Namo eWaste Management Ltd Management Discussions

Your Directors have pleasure in presenting the management discussion and analysis report for the financial year ended on March 31, 2026.

The Management Discussion and Analysis Report has been prepared in accordance with the provisions of Regulation 34(2)(e) of Listing Regulations, read with Schedule V(B) thereto, with a view to provide an analysis of the business and Financial Statements of the Company for FY-2025-26 and should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report. The objective of this report is to convey the Managements perspective on the external environment and our industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities in the Company during the FY 2025-26. The Companys financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.

Industry Structure and Developments

The recycling industry in India, particularly the E-waste and Battery Waste Recycling sector, is witnessing significant growth driven by increasing environmental awareness, rapid technological advancement, urbanization, and stringent regulatory frameworks introduced by the Government of India.

The implementation of the E-Waste (Management) Rules, 2022 and Battery Waste Management Rules, 2022 by the Ministry of Environment, Forest and Climate Change has strengthened the Extended Producer Responsibility (EPR) mechanism and enhanced accountability across the recycling ecosystem. The regulatory focus on sustainable disposal and circular economy practices has created substantial opportunities for organized recyclers.

India is presently among the fastest-growing consumers of electronic products and batteries, resulting in increased generation of electronic and battery waste. The formal recycling sector is expected to grow substantially due to rising collection efficiency, increasing compliance requirements, and greater participation from producers and importers.

The Company operates in the environmentally sustainable recycling sector engaged in collection, dismantling, segregation, recycling, and recovery of valuable materials from E-waste and Battery waste. The Company remains focused on environmentally responsible operations and resource recovery through scientific recycling processes.

Opportunities and Threats

Opportunities

• Increasing generation of E-waste and Battery waste across India.

• Growing awareness regarding sustainable waste management and circular economy.

• Government support through EPR policies and environmental regulations.

• Increasing demand for recycled metals, plastics, lithium, cobalt, nickel, copper, and other recoverable materials.

• Expansion opportunities through partnerships with producers, manufacturers, and collection agencies.

• Rising investments in renewable energy and electric vehicles leading to increased battery waste generation.

• Increasing preference for organized and compliant recyclers.

Threats

• Presence of unorganized recycling sector affecting pricing and collection efficiency.

• Volatility in prices of recovered metals and recyclable materials.

• Continuous technological changes requiring capital-intensive upgrades.

• Stringent environmental and safety compliance requirements.

• Supply chain disruptions and fluctuations in waste collection volumes.

• Risk of non-compliance by collection partners and aggregators.

Segment-wise or Product-wise Performance

The Company and its Subsidiary are primarily engaged in the business of E-waste and Battery waste recycling. The operations include collection, transportation, dismantling, segregation, recycling, refurbishing, and recovery of reusable and valuable materials from discarded electronic equipment and used batteries.

During the year under review, the Company continued to strengthen its recycling capabilities, expand vendor and collection networks, and improve operational efficiencies. The Company also focused on enhancing recovery yields and maintaining environmentally compliant disposal processes.

Indian Economy Outlook

India continues to remain one of the fastest-growing major economies globally, supported by strong domestic consumption, government infrastructure spending, manufacturing growth and increasing focus on sustainability and circular economy initiatives. During FY 2025-26, Indias GDP growth is estimated in the range of 7.2% to 7.6%, reflecting resilience despite global geopolitical uncertainties and inflationary pressures. The manufacturing and industrial sectors continued to demonstrate steady momentum, aided by the Governments "Make in India", Production Linked Incentive (PLI) schemes, EV adoption policies and increasing investments in renewable energy and battery ecosystems. Manufacturing sector growth is estimated at approximately 7.0% during FY 2025-26, while Gross Fixed Capital Formation (investment activity) is projected to grow by nearly 7.8%. Indias retail inflation remained relatively moderated at around 3.5% – 4.0%, supported by stable food prices and prudent monetary policies of the Reserve Bank of India (RBI). The stable inflationary environment, along with continued policy support, is expected to sustain economic growth momentum in FY 2026-27. The Government of India has continued its strong focus on infrastructure and industrial development, with capital expenditure allocation increasing by approximately 11.4% to _12.2 trillion in the Union Budget 2026-27. This is expected to support industrial expansion, logistics improvement and higher demand generation across sectors. Further, Indias transition towards clean energy and electric mobility is creating substantial opportunities for the recycling industry, particularly in e-waste and lithium-ion battery recycling. Rising urbanization, digital adoption, increasing electronic consumption and accelerated electric vehicle penetration are expected to significantly increase generation of electronic and battery waste in the coming years.

