Namo Ewaste contradicted itself on battery sourcing in the same call
Management first said batteries came mostly from IT, e-commerce and manufacturing OEMs, then said 70% came from auto and 30% from consumer durables — no explanation for the flip.
What's new
- FY26 revenue ₹195 cr (up 29% YoY), PAT ₹14.35 cr (up 70% YoY), EPS ₹6.28.
- Battery plant at Nashik ran at 10% utilization in FY26; targeting 60-70% in FY27.
- Hydrometallurgy pilot due end-CY26; commercial unit (₹60 cr capex) by Q2-Q3 FY27.
Themes from the call
Demand
Battery recycling inflection is anticipated as OEM onboarding scales; Nashik plant utilization targeted at 90%+ from FY28.
Margins
Current consolidated EBITDA margin 12-15% (e-waste and battery); hydrometallurgy integration expected to lift battery segment to 15-17%.
Capital allocation
Hyderabad greenfield (₹20 cr) and Haryana hydrometallurgy (₹60 cr) both self-funded from internal accruals; balance sheet nearly debt-free.
Guidance watch
- Five-year revenue trajectory from ~₹200 cr to ₹1,100-1,200 cr, anchored on 30-40% CAGR through critical minerals processing.
- Battery plant utilization target: 60-70% in FY27, 90%+ from FY28.
Risk flags
- Within-call contradiction on battery sourcing composition — management gave two incompatible breakdowns in the same conversation.
- Informal sector still handles 90% of India's e-waste; company's sourcing advantage relies on corporate contracts that may be less predictable than claimed.
- Hydrometallurgy is unproven at commercial scale for the company; subsidy under National Critical Mineral Mission is performance-linked and uncertain.
Key quotes
-
"We have over 370 OEM clients, mostly in the IT sector, e-commerce companies, or manufacturing companies. They produce a lot of hazardous waste in the form of batteries and e-waste."
— Sanjeev Shrivastava, CEO, Jun 2026 call -
"About 90% of the batteries we are sourcing directly from companies, of which I would say 70% is coming from the automobile sector and 30% from consumer durables."
— Sanjeev Shrivastava, CEO, Jun 2026 call (same call)
The brief
Namo Ewaste's management gave two incompatible versions of battery feedstock in the same earnings call. Early on, they said hazardous battery waste came mainly from IT, e-commerce and manufacturing OEMs. Later, they said corporate battery supply was 70% from automobile and 30% from consumer durables, with no overlap and no explanation. That contradiction matters because the company's hydrometallurgy investment thesis depends on a predictable, high-volume battery supply chain. If management cannot keep its sourcing story straight in a single call, the ₹60 crore capex for critical minerals refining gets harder to underwrite.
The underlying business is growing. FY26 revenue rose 29% to ₹195 crore, PAT jumped 70% to ₹14.35 crore. The Nashik battery plant is only 10% utilized, but management targets 60-70% next year as OEM contracts ramp. The Hyderabad e-waste facility will save ₹7 crore in reverse logistics and open up South India's 22% of e-waste generation. The five-year revenue target of ₹1,100-1,200 crore implies a 30-40% CAGR that hinges on scaling battery volumes and the hydrometallurgy pilot.
Margins could expand if the hydrometallurgy unit works as planned, from current 12-15% in battery to 15-17%. But execution risk is high. The company is moving from basic recycling to complex chemical refining, competing against an informal sector that still controls 90% of the market. Capital allocation looks disciplined, both new facilities are self-funded. But the sourcing contradiction raises a credibility flag that investors cannot ignore.
It won't sink the FY27 growth story. But it makes the five-year aspirational numbers feel less grounded. Management needs to clarify its supply chain breakdown and own the inconsistency before the hydrometallurgy ramp becomes a valuation multiple debate.
Namo Ewaste's growth story is real; the sourcing contradiction is a small crack that deserves an explanation before it widens.