Gem Enviro Management promoters pledged 60,24,000 equity shares on September 8, 2026. The encumbrance covers 26.71% of the total share capital. The pledge was created in favor of Share India Securities Limited.

The disclosure was filed under Regulation 31(1) read with Regulation 31(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. BLP Equity Research Private Limited, acting as the promoter entity, submitted the details to BSE Limited on September 10, 2026.

Pledge Details

Three promoter entities created the encumbrance simultaneously. The total value of the shares on the date of the event was ₹20,81,29,200, calculated at a price of ₹34.55 per share. The amount involved against which the shares were encumbered was ₹10,40,64,600, representing a security cover ratio of 1:0.5.

Promoter Holding Structure

BLP Equity Research Private Limited holds 58,09,600 shares, representing 25.76% of the total share capital. Of this holding, 61.17% has been encumbered. Dinesh Pareekh holds 6,80,000 shares (3.02%), while Sangeeta Pareekh holds 17,90,400 shares (7.94%). Both individual promoters have encumbered 100% of their respective holdings.

The total promoter shareholding stands at 73.71% of the company’s equity. The newly created pledge represents 36.24% of the total promoter group’s holding. Other promoters, including Sachin Sharma and Sarthak Agarwal, did not create any new encumbrances during this period.

What the Numbers Show

The pledge structure reveals a divergence in funding purposes within the promoter group. While the corporate entity, BLP Equity Research Private Limited, cited "Business Purpose" for its pledge of 35,53,600 shares, the individual promoters linked their pledges strictly to "Personal Purpose." This suggests that the corporate borrowing may be distinct from the personal liquidity requirements of the key individuals, despite both being secured against the same listed entity’s equity.

Gem Enviro Management has fixed Monday, September 21, 2026, as the record date for determining shareholders eligible for the final dividend of ₹0.25 per equity share for FY26. The company will hold its 13th Annual General Meeting on Monday, September 28, 2026.

The register of members and share transfer books will remain closed from Tuesday, September 22, 2026, to Monday, September 28, 2026 (both days inclusive). This closure facilitates the processing of dividend payments and voting rights verification for the AGM.

Voting Rights and E-Voting

Beneficial owners recorded in the depositories' list at the end of business hours on the record date are entitled to vote. Shareholders can participate via Video Conferencing or Other Audio Visual Means. Electronic voting through CDSL’s facility opens on September 25, 2026, at 9:00 am and closes on September 27, 2026, at 5:00 pm.

Financial Performance for FY26

The company reported strong top-line growth despite margin pressures driven by regulatory changes in the Extended Producer Responsibility (EPR) sector. Consolidated revenue from operations rose to ₹10,181.12 lakh in FY26, up from ₹5,920.05 lakh in FY25. Standalone revenue reached ₹9,554.89 lakh, compared to ₹5,920.05 lakh in the previous year.

However, profitability contracted as higher procurement costs and increased competition impacted margins. Consolidated EBITDA fell to ₹669.92 lakh from ₹817.85 lakh in FY25. Consolidated Profit After Tax (PAT) declined to ₹473.05 lakh from ₹608.66 lakh. On a standalone basis, EBITDA was ₹659.12 lakh and PAT stood at ₹464.98 lakh.

Dividend and Director Reappointment

The Board of Directors has recommended a final dividend of ₹0.25 (5%) per equity share with a face value of ₹5 each. This payout is subject to member approval at the AGM. The dividend will be paid electronically, adhering to RBI guidelines, with tax deducted at source based on shareholder residential status.

Additionally, the meeting will consider the reappointment of Mr. Dinesh Pareekh as a Non-Executive Director. He retires by rotation and has offered himself for re-appointment. Mr. Pareekh attended all 11 board meetings during the year and holds a 3.02% stake in the company.

Strategic Business Expansion

A key special resolution seeks to alter Clause 3(A) of the Memorandum of Association to broaden the company’s operational scope. The revised object clause enables engagement in:

• Comprehensive waste management, including recycling and disposal of solid, liquid, hazardous, and electronic waste.
• Reverse logistics solutions for beverage packaging using digital technologies and Deposit Refund Systems.
• Consultancy services for environmental compliance, carbon credit trading, and sustainability reporting.
• Development of AI-driven solutions for waste tracking, resource optimization, and circular economy initiatives.
• Establishment of sustainable industrial zones and eco-industrial parks.

This expansion aims to provide legal authority for new business activities aligned with long-term growth strategies in the environmental sector.

Registered Office Shift

The company also proposes shifting its registered office from Delhi to Uttar Pradesh. The new address will be located in Noida, Sector 136. This administrative change is necessitated by a change in ownership of the existing premises in Delhi and requires confirmation from the Regional Director. The shift does not impact shareholder rights or creditor interests.

What the Numbers Show

The divergence between revenue growth and profit contraction highlights the impact of regulatory shifts. While revenue nearly doubled YoY, PAT declined by approximately 22% on a consolidated basis. This suggests that the volume growth in EPR services was offset by rising procurement costs and margin compression, likely due to the introduction of the CPCB’s EPRETP platform which increased price transparency and competition. The company’s pivot towards high-margin advisory and infrastructure services aims to mitigate this concentration risk.