💰 Financial Performance

Revenue Growth by Segment

The Biofuel Division revenue declined 58% YoY to INR 18.71 Cr in FY25 from INR 44.31 Cr in FY24. The RESTORE Division achieved transformative growth of 282% YoY, with standalone revenue increasing to INR 8.94 Cr in FY25 from INR 2.34 Cr in FY24. Standalone total revenue grew 36% YoY to INR 460.30 Cr in FY25.

Profitability Margins

Consolidated Operating Profit Margin was 1.75% in FY25 (INR 9.70 Cr profit on INR 555.10 Cr revenue) compared to 1.66% in FY24. Standalone PAT margin improved from 0.46% in FY24 to 0.82% in FY25, as PAT more than doubled to INR 3.76 Cr.

EBITDA Margin

Standalone Operating Profit Margin was 1.82% in FY25 (INR 8.38 Cr) compared to 1.63% in FY24 (INR 5.53 Cr). Biofuel division EBIT margin was 1.13% in FY25, while RESTORE division achieved a structural turnaround to positive EBIT of INR 0.25 Cr from a loss of INR 0.06 Cr in FY24.

Credit Rating & Borrowing

Consolidated finance costs increased 44.2% YoY to INR 4.24 Cr in FY25 from INR 2.94 Cr in FY24. Standalone finance costs for Q2FY26 were INR 1.87 Cr.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include biomass (for biofuel) and plastic waste/bottles (for the RESTORE division). Biomass procurement is a critical cost driver, representing the bulk of the INR 545.40 Cr consolidated operating costs in FY25.

Import Sources

Sourced domestically within India, specifically through a network of collection centers and value chain partners being formalized via the RACE app.

Key Suppliers

Not disclosed in available documents; however, the company is categorizing 'value chain partners' for independent third-party ESG assessments.

Capacity Expansion

Biofuel aggregation volume was 25,840 MT in FY25, a 51.2% decrease from 52,918 MT in FY24 due to procurement disruptions. The company is currently restructuring the biomass procurement ecosystem to restore capacity.

Raw Material Costs

Operating costs accounted for 98.2% of consolidated revenue in FY25 (INR 545.40 Cr). Procurement disruptions in the biofuel segment led to a 58% revenue drop, highlighting the high sensitivity to raw material supply stability.

Manufacturing Efficiency

The company is focusing on 'formalizing the unorganized' sector to improve operational efficiency. RESTORE division EBIT margin improved by 491 bps YoY in Q2FY26.

Logistics & Distribution

The RACE app is specifically designed to optimize the delivery process for value chain partners to reduce operational inefficiency in waste transport.

📈 Strategic Growth

Expected Growth Rate

36%

Growth Strategy

Growth is driven by formalizing the waste management value chain through the RACE app, restructuring the biomass procurement ecosystem to rebuild supply chain resilience, and expanding the RESTORE division which grew 282% in FY25. The company is also considering a 'Scheme of Arrangement' as of December 2025 to optimize corporate structure.

Products & Services

Biofuel (aggregated biomass), recycled plastic materials, and products made from recycled plastic (branded with 'I used to be a plastic bottle').

Brand Portfolio

RACE (app and corporate brand), RESTORE (recycling division).

New Products/Services

Expansion of the RESTORE division focusing on sustainability-driven solutions and recycled plastic products, which contributed INR 8.94 Cr to standalone revenue in FY25.

Market Expansion

Focusing on organizing the unorganized waste management sector across India; currently automating accounting across identified collection centers.

🌍 External Factors

Industry Trends

The Indian recycling industry is transitioning from unorganized to organized. RACE is positioning itself as a first-mover in formalizing this chain via technology (RACE app) and ESG-compliant collection centers.

Competitive Landscape

The industry is characterized by high fragmentation and 'disorganization' which results in operational inefficiency for most players.

Competitive Moat

The moat is built on the proprietary RACE app and the formalization of a fragmented supplier base (waste pickers/collectors), creating a digital-first supply chain that is difficult for unorganized competitors to replicate.

Macro Economic Sensitivity

Sensitive to general market and macroeconomic trends, as well as governmental regulatory trends regarding waste management and biofuels.

Consumer Behavior

Increasing demand for sustainability-driven solutions and recycled products, supporting the 282% growth in the RESTORE division.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI Listing Regulations and waste management rules. The company is currently implementing a Scheme of Arrangement under Regulation 37 of SEBI (LODR) Regulations.

Environmental Compliance

Established an ESG Committee to oversee business responsibility policies and progress on ESG goals; initiating third-party ESG assessments for value chain partners.

Taxation Policy Impact

Consolidated tax expense was INR 1.35 Cr in FY25 on PBT of INR 5.55 Cr, representing an effective tax rate of approximately 24.3%.

Legal Contingencies

The company reported no penalties or strictures imposed by SEBI, Stock Exchanges, or any statutory authority relating to capital markets during the last three years.

⚠️ Risk Analysis

Key Uncertainties

Procurement chain disruptions (58% impact on Biofuel revenue), regulatory changes in waste management, and interest rate volatility.

Geographic Concentration Risk

Operations are primarily centered in India, with corporate offices in New Delhi, Ghaziabad, and Noida.

Third Party Dependencies

High dependency on 'value chain partners' (unorganized waste collectors) for raw material supply.

Technology Obsolescence Risk

The business model is heavily reliant on the RACE app for supply chain optimization; failure to maintain or upgrade this tech could disrupt the formalization strategy.