HIGREEN - Hi-Green Carbon

📊 NSE: HIGREEN 🏢 Chemicals 📅 Last Updated: 12/13/2025 22:55

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations surged 39.2% YoY from INR 70.24 Cr in FY24 to INR 96.78 Cr in FY25. The technology segment, following the consolidation of Radhe Renewables, is expected to contribute higher-margin revenue from gasification projects.

Geographic Revenue Split

The company is expanding its export footprint, recently obtaining the ISCC EU certificate required for exports to European countries. Regional split percentages are not disclosed.

Profitability Margins

Operating margins (PBILDT) were 25.48% in FY24 but declined to 19.61% in H1FY25 due to one-time expenses and plant underutilization. PAT margin improved from 7.3% in FY22 to 15.8% in FY23, with FY25 PAT reaching INR 11 Cr, a 5% increase YoY.

EBITDA Margin

EBITDA margins expanded in FY25 due to improved scale and a self-sustaining energy process. However, H1FY25 operating margins were pressured to 19.61% by ramp-up costs at the Samsara subsidiary and one-time approval expenses.

Capital Expenditure

The company invested INR 1.70 Cr in its subsidiary Samsara Recycling Private Limited and INR 0.51 Lakhs in Green Valley. Further expansion is planned with 2-3 new locations currently in the pipeline.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook. Gearing improved significantly to 0.17x as of September 30, 2023, following an INR 44.93 Cr IPO. Borrowing costs were impacted by penal interest in mid-2023 due to auto-debit mandate delays, though servicing has been regular since September 2023.

⚙️ Operational Drivers

Raw Materials

Waste tyres are the primary raw material used for the production of recovered Carbon Black (rCB) and fuel oil. Specific cost percentages per material are not disclosed.

Import Sources

Raw materials are sourced directly through established suppliers to manage operational complexities. Specific geographic sourcing locations are not disclosed.

Key Suppliers

The company relies on established third-party suppliers for steady tyre supply, though specific company names are not disclosed.

Capacity Expansion

The company is currently ramping up production at its Samsara subsidiary. A new plant is currently underutilized, and management is evaluating 2-3 additional sites for future capacity expansion.

Raw Material Costs

Raw material sourcing involves high operational complexity; the company utilizes proprietary technology to maintain rCB quality despite varying raw material nature. Specific cost as a % of revenue is not disclosed.

Manufacturing Efficiency

The recently started new plant is currently underutilized, which has temporarily pressurized margins. Management targets a return to 20% OPM as utilization improves.

Logistics & Distribution

Distribution costs were impacted by rebranding and new packing expenses in H1FY25. Specific logistics costs as a % of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

39.20%

Growth Strategy

Growth will be driven by the ramp-up of the Samsara Recycling plant, the consolidation of Radhe Renewables (a monopolistic technology company with higher margins), and expansion into European markets following ISCC EU certification.

Products & Services

Recovered Carbon Black (rCB), fuel oil, steel wire, and technology manufacturing services including gasification projects.

Brand Portfolio

Hi-Green Carbon, Samsara Recycling, Radhe Renewables.

New Products/Services

New revenue streams are expected from gasification projects and technology manufacturing following the Radhe Renewables consolidation.

Market Expansion

Targeting the European market for rCB exports using the newly acquired ISCC EU certificate.

Market Share & Ranking

The company claims a monopolistic position in its specific technology manufacturing sector via Radhe Renewables.

Strategic Alliances

Consolidation with Radhe Renewables Group to integrate high-margin technology manufacturing into the portfolio.

🌍 External Factors

Industry Trends

The industry is evolving through the Extended Producer Responsibility (EPR) framework, which is strengthening India's tyre recycling ecosystem and providing structural advantages in supply security.

Competitive Landscape

The company faces competition from virgin carbon black manufacturers but maintains a technology lead in the recycled segment.

Competitive Moat

Moat is built on proprietary recycling technology and ISCC+, ISCC EU certifications, which act as entry barriers for high-end export markets. These are sustainable due to the technical complexity of achieving rCB consistency.

Macro Economic Sensitivity

Highly sensitive to crude oil price cycles, which dictate the market price and demand for recovered carbon black products.

Consumer Behavior

Demand for products typically increases during the winter season.

Geopolitical Risks

Trade barriers in Europe are mitigated by compliance with ISCC EU standards.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Extended Producer Responsibility (EPR) for waste tyres and ISCC EU standards for European exports.

Environmental Compliance

Significant costs incurred for ISCC, ISCC+, and ISCC EU certifications, GHG reports, and product lifecycle assessment reports to meet international standards.

Legal Contingencies

The company reports zero pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the underutilization of new capacity, potential regulatory shifts in the EPR system, and a fire incident reported at the Samsara plant in October 2025.