GEM Enviro Reports Strong H1 FY26 Growth With 48% Revenue Jump, Higher Profits and Expanding Sustainability Portfolio

Author: Dev Patel | EQMint | Market News

GEM Enviro Management Limited, a rapidly scaling sustainability and waste-management services company, has reported a strong financial performance for the half-year ended September 30, 2025, supported by robust demand for EPR fulfilment, ESG consulting, sustainability advisory, and plastic-credit management services.

The company submitted its H1 FY26 Investor Presentation to BSE under Regulation 30, detailing its unaudited standalone and consolidated financials.

GEM Enviro operates as a full-stack sustainability partner providing Extended Producer Responsibility (EPR) fulfilment for plastic, e-waste and battery waste, along with ESG consulting, BRSR compliance, and project advisory. The company emphasises technology-led traceability, compliant waste recovery, and national-level operations.

Standalone Results: 48% Revenue Growth, 129% PAT Expansion Over Previous Half-Year

GEM Enviro reported significant growth across financial metrics compared with the preceding half year (H2 FY25). As per the H1 FY26 performance charts in the investor presentation:

Standalone Revenue (H1 FY26): ₹5,481.66 lakh

Up from ₹3,701.06 lakh in H2 FY25

Up from ₹2,218.98 lakh in H1 FY25

Standalone EBITDA (H1 FY26): ₹456.57 lakh

EBITDA margin improved to 8.25%, compared to 5.18% in H2 FY25

Standalone PAT (H1 FY26): ₹342.32 lakh

Up 129% over H2 FY25 (₹149.54 lakh)

PAT margin improved to 6.19%

Earnings Per Share (EPS): 1.51

Increased from 0.66 in H2 FY25

The solid improvement in profitability was supported by rising EPR procurement activity and increased demand for compliant recycling, sustainability reporting and BRSR-linked advisory.

Direct expenses primarily comprised EPR fulfilment and procurement charges, reflecting GEM’s role as a Producer Responsibility Organisation (PRO).

Standalone Profit & Loss Summary (H1 FY26)

As per the detailed P&L statement:

Total Income: ₹5,528.63 lakh

Total Expenditure: ₹5,072.05 lakh

PBT: ₹443.87 lakh

Tax: ₹101.55 lakh

PAT: ₹342.32 lakh

Revenue growth was driven largely by higher procurement of plastic, e-waste and battery credits on behalf of PIBOs (Producers, Importers & Brand Owners) along with rising demand for ESG consulting from enterprises seeking structured sustainability reporting.

Consolidated Results: Strong First Reporting Cycle Post Subsidiary Incorporation

GEM Enviro began consolidated reporting from FY26 after incorporating its wholly-owned subsidiary, GEM Green Infra Tech Pvt Ltd, on March 21, 2025.

This period represents the first consolidated filing, and therefore no previous-period comparative data applies.

Key Consolidated Metrics (H1 FY26)

Revenue from Operations: ₹5,481.67 lakh

Total Income: ₹5,526.30 lakh

EBITDA: ₹453.77 lakh

EBITDA Margin: 8.21%

PAT: ₹339.50 lakh

The consolidated numbers closely mirror standalone performance because the subsidiary is newly incorporated and yet to meaningfully contribute to revenue.

Balance Sheet Shows Strong Financial Position; Net Worth Rises to ₹5,179 lakh

Standalone Balance Sheet (As of 30 September 2025)

Net Worth: ₹5,179.21 lakh (up from ₹4,893.27 lakh in March 2025)

Total Assets: ₹5,834.67 lakh

Cash & Cash Equivalents: ₹622.69 lakh

Trade Receivables: ₹3,513.22 lakh

Trade receivables rose significantly due to higher procurement activity and increased fulfilment cycles for PIBOs under plastic and e-waste EPR rules.

Inventories fell from ₹657.96 lakh to ₹453.97 lakh, reflecting faster fulfilment cycles.

Consolidated Balance Sheet (As of 30 September 2025)

Net Worth: ₹5,176.39 lakh

Total Assets: ₹5,832.10 lakh

Cash & Cash Equivalents: ₹643.33 lakh

Both standalone and consolidated balance sheets indicate a stable financial foundation with minimal debt, positive working capital, and a strong liquidity position.

EPR and Sustainability Services Continue to Drive Growth

GEM Enviro highlighted several sector-level and operational insights impacting performance:

1. Rising EPR Compliance Requirements

India’s EPR regime is witnessing rapid regulatory changes:

CPCB’s new digital EPR portal for registration, reporting and barcode-based tracking

Plastic Waste Management Rules (PWMR) 2025 amendments mandating graded recycled-plastic content of up to 60% by FY 2028–29

Stricter enforcement by states like Karnataka and Kerala

Growth in India’s plastic-credit market, projected to reach USD 1.7 billion by 2030

These trends bolster demand for GEM’s compliance-driven services.

GEM’s Role in Water Augmentation & Jal Jeevan Mission

Beyond waste management and EPR services, GEM Enviro plays a key infrastructure role through collaborations with large EPC companies.

Under the Government of India’s Jal Jeevan Mission (JJM)—which aims to provide tap water to every rural household—GEM supports execution of a major rural water-supply project in Uttar Pradesh covering 2,500+ villages.

Its responsibilities include construction of Elevated Storage Reservoirs (ESRs) to maintain water pressure and ensure uninterrupted supply.

The JJM involvement positions GEM not only as an EPR specialist but also as a participant in national sustainability infrastructure.

Challenges in India’s EPR Ecosystem

GEM also outlined industry-wide challenges impacting the sector:

Increasing market competition due to low entry barriers

Limited integration of informal recyclers

Constantly evolving CPCB regulatory framework

Margin pressure from recyclers and logistics

Low EPR awareness among PIBOs

The company highlighted its strengths such as strong compliance capabilities, national presence, technology-driven transparency, and deep recycler relationships—positioning it ahead of emerging competitors.

SWOT Insights: Positioned for National-Scale Sustainability Work

Strengths

Established PRO with strong industry credibility

Nationwide operations, wide recycler network

Robust compliance systems

Opportunities

Expansion of EPR into new waste categories

Corporate shift toward circular economy

Rising demand for traceability and transparent plastic credits

Threats

Intensifying competition

Regulatory uncertainty

Possible shift to Exchange-Traded Platforms (ETP)

A Proven Growth Journey

The company’s evolution reflects a consistent strategic expansion:

2013: Began as a waste-management firm

2016: EPR expansion under new Plastic Waste Rules

2018: Partnerships with leading brands

2023: Became a public limited company

2024–25: Expanded into ESG infrastructure and consulting

Conclusion

GEM Enviro Management Limited has delivered a strong H1 FY26 financial performance backed by 48% revenue growth, 129% PAT growth, improved margins, and a strong order pipeline across EPR, sustainability consulting and waste-management operations.

With growing regulatory enforcement, rising plastic-credit requirements, expansion of EPR across waste categories, and large-scale sustainability initiatives like Jal Jeevan Mission, GEM Enviro is well-positioned to benefit from India’s shift toward a more circular and compliant ecosystem.

The company enters the second half of FY26 with a strengthened balance sheet, expanding operational footprint, and robust demand outlook across both sustainability and compliance-led services.

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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.