Race Eco Chain FY26 consolidated PAT rises 73.9% to ₹7.29 crore
Race Eco Chain reported a 73.9% YoY increase in consolidated PAT to ₹7.29 crore for FY26, while standalone PAT fell 38.7% to ₹2.30 crore. The company proposed a demerger into three entities and announced a strategic alliance with Ganesha Ecosphere Ltd.
*this image is generated using AI for illustrative purposes only.
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)
| Metric | FY25 | FY26 | Change |
|---|---|---|---|
| Operating Revenue | ₹460.30 crore | ₹381.82 crore | -17% YoY |
| PAT | ₹3.76 crore | ₹2.30 crore | -38.7% YoY |
| Waste Aggregated (MT) | 1,47,533 | 91,421 | - |
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.
Historical Stock Returns for Race Eco Chain
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.34% | +2.68% | -9.79% | -22.54% | -56.68% | -56.04% |
What is the expected timeline for the completion of the proposed demerger into three distinct entities?
How will the strategic equity investment from Ganesha Ecosphere Ltd influence Race Eco Chain's market positioning and operational capabilities?
Can the company sustain the recent growth in the Biomass Division given the favorable regulatory environment for CBG and co-firing?
18
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
