Horizon Reclaim (India) Ltd. IPO

Horizon Reclaim (India)

• Horizon Reclaim (India) is coming out with an initial public offering (IPO) of 52,69,200 shares in a price band of Rs 98-103 per equity share. 
• The issue will open on June 12, 2026 and will close on June 16, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.80 times of its face value on the lower side and 10.30 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance officer for the issue is Deeksha Thakral.

Profile of the company

The company is engaged in the manufacturing of reclaimed rubber, which is recycled rubber derived from used rubber materials such as old tyres, rubber tubes, tread peelings, and industrial scrap, including Ethylene Propylene Diene Monomer (EPDM), a synthetic rubber known for its excellent resistance to heat. Reclaimed rubber serves as a cost-effective and environmentally friendly alternative to natural and synthetic rubber and is widely used in the manufacture of various rubber-based products. 

The company offers reclaimed rubber in three main categories: (i) Natural Rubber Reclaim, produced from rubber tyre casings and tube commonly used in footwear soles, floor mats, tyre base layers, and moulded rubber products, (ii) Synthetic Rubber Reclaim, which includes EPDM and Butyl Reclaim Rubber suitable for applications requiring resistance to oil, heat, and weather, such as automotive seals, hoses, gaskets, and construction profiles and (iii) Crumb rubber made from recycle tyres and used in road construction, sport surfaces and construction materials like roofing sheets. Products are supplied in different grades depending on customer requirements. 

To manufacture reclaimed rubber, it relies on a steady supply of used rubber materials, sourced both domestically and through imports. Domestic sourcing is carried out through tyre dismantlers, waste collectors, and scrap dealers across various states in India. The principal raw materials include whole tyres (radial and tubeless), scrap tubes, scrap butyl tubes, scrap natural tubes, and other rubber scrap. By Sourcing from multiple locations, it ensures regular availability of raw materials and supports uninterrupted production.

Proceed is being used for:

• Funding the working capital requirements of the company
• Pre-payment or repayment of all or a portion of certain outstanding borrowings availed by the company
• Funding capital expenditure for the installation of additional Plant & Machinery
• Meeting general corporate purposes

Industry overview

The rubber industry in India comprises natural rubber production, synthetic rubber manufacturing, and the processing of end-of-life rubber materials into reclaimed rubber. With increasing emphasis on sustainability and circular economy practices, the reclaim rubber segment has emerged as a critical sub-sector, contributing to resource conservation, cost savings, and environmental compliance across multiple end-user industries such as automotive, footwear, construction, and retreading.

The India Reclaimed Rubber Market Size was estimated at $278.4 million in 2023. The India Reclaimed Rubber Market Industry is expected to grow from $500 million in 2024 to $1,200 million by 2035. The India Reclaimed Rubber Market CAGR (growth rate) is expected to be around 8.284% during the forecast period (2025 - 2035). India’s export volumes of reclaim rubber grew by around 10% YoY in FY 2024–25, driven by robust demand in Asian and Middle Eastern countries. India’s natural rubber consumption increased by 3% in FY 2024, while reclaimed rubber usage rose by nearly 8%, indicating a shift toward more cost-effective and eco-friendly substitutes in industrial applications.

The Government of India has launched several initiatives aimed at promoting recycling, such as the Swachh Bharat Abhiyan and initiatives under the National Policy on Waste to Energy. These programs are establishing a framework that supports the growth of the India Reclaimed Rubber Market Industry. By incentivizing waste recycling, the government aims to promote circular economy practices, leading to an increase in the availability of reclaimed rubber. For instance, the Ministry of Environment, Forest and Climate Change reports that around 90% of scrap tires could be recycled effectively, creating a strong opportunity for businesses in the reclaimed rubber space.

Pros and strengths

Diversified customer base and long-standing customer relationships: The company has a diversified customer base across multiple end-use industries, including automotive, footwear, sports surfaces, flooring and mats, and construction. This diversification reduces dependence on any single industry and helps mitigate the impact of demand fluctuations. The company has established strong and long-standing relationships with its customers by consistently delivering high-quality products, reliable technical performance, and dependable supply. While it generally does not enter into long-term customer contracts, these relationships reflect a high level of customer confidence and loyalty, resulting in repeat business.

