Eco Recycling: How It Makes Money by Turning E-Waste into Useful Resources?

Synopsis: Eco Recycling, with a market capitalization of Rs. 939.75 crore and delivering a 1,163.29 return in 5 years, transforms e-waste into valuable metals and refurbished electronics, earning revenue through recycling, resale, and services while driving sustainable growth in India’s circular economy.

Electronic waste, commonly called e-waste, is one of the fastest-growing waste streams in the world. As consumers and businesses constantly upgrade laptops, phones, servers and other gadgets, mountains of discarded electronics are generated every year. Eco Recycling, an Indian company at the forefront of e-waste management, sees this challenge as both an environmental responsibility and a commercial opportunity. Now the question arises How It Makes Money by Turning E-Waste into Useful Resources?

Eco Recycling Ltd, with a market capitalization of Rs. 939.75 crore, closed at Rs. 487 per equity share, up by 4.88 percent from its previous day’s close price of Rs. 464.35 per equity share.

Eco Recycling Ltd has delivered returns across multiple timeframes, with a 1-month return of 8.97 percent, a 3-month return of -17.88 percent, and a 6-month return of -21.43 percent. The stock has delivered a -45.53 percent return in the past 1 year and in the longer frame of 5 years it has delivered a return of 1,163.29 percent.

Company profile

Eco Recycling is a company that helps safely manage and recycle electronic waste such as old computers, laptops, servers, mobile phones, and other electronic equipment. It handles the entire process for its clients, starting from collecting e-waste from offices or facilities to keeping proper records of each item. The company also takes care of packing, transportation, and reverse logistics, ensuring that discarded electronics are moved safely to authorised recycling centres. A key part of its work is secure data destruction, where all confidential data stored on devices is permanently erased or destroyed so that businesses do not face data-leak risks.

Once the devices reach Eco Recycling’s facilities, the company checks whether any equipment can be reused or refurbished. Items that still have value are repaired, upgraded, and resold, which helps extend the life of electronics and reduces waste. For devices that cannot be reused, Eco Recycling dismantles them and separates different materials such as metals, plastics, glass, and circuit boards. This process is done in a controlled and environmentally compliant manner to prevent pollution and health risks.

Eco Recycling also focuses on recovering valuable and critical metals like copper, aluminium, and precious metals from electronic waste. These recovered materials are supplied back to manufacturers as raw materials, reducing the need for fresh mining and imports. Through this approach, the company supports India’s circular economy goals by turning e-waste into useful resources, protecting the environment, and helping industries meet their material needs in a sustainable way.

How does it earn revenue?

Eco Recycling earns its revenue through multiple streams linked to e-waste management and recycling services. One of its key income sources comes from IT asset disposition services, where companies pay Eco Recycling to collect, manage, and safely dispose of old electronic equipment. This includes charges for secure data destruction, inventory tracking, certification, and compliance with environmental regulations, which are especially important for large corporations and institutions.

Another major source of revenue comes from the refurbishing and resale of usable electronics. Devices such as computers, laptops, and servers that still have functional value are repaired, upgraded, and sold in the secondary market. These refurbished assets fetch higher value than scrap, helping the company improve its overall earnings while also promoting reuse.

Eco Recycling also generates income from the sale of recycled materials. During the recycling process, valuable metals like copper, aluminium, and precious metals are recovered from electronic waste and sold to manufacturers and metal processors. In addition, recycled plastics, glass, and other components are supplied to industries that use them as raw materials. Together, these service fees, resale proceeds, and material recovery sales form the core of Eco Recycling’s revenue model.

In some cases, Ecoreco also earns by providing compliance services related to environmental regulations and recycling strategies, helping organisations meet regulatory requirements while enhancing their sustainability profiles.

Financials

Eco Recycling reported a revenue of Rs. 14.42 crore in Q2FY26, up 12 percent YoY from Rs. 12.87 crore in Q2FY25 and 56 percent QoQ from Rs. 9.24 crore in Q1FY26, reflecting strong sequential growth in its operations. However, EBITDA declined to Rs. 7.19 crore in Q2FY26 from Rs. 9.21 crore in Q2FY25, down 22 percent YoY, though up 42 percent QoQ from Rs. 5.06 crore in Q1FY26. Similarly, profit stood at Rs. 5.6 crore, falling 32 percent YoY from Rs. 8.18 crore in Q2FY25 and 31 percent QoQ from Rs. 8.09 crore in Q1FY26.

Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 29 percent, a profit CAGR of 112 percent, and a price CAGR of 63 percent reflecting its operational performance and market confidence.

A return on equity (ROE) of about 84 percent and a return on capital employed (ROCE) of about 36.8 percent, and debt to equity ratio at 0.07 demonstrate the company’s financial position. The stock is currently trading at a P/E of 45.8x higher as compared to industry P/E of 19.2x.

Future Outlook

The government’s Rs. 1,500 crore incentive under the National Critical Mineral Mission is creating a strong foundation for major investments in e-waste and lithium-ion battery recycling, paving the way for substantial growth prospects.

Eco Recycling has received support from the Ministry of Mines, Government of India, under initiatives aimed at establishing advanced facilities for the recovery of critical minerals from e-waste and secondary resources. This support, which covers both capital and operational expenditure, strengthens the company’s ability to deploy technology-driven recycling processes and expand capacity for high-value material recovery. 

The collaboration aligns with national priorities such as import substitution, circular economy development, and long-term resource security, enabling Eco Recycling to scale its operations while contributing to India’s strategic goals in clean energy, electric mobility, electronics manufacturing, and digital infrastructure. 

Eco Recycling demonstrates how e-waste can be transformed from a disposal problem into a profitable and sustainable business. By combining secure collection, refurbishment, recycling, and material recovery, the company not only generates multiple revenue streams but also supports environmental and national priorities. With government incentives and a growing market for recycled materials, Eco Recycling is well-positioned for continued growth while contributing to a cleaner, more resource-efficient India.

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