Hi-Green Carbon: Powering Growth with Sustainable Recycling and Strategic Expansion

Hi-Green Carbon Limited, a prominent player in India's sustainable waste management sector, recently unveiled its performance for the first half of fiscal year 2026 (H1 FY26). The company, known for its proprietary continuous pyrolysis technology in tyre recycling, reported a consolidated turnover of approximately 69 crore. This performance reflects a robust operational footprint, with both its Rajasthan and Maharashtra plants achieving a healthy 75-76% capacity utilization, processing 17,400 metric tons of waste tires. Despite navigating a challenging market environment marked by falling crude prices and initial overheads from new projects, Hi-Green Carbon demonstrates a clear strategic roadmap for expansion and value creation, reinforcing its commitment to a circular economy.

The company's revenue mix for FY25 highlights its diversified product portfolio. Tyre Pyrolysis Oil (TPO) emerged as the largest revenue driver, contributing 61.62% of the total revenue, followed by Sodium Silicate at 15.48% and Recovered Carbon Black (rCB) at 15.03%. Steel Scrap and other products accounted for the remaining 7.88%. This balanced contribution across multiple value-added products derived from waste tires underscores Hi-Green Carbon's ability to extract maximum value from its recycling process. The management noted that while TPO prices faced pressure due to falling crude and monsoon-related slowdowns, the overall demand for sustainable products like rCB continues to grow, supported by regulatory tailwinds and ESG mandates.

Financial Performance Snapshot (Consolidated - FY25)

Strategic Expansion and Operational Excellence

Hi-Green Carbon is aggressively pursuing capacity expansion and operational enhancements. The third plant in Dhar, Madhya Pradesh, is nearing completion, with 90-95% of the erection work finished. This facility is slated to commence production by mid-January, significantly boosting the company's overall processing capacity. Furthermore, the company has successfully completed R&D for converting waste gas into electricity at its Dhule, Maharashtra plant. With a gas engine ordered and expected soon, this initiative promises zero electricity cost for the Dhule operations and potential revenue from selling surplus power to the state grid. This innovative approach to waste-to-energy conversion exemplifies Hi-Green Carbon's commitment to self-sufficiency and environmental stewardship.

A significant strategic move includes the consolidation of Radhe Renewables' business into Hi-Green Carbon. This transfer of know-how, patents, and intellectual property for gasification and bio-carbon conversion at a token amount allows Hi-Green to execute new projects without additional capital expenditure. This not only streamlines operations but also enhances transparency, addressing investor concerns regarding related-party transactions. The company is also actively working on improving rCB quality and securing IATF certification to penetrate larger customer segments, particularly in the automotive industry, which has a lengthy validation process.

Market Dynamics and Future Outlook

The Indian tyre recycling industry is experiencing a transformative phase, driven by regulatory mandates like Extended Producer Responsibility (EPR) and a growing emphasis on sustainability. Hi-Green Carbon, with its continuous pyrolysis technology, is well-positioned to capitalize on these trends. The management highlighted that the EPR guidelines are strengthening the organized sector by restricting unorganized players and diverting raw materials towards compliant operators. This regulatory push, coupled with increasing demand for recycled products, presents substantial opportunities for Hi-Green Carbon.

Despite the positive outlook, the company acknowledges challenges such as the slow adoption process for rCB by major tire manufacturers and regulatory hurdles for innovative applications like syngas bottling. However, the management's proactive approach, including ongoing R&D with institutions like Manipal University for product quality upgrades and pursuing international certifications like ISCC EU for export markets, demonstrates a forward-looking strategy. The company aims to achieve a 20% operating profit margin for the full year and expects a turnover of approximately 80 crore in the second half of the current fiscal year, driven by new capacity and improved market conditions.

Hi-Green Carbon's H1 FY26 performance and strategic initiatives underscore its journey towards becoming a leader in sustainable waste management. By focusing on capacity expansion, technological innovation, and operational efficiency, the company is not just recycling waste but also creating significant value, aligning its growth with global sustainability goals. The management's transparent communication and disciplined execution provide a confident outlook for its continued success in the evolving green economy.