20% Upper Circuit: Waste management stock skyrockets after announcing foray into renewable energy

Synopsis: Gem Enviro Management Ltd jumped sharply following the board’s greenlight to acquire a 50.10% stake in a solar EPC company (Solluz Energy)  for around Rs 5 crore.

The shares of this company engaged in the business of handling waste and scraps of all kinds, and the supply and trading of goods are in focus after the company made a key acquisition in the renewable energy sector. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 127 crore, the shares of Gem Enviro Management Ltd reached a day high of Rs 56.40 per share (upper circuit), up 20 percent from its previous day’s closing price of Rs 47 per share. In the last one year, the stock has corrected by over 62 percent, as compared to NIFTY 50’s positive return of 6 percent.

About the Acquisition

Gem Enviro Management, through a stock exchange filing, announced that the​‍​‌‍​‍‌​‍​‌‍​‍‌ company’s board has greenlighted the purchase of a 50.10 percent stake in Solluz Energy Private Limited for approximately Rs 5 crore, to be paid wholly in cash. 

Once the transaction is completed, Solluz will be a subsidiary, and the company will, therefore, have the right to control its operations. The closing of the deal is anticipated to be on or before January 31, 2026, and it does not require any regulatory approvals.

Solluz Energy is a solar EPC (Engineering, Procurement, and Construction) company that primarily works on the installation of solar power plants. This is a great business for the company as it aligns perfectly with its ecologically conscious strategy, and it also helps the company to consolidate its position in the renewable energy sector, which is experiencing a robust growth trend in the long term.

In terms of revenue, Solluz has turned out to be a strong growing company with its revenue increasing from Rs 10.44 crore in FY23 to Rs 34.91 crore in FY25. The acquisition of Solluz is a strategic move by the company to broaden its clean energy portfolio, access new solar projects, and create a more diversified and sustainable business model in the ​‍​‌‍​‍‌​‍​‌‍​‍‌future.

Financial and Other Highlights

Gem Enviro’s revenue for H1 FY26 came in at Rs 54.82 crore, up by 147 percent from Rs 22.19 crore in H1 FY25. Additionally, on a sequential basis, revenue grew by 48 percent from Rs 37.01 crore in H2 FY25. 

Coming to its profitability, the company reported a net profit decline of 25 percent to  Rs 3.42 crore in H1 FY26 as compared to Rs 4.59 crore in H1 FY25. However, on a QoQ basis, it recorded a growth of 128 percent from Rs 1.50 crore.

GEM​‍​‌‍​‍‌​‍​‌‍​‍‌ Enviro Management Limited is a company that focuses on waste management and sustainability and is committed to supporting businesses in managing their environmental challenges more effectively. The company provides a wide range of services, including Extended Producer Responsibility (EPR) compliance for plastic, e-waste, batteries, and tyres, in addition to ESG and BRSR reporting, consulting, and plastic credit advisory. Its primary objective is to serve as a vehicle for companies to become more sustainable while satisfying regulatory requirements. 

The company has the privilege to work with many prominent Indian and international brands such as Coca-Cola, Varun Beverages, Mamaearth, Himalaya, Herbalife, and Orient Electric. Through its waste collection and recycling network that spans across India, GEM has been instrumental in plastic waste reduction to the tune of over 1 million tonnes annually and has been able to rescue over 100,000 tonnes of multi-layered plastic from landfills. The company also carries out awareness and education programs on waste management and recycling, which are funded by a skilled and experienced management ​‍​‌‍​‍‌​‍​‌‍​‍‌team.

Written by Satyajeet Mukherjee

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