Stringent quality control ensuring standardized product quality: Quality assurance is a core part of its manufacturing operations. Its testing laboratory is equipped to conduct thorough inspections of both raw materials and finished products. It employs a stringent quality control process at every stage of the recycling and manufacturing process to ensure that its products meet customer specifications and pass all validations and quality checks. As part of this process, it draws final product samples from each batch and conduct detailed testing in its in-house laboratory with prescribed quality standards and technical parameters prior to dispatch. From procuring raw materials to delivering finished goods, it emphasizes consistency and reliability in product quality.

Established track record, industry expertise, and financial performance: The company was incorporated in 2006 and have over 19 years of experience in the manufacturing of reclaimed rubber from scrap and used tyres. Over the years, it has grown into a trusted supplier of high-quality reclaimed rubber products catering to multiple end-use industries, including automotive, footwear, sports surfaces, flooring and mats, and construction. Its long-standing presence in the industry reflects a sustained focus on product quality, operational efficiency, and adherence to industry-specific standards. This operating history has enabled us to accumulate domain expertise, process know-how, and technical capabilities in the reclamation and rubber manufacturing process, which it is difficult to replicate.

Risks and concerns

Reliance on top customers for revenue generation: The company derives a significant portion of its revenues from a top ten customers. During FY 2023-24, FY 2024-25, and FY 2025-26, sales to the top ten customers aggregated to Rs 1,017.11 lakh, Rs 1,565.35 lakh, and Rs 1,739.55 lakh, respectively, representing 50.03%, 43.21%, and 35.20% of total sales for the respective fiscal years. Its business heavily relies on its customer base, and the potential loss of any of its customers could have a negative impact on its sales and, consequently, its overall business and financial performance. If it was to lose one or more of its significant or key customers or experience a reduction in the volume of business they provide, it could result in adverse consequences for its business, financial health, and cash flow.

Raw material supply concentration risk: The company mostly depends on a top ten suppliers for raw materials. During FY 2023-24, FY 2024-25, and FY 2025-26, purchases from the top ten suppliers aggregated to Rs 892.67 lakh, Rs 1,087.33 lakh, and Rs 1,207.39 lakh, respectively, representing 55.67%, 52.82%, and 42.29% of the total cost of materials consumed for the respective fiscal years. Any interruption in the availability of raw materials could adversely impact its operations. Further, any failure by its suppliers to provide raw materials to it on time or at all, or as per its specifications and quality standards could have an adverse impact on its ability to meet its manufacturing and delivery schedules.

Disruptions in third-party transportation services could negatively impact business operations: Th company depends on third-party transportation to receive input materials required for its products and to deliver its finished products to its customers. It does not own any trucks or commercial vehicles and typically use third-party logistics providers for its product distribution and input materials procurement. This makes it dependents on such third-party transportation providers. Weather-related problems, strikes, or other events which affects third-party transportation could impair its ability to receive the raw materials and/or deliver the requisite quantities of products in time to its customers, which may result in cancellation or non-renewal of purchase orders, and could adversely affect the performance of its business, results of operations and cash flows. Further, as it has not entered into any long-term or exclusive agreements with its transportation providers, if its loss one or more of its existing service providers or are required to engage alternative logistics providers, it may not be able to obtain transportation services on terms as favourable as those currently available to the company.

Outlook

Horizon Reclaim (India) is engaged to carry on business as manufacturers of and dealers in all types of reclaimed rubber, rubber crumbs and all kinds of rubber goods and to carry on the business as manufacturers of and dealers in all kinds of plant and machinery, equipment and accessories required to convert rubber materials into industrial and commercial products by process methods, including dipping moulding, vacuum moulding, extrusion, calendaring, vulcanizing, forming, coating, film, blending, etc. On the concern side, its business is dependent on its manufacturing facility located at Roorkee, Haridwar District, Uttarakhand, and any disruption, slowdown or shutdown of operations at its facility could have a material adverse effect on its business, financial condition and results of operations. Further, rapid technological changes and advancements in manufacturing processes may render its existing technologies obsolete or require it to incur significant capital expenditure to remain competitive.

