Namo eWaste — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Namo eWaste Management Limited reported a strong H1 FY26, with revenue growing 31%, EBITDA up 66%, and PBT increasing 94%. The company successfully commissioned its Nasik lithium-ion battery recycling facility and is progressing with a new e-waste plant in Hyderabad. While raw material sourcing remains a challenge, management is focused on direct OEM partnerships and operational efficiencies to sustain its 40-50% CAGR growth trajectory and 13-15% EBITDA margin guidance.

Highlights

  • Revenue increased by 31% in H1 FY26.

  • EBITDA grew by 66% in H1 FY26.

  • EBITDA margin expanded by 272 basis points in H1 FY26.

  • PBT rose by 94% year-on-year in H1 FY26.

  • Successful commissioning of 12,400 MTPA lithium-ion battery recycling facility at Nasik in July 2025.

Concerns

  • Sourcing of raw material, especially for lithium-ion batteries, remains a challenge due to the informal sector, limiting capacity utilization.

  • Regulatory adherence to minimum EPR pricing is contested by some producers, with a court case pending verdict.

  • Export of black mass requires specific MOEF permission, which the company is currently in the process of obtaining.

Key financials

  1. Revenue ₹87.32 Cr +31%YoY
  2. EBITDA Growth 66%
  3. EBITDA Margin Expansion 272 bps
  4. PBT Growth 94%

What they filed

Q4 FY26: revenue up 64.6%, net profit up 75.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue36 65 67 83 87 +142%107 +65%
EBITDA5 7 7 7 11 +120%12 +71%
Net profit3 4 5 3 7 +133%7 +75%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • EPR and Consultancy Services
    10% Revenue Share
  • Recycling Operations (Metals, Scrap, Plastic)
    60% Revenue Share
  • Refurbishment Revenue
    25% Revenue Share
  • Nasik Lithium Plant
    6% Current Revenue Contribution

Guidance & targets

CAGR Growth

  • Compounded Annual Growth Rate CAGR Growth · medium term / next 3 years · High confidence 40-50%
    When we set our goal to sustain a 40-50% compounded annual growth rate over the medium term, it was with a clear focus on both scale and profitability.

    — Akshay Jain

EBITDA Margin

  • EBITDA Margin EBITDA Margin · going forward / next 2-3 years · High confidence 13-15%
    So, we have mentioned it, that we are looking our EBITDA to be in the range of 13-15% by bringing you more efficiency and doing quality work. That's what we are looking at 13-15%, further improving it by 200 basis points.

    — Sanjeev Srivastava

Revenue Growth

  • Revenue growth for current 3 facilities Revenue Growth · normal course · Medium confidence 30-35%
    And then our these current 3 facilities will continue to grow by above 30-35% in normal course.

    — Sanjeev Srivastava

Lithium Plant Utilization

  • Nasik Lithium Plant Utilization Lithium Plant Utilization · next year · High confidence 100%

    Previously 60% → 100%

    This 12,600 plant in Nasik has a capacity to give us at a 60% utilization, revenue opportunity of close to about 180 to 200 crore. So that is what we are looking at in next year when we operate it fully.

    — Sanjeev Srivastava

Battery Recycling Revenue Split

  • Revenue split from battery recycling plant Battery Recycling Revenue Split · this year · High confidence minimum 15%

    Previously 6% → minimum 15%

    and this year, we are looking to achieve a minimum 15% split in the revenue from a battery recycling plant.

    — Akshay Jain

Revenue Split

  • Revenue split (Battery vs E-waste) Revenue Split · by 2027 · High confidence 40% Battery, 60% E-waste
    So, we are anticipating a 40-60 revenue split by 27. 40% would be coming from battery, and 60% from e-waste.

    — Akshay Jain

Hyderabad Plant Operations

  • Hyderabad plant operational status Hyderabad Plant Operations · H2FY26 / by March 31, 2026 · High confidence ready for operations

    Previously under construction → ready for operations

    Our fifth e-waste recycling plant in Hyderabad is under construction and is expected to be ready for operations by H2FY26.

