In a landmark decision, the Supreme Court of India has ruled that environmental regulatory bodies, such as Pollution Control Boards, have the authority to impose and collect fines from polluters under the Water and Air Acts. This ruling is expected to have significant implications for the e-waste management sector, particularly benefiting companies like Eco Recycling Limited (Ecoreco).

Key Points of the Supreme Court Ruling

• Environmental regulatory bodies can exercise quasi-judicial powers and levy environmental compensation for potential or actual environmental damage.
• The ruling overturned a previous Delhi High Court decision.
• Fines imposed are classified as 'compensatory' rather than 'penal.'
• The decision strengthens the 'Polluter Pays' principle in environmental governance.

Impact on the E-Waste Management Sector

The verdict is particularly significant for India's e-waste management industry, which faces challenges with informal recycling practices. According to industry data:

• India generates over 1 million tons of e-waste annually.
• Approximately 85% of this e-waste is managed informally.

Eco Recycling Limited: Positioned for Growth

Eco Recycling Limited (Ecoreco), India's first BSE-listed e-waste recycling company, stands to benefit from this ruling. The company, which is authorized by the Central Pollution Control Board (CPCB) and Maharashtra Pollution Control Board (MPCB), provides end-to-end e-waste management services.

B K Soni, Chairman of Ecoreco, commented on the verdict: "This landmark verdict is a welcome step towards strengthening India's environmental governance. By empowering regulatory bodies to enforce compliance, the judgement paves the way for greater accountability and a faster transition to formal, responsible recycling—particularly in critical sectors like e-waste."

Ecoreco's Strategic Advantages

1. Pan-India network for e-waste collection and management
2. Advanced mobile recycling units
3. Investments in lithium-ion battery recycling
4. End-to-end services including reverse logistics, IT asset disposition, and data destruction
5. Compliance with Environmental Producer Responsibility (EPR) regulations

Industry Outlook

The Supreme Court's decision is expected to accelerate the shift towards licensed recyclers in the e-waste management industry. As regulatory pressure increases on informal handlers, companies like Ecoreco are well-positioned to handle increased volumes and onboard more producers, corporate clients, and government agencies seeking compliant recycling solutions.

This ruling marks a significant step in India's journey towards sustainable industrial practices and circular economy transformation. For Ecoreco and other compliant players in the e-waste management sector, it represents not just a regulatory tailwind but also a validation of their commitment to innovative and technology-led environmental solutions.

Eco Recycling Limited (Ecoreco), a leading e-waste management company in India, has reported a decline in its financial performance for the first quarter. The company's unaudited financial results, approved by the Board of Directors, reveal a mixed picture of its operations amidst challenging market conditions.

Financial Highlights

• Net Profit: Eco Recycling reported a net profit of ₹67.10 million, down from ₹74.10 million in the same period last year, marking a 9.4% year-over-year decrease.
• Revenue: The company's revenue decreased to ₹92.40 million from ₹114.00 million year-over-year, representing a 19.0% decline.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) fell to ₹51.00 million compared to ₹82.10 million in the previous year, a significant drop of 37.9%.
• EBITDA Margin: The EBITDA margin contracted to 55.19% from 72.02% year-over-year, indicating pressure on the company's operational efficiency.

Detailed Financial Performance

The company's unaudited standalone financial results provide a more comprehensive view of its Q1 performance:

Consolidated Performance

On a consolidated basis, Eco Recycling reported:

• Net profit of ₹809.00 lacs compared to ₹815.00 lacs in the same quarter last year
• Earnings per share of ₹4.19 versus ₹4.23 in the corresponding quarter

Management Decisions

The Board of Directors has approved the re-appointment of Mr. Brijkishor Soni as the Managing Director of the Company for a period of five years, from September 1, 2025, to August 31, 2030, subject to shareholder approval at the upcoming Annual General Meeting.

Insurance Claim Update

Eco Recycling has provided an update on an ongoing insurance claim:

• The company filed a claim of ₹4.24 crores
• Received ₹2.59 crores in interim payments
• The balance amount is pending restoration of fixed assets

As Eco Recycling navigates through these challenging times, stakeholders will be closely watching how the company adapts its strategies to improve operational performance and return to growth in the coming quarters.