The company is coming out with a maiden IPO of 52,69,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 98-103 per equity share. The aggregate size of the offer is around Rs 51.64 crore to Rs 54.27 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for fiscal year 2026 was Rs 4,942.08 lakh against Rs 3,621.61 lakh for Fiscal year 2025, an increase of 36.46%. Profit after tax for the Fiscal 2026 were at Rs 1,050.06 lakh against profit after tax of Rs 706.72 lakh in fiscal 2025, an increase of 48.58%.

As part of its business diversification strategy, the company aims to expand its operations into the pyrolysis oil and by-product recovery segment through the development of a pyrolysis processing facility at Rajkot, Gujarat. This vertical extends its operations beyond reclaim rubber manufacturing into waste-to-energy conversion, utilising end-of-life tyres and rubber waste as feedstock. For this purpose, it has acquired land having an area of 27,283.62 square meters situated at RK International Park, Village Gundala, Rajkot, Gujarat. The development of the unit is substantially completed, including the construction of the necessary structures and the installation of pyrolysis reactors. 

The sales for the June 2026 quarter moved up 25.84% to Rs. 8029.00 millions as compared to Rs. 6380.10 millions during the corresponding quarter last year.A good growth in profit of 45.94% reported to Rs. 377.40  millions over Rs. 258.60 millions of corresponding previous quarter.The company reported a good operating profit of 520.00 millions compared to 360.30 millions of corresponding previous quarter.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	8029.00	6380.10	25.84	8029.00	6380.10	25.84	29765.70	25036.90	18.89
Other Income	55.50	51.30	8.19	55.50	51.30	8.19	302.40	481.00	-37.13
PBIDT	520.00	360.30	44.32	520.00	360.30	44.32	2109.50	1657.20	27.29
Interest	0.70	2.70	-74.07	0.70	2.70	-74.07	3.20	5.80	-44.83
PBDT	519.30	357.60	45.22	519.30	357.60	45.22	2106.30	1651.40	27.55
Depreciation	15.00	12.00	25.00	15.00	12.00	25.00	51.90	51.80	0.19
PBT	504.30	345.60	45.92	504.30	345.60	45.92	2054.40	1599.60	28.43
TAX	126.90	87.00	45.86	126.90	87.00	45.86	486.10	309.20	57.21
Deferred Tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
PAT	377.40	258.60	45.94	377.40	258.60	45.94	1568.30	1290.40	21.54
Equity	228.47	228.47	0.00	228.47	228.47	0.00	228.55	228.55	0.00
PBIDTM(%)	6.48	5.65	14.69	6.48	5.65	14.69	7.09	6.62	7.07

The sales is pegged at Rs. 82.00 millions for the June 2026 quarter. The mentioned figure indicates decline with the sales recorded at Rs. 87.12 millions during the year-ago period.The Net Profit of the company slipped to Rs. 6.12 millions from Rs. 20.45 millions, a decline of -70.07% on QoQ basis.Operating Profit reported a sharp decline to 21.03 millions from 36.06 millions in the corresponding previous quarter.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	82.00	87.12	-5.88	82.00	87.12	-5.88	277.54	278.84	-0.47
Other Income	0.21	0.12	75.00	0.21	0.12	75.00	1.18	2.81	-58.01
PBIDT	21.03	36.06	-41.68	21.03	36.06	-41.68	30.01	52.94	-43.31
Interest	4.41	6.20	-28.87	4.41	6.20	-28.87	20.47	25.89	-20.93
PBDT	16.62	29.86	-44.34	16.62	29.86	-44.34	-17.82	27.05	-165.88
Depreciation	8.44	8.17	3.30	8.44	8.17	3.30	33.58	30.46	10.24
PBT	8.18	21.69	-62.29	8.18	21.69	-62.29	-51.40	-3.41	1407.33
TAX	2.06	1.24	66.13	2.06	1.24	66.13	-6.04	-0.65	829.23
Deferred Tax	0.82	1.24	-33.87	0.82	1.24	-33.87	-6.04	-0.65	829.23
PAT	6.12	20.45	-70.07	6.12	20.45	-70.07	-45.36	-2.76	1543.48
Equity	186.38	186.38	0.00	186.38	186.38	0.00	186.38	186.38	0.00
PBIDTM(%)	25.65	41.39	-38.04	25.65	41.39	-38.04	10.81	18.99	-43.05