India is presently among the fastest growing markets for electric vehicles and energy storage systems. The increasing consumption of smartphones, laptops, consumer electronics and EV batteries is expected to drive substantial growth in recyclable waste volumes, thereby strengthening the long-term outlook for organized recycling companies.

The Governments emphasis on sustainability, Extended Producer Responsibility (EPR) framework, circular economy initiatives and stricter environmental compliance norms are expected to support the formalization and organized growth of the e-waste and battery recycling industry. In addition, increasing awareness regarding resource recovery, urban mining and carbon footprint reduction is likely to create long-term opportunities for companies operating in this sector.

Going forward, Indias economic outlook remains positive, with GDP growth for FY 2026-27 projected in the range of 6.5% to 7.1%, supported by strong domestic demand, manufacturing expansion, infrastructure development and green energy transition.

Outlook

The outlook for the E-waste and Battery waste recycling industry remains positive due to growing regulatory emphasis on scientific waste management and sustainability practices.

The increasing adoption of electric vehicles, renewable energy storage systems, consumer electronics, and digital infrastructure is expected to significantly increase battery and electronic waste generation in the coming years. The formal recycling sector is anticipated to benefit from improved collection mechanisms, rising EPR compliance obligations, and increased awareness among corporates and consumers.

The Company intends to continue focusing on:

• Capacity expansion;

• Strengthening collection channels;

• Technology upgradation;

• Compliance-driven operations;

• Strategic tie-ups under EPR framework; and

• Enhancing recovery efficiency and operational sustainability.

RIsks and Concerns

The Company is exposed to various risks and uncertainties which could affect its operations and financial performance. Key risks include:

• Regulatory and environmental compliance risks;

• Raw material sourcing and collection risks;

• Fluctuations in commodity prices;

• Operational and technological risks;

• Competition from informal recycling sector;

• Health, safety, and environmental risks;

• Dependence on logistics and transportation network; and

• Changes in government policies and taxation structure. The Company has implemented appropriate risk management mechanisms and internal control systems to monitor and mitigate such risks effectively.

Internal Control Systems and Their Adequacy

The Company has established adequate internal control systems commensurate with the size, scale, and nature of its operations. The internal control framework ensures:

• Protection of assets;

• Accuracy and completeness of accounting records;

• Compliance with applicable laws and regulations;

• Efficient utilization of resources; and

• Prevention and detection of frauds and errors.

The Company periodically reviews internal control policies and procedures to enhance operational efficiency and strengthen governance practices. Internal audit functions are carried out regularly, and findings are reviewed by the Audit Committee and the Board of Directors.

NAMOs Business Overview

We are engaged in the business of collection, disposal, recycling and management of electronic waste (e-waste) and battery waste in India. The Company provides environmentally compliant recycling solutions for Electrical and Electronic Equipment (EEE), including laptops, computers, mobile phones, servers, air conditioners, refrigerators, washing machines and other consumer and industrial electronic products. Established in 2014, the Company operates as an authorised and ISO-certified recycler offering end-to-end e-waste management services, including collection, reverse logistics, segregation, dismantling, refurbishment, data destruction and recycling. The Company also provides Extended Producer Responsibility (EPR) services to producers, manufacturers and bulk consumers in compliance with environmental regulations. The Company focuses on recovery of valuable materials such as copper, aluminium, iron, plastic and precious metals from discarded electronic products through scientific recycling processes. With increasing awareness regarding sustainable waste management, circular economy practices and stricter regulatory requirements, the Company continues to strengthen its presence in the organised recycling sector.

In addition to e-waste recycling, the Company has expanded its operations into lithium-ion battery recycling and resource recovery, driven by growing adoption of electric vehicles, renewable energy storage systems and consumer electronics in India. During FY 2025-26, the Company announced the setting up of a new hydrometallurgy plant at Faridabad, Haryana, aimed at enhancing metal extraction and battery recycling capabilities. The Company serves a diversified customer base comprising corporates, manufacturers, government organizations, institutions, OEMs and bulk consumers across various industries. Its integrated recycling and compliance-driven business model enables safe disposal of hazardous waste while promoting resource conservation and environmental sustainability. During FY 2025-26, the Company reported consolidated revenue growth of approximately 29%, reflecting increasing demand for organized recycling solutions and expansion in operations. During the financial year under review, the Company recorded growth in operational activities driven by increased recycling volumes, expansion of collection channels, and improved recovery efficiencies.

