Recycling stock in focus after signing MoU worth ₹107 Cr with UP Govt

SYNOPSIS: Nikita Greentech signs MoU with Uttar Pradesh government for co-generation power plant and paper machinery expansion at Shamli, involving an estimated investment of Rs. 107.5 crore with eligible policy incentives.

During Tuesday’s trading session, shares of a leading name in paper and municipal waste recycling are in focus on NSE, after the company announced executing a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh (GoUP) with an estimated total investment of nearly Rs. 107 crores for two projects.

With a market capitalisation of Rs. 370.4 crores, shares of Nikita Greentech Recycling Limited closed in the green at Rs. 150.15 on NSE, up by more than 1 percent, as against its previous closing price of Rs. 148.

What’s the News:

As per the latest regulatory disclosures filed with the NSE, Nikita Greentech Recycling Limited has entered into a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh to support its planned capacity expansion initiatives.

The MoU covers the proposed establishment of two key projects at the company’s existing manufacturing facility in Shamli, Uttar Pradesh. These include a power plant under a co-generation project, as outlined in the company’s IPO disclosures, and a paper machinery project involving a greenfield expansion through the upgradation of the existing Paper Machine-1 (PM-1) at the same location.

Through this MoU, the company aims to avail the incentives and benefits available under applicable State and Central Government schemes. These may include interest subsidies and exemptions or concessions in state-level levies, subject to eligibility. In turn, the Government of Uttar Pradesh will extend facilitation support for the timely implementation of the proposed projects within the state.

The combined capital outlay for the co-generation power plant and the PM-1 greenfield expansion is estimated at approximately Rs. 107.5 crore. The upgradation of the existing paper machinery under the PM-1 expansion is tentatively scheduled to commence in the next calendar year, in line with the company’s phased investment plan.

Financials & More:

Nikita Greentech reported a marginal growth in revenue from operations, experiencing a year-on-year increase of more than 7 percent, from Rs. 166 crores in H1 FY25 to Rs. 178 crores in H1 FY26.

In contrast, the company’s net profit decreased during the same period from Rs. 10 crores to Rs. 6 crores, representing a decline of nearly 40 percent YoY.

In FY25, the company reported total revenue of Rs. 370 crore, with corrugation contributing the largest share at Rs. 293 crore, accounting for about 79 percent of overall revenues. Carry bag paper generated Rs. 33 crore (around 9 percent), followed by waste paper and other segments at Rs. 31 crore (~8 percent). Fluting paper contributed Rs. 7 crore (about 2 percent), while EPR sales added Rs. 5 crore, forming nearly 1 percent of total FY25 revenue.

Nikita Greentech Recycling Limited is one of the leading manufacturers of recycled kraft paper, with an installed capacity of 1,33,000 MTPA of recycling paper at UP Shamli, with a 3.5 MW Thermal Power Plant based on Municipal Waste & 1.5 MW Solar Rooftop Power Plant.

Written by Shivani Singh

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