Namo Ewaste Management Ltd (NSE: NAMOEWASTE) Q4 2025 Earnings Call dated May. 29, 2025
Corporate Participants:
Rajnish Mishra — Associate
Akshay Jain — Promoter & Managing Director
Sanjeev Kumar Srivastava — Chief Executive Officer
Analysts:
Kaushal Sharma — Analyst
Shaurya Punyani — Analyst
Mohit Bharani — Analyst
Kapil Ahuja — Analyst
Ashish Jain — Individual Investor
Jayaraj Jain — Individual Investor
Ridhi Agarwal — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Namo eWaste Management Limited H2 FY ’25 Results Conference Call Hosted by Ventura Securities Limited. [Operator Instructions]
Please note that this conference is being recorded. Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. I would now like to hand over the floor to Mr. Rajnish from ConfideLeap Partners. Thank you and over to you, sir.
Rajnish Mishra — Associate
Thank you. Good day, ladies and gentlemen. Myself, Rajnish Mishra from ConfideLeap Partners. We represent the Investor Relations for Namo eWaste Management Limited. On behalf of Ventura Securities and ConfideLeap Partners, I warmly welcome you all to Namo eWaste Management Limited H2 FY ’25 earnings conference call. The company is today represented by Mr. Akshay Jain, Promoter and Managing Director; and Mr. Sanjeev Kumar Srivastava, Chief Executive Officer.
I would now like to hand over the call to Mr. Akshay Jain for his opening remarks. Thank you and over to you, sir.
Akshay Jain — Promoter & Managing Director
Thank you. Good evening, everyone. Myself, Akshay Jain, Promoter and Managing Director of Namo eWaste Management Limited. And joining me on this call is Mr. Sanjeev Srivastava, CEO of Namo eWaste. Firstly, on behalf of the entire Namo team, I extend a very warm welcome to all our investors, analysts, and stakeholders joining us today for our H2 FY ’25 earnings conference call. Before we begin, I would like to take a moment to express our gratitude for your continued support and belief in Namo’s journey towards building a sustainable and circular economy for India.
For those who are new to Namo, let me briefly introduce who we are. Namo eWaste Management Limited, established in 2014, is one of India’s leading formal recyclers of electronic waste. We specialize in extracting value from end-of-life electronic products, offering solutions that span e-waste recycling, lithium-ion battery recovery, IT asset disposition, data destruction, and end-to-end EPR compliant services. With over 30,500 plus metric tonnes per annum recycling capacity, a pan-India network of 26 plus collection centers and a strong focus on ESG compliance, Namo is a trusted partner for OEMs, manufacturers and enterprises in need of secure, responsible recycling solutions. We are proud to announce that we have recycled over 70 million kilograms of e-waste as of FY ’25, making a meaningful impact on sustainability and resource recovery. Let me now move on to a brief overview of our H2 FY ’25 financial performance. For the year, FY ’24-’25, we delivered strong revenue growth of 50%, with EBITDA rising 29% and our PAT increasing by 25% on a year-on-year basis. This performance reflects our focus on client diversification, scaling benefits, operational efficiency and the growing demand for ESG compliant solutions in India’s e-waste sector. Our capacity utilization and profitability have continued to improve, supported by our multi-location ramp-up and integrated operations. Our current recycling capacity stands at over 30,500 plus metric tonnes per annum, and we remain on track to scale this to 68,000 metric tonnes per annum by the third quarter of FY ’26, which reinforces our position among India’s largest formal recyclers.
Now let me take a moment to highlight a key regulatory development that is highly relevant for Namo and the broader industry. As for the revised waste management guidelines, all producers, manufacturers and importers, essentially anyone who is placing a product into the market, are now mandated to ensure that after the defined life of the product, minimum of 60% of the sales volume from the previous year must be recycled through a registered recycler. Importantly, starting from financial year 26, this recycling target will increase to 70%, making a significant shift in India’s EPR framework. This is a structural tailwind for Namo, as it compels OEMs and brands to comply with this higher recycling mandates, opening up a massive, centralized opportunity for formal recyclers like us.
With India already being the third-largest generator of e-waste globally, the potential for growth is immense and Namo is well positioned to capture this demand. Our two upcoming plants are designed to fully capitalize on these regulatory shifts and market needs with advanced capabilities for lithium-ion battery recovery and high volume of e-waste processing. I’m also pleased to share that since our listing on the 11th of September 2024, our stock price has consistently traded above the issue price of INR85 with an average of INR187 per share, reflecting the market’s confidence in our business model, execution and long-term growth prospects. This performance places us among the top 10% of premium companies post-listing, aligned with shareholder expectations for long-term sustainable value creation. In the closing, we remain focused on scaling our operations with ESG compliance at the core, expanding our services, offerings, and driving long-term value for our stakeholders. We are confident that the groundwork laid today will translate into sustainable growth and a greater value creation for the years to come. Thank you.
And with this, I would now like to open the floor for questions and answers. Once again, thank you very much for joining this call.
Questions and Answers:
Operator
[Operator Instructions] First question comes from Kaushal Sharma from Equinox Capital Ventures. Please go ahead.
Kaushal Sharma
Hi, sir. Am I audible?
Sanjeev Kumar Srivastava
Please go ahead.