The Company continued to focus on operational optimization, cost management, and sustainable business practices. Revenue performance was influenced by waste processing volumes, recovery yields, and market prices of recovered materials.

The management remains focused on maintaining operational efficiency, strengthening compliance standards, and improving profitability through process improvements and technological enhancements.

Highlights of Financial Performance of Company is as follows:

(INR in Lakhs.)

Particulars	FY 25	FY 26	Y-O-Y Gr
Revenues	14983.20	19459.33	29.87%
Other Income	135.25	53.75	-60.26%
Total Income	15118.45	19513.08	29.07%
Raw Material Expenses	11758.91	15023.35	27.76%
Employee costs	447.76	869.14	94.11%
Other Expenses	1435.01	1310.42	-8.68%
Finance cost	161.81	112.33	-30.58%
Depreciation	136.62	196.16	43.58%
Total Expenditure	13940.11	17511.40	25.62%
EBITDA	1476.77	2310.17	56.43%
EBITDA Margins (%)	9.76	11.87	21.62%
PBT	1178.34	2001.68	69.87%
Tax	332.40	566.55	70.44%
PAT	845.94	1435.13	69.65%
PAT Margins (%)	5.60	7.35	31.25%
EPS	3.7	6.28	69.73%

Material Developments in Human Resources / Industrial Relations Front

The Company recognizes human resources as a key driver for organizational growth and operational excellence. The Company continues to focus on employee training, skill development, workplace safety, and employee engagement initiatives.

Special emphasis is placed on health, safety, and environmental practices considering the nature of recycling operations. The Company maintains cordial industrial relations across all operational locations and continues to foster a safe and productive working environment. The Company also conducts periodic training programs on operational safety, hazardous material handling, environmental compliance, and workplace ethics.

Risks and Threats

The business operations of Namo eWaste Management Limited are exposed to various internal and external risks that may impact operational and financial performance. However, the Company continuously evaluates and implements appropriate risk mitigation strategies to minimize adverse impact.

1. Regulatory & Compliance Risk

The e-waste and battery recycling industry operates under stringent environmental laws, including E-Waste Management Rules, Battery Waste Management Rules, CPCB guidelines and State Pollution Control Board regulations. Any non-compliance, delay in renewal of licences, environmental approvals or changes in government regulations may adversely affect the Companys operations and profitability.

2. Raw Material Availability Risk

The Companys business depends on continuous availability of e-waste and battery waste for recycling and processing. Any disruption in sourcing channels, increased competition for procurement or dependence on limited suppliers and collection networks may affect operational efficiency and plant utilization levels.

3. Commodity Price Fluctuation Risk

Revenue and profitability are influenced by market prices of recovered metals such as copper, aluminium, lithium, cobalt, nickel and other precious metals extracted from e-waste and lithium-ion batteries. Volatility in global metal prices may impact margins and realization.

4. Competition from Unorganized Sector

A significant portion of Indias e-waste recycling industry is still handled by the informal and unorganized sector, which often operates at lower costs due to limited compliance requirements. This creates pricing pressure and procurement challenges for organized players like the Company.

5. Technology Obsolescence Risk

Rapid technological advancements in electronics, batteries and recycling techniques may require continuous investments in modern equipment, automation and recovery technologies. Failure to upgrade technology may impact recovery efficiency and competitiveness.

6. Environmental & Safety Risk

E-waste and battery recycling involve handling hazardous materials and chemicals, which may expose the Company to environmental hazards, fire risks, workplace accidents and contamination risks. Any major incident may lead to operational disruption, legal liabilities and reputational damage.

7. Project Execution & Expansion Risk

The Company is expanding its recycling and hydrometallurgy capacities to capitalise on growing demand in battery recycling and resource recovery. Delay in commissioning of projects, cost overruns, technology integration issues or lower-than-expected utilisation may impact future growth plans.

8. Working Capital & Liquidity Risk

The recycling industry requires significant working capital for procurement, logistics, inventory holding and processing activities. Any tightening of liquidity, increase in finance costs or delay in customer collections may impact cash flows and operational stability.

