR) 2025, E-Waste Management Rules, and CPCB EPR portal guidelines. Proposed Exchange-Traded Platforms (ETP) represent a potential regulatory shift.

Environmental Compliance

Core business is centered on environmental compliance; the company monitors CPCB and state updates daily to align reporting formats.

Taxation Policy Impact

Effective tax rate for H1FY26 was approximately 22.8% (INR 101.55 lakhs tax on INR 443.87 lakhs PBT).

Legal Contingencies

No specific pending court cases or values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The proposed shift to an Exchange-Traded Platform (ETP) for plastic credits may bypass PROs, impacting the business model. Margin pressure from recyclers remains a persistent risk.

Geographic Concentration Risk

Significant project concentration in Uttar Pradesh for the water augmentation segment (2,500+ villages).

Third Party Dependencies

High dependency on authorized recyclers for credit generation and the informal sector for waste collection (traceability risk).

Technology Obsolescence Risk

Risk of falling behind in digital traceability; mitigated by continuous investment in tech-enabled compliance systems.

Credit & Counterparty Risk

Trade receivables of INR 3,513.22 lakhs against H1 revenue of INR 5,481.67 lakhs suggests potential credit risk or long payment cycles from large PIBOs/government projects.