Kaushal Sharma
Yeah. So, very good evening, sir, and congratulations for a good set of numbers. So, my question is on the margin side. I can observe that our gross margin has fallen due to rise in the cost of goods or cost of material. So, what was the reason of dropping the margin? Why is there a rise in the inventories impacting our [Indecipherable] during the year?
Akshay Jain
So, I will take your first question. The decline in EBITDA and PAT margins is primarily attributable to a rise in operational expenses. These include increased logistic costs, expansion related hiring as we are in the process of a robust expansion, investment in R&D, pre-construction expenses for our upcoming Hyderabad facility, and arranging material for the battery plant which is supposed to be operational from next month, which is June ’25 only. It is important to note that the expenses are commensurate with a significant increase in turnover and are strategic in nature to support long-term scalability and geographical expansions. So, our freight costs have more than doubled, which is from INR3.2 crores to 6.33 crores, mainly due to higher procurement from South India. So, as we are expanding our footprints to greater geographies of India, the cost of reverse logistics as are in our business, reverse logistics plays a very important role in the cost factor. So, because of that, that’s the reason why now we are moving to the southern part of India. We are coming up with a facility in Hyderabad in order to mitigate these reverse logistic expenses.
Kaushal Sharma
Okay. And what about increase in the inventory levels, and what is the normalized inventory rate in our industry, and how do we get the reduced level of inventory going forward?
Akshay Jain
Yeah. So, our inventory levels are higher. There are primary reasons for that. The first I would point out is preloading for battery plant operations. As I’ve just mentioned, the new plant, which is of a very huge capacity, is about to be operational, and we have started to buy raw material for that and also for the R&D purposes. And this is a huge project. So, the numbers there are also slightly big. The second reason is bulk corporate discards received during the last quarter. This has been the case in our business, where most of the inventory comes during the last quarter, as we are in the waste management industry and also, which is guided by regulations. So, the last quarter becomes important for the compliance point of view of producers and manufacturers. The third main reason for the inventory levels would be that there is an explanation actually that inventory levels have actually dropped in October-November post-realization of sales. But as I mentioned, the quarter four is again very busy for us, and we get a lot of raw materials coming in. So, during the year, there have been phases where our inventories have been down by almost 20-25% also.
Kaushal Sharma
So, going forward, we are looking at reduced level of inventory, right?
Akshay Jain
Definitely, definitely. We are looking at reduced level of inventories and a better cash flow.
Kaushal Sharma
And, sir, my last question is on our industry. I think that last in the month of May, I heard that most of the producers have filed a writ petition on the high court regarding our EPR prices because it is 2 or 3x higher than the unorganized sector, those who are charging. So, what are your view on this, and how are we seeing this while impacting our business?
Akshay Jain
So, our industry has been in a transition period from 2022, when the new set of e-waste management rules came out in 2022. And that EPR is now applicable to over 130 items, which was just 21 items before the ’22 rules. So, there is a significant increase in the number of items and hence the number of producers has also increased who are under the purview of EPR. So, this has been an opportunity for us that we are trying to capture. But right now, as it is a transition period, so there is a resistance that is coming from the end of producers because for them, it is an added cost. And somehow, the producers, they don’t want to commit that cost for Indian recycling. They are doing, they are spending six, seven times of the average to what they are spending in India, in developed countries. So, this is just, I think, that initial phase where there is resistance. But as you have mentioned, as it is written in the rule, clearly now the government has come out with a minimum pricing formula, which has been challenged by the producers in the court. But since the government has done all the calculations, and they have a reasoning to why they have come out with these minimum prices. So, there is a rationale behind it. And the matter in the court will not stay for much longer for the producers. I think the government is going to come out as a winner in this.
Kaushal Sharma
So could you please provide any update in the last hearing that happened on 16th of May?
Akshay Jain
Yeah, so last hearing, nothing — actually the first case was filed by a couple of producers in which Havells was the industry leader. And then in last two hearings, more people have joined the same petition. So, this is one of the ways by the producers, they are just prolonging the court procedure. And so, last hearing update is that only a couple of more producers have been added to the same petition and the recycler associations have also been a party to the case. This is the current status.
Sanjeev Kumar Srivastava
And Sanjeev here. Just to add on to your question. In the last year, we also have a lot of producers who have already given us a minimum rate. We are a company which believes in ethical recycling, and that’s the reason we have always followed those things. We have let go of some of the businesses which were not coming at a minimum price rate, but at the same time, we are ensuring that all the rules and regulation laid by CPCB are honored and respected by us. So, we are doing it.
Kaushal Sharma
Thank you for answering the question.
Operator
Thank you. Next question comes from Shaurya Punyani from Arjav Partners. Please go ahead.
Shaurya Punyani
Hi. Am I audible?
Akshay Jain
Yes, you are. Please go ahead.
Shaurya Punyani
Sir, what is the amount we have spent for capex in those two new facilities that are coming up?
Akshay Jain
For the new facilities?
Shaurya Punyani
Yeah. Capex, how much amount have we spent?
Akshay Jain
So, what we are spending, the IPO proceeds was about INR11.20 crores for the Nashik facility for lithium-ion battery plant. And I think our expenditure has also increased because of the R&D cost as we have mentioned and also that like we have planned a further value addition to our process, so the entire cost would be around INR15 crores for this plant, out of which INR11.2 crores are coming from the IPO proceeds.
