Synopsis: Namo e-Waste is expanding recycling and critical mineral recovery capacities, supported by strong earnings growth, improving utilization, and new projects that could significantly increase the company’s future scale.
The shares of this micro cap company majorly engaged in offering services for collection, disposal, and recycling of e-waste were in focus after the management targets over 500 percent revenue growth in next few years.
With the market capitalization of Rs. 604 Crores, the shares of Namo eWaste Management Ltd were trading at around Rs. 264 per share which is 4 percent discount from its 52 week high of Rs. 275 per share and is trading at a P/E of 42.1 whereas industry P/E stands at 26.2
Expansion Plans Drive Future Growth
Namo e-Waste Management is strengthening its position as an integrated e-waste and battery recycler while moving towards becoming a critical mineral and resource recovery company. The company is setting up a 25,000 MTPA recycling facility in Hyderabad, which is expected to commence operations by August–September 2026.
The plant will help the company tap South India, which contributes nearly 22 percent of India’s e-waste generation, while also lowering logistics costs. The company currently operates through facilities across NCR, Nasik, and Hyderabad, following a decentralized model aimed at improving sourcing efficiency and profitability.
Focus on Critical Mineral Recovery
To move up the value chain, the company is establishing a hydrometallurgy pilot plant at Nasik, expected to become operational by December 2026. Based on the pilot’s performance, Namo plans to build a 10 TPD commercial refining facility in Haryana with an estimated investment of Rs. 60 crore.
The technology is designed to recover critical minerals such as Lithium, Cobalt, Nickel, and Manganese, along with other valuable materials, with recovery efficiencies of more than 90 percent . Management believes this can create significantly higher value compared to conventional recycling operations.
Strong Financial Performance
For FY25-26, the company reported revenue of Rs. 195 crore, representing a 29 percent year-on-year increase. Profit after tax stood at Rs. 14.35 crore, growing 70 percent year-on-year. Management expects EBITDA margins of 12–15 percent and net profit margins of 7–8.5 percent going forward. In the battery recycling segment, margins are expected to improve further to 15–17 percent once refining operations become operational.
Capacity Utilization and Operational Efficiency
The company currently has an installed recycling capacity of 82,000 MTPA. Battery recycling utilization, which was around 10 percent last year, is expected to increase to 60–70 percent in FY27 and reach nearly 90 percent in the years thereafter. This increase in utilization is expected to improve operating leverage and support profitability.
On the sourcing front, approximately 90 percent of battery waste and 70 percent of e-waste are sourced directly from OEMs and corporate clients, ensuring better-quality feedstock and reducing dependence on the informal recycling sector.
Industry Tailwinds and Competitive Position
Management highlighted that the company is well positioned to benefit from rising electric vehicle adoption, stricter Extended Producer Responsibility (EPR) regulations, and increasing demand for critical minerals. The company believes its direct sourcing model, pan-India collection network, and in-house technology development provide an advantage over many traditional recyclers.
Balance Sheet Strength and Long-Term Vision
The Hyderabad expansion and other upcoming projects are being funded primarily through internal accruals, allowing the company to remain almost debt-free. Management also expects support from Telangana government incentives once the Hyderabad facility becomes operational.
Looking ahead, the company aims to become a fully integrated circular resource recovery business capable of processing more than 12 types of rare earth, precious, and critical metals. According to management, the current expansion projects alone have the potential to increase annual revenue from around Rs. 200 crore to nearly Rs. 1,100 crore over the next few years, highlighting the scale of its long-term growth ambitions.
Conclusion:
Namo e-Waste is steadily transforming from a traditional recycler into a broader resource recovery company. Its focus on expanding operations, recovering critical minerals, and improving efficiency positions it well for future growth. Supported by a strong balance sheet, direct sourcing network, and favorable industry trends, the company aims to create long-term value while benefiting from the growing importance of recycling and circular economy practices.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
