RACE - Race Eco
📢 Recent Corporate Announcements
Race Eco Chain Limited has announced the incorporation of a new subsidiary, Race Grassland Private Limited, on March 9, 2026. The company has acquired a 51% controlling stake by subscribing to 76,500 equity shares for a total consideration of Rs. 7.65 lakhs. This new entity will focus on the recycling and green energy sectors, specifically bio-mass production, gasification, and carbon credit schemes. The move aligns with the parent company's core recycling business and aims to leverage government subsidies for organic waste management.
- Incorporated Race Grassland Private Limited as a 51% owned subsidiary on March 9, 2026
- Acquired 76,500 equity shares at face value for a total investment of Rs. 7.65 lakhs
- Subsidiary has an authorized and paid-up capital of Rs. 15 lakhs
- Business focus includes bio-mass plants, green energy production, and carbon credit (CMD) schemes
- Aims to utilize various government schemes and subsidies for bio-gas and organic waste processing
Race Eco Chain Limited's Board has approved the incorporation of a new subsidiary, Race Grassland Private Limited, focusing on the recycling and green energy sectors. The company will hold a 51% controlling stake, acquired for a total cash consideration of ₹7.65 lakhs. The new entity will specialize in biomass production, briquettes, pellets, and biogas manufacturing, aiming to leverage various government carbon credit schemes. This move aligns with the company's core focus on the circular economy and sustainable waste management.
- Acquisition of a 51% controlling stake in the newly proposed entity Race Grassland Private Limited.
- Total investment of ₹7,65,000 for 76,500 equity shares at a face value of ₹10 each.
- Target entity will focus on biomass plants, green energy production, and carbon credit (CMD) schemes.
- The proposed subsidiary has an authorized and paid-up capital of ₹15,00,000.
- The investment is a strategic expansion into the recycling and renewable energy industry.
Race Eco Chain Limited has announced a further investment of ₹51,00,000 in its subsidiary, Ganesha Recycling Chain Private Limited, through a rights issue. The company was allotted 51,000 equity shares at a price of ₹100 per share, which includes a premium of ₹90 per share. This move allows Race Eco Chain to maintain its 51% controlling interest in the subsidiary. Ganesha Recycling is a relatively new entity, incorporated in September 2024, and focuses on the recycling industry.
- Invested ₹51,00,000 in subsidiary Ganesha Recycling Chain Private Limited via rights issue.
- Acquired 51,000 equity shares at ₹100 per share (₹10 face value + ₹90 premium).
- Maintains a 51% majority ownership stake in the subsidiary post-allotment.
- The subsidiary was incorporated on September 10, 2024, and operates in the recycling sector.
Race Eco Chain Limited has submitted its compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that the company has complied with the necessary procedures for dematerialization of shares for the quarter ended December 31, 2025. The certificate was issued by the company's Registrar and Share Transfer Agent (RTA), Skyline Financial Services Private Limited. This is a standard regulatory filing required for all listed entities in India to ensure the integrity of electronic shareholding records.
- Submission of compliance certificate under Regulation 74(5) of SEBI Regulations, 2018.
- Covers the third quarter (Q3) of the financial year ending December 31, 2025.
- Certificate provided by Skyline Financial Services Private Limited, the company's RTA.
- Confirms that share certificates received for dematerialization were processed and depositories' names updated.
Race Eco Chain Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the Q3 and nine-month financial results for the period ending December 31, 2025. The window will remain closed until 48 hours after the un-audited financial results are officially declared. The specific date for the board meeting to approve these results will be communicated separately in due course.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the un-audited financial results for the quarter and nine months ending December 31, 2025.
- Trading restriction will lift 48 hours after the public announcement of results.
- Board meeting date for financial result approval is yet to be announced.
Race Eco Chain Limited has approved a scheme of arrangement to demerge its Biomass and Restore Bag divisions into two separate entities, Geoeco Green Energy and Race Gateway, both of which will be listed on BSE and NSE. Shareholders will receive 113 shares of Geoeco for every 100 shares held in RACE, and 27 shares of Race Gateway for every 25 shares held in RACE. Although these divisions currently contribute only 6% of total turnover (approx. Rs. 2,764 out of Rs. 46,030), the move is intended to unlock value and attract specialized investors. The company also announced a corporate office shift to Noida and a re-designation of Director Anil Kumar Behl.
- Demerger of Biomass Division into Geoeco Green Energy with a swap ratio of 113:100
- Demerger of Restore Bag Division into Race Gateway with a swap ratio of 27:25
- Biomass and Restore Bag divisions contributed 4.06% and 1.94% of FY25 turnover respectively
- Both resulting companies will seek independent listing on the BSE and NSE
- Corporate office shifting from Sahibabad to Noida, Uttar Pradesh
Race Eco Chain Limited has approved a major corporate restructuring to demerge its Biomass and Restore Bag divisions into two separate entities, Geoeco Green Energy and Race Gateway. Shareholders will receive 113 shares of Geoeco for every 100 shares held in RACE, and 27 shares of Race Gateway for every 25 shares held in RACE. Both new entities will seek listing on the BSE and NSE to unlock value for existing shareholders. The company also announced management changes, including the re-designation of Mr. Anil Kumar Behl and the shifting of its corporate office to Noida.
- Demerger of Biomass Division into Geoeco Green Energy with a share ratio of 113:100
- Demerger of Restore Bag Division into Race Gateway with a share ratio of 27:25
- Biomass and Restore Bag divisions contributed 4.06% and 1.94% respectively to FY25 turnover
- Both resulting companies will be listed on BSE and NSE post-regulatory approvals
- Corporate office shifting from Ghaziabad to Noida to maintain books of account
Race Eco Chain Limited announced the resignation of Anil Kumar Behl as an Independent Director, effective December 13, 2025. Mr. Behl will continue to hold the position as a Non-Executive Independent Director until his resignation date. The company confirmed that there are no material reasons for his resignation other than personal reasons as stated by Mr. Behl. Investors should monitor upcoming board composition changes and any potential impact on company strategy.
- Anil Kumar Behl (DIN: 00697588) resigned as Independent Director.
- Resignation is effective from December 13, 2025.
- Mr. Behl cited personal reasons for his resignation.
- He is Chairperson of the Audit Committee of Gem Enviro Management Limited
Race Eco Chain Limited has scheduled a Board Meeting for December 15, 2025, to consider and approve a Scheme of Arrangement under SEBI regulations. In compliance with insider trading norms, the trading window for the company's securities will be closed from December 9, 2025, until December 17, 2025. This indicates a significant corporate restructuring or reorganization is under discussion. Investors should await the specific details of the scheme to assess its impact on shareholder value.
- Board Meeting scheduled for December 15, 2025, to approve a Scheme of Arrangement.
- Trading window for designated persons closed from December 9, 2025, to December 17, 2025.
- The proposal is being considered under Regulation 37 of SEBI (LODR) Regulations, 2015.
- The meeting will be held at the company's Noida corporate office.
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.