Hi-Green Carbon Limited (NSE Code: HIGREEN) has released its financial results for the second half and full year ending March 31, 2025, showcasing a year of significant growth, capacity expansion, and operational efficiency. The company's latest achievements reflect its commitment to sustainable growth in the recovered carbon black (rCB) sector.

Revenue and Profitability on the Rise

Consolidated revenue for FY25 surged 37.78% YoY to ₹96.79 crore, compared to ₹70.25 crore in FY24. This jump was largely due to the operationalisation of the company’s second manufacturing facility in Dhule, Maharashtra, in November 2025.

• Standalone revenue also increased from ₹70.25 crore in FY24 to ₹88.35 crore in FY25, showing a 25.77% growth.

• PAT (Profit After Tax) grew by 8.31% YoY on a consolidated basis to ₹11.13 crore.

• EBIDTA grew 6.85% YoY to ₹19.11 crore on a consolidated basis, while standalone EBIDTA rose marginally to ₹18.14 crore.

• However, due to initial costs associated with the new plant and higher depreciation, EPS saw a marginal decline from ₹4.66 to ₹4.45.

The company's PAT margin stood at 11.5%, reflecting stable profitability despite the ramp-up phase of the new facility.

Dhule Plant: A Game Changer for Capacity

The highlight of FY25 was the commissioning of Hi-Green’s second production facility in Dhule, which doubled its capacity from 100 TPD to 200 TPD. Equipped with advanced recovery technologies, the plant offers:

• Improved quality of recovered carbon black (rCB)

• Enhanced operational efficiency

• Scope for higher margin expansion as utilization ramps up

This plant alone is expected to drive significant top-line and bottom-line growth in the upcoming quarters.

Solar Power Initiative at Bhilwara Plant

In a major move towards cost optimisation and sustainability, Hi-Green commissioned a 529 KW solar power plant at its Bhilwara unit.

• It is expected to generate 8,00,000 kWh per annum, helping reduce energy costs significantly.

• This aligns with the company’s focus on green energy and sustainability, supporting the broader ESG goals of the organisation.

Incentives and Financial Viability

To support its capacity expansion, Hi-Green Carbon has invested approximately ₹49.54 crore in the Dhule plant. In return, the company has received a certificate under Maharashtra’s Package Scheme of Incentives 2019, entitling it to:

• Claim ₹28.88 crore over 10 years (₹2.88 crore annually from November 2024 to October 2034)

• An additional ₹14 crore investment planned before March 2026 to claim further incentives worth ₹11 crore

These incentives are expected to enhance financial viability and improve future profitability, offsetting early-phase depreciation and ramp-up costs.

Growth Plans: Madhya Plant to Go Live in Q4 FY26

Looking ahead, Hi-Green Carbon is preparing to launch its third facility in Madhya Pradesh during the last quarter of the current financial year (FY26).

• This plant will increase the company’s capacity to 300 TPD, positioning it to meet rising demand in the global recycled carbon black (rCB) market.

• The expansion strategy is designed to consolidate Hi-Green’s leadership position in India’s growing carbon recycling ecosystem.

Operational Strength and Financial Prudence

Despite heavy investments in expansion, Hi-Green continues to maintain strong working capital management and healthy cash flow from operations (CFO). This reflects:

• Effective cost control

• Strategic project execution

• A balanced approach between growth and liquidity

Segmental Highlights: H2FY25 vs H1FY25

Hi-Green delivered a strong second half performance:

• Standalone revenue up 44.78% QoQ (₹52.26 crore in H2FY25 vs ₹36.09 crore in H1FY25)

• Consolidated revenue up 68.16% QoQ (₹60.69 crore in H2FY25 vs ₹36.09 crore in H1FY25)

• EBIDTA improved by 70.13% QoQ to ₹12.04 crore

• PAT increased by 9.70% QoQ to ₹5.82 crore

However, PAT margins dropped slightly due to depreciation from the Dhule plant's initial phase.

Management Commentary: Optimism on the Horizon

Managing Director Mr. Amitkumar H. Bhalodi emphasized that FY25 was a pivotal year for the company. With the Dhule plant now operational and GST subsidies covering 80% of the capital expenditure, the financial and operational outlook is bright.

He added:

“Our goal is to further strengthen our position in the recovered carbon black (rCB) industry through efficient capacity expansion, robust financial planning, and a strong focus on sustainable operations.”

Conclusion: Positioned for Strong Growth Ahead

With a sharp rise in revenues, stable profit growth, and ongoing capacity expansions, Hi-Green Carbon is well-poised to capture a significant share of the recycled carbon black market. Key takeaways include:

• Revenue growth of 38% YoY

• Doubled capacity via Dhule plant

• Profitability to improve further with incentives and cost optimisations

• Future expansion to 300 TPD in FY26

Investors and stakeholders can look forward to a sustainable, financially-strong growth journey from Hi-Green Carbon in the coming years.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.