Horizon Reclaim Rajkot earns Rs 4.65 crore, posts H1 loss

Horizon Reclaim (India) Limited said its Rajkot unit generated Rs 4.6533 crore of revenue in the half year ended September 30, 2026, but recorded an initial operating loss of Rs 55.32 lakh, primarily because it recognised Rs 80.73 lakh of depreciation after operations began on July 15, 2026.

How did Rajkot perform after starting production?

Rajkot contributed Rs 4.6533 crore of product revenue during the half year ended September 30, 2026, its first reported half-year contribution after commercial operations began on July 15, 2026. The unit recorded an operating loss of Rs 55.32 lakh in that period, which Horizon Reclaim attributed primarily to depreciation on newly capitalised plant and machinery.

Depreciation at Rajkot was Rs 80.73 lakh, exceeding the unit's reported operating loss by Rs 25.41 lakh. The filing identifies the depreciation charge from newly capitalised assets as the primary reason for the initial loss, but it does not disclose Rajkot's production volume, capacity utilisation, product mix, cash operating profit or unit-level margin.

Rajkot subsequently achieved sales of about Rs 4 crore in October 2026, according to Horizon Reclaim's disclosure. This was a single-month sales figure after the July 15 commencement date, rather than a profit measure, and the company did not state whether October sales produced positive operating earnings or whether depreciation remained at the same level.

What changed in Horizon Reclaim's half-year sales and profit?

Horizon Reclaim reported product-sale revenue of Rs 28.1798 crore for the half year ended September 30, 2026, up 28.24% from Rs 21.9737 crore in the corresponding previous period. The company attributed the increase to improved operating performance at its existing Bhagwanpur unit and the start of commercial operations at Rajkot.

Horizon Reclaim reported profit after tax of Rs 3.0898 crore for the half year ended September 30, 2026, compared with Rs 4.5421 crore in the half year ended September 30, 2025. Total depreciation and amortisation expense rose to Rs 1.1511 crore from Rs 41.36 lakh, while finance costs increased to Rs 56.26 lakh from Rs 52.53 lakh.

The company separately identified Rajkot's Rs 80.73 lakh depreciation as a significant factor in the new unit's early profitability. Group revenue growth therefore occurred alongside a lower reported profit after tax, with the filing providing the new plant's depreciation as a disclosed explanation for its initial operating loss.

How did Bhagwanpur's underlying operating performance change?

Bhagwanpur's earnings before interest, tax, depreciation and amortisation, or EBITDA, excluding extended producer responsibility, or EPR, credit revenue, increased to Rs 5.8430 crore in the half year ended September 30, 2026 from Rs 5.0219 crore in the corresponding previous period. Horizon Reclaim said the 16.35% increase reflected enhanced operating performance and better cost efficiency at the established unit.

Bhagwanpur's EBITDA margin, excluding EPR credits, rose to 24.84% from 22.85%, an increase of 1.99 percentage points. The comparison removes EPR credit realisations from both periods to show the operating performance of the manufacturing business without credit revenue.

The distinction is material because Horizon Reclaim recognised Rs 2.9445 crore of EPR credit revenue in the half year ended September 30, 2025, while it realised no EPR credit revenue in the latest half year. The company said it held 25,000 accrued EPR credits, but did not disclose their rupee value, a timetable for realisation or the reason no credits were realised in the current half year.

What capacity plans and funding actions has Horizon Reclaim disclosed?

Horizon Reclaim said Bhagwanpur Unit III is expected to become operational by January 2027, following Rajkot's July 15, 2026 commencement. The company also said it had obtained an import licence for 10,000 units of raw material, which it expects to support sourcing requirements and future production plans.

The filing does not state the raw-material type covered by the 10,000-unit licence, its duration or its expected financial effect. It describes Rajkot, Bhagwanpur Unit III and the import licence as parts of the company's plan to expand manufacturing capability and operational capacity in reclaim rubber and recycling.

Horizon Reclaim listed on the BSE SME platform on June 19, 2026 after a fresh initial public offering of 52,69,200 equity shares at Rs 103 per share. The fresh issue aggregated to Rs 54.27 crore, while net proceeds after estimated offer expenses of Rs 4.7629 crore were Rs 49.5099 crore.

By September 30, 2026, the company had utilised Rs 33.2098 crore of net initial public offering proceeds and had Rs 16.3001 crore remaining. Its disclosed allocations included Rs 26.70 crore for prepayment or repayment of borrowings, Rs 9.43 crore for additional plant and machinery, and Rs 6.8701 crore remaining for general corporate purposes.

The cash-flow statement recorded Rs 9.1776 crore of purchases of property, plant and equipment including capital work-in-progress during the half year ended September 30, 2026. It also showed net repayment of borrowings of Rs 23.2424 crore and Rs 49.5099 crore of proceeds from the issue of shares during the same period.

Conclusion

Horizon Reclaim's half-year disclosure presents two different stages of expansion. Bhagwanpur increased EBITDA excluding EPR credits to Rs 5.8430 crore and lifted its margin to 24.84%, while Rajkot supplied Rs 4.6533 crore of revenue but recorded a Rs 55.32 lakh initial operating loss. The Rs 80.73 lakh depreciation charge was the company's stated primary reason for Rajkot's early loss.

The next disclosed operating milestone is the expected January 2027 start of Bhagwanpur Unit III. Investors can watch whether Rajkot's about Rs 4 crore of October 2026 sales are followed by reported operating profitability, how the 10,000-unit raw-material import licence is used, and how the remaining Rs 16.3001 crore of net initial public offering proceeds is deployed.