Press Release

Press Release

October 13, 2026

EVERGREEN RECYCLEKARO (INDIA) LIMITED
Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	43.00	ACUITE BBB \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	11.00	-	ACUITE A3+ \| Assigned	RBI
Total Outstanding	0.00	54.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuite has assigned its long-term rating of ‘ACUITÉ BBB' (read as ACUITE Triple B) and short-term rating of ‘ACUITÉ A3+’ (read as ACUITE three plus) on Rs. 54.00 Cr. bank facilities of Evergreen Recyclekaro (India) Limited (ERIL). The outlook is ‘Stable’.

Rationale for Rating
The rating assigned factors in the long operational track record of the group and extensive promoters experience. The rating also factors in the improving scale of operations and comfortable profitability along with healthy financial risk profile, marked by healthy net worth, low gearing and comfortable coverage indicators. The rating also takes note of recent acquisitions by ERIL of Shyam Oxides Private Limited (SOPL), MBB Recycle Destiny Private Limited (MBB) and Mahalakshmi Metal Works and Alloys Private Limited (MMWAPL) which is expected to strengthen the business risk profile of the group while sustaining the healthy financial risk profile. However, the rating is constrained by the group’s intensive working capital operations, supplier and customer concentration risk, susceptibility of profitability to raw material price volatility and risk associated with sourcing of recyclable material.

About the Company

Navi Mumbai based, Evergreen Recyclekaro (India) Limited (ERIL) was incorporated on December 20, 2010. The company is engaged in the sustainable recycling and urban mining of e-waste and lithium-ion batteries, focusing on the recovery of critical technology metals and valuable resources from end-of-life electronic products and battery waste. Through its recycling and resource recovery operations, the company contributes to environmental sustainability and the circular economy by enabling the reuse of critical materials. The company is managed by a board comprising Mr. Rupesh Chitte Dattu, Mr. Rajesh Ramloutan Gupta, Mr. Rajiv Bhupendra Sanghvi, Mr. Sanjay Kumar Lalit, Mr. Venugopal Prasad Rao, and Ms. Anuradda Ganesh. The company has established a pan-India presence through its recycling facilities, processing centres, and extensive collection network across the country.

About the Group

Evergreen Lithium Recycling Private Limited (ELRPL) was incorporated on November 26,2019 and is a wholly owned subsidiary of Evergreen Recyclekaro (India) Limited. The company is engaged in recycling of lithium-ion batteries and battery manufacturing scrap, with a focus on recovery of critical metals including lithium, cobalt, nickel and manganese. The company operates its recycling facility at Wada, Maharashtra.

Evergreen Vaahan Recycling Private Limited (EVRPL) was incorporated on March 23,2023 and is a wholly owned subsidiary of Evergreen Recyclekaro (India) Limited. The company is engaged in recycling of automotive waste, particularly spent catalytic converters, with a focus on recovery of platinum group metals including platinum, palladium and rhodium. The company is currently developing this business as an additional vertical for the group and had not commenced significant commercial operations during FY25.

Shyam Oxides Private Limited (SOPL) is a subsidiary of Evergreen Recyclekaro (India) Limited, acquired on March 31, 2026 wherein ERIL holds a controlling stake of 51.03 per cent. The company is engaged in the manufacturing of lead oxide, which is primarily used in pigment and stabilizer industry. The company operates in the downstream segment of the lead recycling value chain, with lead ingots serving as a key input for its operations. The company has its manufacturing facility at Vapi, Gujarat.

MBB Recycle Destiny Private Limited (MBB) is a subsidiary of Evergreen Recyclekaro (India) Limited, acquired on March 31, 2026 wherein ERIL holds a controlling stake of 51 per cent. The company is engaged in the collection of recyclable material from domestic and commercial establishments. The company operates in the last-mile collection segment and has its operations in Hyderabad, Telangana. The company has its own collection fleet and supports sourcing of recyclable material for recycling operations.