Shaurya Punyani
And what about the Hyderabad plant?
Akshay Jain
For Hyderabad plant, we till now, we have only done our expenditure on acquisition of land, which is about INR5 crores, INR6 crores something, INR6-odd crores, and some expenses, which is pre-establishment, pre-construction expenses that we have already incurred. So, Hyderabad plant, we have a projection of spending about INR15 crores to INR18 crores there also.
Shaurya Punyani
This will be done by Q3, right?
Akshay Jain
This will be finished by Q3, yes. The plant will be operational from Q3.
Shaurya Punyani
And sir, given the big capex that you are doing, so what kind of growth can we expect in this year, next year?
Sanjeev Kumar Srivastava
So, if you look at our past trend, we have been consistently growing by about 50% — 45% to 50% of CAGR. While we can’t really make any forward-looking statement, but we expect this momentum to continue. Plus, of course, little bit of delta can also come from the new facilities.
Shaurya Punyani
And in regarding the margin, do we see any improvement, or will they be under pressure because of the new facility as we expand to that new plant?
Sanjeev Kumar Srivastava
Yeah. So as Akshay mentioned that for this year, major expenses have been towards the logistic cost because we have started procuring a lot of material which is coming from south. So, when we set up a plant in Hyderabad, there is no need for bringing all those assets to either Faridabad or to Nashik. So, there will be improvement on that. Plus, last year, we have got the funds only in the month of September. So, as a result, our interest cost was there for the first seven months. Now, we are using the IPO money for the working capital. So, we expect that our operational efficiency will improve, and the margins will improve from here.
Shaurya Punyani
Okay. So, one final question. Can you provide the breakup of the revenue with respect to e-waste, recycling, refurbishment and the consulting, those three verticals?
Sanjeev Kumar Srivastava
Yeah, sure. So, last year, ’24-’25, so we have done about INR108 crores through the recycling, which constitutes 72%. We have done EPR for close to INR18.5 crores. That is about 12%. And for refurbishment, we have done INR24 crores, which is 16%.
Shaurya Punyani
And is this ratio expected or it will change?
Sanjeev Kumar Srivastava
So, see, on refurbishment, we were expecting, last time we had done close to 12% to 13%, we were expecting it to grow up. So, this is in line with that. Recycling also we were expecting, last year this was close to about 62%. It has improved to 72%. EPR, as I mentioned, that probably we were expecting a little higher, but because of the minimum price coming, and we are not doing business anything less than minimum prices, so we have probably let go of some of the business. Otherwise, this kind of mix is pretty much what we were doing. Though we really want this year refurbishment to go up by another two to three basis point up on percentage terms.
Shaurya Punyani
Okay, sir. Thank you so much.
Sanjeev Kumar Srivastava
You are welcome.
Operator
Thank you. The next question comes from Mohit Bharani from Vijit Global Securities Private Limited. Please go ahead.
Mohit Bharani
Yeah, hi. Is my voice audible?
Akshay Jain
Yes, Mohit, you are. Please go ahead.
Mohit Bharani
Yeah. Hi. Congratulations, Akshay, and Namo team on a good set of numbers.
Akshay Jain
Thank you so much.
Mohit Bharani
So, my first question is regard to the previous one. Out of INR150 crores top line, how much is electronic recycling, how much is service charges and refurbished electronics?
Akshay Jain
Yeah, let me, actually, we have just mentioned it, but let me go through it again for you. Okay. So, out of our INR150 crores top line, we have done INR108 crores through recycling, which is through sale of metals, plastics and the fractions of that are generated during recycling. Our EPR is at INR18.50 crores, which is about 12% of our revenue. So, this is the service income that you are talking about in EPR, and our refurbishment revenue is INR24 crores, which is a jump of 16% from the last year.
Mohit Bharani
Okay. Got it. My second question is, what is the capacity utilization in FY ’25?
Akshay Jain
Yes. So, the overall plant capacity utilization has increased from 35% in H1 to 55% in H2. We are currently working with three plants, Faridabad, Palwal and Nashik, out of which Faridabad is now running at 100% capacity. This has been a first year where we have utilized the entire capacity of our Faridabad plant. Other two plants are operating at 35% and 60% utilization respectively, in which Palwal is operating at 35% capacity. This plant, which is at 15,000 MTPA capacity, we started in ’23 only. So, this is only second year of operation for this plant, and we have utilized 35%. And the Nashik plant has utilized 60% of its capacity. We anticipate further ramp up in the coming quarters, especially with the operationalization of new units.
Mohit Bharani
Okay. Got it. So, my next question is with regards to financials. We have not created tax provision in H1, and the full provision has been created in a second H2. So, why is that so?
Sanjeev Kumar Srivastava
Yeah. Hi Mohit, Sanjeev here. So, actually in the first half year, if you look at it, our PAT was 5.34. So, that time we had taken a view that as per the current guidelines, we are exempted. We are basically allowed to take the tax for the five years in the deferral mode, and charge on a pro-rata basis. So, later on, we took a legal opinion and, in this year, while finalizing the tax, etc., then we were told that only 5% of the capital expenditure can be taken and there are certain areas which are basically permitted if we wanted to take the tax exemption. But that is only towards the marketing and advertising, which in any case was coming about only 50%. So, we thought of not taking any exemption. It is better to be compliant. So, therefore, we provided full tax in this H2. That’s the reason. Otherwise, if you look at it, our PBT is higher in line with our business. In the first half year, we have done INR67 crores. This half year, we have done INR83 crores. And PBT is also higher from 5.34 to 6.34. But just because the tax is higher, therefore, you are seeing a drop on the PAT side.
