GEM Enviro Management Limited filed its Business Responsibility & Sustainability Report (BRSR) for FY26, disclosing a turnover of ₹95,54,89,218.71 and highlighting significant operational risks linked to regulatory changes in the waste management sector.

The report, submitted to the BSE SME platform on September 3, 2026, outlines the company’s exposure to the Central Pollution Control Board’s (CPCB) Extended Producer Responsibility Electronic Trading & Settlement Platform (EPRETP). Management identified the shift from bilateral negotiations to an exchange-trading model as a primary risk, citing potential adverse pressure on profit margins and business volumes.

What the Numbers Show

The financial disclosures reveal a lean operational structure with high revenue concentration. The company operates solely on a standalone basis with no international presence, generating 93% of its turnover through EPR credit facilitation services. With a paid-up capital of ₹11.27 crore and a net worth of ₹53.01 crore, the firm maintains a modest balance sheet relative to its turnover. Notably, the company reported zero safety incidents and nil complaints across all stakeholder groups during the fiscal year.

Operational Risks and Strategy

The BRSR identifies three core risks: the introduction of the CPCB’s EPRETP portal, technology-driven disruption in the compliance ecosystem, and increased competition due to low entry barriers. To mitigate these threats, management plans to build internal capabilities to operate on the new platform while exploring diversification into broader sustainability-led business verticals.

Governance and Human Capital

The company employs 39 individuals, comprising 36 permanent employees and 3 non-permanent staff. Women constitute 26% of the total workforce and hold 25% of Board seats. The report confirms 100% coverage of health insurance for permanent employees and adherence to statutory retirement benefits, including Provident Fund and Gratuity. No disciplinary actions or human rights grievances were recorded in FY26.

Gem Enviro Management has entered into a Share Subscription Agreement on August 11, 2026, to acquire a 26% stake in Solluz Energy Private Limited for ₹5,06,56,320. The investment secures significant governance rights for Gem Enviro, including the ability to nominate up to two directors to the Board of Solluz and pre-emptive rights on future equity issuances. This strategic move expands Gem Enviro’s footprint in the energy sector while establishing Solluz as an associate company.

The agreement was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Schedule III Part A Para A of the Listing Regulations. The filing also references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Tripti Goyal, Company Secretary and Compliance Officer of Gem Enviro, certified the disclosure to BSE Limited.

Transaction Details

Gem Enviro agreed to invest ₹5,06,56,320 (Rupees Five Crore Six Lakh Fifty-Six Thousand Three Hundred Twenty only) to acquire 21,10,680 Equity Shares of Solluz. Each share has a face value of ₹10, issued at a price of ₹24 per share, including a premium of ₹14 per share. Prior to this transaction, Gem Enviro held no shareholding in Solluz.

Governance and Rights

The agreement grants Gem Enviro specific protective and participatory rights within Solluz. These include the right to nominate up to two Directors on the Board of Solluz and pre-emptive rights regarding further issues of Equity Securities. Additionally, Gem Enviro holds a right of first offer on any transfer of shares by the Promoters of Solluz and specified tag-along rights.

Certain reserved matters require the prior consent of Gem Enviro before execution by Solluz. These matters include changes in capital structure, the issue of securities, and other specified material matters. The parties confirmed that this is not a Related Party Transaction, as Solluz is not related to the promoter group or group companies of Gem Enviro. Following the completion of this investment, Solluz will be classified as an associate of Gem Enviro.