Race Eco Chain announced a ₹4.67 crore investment in its material subsidiary, Ganesha Recycling Chain Private Limited, through the allotment of compulsorily convertible preference shares.

The Board of Directors approved the transaction during its meeting held on September 7, 2026. The company issued 93,379 shares with a face value of ₹10 each to fund the expansion.

Transaction Details

The investment structure involves the issuance of 0.01% Compulsorily Convertible Cumulative Preference Shares (CCPS). This instrument allows Race Eco Chain to maintain its current ownership structure while injecting capital into the subsidiary.

Subsidiary Profile

Ganesha Recycling Chain Private Limited operates in the recycling sector within India. Incorporated on September 10, 2024, the entity has seen a significant rise in turnover over its initial operational period.

The subsidiary reported a turnover of ₹0.01 lakh in 2025 and ₹21.19 lakh in 2026. This growth indicates early-stage commercial activity following its recent incorporation.

Ownership and Regulatory Compliance

Race Eco Chain holds a 51% stake in Ganesha Recycling Chain. The additional investment via CCPS does not alter this equity percentage. The company disclosed that the transaction falls under related-party transactions but was executed at arm's length.

The move aligns with the company's objective to expand its business footprint in the recycling industry. No governmental or regulatory approvals were required for this acquisition.

Race Eco Chain reported a consolidated net profit of ₹7.29 crore for the financial year ended March 31, 2026, marking a 73.9% increase from the previous year's ₹4.19 crore.

The waste management and recycling company saw its consolidated operating revenue grow by 11.5% to ₹618.75 crore, up from ₹555.10 crore in FY25. The top-line expansion was supported by higher volumes in its core recycling division and forward integration efforts through its subsidiary, Ganesha Recycling Chain Private Limited.

Financial Performance

The company's profitability improved significantly on a consolidated basis, with EBITDA rising by 46.39% to ₹14.20 crore. This growth outpaced the revenue increase, leading to an expansion in the EBITDA margin by 55 basis points to 2.30% from 1.75% in the prior year.

On a standalone basis, however, the parent entity faced headwinds. Standalone revenue contracted by 17.0% to ₹381.82 crore, and standalone net profit fell by 38.9% to ₹2.30 crore. This divergence highlights the growing contribution of subsidiaries to the group's overall bottom line.

What the Numbers Show

The data reveals a distinct operational divergence between the holding company and its consolidated group. While the standalone entity saw revenues decline, the consolidated group grew double-digits. This suggests that value creation is increasingly concentrated within subsidiaries like Ganesha Recycling Chain, which is focused on PET washing and processing. The consolidation of these entities has effectively insulated the group's top-line growth from the volatility affecting the parent company's direct trading operations.

Business Highlights

Race Eco Chain aggregated approximately 80,609 metric tonnes of plastic waste during the year. The PET Waste Division contributed ₹363.68 crore in revenue, generating an EBIT of ₹7.76 crore. The Biomass Division aggregated 10,140 metric tonnes, contributing ₹8.27 crore to the top line.

Corporate Actions

The Board of Directors proposed the re-appointment of Mr. Sunil Kumar Malik as Managing Director for a three-year term starting October 2, 2026. Additionally, the company recommended appointing Akshay Singhla & Associates as statutory auditors for five years.

The 26th Annual General Meeting is scheduled for September 26, 2026, to approve these resolutions and adopt the audited financial statements for FY26.