# 1. Financial Performance ## A. Key Figures * Revenue Growth (H1 FY26): 31% YoY · ₹87.32 Cr reported * **EBITDA Growth (H1 FY26):** **66%** YoY · **+272 bps margin expansion** * **PBT Growth (H1 FY26):** **94%** YoY ## B. Revenue Growth * **Strong Top-Line Momentum:** Robust revenue growth in H1 FY26 driven by scale benefits and operational efficiencies, with recycling operations contributing **60%** of revenue, refurbishment **25%**, and EPR/consultancy **10%**. * **Business Mix Shift:** Increasing contribution from higher-margin refurbishment and EPR services supports margin uplift and revenue diversification. ## C. Profit Margins * **Sustainable Margin Expansion:** EBITDA margin improvement is structurally supported by throughput optimization, automation, and reduced logistic/finance costs from IPO-funded working capital. * **Battery Recycling Economics:** Lithium recycling expected to deliver **18–20% gross margin**, comparable to e-waste; **black mass processing** yields **20–25% gross margin** at current pricing. * **Near-Term PAT Pressure:** Slight dip in PAT margin attributed to initial costs from **battery recycling plant ramp-up** (operational July 2024). ## D. Cash Flow * **Cash Flow Inflection:** First-time positive operating cash flow in H1 FY26 marks a pivotal shift, underpinned by working capital discipline and cost rationalization. * **Growth Scalability:** Improved cash generation enhances capacity for **40–50% CAGR** on a consolidated basis over the medium term. --- # 2. Capacity & Utilization ## A. Key Figures * **Lithium-ion Recycling Capacity:** **42,900 MTPA** (including Nasik) * **Total E-waste Recycling Capacity (Planned):** **68,000 MTPA** with Hyderabad plant addition * **Nasik Battery Plant Capacity:** **12,400 MTPA** commissioned in July 2025 * **Hyderabad Plant Capacity:** **25,000 MTPA** (e-waste only), H2 FY26 ramp-up ## B. Plant-wise Output * **Regional Footprint:** Operations span three independent e-waste plants in Faridabad, Nasik, and Palwal, with Nasik now hosting a dedicated lithium-ion battery recycling unit. * **Utilization Divergence:** Faridabad runs at full utilization, while Palwal and Nasik e-waste operations are below capacity; Nasik battery plant has recently commenced operations. * **Capacity Clarification:** Slide 17’s 72,900 MTPA figure is a typo; correct planned capacity is **66,000–68,000 MTPA**. ## C. Shift Operations * **Underutilized Potential:** Company operates below **50% of total processing capacity**, constrained not by infrastructure but by raw material availability. * **Shift Scalability:** Single-shift operations currently, but capable of expanding to two or three shifts across facilities once feedstock supply stabilizes. * **Stable Margins:** Realizations and margins remain consistent across battery types and input sources, supporting operational flexibility. ## D. Future Expansion * **Lithium Focus:** Strategic expansion prioritized for lithium-ion battery recycling, with no new e-waste capacity planned post-Hyderabad. * **Revenue Ramp-Up:** Nasik lithium plant expected to reach **60% utilization** next year, unlocking significant revenue; Hyderabad plant to add **₹30–40 Cr** despite lower volume due to high value/kg. * **Scalable Infrastructure:** Both Nasik and Hyderabad facilities have room for output expansion via multiple shifts without incremental capex. * **Utilization Target:** Subsidiary projected to reach optimum utilization at **₹75–80 Cr revenue**, achievable through improved supply chain sourcing. --- # 3. Revenue Mix & Segments ## A. Key Figures * **Margins:** **18–25%** estimated in battery recycling · **15–18%** in e-waste recycling * **Market Share:** **2–5%** current formal sector share · targeted **4%** post-Hyderabad ramp-up * **Exports:** **3–4%** of total revenue ## B. Recycling vs Refurbishment * **Strategic Focus:** Battery recycling delivers **higher revenue per kg** and superior margin potential, underpinning shift toward lithium-ion and black mass refining. * **Growth Trajectory:** Nasik plant already contributing meaningfully despite June