Race Eco Chain Reports Strong Growth in Q2 FY2026, Expands Recycling Business

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 and first half of fiscal year 2026. The company's performance demonstrates significant growth across its business segments, particularly in its core recycling division.

Financial Highlights

For the quarter ended September 30, 2025, Race Eco Chain reported the following consolidated results:

Particulars (in ₹ lakhs)	Q2 FY2026	Q2 FY2025	YoY Change	H1 FY2026	H1 FY2025	YoY Change
Revenue from Operations	16,843.03	10,620.00	58.60%	30,515.63	19,273.41	58.33%
Total Income	16,881.19	10,638.72	58.68%	30,592.85	19,294.33	58.56%
EBITDA	404.95	195.48	107.16%	725.25	380.25	90.73%
Profit Before Tax	287.03	77.41	270.79%	422.25	108.56	289.05%
Profit After Tax	256.64	(26.33)	-	297.99	5.38	5,439.96%

Segment-wise Performance

The company's operations are divided into three main segments:

Recycle Division: This core business segment generated revenue of ₹14,434.98 lakhs in Q2 FY2026, a substantial increase from ₹10,030.18 lakhs in the same quarter last year. For H1 FY2026, the division reported revenue of ₹29,966.40 lakhs, up from ₹17,934.09 lakhs in H1 FY2025.
Restore Division: Revenue from this segment grew to ₹283.18 lakhs in Q2 FY2026 from ₹53.19 lakhs in Q2 FY2025. The half-yearly revenue stood at ₹391.35 lakhs, compared to ₹111.54 lakhs in the previous year.
Biomass Division: This segment reported revenue of ₹124.87 lakhs in Q2 FY2026, down from ₹545.63 lakhs in Q2 FY2025. For H1 FY2026, revenue was ₹157.88 lakhs, compared to ₹1,227.78 lakhs in H1 FY2025.

Key Developments

Divestment: The company has divested its 65% stake in its subsidiary, India Polymers Pvt. Ltd. While this entity is no longer a subsidiary, its working results for the period from July 1, 2025, to September 29, 2025, have been included in the consolidated results.
Investment in Subsidiary: Race Eco Chain has invested ₹5.10 crores in its subsidiary, Ganesha Recycling Chain Private Limited, by subscribing to 510,000 shares at a face value of ₹10 with a premium of ₹90 per share.
Expansion of Recycling Business: The significant growth in the Recycle Division suggests that the company is focusing on expanding its core business of plastic waste recycling.

Management Commentary

Sunil Kumar Malik, Managing Director of Race Eco Chain Limited, stated, "Our strong performance in Q2 and H1 of FY2026 reflects the growing demand for sustainable solutions in waste management and recycling. The substantial growth in our Recycle Division underscores our commitment to addressing environmental challenges while creating value for our stakeholders."

Future Outlook

With the robust growth in its recycling business and strategic investments in subsidiaries, Race Eco Chain appears well-positioned to capitalize on the increasing global focus on sustainability and circular economy principles. The company's diversified portfolio across recycling, home furnishing, and biomass sectors provides a solid foundation for continued growth.

Note: All financial figures are based on the unaudited consolidated financial results for the quarter and half-year ended September 30, 2025, as reported by Race Eco Chain Limited.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.54%	-12.55%	-15.54%	-28.63%	-49.87%	-25.99%

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:

Metric	Value	YoY Growth
Consolidated revenue	₹155.31 crore	97%
Consolidated EBIT	₹2.78 crore	95%
EBIT margin	1.79%	-

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:

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.
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.
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.
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.
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.
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.