What’s new

• FY26 revenue grew 42% to Rs 141 crore, but net profit plunged 69% to Rs 3.43 crore.
• The profit hit came from a one-time fire loss at subsidiary Samsara and higher depreciation from new plants.
• EBITDA margins compressed to 18.3% as crude-linked TPO pricing created headwinds.

Why it matters

Hi-Green's topline growth is fast, but profitability is being sacrificed for expansion. The fire loss is a one-off, but the margin pressure from crude-linked pricing and new depreciation is a more persistent problem. The company is now betting its future on syngas, but must prove it can scale without destroying more margin.

What we’re watching

• The launch of captive electricity generation from syngas, targeted for weeks from now.
• Whether the new Dhar plant can ramp up to full utilization from the current 70% dip.
• Execution on the syngas bottling revenue target of Rs 4-5 crore in H2 FY27.

The full read

Hi-Green Carbon's FY26 is a split story. Revenue surged 42% to Rs 141 crore as processing volumes of waste tires jumped 48% to over 36,000 MT. But net profit cratered 69% to just Rs 3.43 crore. A one-time fire loss at subsidiary Samsara and depreciation from new plant additions explain the gap. The margin squeeze is real: EBITDA margins fell to 18.3% as crude-linked TPO pricing pressured the business. Management is pointing to the future, with captive electricity generation from syngas expected to begin within weeks and syngas bottling targeted to add Rs 4-5 crore in H2 FY27. The guidance is for 30-40% annual revenue growth and a 20-25% EBITDA margin. The immediate challenge is integrating the new Dhar plant, which will dip utilization to 70%. The open question is whether the syngas revenue can offset the near-term margin dilution from expansion.

Primary source: NSE