start; **15% annual revenue target** from battery recycling reflects rapid scaling momentum. * **Volume & Revenue Divergence:** EVs supply **70% of battery volume**, yet contribute only **50% of battery revenue**, indicating higher value realization from consumer electronics streams. ## C. Battery vs E-waste * **Long-Term Mix Shift:** Management targets **40% revenue from battery recycling by 2027**, contingent on full utilization of Nasik and Hyderabad plants. * **E-Waste Growth Engine:** E-waste segment to grow at **30–40% CAGR**, supported by cost efficiencies from Hyderabad facility and Pan-India collection network. ## D. Domestic vs Exports * **Export Role:** Faridabad drives value addition via PCB and precious metal processing for export, though overall export revenue remains limited to **low single digits**. * **Market Position:** Among India’s largest formal recyclers with **Pan-India footprint**, poised to double formal market share to **4%** as Hyderabad plant reaches capacity. --- # 4. Sourcing & Supply Chain ## A. Key Figures * **Lithium-ion Sourcing:** **~80%** directly from companies * **Raw Material Mix:** **60–70%** from OEMs · **25–30%** from aggregators · **<5%** from consumers * Sourcing Channels: **60-65%** direct from companies · **25%** aggregators · **5%** B2C for e-waste; **80%** direct for Li-ion ## B. OEM Agreements * **Strategic Contracting:** Established long-term agreements with major OEMs, reducing dependency on scrap dealers and enhancing supply stability. * **Direct Engagement Push:** Actively expanding business development efforts to secure direct procurement deals, driven by OEMs’ increasing compliance focus, especially among Chinese firms. * **Related Party Transition:** Current EPR-related transactions with Vardhman entities will phase out as Namo eWaste assumes direct responsibility, improving transparency and streamlining operations. ## C. Aggregator Network * **Pan-India Infrastructure:** Operational footprint spans across India with collection centers and planned regional recycling plants, enabling logistics optimization and competitive advantage. * **Formalization of Informal Sector:** EPR program actively integrating informal recyclers into formal supply chains—a five-year initiative expected to accelerate with regulatory support. * **Regional Focus for Efficiency:** Current operational emphasis in southern India supports P&L optimization amid national expansion. ## D. Raw Material Constraints * **Supply-Limited Growth:** Expansion in high-margin lithium-ion recycling remains constrained by fragmented domestic feedstock availability, despite strong downstream demand. * **No Import Reliance:** Fully dependent on domestic sourcing due to strict regulatory prohibitions on e-waste and lithium-ion scrap imports, with zero current or near-term import exposure. --- # 5. Technology & Processing ## A. Key Figures *No significant quantitative financial metrics available for extraction.* ## B. Black Mass Production * **Strategic Intermediate Output:** Nasik facility produces black mass for domestic and international demand, leveraging an integrated value chain and expertise in diverse scrap processing. * **Competitive Differentiation:** Strength in **accurate metal identification**, combined with export capabilities for black mass and printed circuit boards, enhances market positioning. ## C. Hydrometallurgy Plans * **Next-Gen Recovery Strategy:** Actively pursuing global technology partnerships to deploy hydrometallurgy for extracting lithium, cobalt, nickel, and manganese, aligning with India’s critical minerals security goals. * **Targeted CAPEX Focus:** Future capital allocation will be concentrated solely on adopting hydrometallurgical technology, marking a strategic shift toward higher-value mineral recovery. ## D. Quality Control * **Precision Assurance:** On-site **advanced ICP MS laboratory** enables rigorous testing of critical metal content, ensuring high-purity output and compliance with quality standards. * **Export & Expansion Pipeline:** Ongoing evaluation of expanded recycling capabilities to produce