Eco Recycling Ltd Reports Strong H1 FY26 Growth Driven by Capacity Expansion ESG-Focused Innovations

Author: Dev Patel | EQMint | Market News

Eco Recycling Limited—India’s first formal e-waste recycling company and the only listed player in the segment—continues to strengthen its leadership amid surging domestic e-waste volumes and increasing compliance-driven demand for formal recycling. The company released its Q2 FY26 and H1 FY26 results, showcasing steady revenues, healthy margins, and a strategic push toward new recycling technologies including lithium-ion battery processing, mobile e-waste facilities, data destruction on wheels, and expanded ITAD services.

With a pan-India logistics network, presence across 120+ countries via global partnerships, and a 31,200 MTPA installed capacity, Ecoreco remains one of the fastest-scaling players in India’s circular economy ecosystem.

Q2 FY26 Performance: Growth Moderates After Strong FY25

As per the investor presentation, Eco Recycling Limited posted the following consolidated results for Q2 FY26:

Metric	Q2 FY25	Q2 FY26	YoY Change
Total Income	₹13.91 Cr	₹14.48 Cr	↑ 4.10%
EBITDA	₹10.26 Cr	₹7.25 Cr	↓ 29.38%
EBITDA Margin	73.76%	50.07%	Sharp decline
Net Profit	₹8.20 Cr	₹5.60 Cr	↓ 31.70%
Net Profit Margin	59.95%	38.67%	Moderation

Total income rose marginally, while profitability softened due to higher raw material costs and increased expansion-related expenses. The company continues to invest in new facilities, mobile recycling units, and R&D for precious metal recovery—short-term pressures that management expects will yield long-term gains.

H1 FY26 Performance: Strong Revenue Growth, Stable Profitability

For H1 FY26, Ecoreco delivered a stronger performance:

Metric	H1 FY25	H1 FY26	YoY Change
Total Income	₹27.35 Cr	₹28.10 Cr	↑ 2.74%
EBITDA	₹20.49 Cr	₹16.69 Cr	↓ 18.54%
Net Profit	₹16.35 Cr	₹13.69 Cr	↓ 16.27%

Despite moderation in margins, the company maintains a zero-debt balance sheet, strong operating cash flows, and consistent profitability, ensuring financial stability as it scales up operations.

Notably, FY25 had already been a breakout year for the company with ₹46 Cr in total income, ₹33 Cr EBITDA, and ₹23.28 Cr net profit—a foundation on which FY26 growth continues.

Strategic Growth Drivers Strengthening Ecoreco’s Position

1. Rapid Capacity Expansion

Eco recycling expanded its recycling capacity to 31,200 MTPA, with additional facilities planned to support India’s growing e-waste output—expected to reach ₹1,726 crore by 2032 at a CAGR of 13.52%

2. “Recycling on Wheels” – India’s First Mobile E-waste Unit

One of Eco recycling’s most celebrated innovations—Recycling on Wheels (SmartER)—was inaugurated by Dr. Jitendra Singh in 2023 and approved by TDB-DST with a grant for technological advancement.

This mobile unit integrates:

- Training

- Transportation

- Technology

It makes certified recycling accessible even in remote regions, supporting India’s circular economy and Swachh Bharat goals.

3. Lithium-Ion Battery Recycling Technology

Eco recycling’s R&D partnership with C-MET and MeitY is enabling India to recover high-value metals like cobalt, nickel, and manganese from end-of-life Li-ion batteries—reducing import dependency and supporting Atmanirbhar Bharat.

4. Precious Metal Recovery Capabilities

E-waste contains 17 extractable precious and rare earth metals, and Eco recycling is expanding its capacity to extract:

- Gold

- Silver

- Palladium

- Copper

- Tin

- Nickel

Recovered metals contribute to India’s resource security and create new revenue streams for the company

Diversified Business Portfolio Driving Multi-Sector Revenue

Eco recycling operates a wide range of tech-centric services, including:

• IT Asset Disposition (ITAD)

Refurbishing and resale of usable electronics supports digital inclusion and contributes to circularity.

• Data Destruction (Onsite & On Wheels)

India’s only mobile data-shredding solution ensures secure disposal for corporates and government clients.

• Lamp Recycling

Compliant recycling of mercury-based lighting systems, active since 2009.

• Eco-Bin & Book My Junk App

Digital and physical touchpoints expand e-waste pickup coverage across India, with audit-ready documentation and CSR integration.

• Reverse Logistics

A nationwide pickup network, supported by owned fleet and third-party logistics partners, ensures smooth collection and transport of e-waste.

Strong ESG Alignment and Government Recognition

Eco recycling has received recognition from:

- PM Modi’s Mann Ki Baat (Jan 2023)

- Department of Science & Technology (Gold Medal)

- FICCI, Lockheed Martin

- Frost & Sullivan Niche Market Award

- CII/NVI/WRI Awards

The company is also part of TERRA, one of the world’s largest certified e-waste and ITAD networks.

Financial Stability: Zero Debt, Strong Ratios, Consistent Growth

Eco recycling maintains:

- Zero debt status

- Improving ROE and ROCE over FY23–FY25

- A stable balance sheet with rising reserves (₹68.63 Cr in FY25)

- Strong interest coverage ratio of 50.48x in FY25

This provides ample headroom for expansion and technological innovation.

Market Outlook: Positioned for Explosive Sector Growth

Global e-waste volumes crossed 62.5 million tonnes, while India is among the fastest-growing markets for electronics consumption—creating a large and urgent need for formal recycling.

With stringent EPR compliance rules, rising corporate ESG obligations, and government push towards responsible recycling, Ecoreco is strategically placed to capture market share.

Conclusion

Eco Recycling Limited’s Q2 and H1 FY26 results underscore a company in the midst of a transition—from a traditional recycler to a technology-driven circular economy powerhouse.

While near-term profitability saw some moderation due to expansion-linked costs, long-term fundamentals remain highly promising. Strong regulatory support, innovative technology adoption, increasing recycling capacity, and a diversified green portfolio position Ecoreco as a key enabler of India’s sustainable future.

As the country moves toward a cleaner, more responsible growth model, Ecoreco’s role in shaping India’s e-waste ecosystem is set to expand significantly in the coming years.

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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.