J B Ecotex IPO

Strengths · 8

• 01Installed PET recycling capacity of 180,360 MTPA as of 31 August 2026, which the 1Lattice Report places second in India and largest at a single location.
• 02The draft prospectus says J B Ecotex is the only company in India with both mechanical and chemical PET waste recycling capability, and one of two with commercial scale chemical recycling as of 31 August 2026.
• 03Revenue from operations grew from Rs 527.37 crore in FY2024 to Rs 716.23 crore in FY2025 and Rs 827.60 crore in FY2026.
• 04Higher value products are scaling: food grade rPET resin revenue rose from Rs 20.08 crore in FY2025 to Rs 112.65 crore in FY2026, and chemically recycled resins from Rs 8.71 crore in FY2024 to Rs 88.77 crore in FY2026.
• 05Operating cash flow improved from Rs 15.68 crore in FY2024 to Rs 31.53 crore in FY2025 and Rs 82.09 crore in FY2026, well above the FY2026 profit after tax of Rs 22.49 crore.
• 06Total borrowing fell from Rs 352.55 crore in FY2025 to Rs 311.86 crore in FY2026, and the debt to equity ratio from 1.75 to 1.14.
• 07The buyer base is spread out: 728 customers and 522 suppliers in FY2026 against 476 and 389 in FY2024, with exports to 25 countries and no single customer material to revenue.
• 08Promoters and promoter group held 89.05% of the share capital before the offer, and the promoter group includes the founding partners of the erstwhile JBE LLP formed in 2012.

Risks · 10

• 01RPSF alone gave 55.12% of revenue from operations in FY2026, after 65.37% in FY2025 and 86.42% in FY2024, so a fall in textile demand for recycled fibre would hit the largest product line.
• 02Profit after tax was Rs 22.49 crore in FY2026 against Rs 21.13 crore in FY2024, so profit is almost flat while revenue grew 1.57 times, and PAT margin fell from 4.00% in FY2024 to 2.71% in FY2026.
• 03Total borrowing of Rs 311.86 crore in FY2026 is larger than net worth of Rs 212.29 crore, and net debt to EBITDA is 3.40 times.
• 04Raw material cost was 70.22% of total expenses in FY2026, and the company buys PET waste from a diversified supplier network without long term contracts, so price and contamination swings pass straight into margin.
• 05Both manufacturing facilities are at Dhamdod in Surat district, Gujarat, so one local disruption can stop the whole 180,360 MTPA capacity.
• 06All chemical recycling capacity sits in the material subsidiary JB rPET Industries Private Limited, which made net losses of Rs 1.67 crore in FY2026, Rs 3.34 crore in FY2025 and Rs 1.69 crore in FY2024.
• 07Domestic sales were 79.71% of revenue from operations in FY2026, so the business is still tied to Indian demand.
• 08Production volume was 99,190 MT in FY2026 against installed capacity of 180,360 MTPA, and the draft prospectus lists under-utilisation of the facilities among its top 10 risk factors.
• 09The entire Rs 320.00 crore earmarked from the fresh issue goes to repaying borrowings of the company and the material subsidiary, with nothing for new capacity, and the general corporate purposes amount is still blank.
• 10Nine promoters are selling up to 1,29,50,000 shares at a weighted average cost of acquisition between nil and Rs 6.50 per share, and 13 tax proceedings involving Rs 13.66 crore are outstanding against the company.

J B Ecotex Limited is a Surat based plastic recycling company. It buys used PET bottles and other post-consumer PET waste and turns them back into usable raw material. The company says it is the second largest PET recycling company in India in terms of installed capacity of 180,360 MTPA as of 31 August 2026, based on the 1Lattice Report commissioned for the draft prospectus. Its registered office is at Rajhans Montessa on Dumas Road, Surat.

The product range has four parts. Recycled polyester staple fibre, or RPSF, is the oldest and largest product and goes mainly into textiles. Food grade rPET resins are bottle-to-bottle resins that go back into food and beverage packaging, and need USFDA and FSSAI licences. rPET flakes are the washed and shredded intermediate product. Chemically recycled resins, including premium grades, come from the newer chemical recycling route. In FY2026 RPSF gave 55.12% of revenue from operations, rPET flakes 15.47%, food grade rPET resins 13.61%, chemically recycled resins 10.73% and other items 5.07%.

The mix has changed quickly. In FY2024 RPSF alone was 86.42% of revenue and food grade rPET resins contributed nothing. Food grade rPET resin revenue went from Rs 20.08 crore in FY2025 to Rs 112.65 crore in FY2026, and chemically recycled resins from Rs 8.71 crore in FY2024 to Rs 88.77 crore in FY2026. The draft prospectus says the company is the only one in India with both mechanical and chemical PET waste recycling capability, and one of two with commercial scale chemical recycling as of 31 August 2026.

The company runs two owned manufacturing facilities, both at Dhamdod, Taluka Mangrol, in Surat district, Gujarat. The JB Ecotex Manufacturing Facility started in October 2015 and makes RPSF, food grade rPET resins and rPET flakes. The JB rPET Manufacturing Facility started in January 2024 and makes chemically recycled resins and rPET flakes. All chemical recycling capacity sits in the material subsidiary, JB rPET Industries Private Limited. Sales volume was 1,01,505 MT in FY2026 against 66,321 MT in FY2024, and production volume was 99,190 MT in FY2026.

Customers span textiles, packaging, consumer goods and services, construction, automotive and sporting goods. The company supplied over 700 customers as of 31 March 2026, and the key performance indicators show 728 customers and 522 suppliers in FY2026 against 476 customers and 389 suppliers in FY2024. It sells in India and exports to 25 countries across North America, Europe, the Middle East, Asia, Africa and South America. Domestic sales were 79.71% of revenue from operations in FY2026, down from 85.49% in FY2024.

The industry

The draft prospectus relies on the 1Lattice Report for its industry view. It notes that plastic consumption has grown sharply over recent decades and that recycling rates remain low, so landfill is still the dominant route for plastic waste worldwide. Global landfilled plastic is projected to rise from 173.9 MT in CY19 to 231.3 MT in CY30, and from 201.5 MT in CY25 to 231.3 MT in CY30. Over the same CY25 to CY30 period the report expects recycled plastic volume to improve from 44.1 MT to 56.2 MT, mismanaged plastic to rise from 86.4 MT to 93.4 MT and incinerated plastic from 76.7 MT to 86.3 MT. The report does not put an India market size figure in the abridged prospectus.

Customer concentration: The company says it has no material customer concentration and that no single customer accounted for a significant portion of revenue from operations in FY2026, FY2025 or FY2024, with 728 customers in FY2026 against 611 in FY2025 and 476 in FY2024.