Mahalakshmi Metal Works and Alloys Private Limited (MMWAPL) is a subsidiary of Evergreen Recyclekaro (India) Limited, acquired on August 1, 2026 wherein ERIL holds a controlling stake of around 51 per cent. The company is engaged in recycling lead-acid batteries, with a focus on recovery of lead and production of lead ingots. The company operates its recycling facility at Wada, Maharashtra, in proximity to the group's existing recycling operations.

Unsupported Rating

Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuité has considered the consolidated financials of Evergreen Recyclekaro (India) Limited (ERIL), Evergreen Lithium Recycling Private Limited (ELRPL), Evergreen Vaahan Recycling Private Limited (EVRPL), Sham Oxides Private Limited and MBB Recycle Destiny Private Limited to arrive at the rating. The consolidation is in the view of ELRPL and EVRPL being wholly owned subsidiary of ERIL. The ERIL has recently acquired controlling stakes in Shyam Oxides Private Limited (SOPL), MBB Recycle Destiny Private Limited (MBB) and Mahalakshmi Metal Works and Alloys Private Limited (MMWAPL). SOPL and MBB were acquired on March 31,2026, accordingly, their balance sheet positions have been considered in the consolidated financials as on March 31, 2026(Prov.), while their financial performance will be reflected in the consolidated statement of profit and loss from FY27 onwards. MMWAPL was acquired on August 1, 2026 and, accordingly, its financial position and financial performance will be consolidated from FY27 onwards.

Key Rating Drivers

Strengths

Experienced management and long operational track record

ERIL benefits from an experienced management team led by Mr. Rajesh Gupta, Founder and Managing Director, who has over 15 years of experience in the recycling industry. Incorporated in 2010, the group initially commenced operations with paper waste recycling and subsequently expanded into e-waste recycling in 2013. Over the years, the group has progressively diversified into precious metal recovery in 2018, lithium-ion battery recycling in 2022 and catalytic converter recycling through its Vahaan facility in Noida. The group is engaged in the recycling of e-waste, lithium-ion batteries automotive end-of-life waste, catalytic converters and other industrial waste streams, with capabilities spanning collection, segregation, material recovery, refining and recovery of critical and precious metals. The group has also undertaken significant investments in processing infrastructure and technology, resulting in expansion of its recycling capacities and capabilities across multiple waste streams. Acuité believes that the management’s extensive experience, supported by the group’s established operating track record and diversified recycling capabilities, will continue to support the business risk profile over the medium term.

Improving scale of operations while maintaining comfortable profitability

ERIL, on a consolidated basis, reported operating income of Rs. 432.49 Cr. in FY26 (Prov.) (FY25: Rs. 218.78 Cr.; FY24: Rs. 125.30 Cr.). The growth in FY26 was driven by higher contribution from lithium-ion recycling, favourable product mix and higher realisations across certain key product categories. In particular, revenue from lithium-ion and allied products increased to Rs. 95.47 Cr. in FY26 (Prov.) (FY25: Rs. 39.84 Cr.), while revenue from copper scrap increased to Rs. 154.70 Cr. from Rs. 82.88 Cr. during the same period. The group derives revenue from multiple recycling streams, including e-waste, lithium-ion batteries, copper, nickel, precious metals and other industrial scrap. EBITDA stood at Rs. 59.21 Cr. in FY26 (Prov.) (FY25: Rs. 35.94 Cr.; FY24: Rs. 18.31 Cr.), with EBITDA margin moderating to 13.69 per cent in FY26 (Prov.) (FY25: 16.43 per cent; FY24: 14.61 per cent), primarily due to the change in product mix and varying realisations and processing costs across recycling streams, along with higher raw material costs. PAT stood at Rs. 39.52 Cr. in FY26 (Prov.) (FY25: Rs. 22.28 Cr.), supported by higher operating profitability. Accordingly, PAT margin stood at 9.14 per cent in FY26 (Prov.) (FY25: 10.18 per cent; FY24: 7.51 per cent). Further, the group has maintained the growth momentum during 5M FY27, with revenue of around Rs. 223 Cr. as against Rs. 139.77 Cr. during 5M FY26.

