Financial Performance Highlights
Organic Recycling Systems Limited reported exceptional financial performance for FY26 with consolidated revenue surging 117.14% to ₹10,507.46 lakhs (₹105 crore) from ₹4,839.06 lakhs in FY25. Profit After Tax grew 60.56% to ₹2,508.06 lakhs (₹25 crore), exceeding company guidance. Key financial metrics showed significant improvement with Return on Equity increasing to 20.30% (from 16.07%) and Return on Capital Employed reaching 16% (from 11%). The company maintained a disciplined debt-equity ratio of 0.4x for three consecutive years.
Strategic Developments & Operational Highlights
The company strategically expanded into green chemicals through the acquisition of Industrial Associates with 99.99% shareholding. ORSL is developing India's first BIO-CCU (Bio-based Carbon Capture and Utilization) research platform in partnership with DBT-BIRAC, IIT Bombay, and IIT Kharagpur, focusing on converting CO₂ from biogas into fuels and specialty compounds. The company transitioned from EPC to Build-Own-Operate (BOO) models, particularly in agro valorisation, with a current order book of approximately ₹100 crore and a broader identified pipeline of ₹500-600 crore.
Corporate Actions & Capital Structure
Preferential Issue Proposal
The Board proposed a special resolution for preferential allotment of 10,00,000 equity shares at ₹161 per share (including ₹151 premium) to promoter Sarang Bhand, raising ₹16.10 crore. The objects include ₹12.075 crore for integrated BOO bioenergy platform expansion and up to ₹4.025 crore for general corporate purposes. Post-issue, promoter holding will increase from 15.07% to 20.19% with applicable lock-in periods as per SEBI ICDR Regulations.
Capital History
The company completed its IPO in September 2023 with a fresh issue of 25,00,200 equity shares at ₹200 per share, aggregating ₹5,000.40 lakhs. In FY26, the company converted 9,60,000 warrants at ₹273 per share, resulting in securities premium of ₹2,524.80 lakhs. Total borrowings stood at ₹4,497.01 lakhs with strong interest coverage ratio of 54.01 times.
Corporate Governance & Regulatory Compliance
The 18th Annual General Meeting is convened on September 30, 2026, to adopt financial statements, reappoint Mr. Yashas Bhand as director, and approve the preferential issue. The board comprises Mr. Rakesh Mehra as Chairman and Independent Director, Mr. Sarang Bhand as Managing Director, and Mr. Yashas Bhand as Whole-time Director and CEO. The company faces contingent liabilities including service tax demand of ₹339.04 lakhs pending before CESTAT and income tax demands of ₹408.33 lakhs.
Forward Guidance & Outlook
For FY27, the company guided approximately 30% YoY revenue growth while maintaining balance sheet discipline with debt-to-equity at 0.4x. ORSL continues to focus on BOO transition and green chemicals expansion, leveraging its 5 project locations across 4 states with total processing capacity of 400 TPD. No dividend was recommended for FY26 to conserve resources for expansion initiatives.
Subsidiaries & Associates
Material subsidiaries include Solapur Bioenergy Systems Private Limited and Organic Waste (India) Private Limited. Other subsidiaries include Meerut Bio-Energy Systems Private Limited, Pune Urban Recyclers Private Limited, and Industrial Associates. Associates include Blue Planet Kannur Waste Solution Private Limited and Blue Planet Palakkad Waste Solution Private Limited, both with 26% holding.