The revenue zoomed 12.82% to Rs. 595530.00 millions for the quarter ended June 2026 as compared to Rs. 527880.00 millions during the corresponding quarter last year.Modest increase of 8.68% in the Net Profit was reported from. 125520.00 millions to Rs. 136420.00  millions.Operating Profit saw a handsome growth to 195390.00 millions from 174600.00 millions in the quarter ended June 2026.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	595530.00	527880.00	12.82	595530.00	527880.00	12.82	2209380.00	2148530.00	2.83
Other Income	34060.00	27030.00	26.01	34060.00	27030.00	26.01	100360.00	96420.00	4.09
PBIDT	195390.00	174600.00	11.91	195390.00	174600.00	11.91	722850.00	675710.00	6.98
Interest	2470.00	1710.00	44.44	2470.00	1710.00	44.44	11240.00	7030.00	59.89
PBDT	186240.00	172890.00	7.72	186240.00	172890.00	7.72	670940.00	668680.00	0.34
Depreciation	9150.00	11030.00	-17.04	9150.00	11030.00	-17.04	42880.00	42200.00	1.61
PBT	177090.00	161860.00	9.41	177090.00	161860.00	9.41	628060.00	626480.00	0.25
TAX	40670.00	36340.00	11.92	40670.00	36340.00	11.92	137100.00	145910.00	-6.04
Deferred Tax	-320.00	-260.00	23.08	-320.00	-260.00	23.08	-4680.00	-2320.00	101.72
PAT	136420.00	125520.00	8.68	136420.00	125520.00	8.68	490960.00	480570.00	2.16
Equity	3620.00	3620.00	0.00	3620.00	3620.00	0.00	3620.00	3620.00	0.00
PBIDTM(%)	32.81	33.08	-0.81	32.81	33.08	-0.81	32.72	31.45	4.03

The company witnessed a 18.21% growth in the revenue at Rs. 3129.49 millions for the quarter ended June 2026 as compared to Rs. 2647.38 millions during the year-ago period.Profit after tax for the quarter ended June 2026 reported a huge growth of 76.98% to Rs. 1632.24  millions from Rs. 922.26 millions.Operating profit surged to 2171.43 millions from the corresponding previous quarter of 1344.75 millions.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202606	202506	% Var	202606	202506	% Var	202603	202503	% Var
Sales	3129.49	2647.38	18.21	3129.49	2647.38	18.21	11074.81	9050.70	22.36
Other Income	1088.71	90.65	1101.00	1088.71	90.65	1101.00	1003.37	383.12	161.89
PBIDT	2171.43	1344.75	61.47	2171.43	1344.75	61.47	5721.81	4293.42	33.27
Interest	35.38	39.78	-11.06	35.38	39.78	-11.06	157.39	114.91	36.97
PBDT	2136.05	1304.97	63.69	2136.05	1304.97	63.69	5564.42	4178.51	33.17
Depreciation	77.52	63.93	21.26	77.52	63.93	21.26	290.86	203.24	43.11
PBT	2058.53	1241.04	65.87	2058.53	1241.04	65.87	5273.56	3975.27	32.66
TAX	426.29	318.78	33.73	426.29	318.78	33.73	1359.26	1021.06	33.12
Deferred Tax	153.23	9.29	1549.41	153.23	9.29	1549.41	150.12	23.35	542.91
PAT	1632.24	922.26	76.98	1632.24	922.26	76.98	3914.30	2954.21	32.50
Equity	830.21	415.10	100.00	830.21	415.10	100.00	415.10	415.10	0.00
PBIDTM(%)	69.39	50.80	36.60	69.39	50.80	36.60	51.67	47.44	8.91