    — Akshay Jain, Sanjeev Srivastava

Nasik Battery Plant Utilization

  • Nasik battery plant full utilization Nasik Battery Plant Utilization · Q1 2028 · High confidence fully utilized
    That would be, I think, in 27, again, Maybe first quarter of the year 2028.

    — Akshay Jain

Capex

  • Capex for hydrometallurgical recovery plant Capex · future · Medium confidence $2-4 million
    See, it could be around 2 million to $4 million.

    — Akshay Jain

What to watch in Q3 FY26

Hyderabad Plant Commissioning

next quarter
Current Under construction, expected by H2FY26
Target Commercial operations by March 31, 2026

Why it matters

Successful commissioning will add 25,000 MTPA capacity, expand geographic presence, and reduce logistics costs, significantly impacting future revenue and profitability.

Our fifth e-waste recycling plant in Hyderabad is under construction and is expected to be ready for operations by H2FY26.

Risks & concerns

  • Raw Material Sourcing from Informal Sector

    high

    Most material flows through the informal sector, making collection channels undefined and sourcing a challenge, especially for lithium-ion batteries.

    Management acknowledged

  • Non-adherence to EPR Minimum Pricing by Producers

    medium

    Many producers are not adhering to the CPCB's minimum EPR price, leading to a pending court case, which could affect business volume for compliant players.

    Management acknowledged

  • Regulation on Black Mass Export

    low

    Export of black mass now requires permission from the Ministry of Environment Forest, which the company is in the process of obtaining, currently selling locally.

    Management acknowledged

  • Competition from New Licensed Recyclers

    low

    Evolving e-waste rules are bringing new players, but Namo believes its established presence, pan-India operations, and regulatory expertise provide a competitive edge.

    Management downplayed

Q&A highlights

7 direct
Long-term contracts for battery procurement Direct
Yes, we are. There are short-term and long-term agreements that work simultaneously. Some of the organizations, they get into a short-term contract, whereas most of them are looking at above-one-year contracts.

Clarifies the company's strategy for securing raw materials and the stability of its supply chain through long-term agreements.

Asked by Rahul Singhania

Costs associated with ESG compliance Direct
Sir, we are actually not incurring any cost in meeting the ESG compliances. We are a credit-positive company, whether it comes to providing metal credits for EPR, or whether it comes to even selling out carbon credits, in case if that is required. So this ESG compliance is not a direct cost on us, as an organization. We are helping the other organizations to actually meet their ESG compliance.

Addresses potential investor concerns about the financial burden of ESG compliance, highlighting it as a value-add service rather than a cost.

Asked by Rahul Singhania

Sustainability of EBITDA margin Direct
I'm taking this. Yes, I think if you recollect in the last call also, we had mentioned that EBITDA is only going to improve because we are continuously focusing on it... EBITDA margin is going to be around 12-15%, and we are continuously working. It has improved, and we see improvement on that further going forward.

Provides confidence in the company's future profitability, reiterating a positive outlook for EBITDA margin expansion.

Asked by Harshil Bhayani

Revenue contribution from Nasik lithium plant and Hyderabad plant Partial
Yeah, so, right now, I think, it is about only 6% of the revenue, as we have commenced operations in June only. So, and this year, we are looking to achieve a minimum 15% split in the revenue from a battery recycling plant.

Gives insight into the current and projected revenue mix, highlighting the growing importance of battery recycling to the overall business.

Asked by Harshil Bhayani

Related party transactions with Vardhman Sales Agency Direct
Yeah, yeah, so, we are going to have similar transactions with Vardhman for this year only. Vardhman was working as a PRO company earlier, then the e-waste rules got changed, and then the significance of PROs from the rules were taken out... now we will be migrating to Namo eWaste next year, so that related party transaction would be completely gone.

Addresses transparency concerns regarding related party transactions and outlines a clear plan for their cessation, indicating improved corporate governance.

Asked by Harshil Bhayani

CAPEX requirements for 45-50% CAGR growth Direct
See, the only thing that we are planning right now is, as I mentioned in my opening remarks, is about the extraction of critical minerals from black mass. So that is going to be further upgradation to our technology... I don't think in near future we would need more capital towards any further expansion apart from that.

