Race Eco Chain Limited, a company specializing in plastic waste recycling, home furnishing, and biomass products, has reported robust financial results for the second quarter of fiscal year 2026. The company's performance demonstrates significant growth, particularly in its core recycling division.

Financial Highlights

Race Eco Chain delivered strong quarterly results with standalone revenue of ₹460.30 crore, representing a 36% year-over-year growth. The company's Profit After Tax (PAT) reached ₹3.76 crore, marking a 140% year-over-year increase.

Strategic Partnership

Race Eco Chain has formed a joint venture with Ganesha Ecosphere Limited. This partnership aims to establish washing plants for the production of premium rPET (recycled polyethylene terephthalate) flakes, further strengthening the company's position in the recycling industry.

Business Expansion and Innovation

The company is actively expanding its waste collection network to enhance its operational capabilities. Race Eco Chain is also embracing digital transformation with the launch of the RACE App, designed to digitize its supply chain processes.

Proposed Business Restructuring

Race Eco Chain is proposing a three-way business demerger as a strategic move to unlock value across its diverse business segments. This restructuring will separate the company's operations into distinct entities focusing on:

1. Waste management
2. Biomass
3. Recycled products

Future Outlook

With its robust financial performance, strategic partnerships, and innovative initiatives, Race Eco Chain appears well-positioned in the sustainable solutions market. The company's focus on expanding its recycling business and digitizing operations suggests a commitment to long-term growth in the evolving environmental sector.

Note: All financial figures and strategic initiatives are based on the latest reported information for Race Eco Chain Limited.

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.