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1. At a Glance
Horizon Reclaim (India) Ltd. (HRIL) is floating a ₹54.27 crore IPO to raise fresh capital for debt repayment (₹26.70 crore), capex (₹9.43 crore), and working capital (₹6 crore). The company manufactures reclaimed rubber—recycled material salvaged from used tyres and industrial scrap—and has grown revenue 37% year-on-year to ₹50 crore in FY26, with PAT jumping 49% to ₹10.50 crore.
The tension: PAT margins exploded from 3.5% (FY24) to 21.25% (FY26), and ROCE swung from 13% to 25% over the same span. Whether that’s operational efficiency or accounting tailwind remains the central question.
Post-IPO, the company’s debt-to-equity ratio sits at 1.44, among the higher end for a ₹201 crore market-cap business in a fragmented, competitive segment.
The issue opens June 12, closes June 16, and lists on BSE SME on June 19 at a price band of ₹98–₹103 per share.
2. Introduction
Horizon Reclaim (India) Ltd. was incorporated in 2006 and has spent two decades sourcing used rubber—whole tyres, tubes, scrap butyl, tyre peels—and converting it into three product streams: natural rubber reclaim, synthetic rubber reclaim (EPDM and Butyl), and crumb rubber.
The business is B2B, targeting small and medium enterprises and industrial customers across the northwestern region of India. Raw material is sourced domestically from tyre dismantlers, waste collectors, and scrap dealers, plus imports.
The company operates two manufacturing units: Unit I at Saharanpur (in operation), and Unit III at Bhagwanpur, Haridwar (construction complete, commercial ops not yet live). A third facility, Unit II at Gundala in Rajkot, Gujarat, is being built to manufacture pyrolysis oil; structures and reactors are installed.
Promoters Mohit Bajaj and Malika Bajaj hold 95.84% pre-IPO. The IPO will dilute that to 69.89% post-IPO, representing 27% of post-IPO paid-up capital.
3. Business Model: WTF Do They Even Do?
Reclaimed rubber is the business of turning someone else’s rubbish into a raw material. The raw material—old tyres, tubes, scrap—arrives at HRIL’s facility, gets shredded, ground, or processed (depending on the target product), and ships out as Natural Rubber Reclaim (footwear soles, floor mats, tyre base layers), Synthetic Rubber Reclaim (automotive seals, gaskets, hoses, construction profiles), or Crumb Rubber (road construction, sports surfaces, roofing sheets).
The moat, if any, is thin: sourcing (access to scrap supply), manufacturing efficiency (process control, equipment), and customer stickiness (B2B contracts in the northwestern region). The company claims “stringent quality control” and “experienced promoter directors,” standard boilerplate that neither confirms nor denies competitive strength.
The segment is fragmented and heavily price-competitive. The company’s customers are small to medium enterprises that source reclaimed rubber as a cost-effective substitute for virgin material. Inputs are volatile (scrap rubber prices); outputs are commoditized.
The company operates at 81 people as of March 2026. Neither scale nor labour costs suggest a structural advantage.
4. Financials Overview
Figures are consolidated, in ₹ crore.
Metric
FY26 (Mar 31, 2026)
FY25 (Mar 31, 2025)
YoY Growth
Revenue
50.01
36.39
+37.3%
EBITDA
16.32
10.46
+55.9%
PAT
10.50
7.07
+48.5%
EPS (Annualised)
7.37
5.01
+47.1%
For FY24, the company reported ₹20.44 crore revenue and ₹0.71 crore PAT—a 3.5% margin. In FY25, revenue hit ₹36.39 crore and PAT ₹7.07 crore (19.4% margin). In FY26, the figures stand at ₹50.01 crore and ₹10.50 crore (21.0% margin).
The narrative: Revenue has grown consistently, but profitability jumped substantially in FY25 and consolidated further in FY26. The company attributes this to operational leverage and improved product mix. Management has not provided forward guidance on whether these margins are sustainable or cyclical.
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
