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Noida: Sustainable waste to resource firm Race Eco Chain Limited has seen its Profit After Tax (PAT) decline 36.2% year on year to ₹81 lakh for the quarter ended March 31, 2026 as the company has been facing increasing challenges in its operations due to an increase in raw material prices and higher working capital requirements. This has also resulted in the company seeing a 22.2% decline in operating revenue to ₹108.25 crore even as its EBITDA has increased 13.75% to Rs. 3.06 crore for the same period.
The challenging operational environment also meant that the company has witnessed a decline in the waste processed, from 30,261 Metric Tonnes (MT) of PET waste and biomass in the quarter against 27,621 MT during the same period last year.
“During the period, profitability was impacted primarily due to a significant increase in raw material prices, which increased by approximately 25%. While the company maintained stable margins to ensure competitiveness and customer retention, the increase in input costs could not be fully passed through, resulting in temporary pressure on EBITDA margins. Additionally, higher working capital requirements and investments towards strengthening the operational ecosystem impacted short-term profitability. The company remains focused on improving operational efficiencies, optimizing costs, and enhancing value realization to drive sustainable margin improvement.” the company said in a press release.
Furthermore, Race Eco Chain’s board is now looking to demerge its business segments- plastic packaging waste, biomass briquettes, and recycled products, as it looks to make its operations more efficient and unlock value for each segment. Shareholders will get stocks of two other listed entities besides Race Eco Chain. The board has formed a committee to implement the plan.
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