upgraded intermediates for global markets, building on current black mass export initiatives. --- # 6. Regulatory & Compliance Risks ## A. Key Figures * **E-Waste Generation:** **3.2 million tons** current (~80% informal) · **5 million tons** projected by 2030 * **Formal Market Size:** **350,000–450,000 metric tons** estimated formal e-waste volume ## B. EPR Pricing Challenges * **Structural Growth Catalyst:** Formal recycling sector entering an expansion phase driven by E-Waste and Battery Management Rules 2022, with a transformative shift from informal to formal players underway. * **Pricing Discipline:** Company maintains strict adherence to CPCB-mandated minimum EPR pricing, differentiating itself through ethical compliance while peers challenge the regulation. * **Regulatory Tailwinds:** Pending court decision on minimum EPR pricing could solidify fair market conditions; major MNCs are complying, enhancing demand for trusted partners like Namo. * **Competitive Advantage:** Strong brand preference for compliant recyclers, supported by government enforcement trends and Namo’s established track record in EPR credit generation. ## C. Export Approvals * **Black Mass Exports Regulated:** No ban on black mass exports, but prior MOEFCC approval now required—Namo is actively securing permissions. * **Retroactive Compliance:** Company has applied for retroactive approvals for past black mass operations, aligning with newly introduced regulatory norms. ## D. CPCB Requirements * **Compliance as Competitive Edge:** Full adherence to CPCB and state pollution board requirements provides a barrier to entry for new players; market share metrics are based on formal CPCB-reported data. * **ESG Credit Generation:** Company is credit-positive, monetizing metal and potential carbon credits under EPR framework without incurring incremental ESG compliance costs. * **High Approval Confidence:** Expects smooth regulatory clearance for Hyderabad plant, citing proven execution history, listed status, and consistent CPCB compliance. --- # 7. Guidance & Outlook ## A. Key Figures * **Listings Threshold:** **₹700–800 Cr** revenue scale expected in **2 to 5 years** * **EBITDA Margin Target:** **12–15%** current · **13–15%** targeted in 2–3 years (**+200 bps** improvement) * **PAT Margin Outlook:** **8–9%** consolidated · **18–20%** for battery business * **CAPEX Estimate:** **$2–4 Mn** for new hydrometallurgy technology ## B. Revenue Projections * **Ambitious Growth Trajectory:** Positioned for sustained **40–50% CAGR** driven by scalability, diversified clients, and ESG leadership, with current facilities growing at **30–35% annually**. * **Upside Optionality:** Near-term outlook excludes potential from **new technology rollouts**, suggesting embedded growth optionality beyond current projections. * **Milestone-Driven Listing Plan:** Public listing targeted upon reaching **₹700–800 Cr** revenue, expected within 2–5 years, contingent on execution. ## C. Margin Targets * **Margin Expansion Pathway:** EBITDA margins expected to trend upward from **FY27**, supported by full-capacity operations and efficiency gains. * **Near-Term Profitability Inflection:** **Second-half margin improvement** anticipated as the battery plant completes its ramp-up and absorbs start-up costs. * **High-Margin Business Contribution:** Battery recycling to drive profitability, with **PAT margins of 18–20%** expected, lifting consolidated PAT to **8–9%** on scale and mix benefits. ## D. Capacity Ramp-up * **Battery Plant Ramping:** Li-ion facility operational since **July**, with full-scale production and revenue generation expected within **6 months**. * **Hyderabad Expansion on Track:** E-waste plant targeting **H2FY26** commercial launch, with construction completion by **February–March** and regulatory approvals by **31st March**. * **Capacity Utilization Timeline:** Nashik battery waste capacity expected to reach **full utilization by Q1FY28**. * **Focused CAPEX Strategy:** Only **$2–4 Mn** in significant near-term capex planned for hydrometallurgy tech, reflecting capital efficiency.