Mohit Bharani
Right. Correct. So, from now onwards, we will create provision on a half yearly basis, right?
Sanjeev Kumar Srivastava
Yeah, now onwards. Because there was some — at that time, we were very new. So, we had taken some of the expert opinion from some of the competent people, but they had said you can take. But then we actually, out of the INR61 crores for which we raised in IPO, only INR11.20 crores was towards the capital expenditure. 5% only could be allowed. So, when we really studied all these things, we met our auditors, and we took legal opinion from other people. Then we were told all these things. So, we thought that we would not like to be doing anything in contravention to the existing tax guidelines. So, we provided full INR3.3 crores for the full year. And that is the reason I already mentioned that our PAT is looking a little lower than what first half.
Mohit Bharani
Got it. So, my last two questions. One is with regard to borrowing. We have mentioned change in short-term borrowing in cash flow from operation. So, actually, this will lead to negative cash flow from operations. I think so that it will form part of cash flow from financing.
Sanjeev Kumar Srivastava
Can you please repeat your question? I didn’t get it properly.
Mohit Bharani
In our financials, we have mentioned change in short-term borrowing in cash flow from operations, which lead to negative cash flow from operations. So, I think it needs to be mentioned in cash flow from financing.
Sanjeev Kumar Srivastava
Sir, allow me time, I will just get back to you because I’m…
Mohit Bharani
Okay. And last question, what is the percentage of allocation of revenue between H1 and H2 normally in this type of business?
Sanjeev Kumar Srivastava
So, normally, H1 is about 40% and H2 becomes 60%. That’s how it is.
Mohit Bharani
Okay
Akshay Jain
So we are, actually, 25-75 until last-to-last year. Here, that gap has been narrowed down and we are now at 40-60.
Mohit Bharani
Okay.
Akshay Jain
Then in last year, we have done 35-65, and this year 45-55.
Mohit Bharani
So, going forward, it will be maintained in this way or there will be change?
Akshay Jain
Well, looks like currently, yes, it is going in this way only.
Mohit Bharani
Okay. Got it. Thank you.
Sanjeev Kumar Srivastava
So, Mohit, on your previous question, if you look at it, we had INR8 crores of working capital in Namo from Canara Bank and in Techeco also, we have taken facilities. Then we got the working capital through the IPO route. So, we have adjusted this Canara Bank outstanding, and also the Bank of Maharashtra outstanding, which is for Techeco is also revealed. Therefore, you are seeing a difference that INR11 crores has moved to only INR1 crores.
Mohit Bharani
No, no. My question is actually short-term borrowing, change in short-term borrowing [Foreign Speech] Because this will lead to negative cash flow from operation. If you see cash flow from operation on page number 11 of your filing. Okay. Increases or oblique decrease in short-term borrowing.
Sanjeev Kumar Srivastava
So, I have noted it. I will discuss it and come back to you, sir. Will discuss with the auditor. Thanks for bringing it out.
Mohit Bharani
Yeah. Okay.
Operator
Thank you. The next question comes from Kapil Ahuja from Equinox Capital Ventures. Please go ahead.
Kapil Ahuja
Hi, Mr. Akshay and Mr. Sanjeevji. Congratulations on the good set of numbers. But I was really shocked seeing the margin, but you have explained me well regarding the preloading of lithium-ion, raw materials and most of the inventory that you take, the bulk corporate discards that you take in Q4. I need to understand regarding this Nashik plant facility. So, what are we exactly doing in this? We are recycling the batteries, or we are doing the refurbishment of the batteries?
Akshay Jain
Hi, sir. Thank you for joining this call. So, for Nashik, we have been running an e-waste plant of around 10,000 metric tonnes capacity since 2019 there. So, we have just acquired the adjoining land, not acquired, it’s on lease, which is where we have established this lithium-ion recycling plant. Now, this recycling of lithium-ion batteries, it has got two domains, one is refurbishment and restoration of battery cells, where the entire battery is not waste. There are some cells with some IR still left, the power left, and that can be restored through a whole refurbishment procedure. Now, what cannot be restored or refurbished, that is put through shredding operations for the creation of black mass, which leads to the extraction of lithium, cobalt, and other rare earth metals, as you might be aware of. So, the entire operations for battery, I think what we are forecasting is about 20% to 30 % refurbishment and 70% from the shredding and creation of black mass.
Kapil Ahuja
Okay, so we are just doing the black mass, not further going into mining of this cobalt from it?
Akshay Jain
Not right now. And also one of the key factors is that if we get into the refining of those rare earth metals, the capex as per the global average, because globally there are only 10 or maybe 12 success stories around the world who have been leading companies in this field. And for them, the capex has been in excess $0.5 billion. So, definitely, we are not prepared for that risk. So, what we are doing right now is to be able to use supply to these refineries the raw material and the black mass that we are going to produce is going to be of the highest quality standards.
Kapil Ahuja
So, who will be the users of this black mass? Who are generally the users?