During FY26, ERIL also acquired controlling stakes in Shyam Oxides Private Limited and MBB Recycle Destiny Private Limited, while subsequently acquiring a controlling stake in Mahalakshmi Metal Works and Alloys Private Limited in FY27. The acquisitions are expected to strengthen the company's presence across the recycling value chain, with MBB Recycle Destiny Private Limited supporting last-mile collection of recyclable material, Mahalakshmi Metal Works and Alloys Private Limited providing exposure to lead-acid battery recycling, and Shyam Oxides Private Limited providing downstream lead oxide manufacturing capabilities. Management expects FY27 revenue to be in the range of Rs. 700-750 Cr., supported by the ramp-up of expanded recycling capacities and higher contribution from lithium-ion battery recycling and other recycling streams. Acuité believes that the increasing scale of operations and diversification across recycling streams will support the group’s business profile over the medium term, while the ability to sustain growth and maintaining operating margins amid changes in product mix and realisations remains a key monitorable.

Healthy financial risk profile

The financial risk profile of the group is healthy, marked by low gearing, healthy net worth and comfortable debt protection metrics. The net worth of the group stood at Rs. 287.75 Cr. as on March 31, 2026 (Prov.) (FY25: Rs. 146.85 Cr.), primarily due to fresh equity infusion in ERIL, accretion of securities premium and retention of profits during the period. The gearing (debt-to-equity) is low at 0.15 times as on March 31, 2026 (Prov.) (March 31, 2025: 0.34 times). Debt protection indicators are comfortable, with the interest coverage ratio (ICR) at 12.66 times in FY26 (Prov.) (FY25: 7.02 times), while the debt service coverage ratio (DSCR) stood at 2.32 times in FY26 (Prov.) (FY25: 4.97 times). The moderation in DSCR was primarily due to redemption of debentures during the year. The Debt-to-EBITDA ratio stood low at 0.72 times in FY26 (Prov.) (FY25: 1.32 times), while the net cash accruals to total debt (NCA/TD) ratio stood at 1.00 times in FY26 (Prov.) (FY25: 0.50 times). Further, the group undertook capex of Rs. 65.12 Cr. in FY26 (Prov.), primarily towards capacity expansion across its e-waste and lithium-ion battery recycling facilities and installation of an electro-refining machine. The capex was supported through equity infusion; the expansion commenced its operations from FY27. Acuité believes that the group's financial risk profile is expected to remain healthy over the medium term on the back of healthy cash accruals and no major debt funded capex plans or acquisitions.

Weaknesses

Intensive working capital operations

The group’s working capital operations are intensive, with Gross Current Asset (GCA) of 305 days in FY26 (Prov.) (FY25: 342 days). The high GCA days are primarily attributable to high inventory and receivable holding, resulting in a significant portion of funds remaining tied up in working capital. Inventory days stood at 159 days in FY26 (Prov.) (FY25: 163 days), reflecting the relatively high inventory holding required to maintain adequate feedstock across its various recycling streams. The debtor’s collection period stood at 113 days in FY26 (Prov.) (FY25: 111 days), indicating an elongated receivable cycle. The creditor payment period stood at 63 days in FY26 (Prov.) (FY25: 67 days), providing limited offset to the funds deployed towards inventory and receivables. Further, the average utilisation of consolidated fund-based working capital limits remained moderate at around 65.09 per cent over the six months ended July 2026. With the group scaling up its operations and ramping up its expanded processing capacities, the working capital requirement is expected to remain elevated over the medium term. Acuité believes that the group’s ability to manage the incremental working capital requirement arising from the scale-up in operations will remain a key rating monitorable.

