Namo eWaste

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.

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.

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.

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.

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.

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.