Akshay Jain
We have to export it. There are solutions in India, but those are not too efficient and especially on a broader scale because there is a laboratory scale where these things can be proven theoretically. But if you want, if you put it to, on an industrial scale, their highest efficiency is required because we are dealing in PPMs of these rare earth metals. So, you lose 1% in your process efficiency and the ultimate loss could be very big. So, right now, we are looking to export it to the top global players, that could be China or Taiwan, and they are among the top three in the world.
Kapil Ahuja
So, our capacity of this black mass would be how much?
Akshay Jain
We have a 7,000 metric tonnes per annum capacity for black mass, just black mass and further 5,000 for refurbishment.
Kapil Ahuja
7,000 plus 5,000, so yes, out of the in this size, 7,000 we would be doing capacity utilization in first year. How much around we are looking at?
Akshay Jain
We are looking at minimum 35%.
Kapil Ahuja
35% and/or in this 35% revenue potential will be how much?
Akshay Jain
For?
Kapil Ahuja
In this for the 35% capacity utilization, the revenue potential and the margins would be how much?
Akshay Jain
The revenue potential-the margins are going to be somewhere around-the gross margins in this field is about 18% to 25% and the around 3000, 2500. This would result in a revenue of around INR80 crores to 100 crores.
Sanjeev Kumar Srivastava
Yeah.
Kapil Ahuja
INR80 crores to INR100 crores.
Akshay Jain
Yes
Kapil Ahuja
Okay. So, there will be little jump in revenue. We are hoping. And how will we are getting these old batteries?
Sanjeev Kumar Srivastava
Yeah.
Kapil Ahuja
Do we have a direct tie-ups with the automakers or from whom we are collecting these old batteries? Lithium-ion batteries?
Akshay Jain
We have tie-ups and also, we are creating more and more sources now, that’s one of the primary reasons for setting up this unit in Maharashtra. 20% of the battery capacity of India is in Maharashtra state. So, yes, we are looking at B2B tie ups and also we are procuring from the local market, this because we also have EPR applicable on this material also.
Kapil Ahuja
Okay. So, we can have a direct tie-up with MG or the Tata of the world for this?
Akshay Jain
Yes. Tata Motors, LG, Ola Electric, MG, and all the other major automobile players.
Kapil Ahuja
Who are the big companies in this field in India? Who are they converting these old batteries into black mass?
Akshay Jain
See, to take a few names, it would be Attero, Lohum, and Rubamin.
Kapil Ahuja
Okay. So, there is not much competition? There is enough competition in this, or is it a saturated market? Can you explain or give me a little insight?
Akshay Jain
I would say there’s lot of room yet because generation is really high, and there are 14 formal players right now in the country.
Kapil Ahuja
Okay. So, the Lohum and Attero are doing refurbishment also?
Akshay Jain
Yes. Let me have a look here.
Sanjeev Kumar Srivastava
Yes. And sir, also on the marketing side because this battery business is going to be a complementary business for us. We already handle lot of e-waste, which comes with the batteries, right? So, until now, we had been depending upon our downstream vendors. So, this is going to be a complementary business for us. That’s the reason we are venturing into it.
Kapil Ahuja
Oh, great. That would be good. So, each and every battery you will be able to do, of electronics also, the small batteries that we get here, those are attached to the mobile phones, so you will be able to refurbish or recycle into black mass?
Akshay Jain
Yeah. Anything which is the lithium-ion batteries have got different classifications, cobalt based batteries, manganese based, nickel based. So, that has further bifurcation, but we are equipped to do all of that. It is not like that different type of methods are used. It’s just one method which is used for entire these batteries.
Kapil Ahuja
Okay. Thank you. That’s all from my side. You have explained well and best of luck.
Akshay Jain
Thank you so much. You’re very welcome.
Operator
Thank you. The next question comes from Ashish Jain, an individual investor. Please go ahead.
Ashish Jain
Hi, team. Congratulations on the numbers. I have two questions basically, one is around, so when you supply these materials to these different companies, is there also a possibility of refining them going forward in-house, not specifically black mass, but something else which would give us improvement in margins? Any thoughts on that?
Akshay Jain
Yes, there could be value addition, but that value additions are feasible on the scale. So, because as we are dealing in metals, what we are extracting out of recycling is metals. So, the processing and reprocessing of metals is a different altogether a different business model. But, yes, firstly, in my experience, I have visited many recyclers outside India. And of course, I know what is happening in and around India. So, normally, e-waste recyclers don’t get into adding further values to the basic raw material. So, our job is to provide clean raw material for the foundries and in which there is no real scope on a small scale for any further value addition. As the scale grows in future, yes, there could be a possibility and especially with the producers and government focus on reusing the recycling fractions for manufacturing. This is the whole circular economy model that is being pitched by the government. So, I think, yes, in future, that could be one of the things we can look into.
Ashish Jain
Got it. Another question is in terms of like, so there are different types of materials or rather end of life products that can be recycled. So, what is the maximum, what are the products that we recycle the most? Is it larger products, as a consumer electronics and stuff like that. So, any breakup on that?
Akshay Jain
We are mostly doing consumer electronics, which includes your small appliances, kitchen appliances, large appliances, which is air conditioner, refrigerator, washing machines, and then mobile phone and accessories, so mostly related to consumers, which is about 70%, 80% maybe we are dealing in these products.
