Detailed Narrative
Strong Financial Performance in FY26
Namo eWaste reported a robust financial performance for H2 FY26 and the full year. For H2 FY26, total income grew 28% YoY to ₹107.42 crore, with PAT surging 136% to ₹7.36 crore. For the full year FY26, total income increased by 29% to ₹195.13 crore, and PAT grew 70% to ₹14.35 crore, with PAT margins expanding to 7.35%. This strong profitability improvement was driven by better operational efficiencies, improved product mix, and tighter cost optimization across operations.
Operational Expansion and Capacity Growth
The company expanded its installed recycling capacity to approximately 82,000 metric tons per annum across e-waste and battery recycling operations. The Nasik lithium-ion battery recycling and refurbishment plant successfully commenced operations, strengthening its presence in the fast-growing battery recycling segment. The Hyderabad facility, strategically located in the Telangana electronic manufacturing cluster, is progressing well and is expected to become operational in Q2 FY27, despite a slight delay due to heavy rains.
Strategic Entry into Hydro-Metallurgy
Namo eWaste is strategically focusing on hydro-metallurgy for black mass refining as its next expansion. A pilot facility of about 1 metric ton per day is underway and expected to start by December 2026-January 2027. The company plans to ramp this up to 5 metric tons per day, with a larger plant requiring a 60 crore investment. This segment is expected to yield higher margins of 25-30% after black mass recovery, and the project is eligible for 50-70% government subsidies, funded primarily through debt.
Raw Material Sourcing and EPR Mandate Impact
Raw material sourcing remains a challenge, with the company currently utilizing only about 60% of its capacity. However, Namo eWaste leverages its 12 years of experience and B2B contracts, with 80-85% of its procurement directly from manufacturers and EV brands. The EPR mandate has positively impacted the business, with the majority of producers adopting new guidelines, leading to better payments and significant growth in the EPR segment, despite some resistance from domestic brands.
Future Outlook and Main Board Migration Targets
The company aims for a 2x PAT growth and targets a 7-10% PAT margin over the next 3-4 years. For FY27, management projects a total revenue of approximately 400 crore, split 50-50% between battery and e-waste, with a blended EBITDA margin of 17-20%. Namo eWaste intends to migrate to the main board once it achieves 800-900 crore in revenue and over 50 crore in PAT, a goal anticipated within the next 1.5 to 2 years.
FY26 Revenue Miss Explained by Capacity Upgrade
The company's FY26 total income of ₹195.13 crore fell short of its earlier guidance of ₹220-230 crore. Management explained that this was due to a temporary disruption of approximately 35 days of business during the capacity enhancement of the Palwal plant from 16,000 to 32,000 metric tons. Despite the short-term revenue loss, this strategic move resulted in a much higher capacity for the same investment, positioning the company for future growth.