1. At a Glance – The Recycling Rockstar With a Mood Swing
Eco Recycling Ltd (Ecoreco) is trading at ₹442, sitting on a ₹853 crore market cap, while doing ₹39 crore annual revenue. Yes, read that again slowly. The market is valuing every rupee of sales like it’s coated with recycled gold dust.
Latest quarter (Q3 FY26, Dec 2025) numbers look… emotionally unstable:
- Revenue: ₹5.91 crore (-40% QoQ, -40% YoY)
- PAT: ₹2.05 crore (-60% QoQ)
- OPM: Still a jaw-dropping 59.6%
- ROE: A meme-worthy 84%
- Debt: Practically nothing at ₹6.8 crore
- Working Capital Days: 150 (previously 66 → now fully “gym bulked”)
The stock is down ~48% over 1 year, yet trades at 48.5x P/E and 8.4x book value.
So what is this?
A misunderstood green champion? Or valuation drunk on ESG wine?
Let’s open the recycling bin and see what’s actually inside. ♻️
2. Introduction – India’s First E-Waste Kid, Now a Mid-Cap Drama King
Founded in 2005, Eco Recycling Ltd proudly calls itself India’s first organised e-waste recycler. Fair. Respect. That early-mover badge matters.
But the stock market doesn’t clap for history — it claps for consistency.
Ecoreco’s story is fascinating because it mixes:
- Ultra-high margins
- Government policy tailwinds
- ESG hype
- Tiny revenue base
- And a valuation that assumes everything goes right forever
The company does end-to-end e-waste management — from reverse logistics to shredding your old laptop so badly that even your ex can’t recover data from it.
But here’s the catch:
For a company claiming 31,200 MTPA capacity, the quarterly revenue is ₹5–14 crore range, which means capacity utilisation is still warming up like a diesel car in Ladakh.
So the question isn’t “Is the business legit?”
It is.
The real question is:
Is the valuation recycling future profits that haven’t arrived yet?
3. Business Model – WTF Do They Even Do (Besides Crushing Your Hard Disk)?
Think of Ecoreco as the kabadiwala of the digital age, but with compliance certificates and board meetings.
Core Revenue Engines:
- E-Waste Recycling
- Dismantling, shredding, segregation
- Recovery of gold, silver, copper, aluminium
- High margin because metals don’t negotiate
- Data Destruction
- Mobile shredding vans
- On-site destruction for banks, NBFCs, exchanges
- Uses Blancco-certified software
- This is where trust = pricing power
- Reverse Logistics
- Pan-India collection
- Doorstep pickups
- Integrated with EPR obligations
- IT Asset Disposition (ITAD)
- Corporate end-of-life asset management
- Secure + compliant = sticky clients
- Lamp & Mercury Recycling
- Old-school but mandatory
- Compliance-driven demand
- EPR Credits
- Producers must comply or pay fines
- EPR credits tradable — quiet goldmine
- Book My Junk & Eco-Bins
- Consumer-facing
- Awareness + sourcing pipeline
- Not revenue-heavy yet, but strategic
In short:
Ecoreco doesn’t depend on consumer mood. It depends on regulation.
And that’s both its biggest strength and biggest risk.
4. Financials Overview – Numbers Don’t Lie, But They Do Tease
📊 Quarterly Comparison (₹ Crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 5.91 | 9.92 | 14.42 | -40.4% | -59.0% |
| EBITDA | 3.52 | 6.62 | 7.19 | -46.8% | -51.0% |
| PAT | 2.05 | 4.74 | 5.60 | -56.8% | -63.4% |
| EPS (₹) | 1.02 | 2.53 | 2.97 | -59.7% | -65.6% |
EPS Annualisation
Latest Q3 EPS = ₹1.02
Annualised EPS = Avg(Q1, Q2, Q3) × 4 ≈ ₹9.11 (matches TTM)
Margins are still elite.
Volumes are not.
Why does a company with 70% OPM see revenue swing
