Race Eco Chain Ltd disclosed that its promoters and promoter group did not create any encumbrances, directly or indirectly, on the equity shares of the company during the financial year ended March 31, 2025. The declaration was submitted to the stock exchanges on April 5, 2025, by Promoter Dinesh Pareekh on behalf of the entire promoter group and persons acting in concert.

The disclosure was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011. This regulation requires promoters to inform the exchanges if any encumbrances have been created on their shareholdings. The confirmation assures stakeholders that the share capital remains free from such charges for the specified period.

The promoter group includes Dinesh Pareekh, Sangeeta Pareekh, BLP Equity Research Pvt Ltd, and BGP-11 Analytics Pvt Ltd. The filing was addressed to the Chairman of the Audit Committee and the Company Secretary of race eco chain , as well as the corporate services departments of the BSE and NSE.

Promoter and Promoter Group

The following entities constitute the promoter group referenced in the disclosure:

Race Eco Chain reported a 73.9% year-on-year increase in consolidated profit after tax (PAT) to ₹7.29 crore for the financial year ended March 31, 2026 (FY26), driven by an 11.5% rise in operating revenue to ₹618.75 crore. Consolidated EBITDA for the year surged 46.39% to ₹14.20 crore, with the EBITDA margin improving by 55 basis points to 2.30%. On a standalone basis, the company's PAT declined by 38.7% to ₹2.30 crore, while operating revenue decreased by 17% to ₹381.82 crore. For the quarter ended March 31, 2026 (Q4FY26), standalone PAT rose 36.2% to ₹0.81 crore on an operating revenue of ₹108.25 crore.

Operational Performance

The company aggregated 27,564 metric tonnes (MT) of PET and biomass waste during Q4FY26. For the full year FY26, standalone waste aggregation reached 91,421 MT, while the consolidated figure stood at 1,44,737 MT. The PET Waste Division reported a revenue of ₹99.9 crore in Q4FY26, aggregating 21,124 MT of plastic waste. The Biomass Division saw a significant revenue jump of 172.6% year-on-year to ₹5.07 crore in Q4FY26, with biofuel aggregation reaching 6,440 MT.

Standalone Financial Highlights (FY26 vs FY25)

Strategic Initiatives

The Board of Race Eco Chain has proposed a demerger of its existing business segments into three distinct entities: Plastic Packaging Waste, Biomass Briquettes, and Recycled Products. This move aims to make operations more focused and capital allocation more efficient. Additionally, the company announced a strategic alliance with Ganesha Ecosphere Ltd, India's largest PET waste recycler, which includes a strategic equity investment in Race Eco Chain.

Business Outlook

Management attributed the profitability pressures during the period to a significant 25% increase in raw material prices and higher working capital requirements. Despite these challenges, the company remains focused on improving operational efficiencies and optimizing costs. The outlook for the biomass industry appears optimistic, supported by favorable regulations such as the mandatory blending of Compressed Biogas (CBG) and revised biomass co-firing policies for thermal power plants.