Author: Dev Patel | EQMint | Market News

The Board of Directors of Race Eco Chain approved the results in its meeting held on 12 November 2025, after reviewing the standalone and consolidated financial statements along with the limited review reports from statutory auditors.

Q2 FY26 Standalone Results Show Stable Income, Lower Profitability

As per the filed statement of standalone financials, Race Eco Chain reported:

Standalone Q2 FY26 Performance (₹ in lakhs)

• • Revenue from Operations: ₹5,610.78

• • Total Income: ₹5,665.04

• • Profit Before Tax (PBT): ₹89.76

• • Profit After Tax (PAT): ₹115.41

• • Total Comprehensive Loss: (₹225.60)

Revenue remained stable compared to previous quarters.

H1 FY26 Standalone Performance: Healthy Revenue Momentum

For the half-year ended 30 September 2025, the company posted:

Standalone H1 FY26 Highlights

• • Revenue from Operations: ₹10,628.97 lakh

• • Total Income: ₹10,538.01 lakh

• • Profit Before Tax: ₹158.66 lakh

• • Profit After Tax: ₹125.65 lakh

• • Standalone EPS (Diluted): ₹0.73

While operating margins moderated, revenue momentum remained strong across all three business divisions—Recycle, Restore, and Biomass. The recycle division continues to be the largest contributor to revenues.

Segment-Wise Analysis Shows Broad-Based Growth

Race Eco Chain operates three primary business divisions:

1. 1. Recycle Division
   2. Restore Division
   3. Biomass Division

Q2 FY26 Segment Revenue Breakup (Standalone)

• • Recycle Division: ₹9,202.73 lakh

• • Restore Division: ₹283.18 lakh

• • Biomass Division: ₹120.87 lakh

H1 FY26 Segment Revenue

• • Recycle Division: ₹18,942.93 lakh

• • Restore Division: ₹391.35 lakh

• • Biomass Division: ₹157.88 lakh

The Recycle Division remains the backbone of Race Eco Chain, contributing over 90% of total revenue. The Restore Division, which focuses on refurbished materials and products, continued a steady upward trajectory. The Biomass Division, though smaller, showed consistent performance.

Consolidated Q2 FY26 Results: Expansion Impact Visible, Revenue Strong

The company’s consolidated financial results—which include subsidiaries such as Ganesha Recycling Chain Pvt. Ltd., India Polymers Pvt. Ltd., Silverline Eco Thrive Ltd., and Vasundhara Envirogreen Pvt. Ltd.—offer a broader picture.

Consolidated Q2 FY26 Highlights (₹ in lakhs)

• • Total Income: ₹16,843.03

• • PBT: ₹155.19

• • PAT: ₹257.03

• • Total Comprehensive Income: (₹24.36)

A significant portion of income came from the recycling segment, which contributed ₹14,434.98 lakh in Q2 alone. The firm’s subsidiaries delivered earnings contribution through share of profits from associates such as Prime Industries Ltd.

H1 FY26 Consolidated Results Show Strength Despite Cost Pressures

During the half year:

• • Consolidated Revenue: ₹30,515.63 lakh

• • Recycle Division Revenue: ₹29,966.40 lakh

• • PAT: ₹337.90 lakh

• • EPS (Diluted): ₹1.96

Despite sectoral volatility and higher operational spending, Race Eco Chain maintained robust revenue growth. Investments in subsidiaries, including ₹5.10 crore into Ganesha Recycling Chain Pvt Ltd, further strengthened the group’s recycling ecosystem.

Balance Sheet Trends: Strengthening Asset Base

Standalone Balance Sheet Highlights (as of 30 Sept 2025)

• • Total Assets: ₹15,58,27.0 lakh

• • Equity Share Capital: ₹1,725.72 lakh

• • Other Equity: ₹3,612.51 lakh

Race Eco Chain’s standalone asset base saw expansion, driven by growth in trade receivables and inventory needed for its recycling operations.

Consolidated Balance Sheet

• • Total Assets: ₹20,189.81 lakh

• • Equity (Including Minority Interest): ₹8,441.93 lakh

• • Non-Current Borrowings: ₹436.72 lakh

Borrowings increased moderately, reflecting expansion across subsidiaries and capacity utilization enhancements.

Cash Flow: Expanded Operations Influence Working Capital

Standalone Cash Flow Observations

Cash levels declined slightly as the company invested heavily into fixed assets, inventories, and subsidiary operations. Net cash used in investing activities stood at ₹461.24 lakh, compared to ₹3,165.90 lakh in March FY25.

Consolidated Cash Flow

The group remains operationally cash positive despite higher financing costs. Net decrease in consolidated cash and cash equivalents was ₹31.27 lakh.

Auditors’ Review: Clean Report with No Material Concerns

Both standalone and consolidated limited review reports issued by Garg Arun & Associates concluded that:

• • The financial statements comply with Ind AS requirements

• • There are no material misstatements

• • Reporting is in full compliance with SEBI (LODR) Regulations

For consolidated results, auditors verified data from multiple subsidiaries and noted no discrepancies.

Management Outlook: Strong Positioning in Circular Economy

Race Eco Chain’s business model—spanning plastic recycling, home furnishing, made-ups, garments, and biomass briquettes—positions it strategically within India’s fast-developing circular economy space.

The company aims to benefit from:

• • Rising national emphasis on sustainable waste management

• • Growth in recycled materials demand

• • Increased regulatory compliance under EPR (Extended Producer Responsibility) norms

• • Strong industry trends in biomass fuel substitution

Subsidiary investments and segment diversification also reflect a long-term strategy to scale operations and reduce dependency on any single category.

Conclusion

Race Eco Chain Limited delivered stable revenue growth in Q2 and H1 FY26, supported by strong performance in the recycle division and meaningful contributions from restore and biomass segments. While profitability softened due to higher costs and continued expansion, the company’s financial footing remains firm, backed by a growing asset base, strategic investments, and sustained market demand.

With the circular economy emerging as a key pillar of India’s sustainability goals, Race Eco Chain is positioned to benefit from long-term industry tailwinds, strengthened by its multi-segment presence and expanding operational footprint.

For more such information visit EQMint

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.