A waste management company grabbed investor attention after reporting a staggering 1,336 percent year-on-year surge in net profit for the recent quarter. The sharp jump in earnings reflects strong operational performance and has sparked renewed interest in the stock during the latest trading session.
During Monday’s trading session, the shares of Race Eco Chain Ltd reached an intraday high of Rs.258.00 per share, rising from the previous close of Rs.256.10 per share. Over the past five years, the shares have delivered over 580 percent returns.
Financial Performance
Race Eco Chain Ltd experienced a significant rise fueled by strong net profit and revenue growth, as reflected in its latest financial results. In Q4 FY25, the company reported revenue of Rs.194.32 crore, reflecting a remarkable year-over-year growth of approximately 126.5 percent compared to Rs.85.77 crore in Q4 FY24. On a sequential basis, revenue grew by about 15.2 percent from Rs.168.69 crore in Q3 FY25, indicating strong recovery and improved operational performance.
The company’s net profit for Q4 FY25 stood at Rs.1.58 crore, marking a massive 1,336.4 percent increase from Rs.0.11 crore in the same quarter of the previous year. However, on a sequential basis, net profit declined by 10.7 percent from Rs.1.77 crore in Q3 FY25.
For the full year FY25, the company posted a total revenue of Rs.555.99 crore, up approximately 59.7 percent from Rs.348.18 crore in FY24. Despite moderate top-line growth, the bottom-line performance was strong, with annual net profit rising about 171.6 percent to Rs.4.19 crore from Rs.1.54 crore in the previous fiscal year.
During the period, the company reported segment-wise revenue with the Recycle Division contributing Rs.191.49 crores, highlighting its position as the primary revenue driver. The Restore Division generated Rs.0.60 crore, while the Biomass Division added Rs.1.86 crores to the total revenue. This distribution reflects the company’s continued focus on recycling operations, alongside steady contributions from its emerging verticals.
Race Eco Chain Ltd is a technology-driven company focused on collecting and recycling plastic waste across India. It connects waste suppliers with recyclers through a transparent digital platform, turning plastic waste into recycled products and promoting sustainable waste management.
Race Eco Chain Ltd has established a strong presence in the biofuel segment, serving a diverse and reputable client base. Its major biofuel clients include industry leaders such as Sun Pharma, Reliance Industries, Mankind Pharma, CEAT, Dabur, Patanjali, GSK, Hindustan Unilever, and PepsiCo. The company also partners with prominent players like UltraTech Cement, Aditya Birla Group, Orientbell Tiles, HIL (C.K. Birla Group), EPACK Prefab, Visaka, Orient Craft, and Vbl.
Demerger Plans
To enhance operational focus and improve capital allocation efficiency, the Board of Race Eco Chain Ltd has proposed the demerger of its existing business segments into three distinct entities. The proposed structure will separate the company’s operations into Biomass Briquettes, Plastic Packaging Waste, and Recycled Products. This strategic move aims to streamline management, unlock value, and enable each segment to pursue independent growth opportunities more effectively.
Written by – Siddesh S Raskar
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