Customer and supplier concentration risk

The group is exposed to supplier and customer concentration risk, with the top five suppliers accounting for ~ 74 per cent of total purchases and the top five customers accounting for ~53 per cent of total revenue in FY26. The concentration on the supplier side indicates dependence on a relatively limited set of vendors for sourcing of recyclable feedstock, which could expose the group to disruption in procurement or changes in commercial terms with key suppliers. Similarly, the customer profile remains concentrated, with a significant portion of revenue being derived from a limited number of customers, thereby exposing the group's revenue profile to any adverse changes in business relationships, offtake requirements or procurement plans of key customers. The risk is partly mitigated by the group's presence across multiple recycling streams and its established relationships with various suppliers and customers. Acuité believes that the group's ability to diversify its supplier and customer base while maintaining stable relationships with key counterparties will remain a key rating monitorable over the medium term.

Susceptibility of profitability to raw material price volatility and risk associated with sourcing of recyclable material
The group’s profitability is susceptible to fluctuations in the prices of recyclable materials, given the commodity-linked nature of its key inputs. Any significant movement in the prices of recyclable materials between procurement and sale of recovered output could impact the company’s operating spreads, particularly where the increase in procurement costs cannot be adequately passed on through higher realisations. Further, the group is exposed to risks associated with the availability, quality and timely sourcing of adequate recyclable material, which is critical for maintaining consistent utilisation of its processing capacities. Any disruption in the availability of feedstock or adverse changes in procurement terms could affect the group’s operating levels and profitability. The group’s ability to maintain adequate feedstock availability while managing fluctuations in procurement costs and realisations will remain important for sustaining its operating performance over the medium term.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Significant improvement in scale of operations, while improving profitability
Improvement in working capital management, with GCA below 225 days consistently
Improvement in financial risk profile

Potential triggers (individual or collective) for a downward rating action:

Significant decline in revenue and profitability with EBITDA below 10 per cent
Elongation in working capital cycle, exerting pressure on liquidity
Deterioration in financial risk profile

Liquidity Position

Adequate

The group’s liquidity position is adequate, supported by net cash accruals of Rs. 42.63 Cr. in FY2026 (Prov.) against maturing debt obligations of Rs. 15.66 Cr., during the year. Going forward, the group is expected to generate net cash accruals of Rs.57.72 Cr. and Rs.69.64 Cr. against it its repayment obligation of ~Rs. 0.55 Cr. and Rs.0.80 Cr during FY27 and FY28 respectively. Reliance on fund-based working capital limits is moderate, with an average utilisation of 65.09% over the 5 months ending July 2026. The cash and bank balance stood at Rs. 47.08 Cr. and current ratio was 2.65 times as of March 31, 2026(Prov.). Liquidity is expected to remain adequate over the medium term, supported by expected accrual generation and moderate repayment obligations.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	432.49	218.78
PAT	Rs. Cr.	39.52	22.28
PAT Margin	(%)	9.14	10.18
Total Debt/Tangible Net Worth	Times	0.15	0.34
PBDIT/Interest	Times	12.66	7.02

Status of non-cooperation with previous CRA (if applicable)

None

Any Other Information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Federal Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A3+ \| Assigned
Federal Bank Limited	Not avl. / Not appl.	Bills Discounting	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.00	Simple	ACUITE A3+ \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB \| Stable \| Assigned
Federal Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.00	Simple	ACUITE BBB \| Stable \| Assigned
Federal Bank Limited	Not avl. / Not appl.	Credit Exposure Limit (FCNR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A3+ \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB \| Stable \| Assigned

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No	Name of the company
1	Evergreen Recyclekaro (India) Limited
2	Evergreen Lithium Recycling Private Limited
3	Evergreen Vaahan Recycling Private Limited
4	Shyam Oxides Private Limited
5	MBB Recycle Destiny Private Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Amay Gupta
Senior Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.