Race Eco Chain Limited, a leading waste management and recycling company, has reported robust financial performance for the first quarter of fiscal year 2026, ending June 30, 2025. The company's strategic initiatives and focus on the plastic packaging waste segment have driven significant growth across key financial metrics.

Strong Financial Performance

Race Eco Chain's consolidated revenue surged by 81% year-over-year to ₹156.73 crore in Q1 FY26, up from ₹86.44 crore in the same quarter last year. This impressive growth was primarily driven by the plastic packaging waste segment, which saw a 97% increase in revenue to ₹155.31 crore.

The company's profitability also saw substantial improvement:

• Consolidated EBITDA grew by 108% to ₹2.91 crore
• Profit After Tax (PAT) surged by 300% to ₹0.41 crore
• EBITDA margin improved by 24 basis points to 1.86%
• PAT margin increased by 14 basis points to 0.26%

Segment-wise Performance

Plastic Packaging Waste Segment

The plastic packaging waste division emerged as the primary growth driver for Race Eco Chain:

The company aggregated approximately 20,238 MT of plastic waste during the quarter, representing a 5.5% year-over-year increase.

Biofuel Division

The biofuel division faced significant challenges during Q1 FY26:

• Revenue declined by 95% to ₹0.33 crore
• EBIT margin stood at 3.39%, an improvement of 220 basis points YoY

The company attributed the revenue decline to procurement chain disruptions and has initiated a comprehensive restructuring of the biomass procurement ecosystem to address these challenges.

RESTORE Division

The RESTORE division demonstrated exceptional growth:

• Revenue increased by 85% to ₹1.08 crore
• Achieved positive EBIT of ₹0.03 crore, compared to a negative EBIT in Q1 FY25
• EBIT margin improved by 852 basis points YoY

Strategic Initiatives and Future Outlook

Race Eco Chain has announced several strategic initiatives to drive future growth:

1. Joint Venture with Ganesha Ecosphere Limited: The company has formed a joint venture named Ganesha Recycling Chain Private Limited to set up washing plants across India for premium rPET flake production. This move aims to address the growing demand for recycled PET (rPET) driven by ESG mandates and regulatory requirements.

2. Business Demerger: The company's board has proposed a demerger of its existing business segments into three separate entities to enhance operational focus and capital allocation efficiency.

3. RACE App Launch: Race Eco Chain has developed and launched the RACE App to streamline waste selling processes and enhance operational efficiency across its value chain.

4. ESG Focus: The company received an ESG score of 58 out of 100 based on CareEdge Advisory's ESG grading procedures and is committed to improving its ESG performance.

5. Expansion of Collection Network: New collection centers have been established in Modinagar, Noida, Bangalore, Ranchi, and Gorakhpur to strengthen the company's waste collection and recycling capabilities.

6. Reverse Vending Machines (RVMs): The company is setting up RVMs in colleges and business parks to promote responsible plastic disposal and encourage sustainable habits.

Sunil Malik, CMD of Race Eco Chain, commented on the company's performance, stating, "Our strong Q1 results reflect the success of our strategic focus on formalizing the waste management value chain. We are committed to driving sustainable growth and contributing to a cleaner, circular economy."

Race Eco Chain's efforts in sustainability and governance were recently recognized with the ESG Excellence Award at the LIFA Awards 2025, underscoring the company's commitment to environmental, social, and governance principles.

As Race Eco Chain continues to expand its operations and implement strategic initiatives, the company appears well-positioned to capitalize on the growing demand for sustainable waste management solutions in India.

Race Eco Chain Limited , a company specializing in plastic waste recycling, home furnishings, and biomass products, has released its financial results for the first quarter of fiscal year 2026 and announced key appointments in a board meeting held on August 12, 2025.

Financial Performance

The company reported a consolidated revenue from operations of Rs. 15,672.60 lakhs for the quarter ended June 30, 2025, showing a significant increase from Rs. 8,644.42 lakhs in the same quarter of the previous year. The standalone revenue from operations stood at Rs. 9,881.38 lakhs.

Race Eco Chain's consolidated profit for the period reached Rs. 41.30 lakhs, while the standalone profit was reported at Rs. 10.24 lakhs. The company's performance showed improvement across its various business segments.

Segment-wise Performance

The company's financial results reveal strong performance in its primary business segments:

Key Appointments

In addition to the financial results, the board meeting also saw important decisions regarding auditor appointments:

1. Internal Auditor: M/s. SSAR & Associates has been appointed as the Internal Auditor for the financial year 2025-2026.
2. Secretarial Auditor: M/s. HKS & Associates LLP, a Peer Reviewed Firm, has been appointed as the Secretarial Auditor for a term of five consecutive years, from April 1, 2025, to March 31, 2030. This appointment is subject to shareholder approval at the upcoming Annual General Meeting.

Other Developments

The Board of Directors also approved the Annual Report for the Financial Year 2024-2025 during the meeting.

Race Eco Chain Limited continues to focus on its core businesses of plastic waste recycling, home furnishings, made-ups, bags & garments, and briquettes across its three main divisions: Recycle, Restore, and Biomass.

The company's performance in the first quarter of FY2026 indicates a positive trend, with substantial growth in revenue compared to the same period last year.