Ashish Jain
Okay. And a related question to this, so there would be a lot of plastics, and you mentioned that it’s like metals that are recycled the most. So, what happens to those plastics? Do they have any value, or what happens again to those things?
Akshay Jain
Absolutely. There are so many different types of plastic which are ranging from probably INR10 to over INR100. So, what we are doing currently is we extract plastic from different electronic devices, and then we categorically segregate it, shred it, for the size reduction, and then send it to a plastic — sell it to a plastic recycler. This way, we are able to get maximum value out of the different plastics that we generate.
Ashish Jain
Okay. And I have just one more last question. So, because of these changes in the price of credit, I heard it from a lot of companies that they have been trying to create a backlog and not been trying to sell their credits and betting that there’s going to be a price hike in future. Has our company done something of that type as well, or what’s your point of view on this?
Akshay Jain
No. So, firstly, we are not a EPR dependent company as such. We have a very well diversified revenue, which is coming from three different revenue models. So, we have not created a situation for ourselves where we have been excessive recycling and then waiting for our credits to go into the market. We have enough demand for the credits that we generate. But the only thing is that we only deal with over minimum prices. So, we are not making any deals. We are not providing any credits for less than any minimum prices. So, in our case, we, as such, don’t have any credit inventory. So, yeah.
Ashish Jain
So that means basically, so whatever the price has been decided by the government or CPCB for that matter, we are already above that price or at least in that range.
Akshay Jain
We are either above that price or minimum at that price.
Ashish Jain
Okay. Got it. Thank you and wish you luck for the next upcoming quarter, many years.
Akshay Jain
Thank you so much.
Operator
[Operator Instructions] The next question comes from Jayaraj Jain, an individual investor. Please go ahead.
Jayaraj Jain
Hello?
Sanjeev Kumar Srivastava
Yes. Please go ahead, sir.
Akshay Jain
Yes. Hi.
Sanjeev Kumar Srivastava
Yes, you are.
Jayaraj Jain
Hello, am I audible, sir?
Akshay Jain
Yes. You are. Please go ahead.
Jayaraj Jain
Yeah. Congratulations for a good set of numbers. So, my first question is like, what will be your capacity utilization for FY ’25 at your like 68,000 metric tonnes plant and what will be the expected utilization post-Nashik ramp up?
Akshay Jain
So, as we said that last year, we had improved from 35% to 55% of capex. And with the growing demand, we already covered this year 70% of the capacity would come from the producers. India is already the third largest generator of e-waste. In a normal course, this industry is going by 10% to 12% on CAGR tonnes. We expect that this year, our utilization would further probably get scaled up from 55% to maybe 65%, 70%.
Jayaraj Jain
Okay. Thank you.
Akshay Jain
Yeah.
Jayaraj Jain
And once the operation will be started in Q1 FY ’26, so what can we expect your annual throughout on this?
Sanjeev Kumar Srivastava
So, this we already answered, I think. Akshay just now said that this plant is going to be commissioned next month, the lithium-ion plant. And I think we will get close to about seven to eight months of business in the next year. And we have, even if we’re conservative, take about 35% of utilization from this plant. We are looking at about INR60 crores, INR70 crores addition in revenue through the battery. That is the explanation, yeah.
Jayaraj Jain
Okay. Can you tell me like what was the total e-waste collected in FY ’25 versus actual processing? And what percentage of collected material is used for reusable and refurbished purpose?
Sanjeev Kumar Srivastava
So, we have said that we have given this data that refurbishment what we did is 16%, rest all we recycle. So, out of this INR150 crores to INR149 crores of revenue, INR34 crores is a refurbishment value. So, which is we have refurbished, rest all recycled. That also includes the EPR income of 18.50. So, recycling, if you look at it is INR108 crores, which is almost 70%.
Jayaraj Jain
Okay. Like my last question is there are over 500 formal recycle license in India. So, what will be the barrier to entry in this recycling segment as a new player and any industry consolidation trend you see?
Akshay Jain
See, the entry to barrier is probably raw material sourcing. That’s the biggest challenge in the business. As you can see, our strategy also that we are trying to reach out to maximum places. We have a facility in West of India. We’re coming out with a facility in south of India. So, the challenge is not really about the expansion of current capacities. It’s always about the raw material sourcing that has to be done. This is something that is generated on the ground and to bring it into the mainstream and to the factories is a serious job.
Jayaraj Jain
Okay. Thank you for answering my question. Thank you so much.
Operator
Thank you. The next question comes from Ridhi Agarwal, an individual investor. Please go ahead.
Ridhi Agarwal
Hello. Am I audible?
Akshay Jain
Yeah. Hi, Ridhi. We can hear you. Please go ahead.
Ridhi Agarwal
Yeah. Pardon me, I just lost you in between. So, I have a couple of questions. My first question would be first, as I was just comparing your margins quarterly every half yearly, so we achieved the 13% margins in FY ’23. Then we went down to 10% and then this half yearly we achieved 8%. So, my major concern is why this is dropping? And can you just give me a sustainable range, which can we expect in the future and the reason for the drop?
Sanjeev Kumar Srivastava
Ridhi, I think there’s some difference in the numbers. Our PAT margin for financial year ’23 was 4.13%. And then…
Ridhi Agarwal
I’m sorry to interrupt. I’m. This is I’m talking about EBITDA margin.
