Everyone Knows About Gravita, EMS and MSTC. But Here are 4 Recycling Stocks Still Flying Under the Radar

Most investors pursuing sustainability stocks think of solar panels, EVs, or some flashy ESG stocks. But a handful of companies outside the limelight are actually doing something far more important - creating value from waste.

Recycling in India is not new. What is new is the scale, formalisation, and the growing demand from industries in search of cost-effective and sustainably sourced raw materials.

Riding on policy momentum and driven by economics more than idealism, some companies are taking earnest advantage of this change.

While the entire market focuses on big names like Gravita and MSTC, there are some smaller companies playing a key role. They aren't mainstreamed market favourites yet, and that is exactly what piques interest.

In this article, we look at a few under-the-radar stocks in the recycling space.

#1 GRP Ltd

GRP, established in 1974, is a leading player in the recycling space with a focus on reclaiming rubber from end-of-life tyres, upscaled polyamide from nylon waste, and engineered products die-cut from scrap.

Its core vertical, reclaim rubber, contributes around 89% of total revenue, with the company holding an 18% share of the Indian market and accounting for 35% of the country's reclaimed rubber exports.

GRP has 6 manufacturing units across India with an installed capacity to handle around 87,000 tons per annum to service the needs of the global polymer industry.

GRP exports to over 55 countries and serves 7 of the world's top 10 tyre manufacturers, including CEAT, MRF, Apollo, Goodyear, and Pirelli.

The company is planning a Rs 2.5 billion (bn) capex over the next 3 years, funded partly by a Rs 1.5 bn equity raise and a € 15 million (m) ECB loan.

In Q4FY25, the company's revenue rose 16% year-on-year (YoY) to Rs 1.6 bn, with gross margins at 58.3% and EBITDA margins expanding to 20.6%, supported by Extended Producer Responsibility (EPR) tailwinds. Net profit stood at Rs 194 m, up 67% YoY.

The management expects FY26 to be a transformative year, with plans for threefold growth across key verticals.

#2 GEM Enviro Management Ltd

GEM Enviro Management, incorporated in 2013, is a certified waste management company engaged in EPR compliance, plastic credit fulfilment, ESG advisory, and BRSR reporting across waste categories including plastic, e-waste, tyres, and batteries.

In FY25, the company facilitated over 630,000 metric tonnes of EPR credit transfers and worked with more than 50 waste processors and over 200 clients, including major names such as Coca-Cola, Varun Beverages, Bisleri, Nivea, Unicharm, and Big Basket.

In the same year, its revenue surged 76% YoY to Rs 5.92 bn, while EBITDA stood at Rs 818 m. However, EBITDA margin contracted to 13.6% from 44.8% the year prior, impacted by EPR credit costs, competition from smaller players, and verification-related expenses.

Net profit for FY25 was Rs 609 m, with a net margin of 10.1%. While profitability dipped in the second half, the company expanded its footprint in the plastic EPR segment and made strategic inroads into battery and e-waste categories.

GEM also launched a wholly owned subsidiary, GEM Green Infra Tech Pvt. Ltd., to support the development of ESG infrastructure for corporate clients.

In June 2024, the company raised Rs 449 m through its IPO and listed on the BSE.

#3 Namo eWaste Management Ltd

Namo eWaste Management Ltd, founded in 2014, provides end-to-end solutions for the collection, disposal, and recycling of electronic and electrical equipment.

The company's service portfolio spans EPR compliance under the E-Waste (Management) Rules 2022, reverse logistics, secure data destruction, IT asset disposition (ITAD), and refurbishment of used devices.

It operates 3 certified recycling plants with a combined capacity of 30,500 MTPA, located in Faridabad, Palwal, and Nashik, spread across over 335,000 sq. ft.

While currently operating at just 30-35% capacity utilisation, the management expects to reach full utilisation within the next 18-24 months.

As of FY25, the company had recycled over 4.8 m laptops, 33 m mobile phones, and 1.2 m home appliances, procuring e-waste through a mix of B2B, B2C, and aggregator channels.

Revenue in FY25 grew 50% YoY, with EBITDA margin at 9.85% and net profit rising 25%.

The company is expanding its capacity with 2 new facilities, one in Nashik focused on lithium-ion battery recycling (11,050 MTPA) and another in Hyderabad (15,000 MTPA, expected by Q2 FY26), taking total capacity above 56,500 MTPA.

Namo eWaste Management raised Rs 510 m through its IPO, which will fund capex, working capital, and general corporate needs.

The management expects to maintain a 45-50% CAGR in the near term, supported by rising compliance demand and strong tailwinds in the e-waste ecosystem.

#4 Indag Rubber Ltd

Indag Rubber Ltd, incorporated in 1978, is a leading manufacturer of precured tread rubber and allied products for tyre retreading, for commercial, passenger, and off-road vehicles.

Originally a JV with Bandag Inc., the company is now fully controlled by the Khemka Group. Indag operates a manufacturing unit in Nalagarh, Himachal Pradesh, with a capacity of 20,000 MT for tread rubber, 5,000 MT for rubber strip gum, and 2,200 KL for spray cement.

In FY25, the company's total revenue stood at Rs 2.37 bn, down 9% YoY, largely due to a decline in State Transport Undertaking (STU) orders. EBITDA dropped 40% YoY to Rs 165 m, with margin compressing to 7%, while net profit halved to Rs 84 m.

Despite the near-term pressure, the company launched new high-performance products and is expanding internationally across the Middle East, Africa, and Eastern Europe.

Through its subsidiary MMSPL, Indag has also forayed into power electronics manufacturing for battery energy storage systems, with full-scale commercialisation expected in FY26.

The company is also engaged in an EV infrastructure JV with Sun Mobility.

The management remains optimistic about growth, backed by fleet expansion, rising fuel and tyre prices, and policy tailwinds favouring the circular economy.

Conclusion

While the spotlight is typically fixed on large-cap ESG names, these relatively quieter companies are enabling the Rs 5 trillion recycling and circular economy transition in India.

From rubber recovery to plastic credit management, e-waste handling, and sustainable retreading, each of these companies work heavily on the waste-to-value chain.

For those investors willing to look beyond the obvious, these stocks offer early exposure to a structural shift that's gaining both regulatory backing and commercial momentum.

That said, this is not investment advice. Readers must consider the fundamentals of each company, the business model, and corporate governance, before making a choice.

Happy investing.

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