Clarifies that significant growth can be achieved through existing infrastructure optimization and targeted technology upgrades, rather than large-scale new CAPEX, which is positive for capital efficiency.

Asked by Harshil Bhayani

Government fixed price for EPR and producer adherence Direct
No, this is effective, but many producers are not adhering to it. They have rather gone to the court, and I think the case is under hearing... We are currently doing business only on those rates. If the business does not come, we are not entertaining. We don't want to defy any rules & regulations.

Highlights the regulatory challenges and the company's commitment to ethical business practices, even if it means foregoing some business volume in the short term.

Asked by Nihar Mamtura

Raw material sourcing challenges for lithium-ion batteries Direct
The problem is most of the material flows through the informal sector in our country, and that is why the material collection channels, the sourcing channels, are not defined very well... So because of this flow in the downstream of this raw material, sourcing becomes a challenge.

Identifies a critical operational bottleneck for the high-growth lithium-ion recycling segment and explains the underlying market structure challenges.

Asked by Saket Lohia

2 min read 6 chapters

Detailed narrative

H1 FY26 Financial Performance Overview

Namo eWaste Management Limited demonstrated robust financial performance in H1 FY26, with revenue increasing by 31% and EBITDA growing by 66%. This strong growth was accompanied by a 272 basis points expansion in EBITDA margin and a 94% year-on-year rise in Profit Before Tax (PBT). The company achieved positive operational cash flow, marking a critical inflection point in its financial evolution, and is tracking strongly towards its goal of sustaining a 40-50% compounded annual growth rate.

Lithium-ion Battery Recycling Expansion

A key highlight of the period was the successful commissioning of a 12,400 metric tons per annum (MTPA) lithium-ion battery recycling and refurbishment facility at Nasik in July 2025. The facility is currently operating at around 60% utilization, with management aiming for 100% utilization next year, potentially generating ₹180-200 crores in revenue at 60% utilization. The company is also exploring global technology tie-ups for hydrometallurgical recovery of critical minerals like lithium, cobalt, nickel, and manganese, with an estimated CAPEX of $2-4 million for this upgrade.

E-waste Capacity Augmentation and Geographic Expansion

The company's fifth e-waste recycling plant in Hyderabad is under construction and is expected to be operational by H2FY26, specifically by March 31, 2026. This new facility will add 25,000 MTPA to the total installed capacity, bringing it to 68,000 MTPA. This expansion aims to establish a strong presence in South India, open new ITAD service opportunities, and reduce logistic costs, which have historically impacted profitability.

Strategic Focus on Profitability and ESG

Namo eWaste's strategy is centered on enhancing operational efficiency and profitability, with a sustained EBITDA margin guidance of 13-15% for the medium term. The company emphasizes financial discipline, efficient working capital management, and cost rationalization. As a formal recycler, Namo aligns with India's circular economy vision and ESG commitments, positioning itself as a credit-positive entity that helps other organizations meet their ESG compliance without incurring direct costs.

Raw Material Sourcing Challenges and Strategy

A significant challenge identified is the sourcing of raw materials, particularly for lithium-ion batteries, as most material flows through the informal sector, leading to undefined collection channels. To overcome this, the company is strengthening its business development team to target OEMs directly, aiming for long-term agreements and reducing dependence on scrap dealers. Currently, about 80% of lithium-ion sourcing is direct from companies, with a goal to achieve a minimum 15% revenue split from battery recycling this year.

Evolving Regulatory Landscape and Competitive Edge

India's regulatory environment, particularly the E-Waste and Battery Management Rules 2022, is driving structural growth in the formal recycling sector. Despite the influx of new licensed recyclers, Namo maintains a competitive edge through its established pan-India presence, cost optimization, and expertise in regulatory compliance. The company adheres strictly to the minimum EPR pricing set by CPCB, even as a court case regarding this pricing is pending, reinforcing its position as a trusted and ethical partner for brands committed to sustainability.

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