Race Ecochain revenue rises 18%, operating profit falls 34%

Race Ecochain Limited reported consolidated revenue from operations of Rs 174.51 crore for the quarter ended September 30, 2026, up 18% from a year earlier, while profit before exceptional items and tax fell 34% to Rs 1.03 crore from Rs 1.55 crore. Higher sales therefore did not translate into higher reported operating profit.

How did Race Ecochain’s September-quarter consolidated results change?

Race Ecochain’s revenue from operations increased to Rs 174.51 crore in the September 2026 quarter from Rs 148.43 crore in the September 2025 quarter. Other income rose to Rs 1.08 crore from Rs 0.38 crore, taking total income to Rs 175.59 crore, compared with Rs 148.81 crore a year earlier. Revenue was lower than Rs 191.06 crore in the preceding quarter ended June 30, 2026.

Profit before exceptional items and tax was Rs 1.03 crore, down from Rs 1.55 crore a year earlier and Rs 1.17 crore in the June 2026 quarter. The year-on-year decline was 34%, while the sequential decline was 13%. Finance costs in the consolidated income statement increased to Rs 2.47 crore from Rs 1.98 crore in the September 2025 quarter.

Race Ecochain reported profit before tax of Rs 1.03 crore for September 2026 because the quarter included no share of profit or loss from associates. In September 2025, profit before tax was Rs 2.87 crore, including Rs 1.32 crore as share of profit from associate companies. Basic and diluted earnings per share, which were not annualised, were Rs 0.36 against Rs 1.72 in the year-earlier quarter.

For the half year ended September 30, 2026, revenue from operations rose 20% to Rs 365.58 crore from Rs 305.16 crore. However, profit before exceptional items and tax declined to Rs 2.20 crore from Rs 2.85 crore, while finance costs increased to Rs 4.93 crore from Rs 3.63 crore. The half-year profit before tax was Rs 2.42 crore, compared with Rs 4.22 crore in the prior-year half.

Which Race Ecochain segments drove revenue and segment results?

Race Ecochain’s Recycle Division was the largest segment, with September-quarter revenue of Rs 169.31 crore, up from Rs 144.35 crore in the prior-year period. This represented nearly all of the group’s Rs 174.51 crore consolidated revenue from operations. Its segment result, measured before exceptional items, tax and interest, declined to Rs 3.25 crore from Rs 3.35 crore despite the higher revenue.

The Biomass Division reported revenue of Rs 4.49 crore in the September 2026 quarter, compared with Rs 1.25 crore a year earlier. Its segment result rose to Rs 0.15 crore from Rs 0.04 crore. The Restore Division moved in the other direction: revenue fell to Rs 0.71 crore from Rs 2.83 crore and the segment reported a loss of Rs 0.27 crore, against a profit of Rs 0.04 crore.

The segment-result subtotal increased to Rs 3.98 crore from Rs 3.81 crore in the September quarter. The segment schedule records finance cost of Rs 2.95 crore, compared with Rs 2.25 crore a year earlier, and profit from ordinary activities before exceptional items and tax of Rs 1.03 crore, down from Rs 1.55 crore. The filing does not provide management’s explanation of specific pricing, cost or operating factors behind the lower profit measure.

For the half year, Recycle Division revenue rose to Rs 353.85 crore from Rs 299.66 crore and its segment result increased to Rs 6.69 crore from Rs 6.13 crore. Biomass revenue was Rs 10.39 crore versus Rs 1.58 crore, while its segment result was Rs 0.39 crore versus Rs 0.05 crore. Restore revenue declined to Rs 1.34 crore from Rs 3.91 crore and its segment result became a Rs 0.25 crore loss, compared with a Rs 0.07 crore profit.

What changed in Race Ecochain’s balance sheet and group structure?

Race Ecochain reported consolidated assets of Rs 302.06 crore as of September 30, 2026, compared with Rs 215.51 crore at March 31, 2026. Non-current assets rose to Rs 118.19 crore from Rs 59.66 crore, including property, plant and equipment of Rs 29.54 crore and capital work-in-progress of Rs 10.09 crore. Current assets stood at Rs 183.87 crore, including trade receivables of Rs 114.56 crore and inventories of Rs 10.49 crore.

Total liabilities were Rs 186.32 crore at September 30, compared with Rs 129.00 crore at March 31. Short-term borrowings increased to Rs 102.25 crore from Rs 88.43 crore, and trade payables other than dues to micro and small enterprises rose to Rs 47.72 crore from Rs 25.81 crore. Shareholders’ funds, including non-controlling interest, were Rs 115.74 crore, up from Rs 86.51 crore.

During the period, Race Ecochain sold 2,10,000 equity shares of Prime Industries Limited, after which Prime Industries ceased to be an associate on July 1, 2026. The company reclassified the holding from investment in an associate to other financial investments and measured it at fair value under Indian Accounting Standard 109. The resulting remeasurement difference was recognised in other comprehensive income, which was Rs 24.60 crore before related tax in the September quarter.

Race Ecochain also acquired 93,379 compulsorily convertible cumulative preference shares on September 7, 2026 at an issue price of Rs 500 per share, for Rs 4.67 crore. The independent auditor said two subsidiaries included in the consolidated results had combined assets of Rs 18.79 crore at September 30, 2026, quarterly revenue of Rs 25.30 crore and a quarterly loss after tax of Rs 0.47 crore. The auditor’s limited-review conclusion, dated November 13, 2026, was not modified.

Conclusion

Race Ecochain’s September 2026 filing shows a divergence between sales growth and reported operating profitability. Revenue rose by Rs 26.08 crore year on year, led by the Recycle Division’s Rs 24.96 crore increase, but its segment result declined by Rs 0.10 crore, Restore recorded a Rs 0.27 crore loss, and profit before exceptional items and tax fell by Rs 0.52 crore.

The next results will show whether Recycle Division segment results recover alongside revenue and whether Restore returns to profit after its first-half Rs 0.25 crore loss. The filing also leaves continuing accounting effects from Prime Industries ceasing to be an associate on July 1, 2026, while the September 7, 2026 preference-share acquisition adds another development to track in subsequent financial statements.