Eco Recycling LtdQ1 FY25

Eco Recycling Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹389P/E: 33.6Market Cap: ₹808 CrSector: Other Utilities

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

2 of 3 growth signals are positive.

Full analysis

Revenue guidance

Category 1
  • Eco Recycling Limited expects substantial volume growth, targeting 100,000 metric tons capacity within 5-7 years.
  • Revenue guidance for FY25 is around Rs. 100 crores, requiring approximately Rs. 90 crores growth in next 3 quarters.
  • Projected recycling volume for FY25 is about 12,000 metric tons with an envisaged profit of Rs. 30-35 crores, focusing on profitability over top line.
  • Capacity expansions are aligned to demand growth, with ₹50 crores invested in the second facility that started early June 2024.
  • Government initiatives like the Rs. 15,000 crores MSME fund for environment-friendly practices are expected to boost industry investments by Rs. 60,000 crores, enhancing margins.
  • Increased regulatory enforcement (e.g., stricter CPCB rules) will drive higher formal sector material inflows, supporting volume ramp-up.
  • International collaborations and attendance at global recycling conferences help access new technologies and business opportunities.

See what Eco Recycling Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • As of the information provided up to August 2024, Eco Recycling Limited has not indicated any immediate plans for fundraising through debt or equity.
  • The company mentioned accumulating cash from internal accruals and investing Rs. 50 crores in plant, machinery, and land, indicating a preference for internal funding.
  • Future capacity expansion plans will be evaluated around September 2025 based on performance, after which any requirement for further investment will be assessed.
  • The company plans to accumulate cash till then and consider additional investment opportunities for expanding e-waste recycling and lithium-ion battery recycling capacities.
  • No explicit mention of new debt or equity fundraising rounds has been made in the latest discussions.

See what Eco Recycling Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Eco Recycling Limited has recently invested Rs. 50 crores in plant, machinery, and land/building for its second facility in Vasai East, Mumbai.
  • Future capital investments and capacity expansions will be assessed around September 2025 based on performance by March 2025 and half of the next year.
  • Potential future expansions may focus on e-waste recycling, especially PCB recycling and lithium-ion battery recycling.
  • The government’s Rs. 15,000 crores MSME fund announcement is expected to reduce Eco Recycling’s next expansion investment from Rs. 50 crores to approximately Rs. 37.5 crores, thus improving margins.
  • The company plans to continue capacity expansions proportionate to demand growth while maintaining margin sustainability.
  • No current plans to set up facilities outside Mumbai, as centralized facilities are preferred for cost efficiency and security.

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How does Eco Recycling Ltd rank vs peers in Other Utilities?

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