Akshay Jain
EBITDA margins. Yeah, so you spoke PAT that’s why I got confused. So, EBITDA margin in ’23 we were at 6.61% and then in financial year ’24 our EBITDA margin went up to 11.07%. Currently, we have EBITDA margin of 9.85% which is pretty much in line, right. If you look at it, we already explained that because of tax provisions and also because in the first half, we did not provide the rate. And I already explained the reason why we did so. But later on, we got the advices and the legal opinions, and we had to provide for that reason in the second half, we provided for INR3.22 crores of tax provision. But because of that the PAT has slightly come down. But if you look at it consistently over the last three years, if you look at it from 6.61% even with this second half year where we had to do the bulk of the provision, it has been around 9.85%. So, we will further improve on it. As I told that logistically we are setting up a plant in the south, and our bulk of procurement is actually from south, so the logistic cost will be much lower. Also, I mentioned that because we have got the working capital, so the interest cost will also come down. Further, we are in the process of ramping up our operational efficiency. So, all these put together, we see EBITDA margin only improving from here. Current level is 9.85%. We might be probably going to 12%, 12.5%.
Ridhi Agarwal
Sorry. What are your guidance for the margin, 11%, 12%?
Sanjeev Kumar Srivastava
So, I cannot give any guidance, but I told you the reason which will ensure that the EBITDA margins are improved. It’s obvious. See, if you look at it, while we are comparing April to April last year, the logistic cost was INR3.22 crores. This year the revenue has gone up by 50%, a lot of procurement has happened from south. So, as a consequence, our logistic cost has gone up from INR3.2 crores to INR6.2 crores, correct? So, what remedies we are doing? We are already setting up a plant in south so that we can bring down our logistic cost and go for more revenues.
Ridhi Agarwal
I got it. Thank you for a detailed answer. My second question would be, sir, on the Hyderabad plant. So, last concall you mentioned that you would be targeting a 15,000 metric tonnes plant, and then it increased to 25,000 metric tonnes this quarter. So, I want to know the reasons behind this increase. Are we expecting a good opportunity here and how?
Sanjeev Kumar Srivastava
Yeah, I am glad that you are really looking at the numbers through a microscope. But I am glad to answer it also. So, in Hyderabad, we first acquired two acres of land, which we already paid for. Now the 0.5 acre land is also available to us, which we are procuring. So, as a consequence, earlier, we had thought that we’ll make a plant for 15,000 tonnes. So, now because we are taking additional land of 0.5 acre, so we are now trying to make a plant for 25,000 metric tonnes.
Ridhi Agarwal
Okay. Because of the availability of more land, you have…
Sanjeev Kumar Srivastava
Yeah, adjacent land was available.
Ridhi Agarwal
Okay. So, if I missed it between the concall, so what is the planned — the plant is INR15 crores to INR18 crores project effect for this plant. How are you going to fund it?
Sanjeev Kumar Srivastava
So already the land is already been, as I said, on the last call also, majority of it would come from internal accruals. We do have a land in Ahmedabad as well, so which we are in the process of offloading. So, a lot of funds, whatever you are getting, you are going to be using it. But there is internal accruals. If you look at our capital reserves, there’s enough money for us to do a justifiable investment. I just take that bulk of the procurement is happening from south now. So, it makes more sense to put up the plant facility and bring about more operational efficiency in the system.
Ridhi Agarwal
Fair enough, fair enough. So, we would not be expecting an increase in debt in coming years, or are you planning for that?
Sanjeev Kumar Srivastava
No, no, we are not. We are not.
Ridhi Agarwal
We are not planning. Okay.
Sanjeev Kumar Srivastava
So in that just to let you know, that till ’23, Namo used to always continue to be the cash rich company. For the first time in ’23, when we got bulk orders, we went for funding. And now with the IPO money coming in, we have again been independent. There’s no debt.
Ridhi Agarwal
Got it. Many congratulations for that, sir. It’s a big achievement.
Sanjeev Kumar Srivastava
Thank you so much.
Ridhi Agarwal
My last question, I would just ask my last question, and then I will just get back into the queue. It was your other income. As we saw INR1 crores is very small amount if we see it like that, but 840% increase if we compare it to FY ’24. So, it’s a major chunk. So, is it [Indecipherable]? And can you just brief me about the process of this?
Sanjeev Kumar Srivastava
Again, I will compliment you for your detailed analysis because you have really read the numbers, that’s my compliment to you. The difference is that when we got the IPO money, so the surplus money, because the money was to be required in stages. So, we kept on putting this money in FDRs, right? So, we got about close to INR67 lakhs of interest income also, which you are seeing is a big jump of 800% in the other income. But, of course, the money is being used, right? So, money we got in September, some money has been spent, money is being spent in stages. For that reason, we have got interest income. Even today, we still have — you must be seeing our cash and bank balance INR11 crores. Out of this, INR10 crores is basically in FDR, which will mature, and then you again use it as per the needs.
Ridhi Agarwal
So how much total of IPO plus this interest income is left right now in your current balance sheet?
Sanjeev Kumar Srivastava
This is about INR10.5 crores.
Ridhi Agarwal
INR10.5 crores we have. Okay. That’s a good number for us for the capex.
