Organic Recycling Systems has expanded its waste-to-value platform by initiating a pilot study for a 10 kg/h Downdraft Gasification System at its NABL-accredited research centre in Mahape, Navi Mumbai. The thermochemical technology aims to convert hard biomass feedstocks, such as agricultural shell waste, into clean syngas and high-grade biochar through controlled partial oxidation. This development addresses the gap in India's bioenergy sector regarding hard biomass agricultural residues, which have largely remained unutilised.

The pilot study is currently conducting trials on four specific feedstocks: tender coconut shells, brown coconut shells, cashew nut shells, and groundnut shells. The primary objective of this phase is to map and optimise key process parameters to maximise charcoal mass yield while ensuring high fixed-carbon content. The downdraft configuration was selected for its low tar formation, and the system features an autothermal design that sustains process heat without an external fuel source.

Technology and Process Parameters

The ORS Research and Innovation Centre (ORS-RIC) is evaluating the impact of critical operating parameters, including equivalence ratio, residence time, and extraction volume, on the gasification process. The pilot is currently in the parameter optimisation phase, and no yield or quality results have been reported yet. The project is part of ORSL's broader strategy to develop a robust process framework for future scale-up and commercial deployment.

Research Portfolio and Accreditation

The downdraft gasification pilot adds to ORS-RIC's expanding research portfolio, which includes 7+ innovations in development across biochar, advanced catalysts, carbon membranes, CO₂ utilisation, and microalgae-based treatment systems. The centre received NABL accreditation under ISO/IEC 17025:2017 in February 2026.

Management Commentary

Mr. Yashas Bhand, Whole Time Director, Organic Recycling Systems Limited, stated that hard biomass waste represents a significant unaddressed category of agricultural residue in India. He noted that downdraft gasification offers a pathway to convert these materials into high-grade biochar and clean syngas, with commercialisation contingent on promising results from the systematic parameter mapping.

Dr. Manju Tanwar, Head – Research & Development, ORS Research and Innovation Centre, added that the study systematically evaluates the thermochemical challenges posed by the density, structure, and composition of hard biomass feedstocks. She emphasised that the current objective is to generate reliable operating data and identify optimal conditions for future scale-up.

If the technology is commercialised, ORSL projects it could reduce fuel and electricity costs and provide a marketable solution for stakeholders facing issues with hard biomass waste disposal.

Organic Recycling Systems reported a strong financial performance for FY26, with revenue from operations increasing by 117.14% to INR 1,050.75 Mn from INR 483.91 Mn in FY25. This growth was driven by higher project execution and improved order conversions. Profit after tax (PAT) grew by 60.56% to INR 250.81 Mn, compared to INR 156.21 Mn in the previous year, reflecting improved operating performance and disciplined working capital management.

The company's EBITDA increased by 44.81% to INR 302.83 Mn in FY26 from INR 209.12 Mn in FY25. However, EBITDA margins moderated to 28.82% from 43.22% in the prior year, attributed to higher purchases of stock-in-trade during the expansion phase. For the second half of FY26 (H2FY26), revenue surged by 141.73% to INR 744.96 Mn, while PAT for the half-year rose by 45.96% to INR 129.82 Mn.

Financial Highlights

The company achieved a positive turnaround in cash flow from operations, which stood at INR 185.84 Mn in FY26 compared to a negative INR 99.55 Mn in FY25. Organic Recycling Systems successfully met its guided PAT target of INR 25 crore for the fiscal year. The order book as of FY26 was approximately INR 100 Cr, with a pipeline of INR 200-300 Cr increasingly driven by CBG-led infrastructure and integrated waste-to-energy solutions.

Strategic Developments

Organic Recycling Systems is transitioning towards Build-Own-Operate (BOO) projects, particularly in Agro Valorisation, to enhance revenue visibility and create stable long-term cash flows. The company is also expanding into green chemicals, catalysts, and carbon capture and utilisation (CCU) verticals. Innovation remains a key focus, with the company initiating research on India's first BIO-CCU platform supported by R&D initiatives and grant funding from DBT–BIRAC and international agencies.

Management has guided for approximately 30% year-on-year revenue growth in FY27, supported by a strong execution pipeline and continued business momentum. The company's NABL-accredited R&D centre enables testing, validation, and third-party research services, further supporting its IP-led and innovation-driven revenue model.