Synopsis: Eco Recycling has entered into a 50:50 joint venture with Electronic Recyclers International (ERI), a U.S.-based provider of IT asset disposition (ITAD), enterprise recycling, secure data destruction and circular economy solutions. The partnership combines the domestic recycling capabilities of Ecoreco and the global expertise of ERI to strengthen its position in India’s fast-growing e-waste management ecosystem.
Increasing global demand for professional IT asset disposition (ITAD) services. Enterprises are refreshing ageing IT infrastructure and facing greater data security and sustainability mandates. In this context, Eco Recycling Limited (Ecoreco) has announced a strategic partnership with one of the world’s leading IT asset disposition companies to enhance its footprint in the growing circular economy ecosystem in India.
Shares of Eco Recycling Limited were trading at Rs 508, up by 1.94 percent from the previous close of Rs 498.35. The stock opened at Rs 500, touching an intraday high of Rs 510 and a low of Rs 476.3. The company currently has a market capitalisation of Rs 984 crore.
Joint Venture with Global ITAD Leader
The Board of Eco Recycling Limited has approved a proposal for setting up a 50:50 joint venture company in India with Electronic Recyclers International, Inc. (ERI), USA. The proposed entity will pursue commercial opportunities in the areas of IT asset disposition (ITAD), enterprise recycling, circular economy solutions, resource recovery, secure data destruction and related services, subject to the required statutory and regulatory approvals.
The company has also approved the signing of the final Shareholders’ Agreement (SHA) and Operating Agreement, which outline the governance framework of the joint venture.
Under the arrangement, both partners will equally subscribe to the equity capital, while the board of the new company will comprise four directors, two representatives from ERI and two representatives from Ecoreco, giving equal participation in strategic decision-making.
India’s Growing E-Waste Opportunity
The partnership takes advantage of the complementary strengths of both companies. Ecoreco is one of the leading organised e-waste recyclers in India, and ERI is globally recognised for its expertise in IT asset disposition, enterprise electronics recycling, secure data destruction and sustainable resource recovery.
The collaboration is expected to enable Indian enterprises to access internationally aligned IT lifecycle management solutions, covering everything from the collection and secure destruction of retired IT assets to the responsible recycling and recovery of valuable materials.
As companies modernise their technology infrastructure and adhere to more stringent environmental regulations, demand for organised ITAD services is expected to continue to grow.
Strengthening Presence in the Circular Economy
Unlike conventional recycling businesses that primarily focus on processing waste, IT asset disposition has evolved into a specialised service that includes asset tracking, certified data destruction, refurbishment, reuse, and responsible recycling.
The proposed joint venture positions Ecoreco to expand beyond traditional e-waste recycling into higher-value service offerings that cater to corporate and institutional customers.
By integrating ERI’s global operating practices with Ecoreco’s domestic infrastructure, the new venture aims to support India’s transition toward a more structured circular economy, where electronic assets are managed throughout their lifecycle while maximising resource recovery and minimising environmental impact.
Corporate Governance Framework Already Put in Place
Ecoreco’s board has also approved the execution of the definitive legal agreements governing the new entity, in addition to approving the joint venture. The Shareholders’ Agreement and Operating Agreement define the governance structure, ring-fence the operations, set the initial equity subscription, and define the composition of the Board along with the partners’ respective rights and obligations.
The company clarified that the transaction does not constitute a related-party transaction, and neither party is connected to the promoter or promoter group. The joint venture will become operational after obtaining the required statutory and regulatory approvals.
Financial Highlights
The company delivered a strong performance in Q4 FY26, with revenue surging 90.5 percent YoY to Rs 18.61 crore from Rs 9.77 crore in Q4 FY25. Operating profit also increased 85.8 percent YoY to Rs 12.93 crore from Rs 6.96 crore, while operating margin remained strong at 69.5 percent, highlighting robust operating efficiency.
Profit Before Tax (PBT) rose 76.1 percent YoY to Rs 11.04 crore from Rs 6.27 crore, while net profit more than tripled to Rs 7.14 crore from Rs 2.20 crore. EPS increased sharply to Rs 3.96 from Rs 1.08, reflecting the significant improvement in profitability.
The balance sheet remained healthy with an ROCE of 30.0 percent and ROE of 23.3 percent, supported by a debt-to-equity ratio of just 0.05 and a current ratio of 4.52, indicating a strong liquidity position. The company also held cash and cash equivalents of Rs 13.4 crore with working capital of Rs 55.8 crore.
Over the long term, the company has maintained a healthy growth trajectory, delivering a 5-year sales CAGR of 31 percent and a 5-year profit CAGR of 99 percent. The momentum has remained strong over the last three years as well, with a sales CAGR of 40 percent and profit CAGR of 78 percent, reflecting consistent business expansion and earnings growth.
Why the Partnership Matters
The announcement may not mean an immediate financial investment or revenue disclosures, but it represents an important strategic milestone for Ecoreco. Partnering with a globally recognised IT asset disposition company will give you access to international best practice, enterprise customers, advanced recycling processes and specialist data destruction capabilities.
As India’s digital economy continues to expand and organisations generate larger volumes of obsolete electronic equipment, professionally managed IT asset disposition is expected to become an increasingly important segment of the country’s e-waste ecosystem. The partnership positions Ecoreco to capitalise on this structural opportunity and to broaden its service portfolio beyond conventional recycling activities.
Eco Recycling Limited (Ecoreco) is a leading organised e-waste management company in India engaged in electronic waste recycling, asset recovery and environmentally responsible resource management. The company has CPCB & MPCB registered recycling facilities and offers sustainable recycling solutions as per the circular economy. Ecoreco will also benefit from a joint venture with Electronic Recyclers International (ERI), USA, which will strengthen its IT asset disposition, enterprise recycling, secure data destruction and resource recovery capabilities.
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