Akshay Jain
Yeah.
Ridhi Agarwal
Okay. I will join the queue. Thank you so much for answering.
Sanjeev Kumar Srivastava
Thank you so much. Thank you.
Operator
Thank you. We have a follow-up question from Kaushal Sharma from Equinox Capital Ventures.
Kaushal Sharma
Yeah. Hi, ma’am. I have a follow-up question. So, my question is on the industry side, in case of your lithium-ion batteries plant. So, do we source our batteries from the international market as well like scrap and all. Because in India, there is a gradual shift on the electronic side, and there is some slowdown and on an average the battery life is around five to eight years. So, do we have any opportunities to import the scrap of the batteries from the international market as well?
Akshay Jain
Yes. We are looking to import. We are going to apply for the import license. It is a regulated business. We cannot get the scrap batteries to India, but the cells for refurbishment can be procured, and we are going to apply for the import license once we have our final authorization for the unit.
Kaushal Sharma
Okay. So, the complete battery we cannot import it. The import like cells only we can import.
Akshay Jain
The cells cannot import, scrap batteries, which is no use for just for black mass and shredding purposes we cannot import it, but the cells can be imported.
Kaushal Sharma
Okay. The cells can be imported, right. And which are the major countries are we looking for?
Akshay Jain
Yeah. But that needs special license from the authorities, from the ministry. So, it’s not something that anybody can do. You need to have a proper battery recycling plant for getting that license.
Kaushal Sharma
When do we expect this license to come in our company?
Akshay Jain
Maybe 60 days.
Kaushal Sharma
Within 60 days. And which countries are we targeting?
Akshay Jain
We are targeting Europe, U.K., and U.S. primarily.
Kaushal Sharma
U.K. and U.S. Okay. So thank you very much for answering the question.
Akshay Jain
Thank you.
Operator
Thank you. We have a last follow-up question from Ridhi Agarwal, an individual investor. Please go ahead.
Ridhi Agarwal
Yes. Thank you for the opportunity again. So, I just joined the queue because of many questions. So, it’s a follow-up question. You said that major challenge the company is facing is raw material sourcing. So, what measures we are taking to mitigate that? You told me that you are procuring from south also. But other than that, how you are just mitigating the barrier in this industry?
Akshay Jain
See, the only thing that we can do is probably reach out to bigger geographies. This is a urban material. This material flows from urban to rural centers. So, we are trying to get our units to the maximum urbanized areas. So, that’s why Hyderabad is probably the fastest upcoming city of India. It is high-tech modern and it’s going to be densely populated in a few years. So, our continuous effort is to reach out to the maximum sources of e-waste generation, which are the urban centers of India. That’s why we need to have stronger presence in the bigger cities where more urban population is living. That’s the intent for us going forward.
Ridhi Agarwal
Okay, got it. So, what would be our current market share?
Akshay Jain
Ma’am, current market share is something I cannot quantify it because as you know as we speak, 85% of India’s e-waste is still handled by the informal sector. But I would say out of the formal recycling mechanism, our market share would be anything close to 3%, but I cannot give you references for getting to this number. But this is a rough assumption that our market share is only about 2.5% to 3%.
Ridhi Agarwal
Yeah. Fair enough. Actually, my follow-up question was actually that on last con-call, we had a target and vision of doubling the market share in next two years. So, how are you planning that? And are you on track for this?
Sanjeev Kumar Srivastava
If you look at it, I said that from the last year, 35% of capacity utilization, we have gone to 55%. That’s another way of looking at how the number is, right? So, we are moving in both directions. We are already going through an expansion strategy. We are strengthening our network. We are already ensuring that our capacities are fully leveraged for revenues. So, all these processes are on. I’m sure that two years is a good timeframe to really look at the double the number.
Ridhi Agarwal
Definitely the margins and all the results are very impressive, and your extension plans are very good. My last question would be that just because our Li Ion battery segment is just operational in the next quarter. Can you set some target clients, your current target clients and any orders you have in hand right now?
Sanjeev Kumar Srivastava
So, I just said that this happens to be a complementary business of us. We have got a lot of batteries which are coming in anyway, which is a part of the various consumer products, which we recycle. But already we have started building contacts and there are two, three major EV players for whom we are really doing the e-waste one. So, at the moment we have already got the CTO. We are waiting for a formal authorization which is expected in next 15 odd days, where the talks are already gone. We are already hiring our business development team for that. So, I think everything should formalize in next probably 60 odd days. That is the reason we are committing about seven odd months of business in this year from this plant.
Ridhi Agarwal
Okay. That’s it from my side. All the best for your future. Thank you so much.
Akshay Jain
Thank you so much. Yeah.
Operator
Thank you. Now I hand over the floor to the management for closing comments.
Sanjeev Kumar Srivastava
I would just like to extend thanks to all the investor and analysts who all have attended this call, and I’m glad that people have so much of interest about this growing business. eWaste continues to be a challenge for everyone. I think as a individual, we really owe it that we need to ensure that our gadgets, whatever we discard is responsibly recycling, keeping all the environment things intact. So, once again, thank you so much for joining this call. It was really a pleasure to answer all the questions. Hopefully, we have done a decent job in terms of answering all your queries. Thank you very much.
Operator
Thank you, sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation. You may disconnect your lines now. Thank you and have a good day.