Synopsis: Eco Recycling Limited (Ecoreco) proposes a 50:50 joint venture with Electronic Recyclers International (ERI), a US-based IT asset disposition and electronics recycling company. ERI’s global customer base and technology will be combined with Ecoreco’s domestic infrastructure to strengthen enterprise recycling, secure data destruction, and circular economy solutions in India.
Recycling firms struggle against highly fragmented informal supply chains and aggressive local pricing competition that routinely squeezes operating cash flows. Eco Recycling Limited is completely transforming its long-term corporate trajectory by forming a strategic cross-border equity alliance with the United States’ leading recycling powerhouse Electronic Recyclers International, Inc. (ERI).
Shares of Eco Recycling Limited were trading at Rs 508.35, up by 5 percent from the previous close of Rs 484.15. The stock opened at Rs 497, touching an intraday high of Rs 508.35 and a low of Rs 474.8. The company currently commands a market capitalisation of Rs. 981 crore.
Who is ERI and why does it matter?
Electronic Recyclers International (ERI) is one of the world’s leading companies dedicated to IT Asset Disposition (ITAD) and enterprise electronics recycling. IT Asset Disposition (ITAD) is the secure collection, refurbishment, recycling and disposal of obsolete corporate computers, servers, networking equipment, mobile devices and data storage systems with the destruction of confidential information.
ITAD is more than recycling for multinational corporations. It is an important compliance process that includes cybersecurity, environmental regulations and responsible resource recovery. The ERI partnership gives Ecoreco access to internationally recognised recycling standards, advanced operating processes, technology platforms and relationships with global enterprise customers.
Ecoreco has been servicing some of ERI’s global customers in India over the past few years, the company said. The governance framework has been finalised by way of the proposed Shareholders’ Agreement and Operating Agreement, and following extensive commercial, legal and operational discussions, both companies have now agreed in principle to set up a dedicated Indian joint venture.
What Will the Joint Venture Focus On?
The proposed joint venture will operate as an independent company in India with equal ownership by both partners. Its business will concentrate on high-value services including IT asset disposition (ITAD), enterprise electronics recycling, secure data destruction, resource recovery, circular economy solutions and allied sustainability services.
Importantly, operational liabilities, regulatory compliance and business risks will remain ring-fenced in the joint venture itself, while both partners will have joint participation in strategic management and governance.
Financial Highlights
Revenue reported a robust performance in Q4 FY26, increasing 90.4% YoY to Rs. 18.61 crore from Rs. 9.77 crore in Q4 FY25. On a sequential basis, revenue surged 215% QoQ from Rs. 5.91 crore in Q3 FY26, reflecting strong execution and business momentum.
The company’s operating profit soared 85.8% YoY to Rs. 12.93 crore in Q4 FY26 from Rs. 6.96 crore in Q4 FY25, while increasing 267.3% QoQ from Rs. 3.52 crore in Q3 FY26. This resulted in an improvement of the operating margin from 59.6% in Q3 FY26 to 69.5%, indicating a sharp recovery in operational efficiency.
Net profit surged 224.5% YoY to Rs. 7.14 crore in Q4 FY26 from Rs. 2.20 crore in Q4 FY25 and rose 248.3% QoQ from Rs. 2.05 crore in Q3 FY26. Similarly, profit before tax increased 76.1% YoY to Rs. 11.04 crore and 160.9% QoQ, driven by stronger operating performance.
The company’s EPS improved sharply to Rs. 3.96 in Q4 FY26, compared to Rs. 1.08 in Q4 FY25 and Rs. 1.02 in Q3 FY26, reflecting the significant improvement in quarterly profitability.
On a long-term basis, the company has delivered a healthy 5-year sales CAGR of 31% and a 3-year sales CAGR of 40% while maintaining strong earnings growth with a 5-year profit CAGR of 99% and a 3-year profit CAGR of 78%.
The company’s debtor days rose to 119 days in FY26 from 63 days in FY25, indicating a longer receivables collection cycle and more working capital blocked in debtors. This means that the company gave more credit to the customers to facilitate business expansion.
FY26 inventory days reduced to 443 days from 652 days in FY25, indicating better inventory management and faster inventory turnover. Meanwhile, payable days increased to 167 days from 67 days, which helped the company hold cash for longer before paying suppliers and improved overall liquidity and working capital efficiency.
Insight and Industry Analysis
The proposed joint venture has strategic value that exceeds that of a normal business expansion. By partnering with ERI, Ecoreco will have access to global technology, operational standards and multinational customer relationships, while ERI will be able to leverage Ecoreco’s recycling infrastructure, regulatory approvals and local expertise. That lowers the risk of execution and speeds up its growth into recycling services for businesses.
Demand for organised recycling and IT asset disposal (ITAD) services is being driven by India’s growing generation of e-waste, enterprise digitisation and stricter ESG regulations. Approval of the partnership could help Ecoreco secure recurring enterprise contracts, improve its revenue visibility and slowly transition from a domestic recycler to a globally integrated circular economy platform.
Eco Recycling Limited (Ecoreco) is one of the leading organised e-waste management companies in India, providing electronic waste recycling, IT Asset Disposition, secure data destruction, resource recovery and circular economy solutions. The company has CPCB and MPCB-approved recycling plants catering to enterprises, government organisations and institutional customers.
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