💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 31% YoY in H1 FY26. For FY25, standalone revenue from operations was INR 149.83 Cr, representing a 48.4% growth compared to INR 100.93 Cr in FY24. The growth is driven by increased throughput in e-waste processing and the commencement of battery recycling operations.

Geographic Revenue Split

The majority of revenue is currently concentrated in Haryana, Delhi, and Maharashtra. The company markets products across 20 states and UTs, including Tamil Nadu, Gujarat, and West Bengal. A strategic shift is underway to establish a strong presence in South India to capture the ITAD market and reduce logistics overheads.

Profitability Margins

H1 FY26 PAT was INR 6.99 Cr. FY25 PAT margin was 5.60% (INR 8.46 Cr), a decline from 6.71% in FY24 due to higher employee and finance costs. However, H1 FY26 margins are showing recovery through operational efficiencies and scale benefits.

EBITDA Margin

EBITDA grew 66% YoY in H1 FY26 with a margin expansion of 272 basis points. FY25 EBITDA margin was 9.76% (INR 14.77 Cr), down from 11.28% in FY24. The recent expansion is attributed to process re-engineering and automation at the Faridabad and Palwal facilities.

Capital Expenditure

In FY25, the company spent INR 15.65 Cr on the purchase of property, plant, and equipment. For H1 FY26, CapEx stood at INR 6.18 Cr, primarily directed toward the new battery recycling plant and automation of existing e-waste lines.

Credit Rating & Borrowing

Long-term borrowings stood at INR 1.51 Cr as of September 30, 2025. Finance costs for FY25 were INR 1.62 Cr, a 38.22% increase YoY, reflecting higher working capital utilization and debt for expansion.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include E-waste (IT assets, laptops, consumer durables) and used batteries. These materials are processed to recover precious metals and PCBs, which represent the bulk of value-added exports.

Import Sources

Sourcing is primarily domestic, focused on North and West India (Haryana, Delhi, Maharashtra). The company is expanding its collection ecosystem to South India to secure a steady supply of ITAD (IT Asset Disposition) materials.

Key Suppliers

Vardhman is a key related-party supplier/partner, acting as a registered vendor for a top MNC and allocating approximately 50% of that MNC's EPR business to Namo. The company plans to migrate this business directly to Namo Ewaste next year.

Capacity Expansion

The company operates three plants: Faridabad (oldest), Nasik (established 2019), and Palwal. A new battery recycling plant under the Tech Eco subsidiary became operational in July 2025, contributing to H1 FY26 growth.

Raw Material Costs

Purchase of stock in trade and material costs increased 52.38% in FY25 to INR 117.59 Cr. Procurement strategies involve integrating collection and dismantling to secure higher-margin feedstock.

Manufacturing Efficiency

Focusing on throughput optimization and automation. The Faridabad facility handles high-value addition, including precious metal recovery and PCB exports.

Logistics & Distribution

Logistics costs are a significant P&L factor. The strategy to establish a South India presence is specifically designed to reduce these costs by processing waste closer to the source of generation.

📈 Strategic Growth

Expected Growth Rate

40-50%

Growth Strategy

Growth will be achieved through regional expansion into South India, scaling the new battery recycling plant (Tech Eco), increasing ITAD service offerings, and improving margins through automation and direct MNC contract migration.

Products & Services

Recycled precious metals, printed circuit boards (PCBs), refurbished laptops/IT hardware, and recovered materials from battery recycling.

Brand Portfolio

Namo Ewaste, Tech Eco (subsidiary).

New Products/Services

Battery recycling services (launched July 2025) and expanded ITAD (IT Asset Disposition) services for MNCs in South India.

Market Expansion

Primary focus on South India to capture the high-density IT corridor, reducing the current reliance on the North and West Indian markets.

Market Share & Ranking

Positioned as one of India's leading formal recyclers in the e-waste and battery waste sectors.

Strategic Alliances

Partnership with Vardhman for EPR business allocation from a major MNC, with a transition plan to move these contracts directly to Namo.

🌍 External Factors

Industry Trends

The industry is shifting toward formalization driven by EPR (Extended Producer Responsibility) regulations. The market is growing as India aligns with global ESG commitments and circular economy visions.

Competitive Landscape

Operates in a sector transitioning from informal to formal recycling; key competition includes other large-scale formal recyclers and regional dismantlers.

Competitive Moat

Moat is built on a robust nationwide collection ecosystem, specialized processing facilities (Faridabad, Nasik, Palwal), and the ability to handle complex battery recycling, which requires higher technical compliance.

Macro Economic Sensitivity

Highly sensitive to India's circular economy policies and ESG mandates, which drive the volume of waste diverted to formal recyclers.

Consumer Behavior

Increasing corporate focus on ESG and secure data destruction (ITAD) is driving demand for formal e-waste management services.

Geopolitical Risks

Export-related risks for PCBs and precious metals, subject to international trade regulations and environmental standards.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by E-Waste (Management) Rules and EPR (Extended Producer Responsibility) frameworks, which mandate specific recycling targets for producers and recyclers.

Environmental Compliance

The company is ISO 14001:2015 and ISO 9001:2015 certified, ensuring compliance with international environmental and quality management standards.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 28.2% (INR 3.32 Cr tax on INR 11.78 Cr PBT).

Legal Contingencies

The Secretarial Audit for FY24-25 reported compliance with applicable statutory provisions; no specific pending high-value court cases were detailed in the provided snippets.

⚠️ Risk Analysis

Key Uncertainties

The migration of the EPR business from Vardhman to Namo is a critical transition; any failure to secure these direct contracts could impact 50-60% of the EPR business volume.

Geographic Concentration Risk

High concentration in Haryana, Delhi, and Maharashtra (majority of revenue), making the company vulnerable to regional regulatory changes or localized competition.

Third Party Dependencies

Significant dependency on Vardhman for access to MNC clients and EPR business allocation.

Technology Obsolescence Risk

Risk of evolving battery chemistries requiring constant upgrades to recycling technology; the company is addressing this through its Tech Eco subsidiary.

Credit & Counterparty Risk

Trade receivables increased to INR 17.83 Cr in Sept 2025 from INR 12.54 Cr in March 2025, a 42% increase, indicating a need for disciplined credit management as the company scales.