Hi-Green Carbon Q3 FY26 Earnings Analysis

- Expect to process around 38,000 to 40,000 metric tons of waste tire in the current year, up from 24,000 metric tons last year. - Anticipate revenue of approximately ₹130 to ₹140 crores with the third plant starting in the last quarter. - With all three plants fully operational, target revenue exceeding ₹200 crores by FY27. - Ramp-up period for new plants is around 3 to 4 months to reach optimal capacity (~75–80%). - Strategy includes adding one new plant per year; currently evaluating locations for the next expansion. - Internal accruals and bank support to fund expansion; possible state government incentives. - Focus on improving efficiency and economies of scale for better margins as capacity utilization improves.

- Target to achieve beyond ₹200 crore revenue by FY27 once all three plants are fully operational. - Expect to process around 38,000 to 40,000 metric tons of waste tire in the current year, up from 24,000 metric tons last year. - Anticipate reaching close to 20% operating profit margin (OPM) for the entire year, recovering from recent margin pressures. - Ramp-up time for new plants is approximately 3-4 months; the third plant expected to start commercial production by mid-January. - Internal accruals and state government incentives planned to fund expansion; pursuing one new plant per year. - Consolidation of Radhe Renewables’ business into Hi-Green expected to add revenue without additional capex, improving profitability. - Expect margin improvement from utilizing by-products (syngas for power) and better capacity utilization across plants. - EPR credits are not expected to significantly impact profits or revenue.

- The company plans to expand by adding one new plant per year, with two to three locations identified but still under evaluation for feasibility (Page 12, 13, 20). - The third plant in Madhya Pradesh is nearing completion (90-95% done) and expected to start operations by mid-January (Pages 3, 18). - Future plant setup cost is around ₹50 crore, significantly lower than global costs (Page 7). - Internal accruals and bank support are planned to fund expansions, with state government incentives also expected (Page 20). - The business of Radhe Renewables was consolidated into Hi-Green at a nominal value, transferring machinery manufacturing without incurring capex for Hi-Green, supporting expansion without heavy capital outlay (Pages 10–11, 12). - Samsara plant modifications aim to increase capacity from 40 to 60–80 metric tons per day (Page 21). - The company is exploring partnerships for strategic growth and global expansion but details are confidential under NDA (Page 14).

- Post ramp-up of the third plant, the company expects to have sufficient internal accruals to support expansion. - Existing bankers are available to support funding needs. - State government incentives are accessible for funding new plants. - For larger expansion beyond internal accruals, the company plans to seek external support from interested investors or financial partners. - No explicit mention of immediate plans for new debt or equity fundraising was made, but provisions exist to raise funds if larger expansion opportunities arise.

- The transcript does not explicitly mention the exact current or expected order book value or pending orders. - However, it is noted that for Radhe Renewables' existing pending orders already signed, and any new orders related to gasification or the old business, Hi-Green will manufacture and execute these as part of the consolidation of Radhe Renewables into Hi-Green. - Hi-Green grants a 1% commission to Radhe Renewables for executing these orders. - There is ongoing customer onboarding for rCB products, with 6-7 new customers onboarded in the Maharashtra plant recently, indicating active order inflow. - The company is also actively pursuing certifications and approvals to expand its customer base and order execution capacity. - No specific numeric order book details or pipeline size is provided in the transcript.