9. Dependence on Policy Support

The growth outlook of the organised recycling sector is significantly dependent upon implementation of Extended Producer Responsibility (EPR) regulations, sustainability initiatives and government support for circular economy practices. Any weakening of enforcement mechanisms may affect industry growth prospects.

10. Cybersecurity & Data Destruction Risk

As the Company handles discarded IT assets, servers, laptops and electronic devices, any failure in secure data destruction processes may expose the Company to reputational risks, customer claims and legal liabilities associated with data privacy and confidentiality.

Despite these challenges, the Company continues to strengthen its compliance framework, technology capabilities, collection network and operational efficiencies to mitigate risks and enhance long-term sustainability.

Strength of NAMO

1. Established Presence in Organized Recycling Industry

Namo eWaste Management Limited has established itself as one of the recognised organised players in Indias e-waste recycling sector with operations since 2014. The Company has developed expertise in collection, dismantling, recycling and disposal of electronic waste in compliance with environmental regulations.

2. Integrated End-to-End Service Portfolio

The Company provides comprehensive e-waste management solutions including collection, reverse logistics, IT Asset Disposition (ITAD), refurbishment, data destruction, recycling and Extended Producer Responsibility (EPR) compliance services. Its integrated business model enables it to cater to diversified customer requirements under a single platform.

3. Strong Processing Capacity & Infrastructure

The Company operates multiple authorised recycling facilities across India with significant processing capacity for electrical and electronic waste. The Company has stated that its facilities can process 82,000 MT annually, positioning it among the higher-capacity organised recyclers in the industry.

4. Regulatory Compliance & Certifications

The Company possesses various regulatory approvals and certifications including ISO certifications for responsible recycling practices. Strong compliance standards enhance customer confidence, especially among corporates, OEMs and institutional clients requiring environmentally compliant disposal solutions.

5. Growing Presence in Battery Recycling

The Company is expanding into lithium-ion battery recycling and resource recovery, which positions it favorably to benefit from rising electric vehicle adoption, renewable energy storage systems and battery waste generation in India. This expansion diversifies revenue streams and supports future growth opportunities.

6. Experienced Management Team

The Company is led by experienced promoters and management personnel with technical and operational expertise in recycling and waste management. The promoters long-term vision towards sustainable recycling and circular economy initiatives supports the Companys growth strategy.

7. Focus on Sustainability & Circular Economy

The Companys operations support resource recovery, environmental protection and sustainable waste management practices. Increasing government focus on circular economy, ESG compliance and EPR regulations is expected to create long-term business opportunities for organized recyclers like the Company.

8. Diversified Customer Base

The Company caters to corporates, OEMs, government institutions, bulk consumers and industrial customers across multiple sectors. A diversified customer profile reduces dependence on any single customer or industry segment and supports stable business operations

9. Revenue Growth & Financial Improvement

The Company has demonstrated strong revenue growth in recent years supported by increasing demand for organized recycling solutions. During FY 25-26, the Company reported revenue growth of approximately 29%, reflecting operational expansion and growing market presence.

10. Advantage from Industry Formalization

Indias e-waste recycling industry is gradually shifting from the informal sector towards organised and compliant recyclers due to stricter environmental enforcement and EPR implementation. This industry transition is expected to benefit established organised players such as the Company in the long term.

Conclusion

Indias growing focus on sustainable development, circular economy practices and environmental compliance continues to create significant opportunities for the organizede-wasteandbatteryrecyclingindustry.Increasing digitalization, rising consumption of electronic devices, rapid adoption of electric vehicles and implementation of Extended Producer Responsibility (EPR) regulations are expected to drive long-term growth in recyclable waste volumes across the country.

Namo eWaste Management Limited remains well-positioned to capitalize on these emerging opportunities through its integrated recycling capabilities, expanding processing infrastructure, regulatory compliance framework and growing presence in battery recycling and resource recovery. The Company continues to focus on operational efficiency, technological advancement, sustainability initiatives and customer relationship strengthening to enhance its market position.

While the industry is exposed to risks arising from regulatory changes, commodity price fluctuations, competitive pressures and technological developments, the Company remains committed towards prudent risk management practices, strong governance standards and continuous improvement in operational processes.

Going forward, with favourable industry outlook, increasing environmental awareness and supportive government initiatives, the Company expects to strengthen its business performance and create sustainable long-term value for all stakeholders.