The planet is scrambling to electrify transportation, but not many are posing the tougher question — what happens when all of those EV batteries go dead? Electric cars can reduce tailpipe emissions, but the heaps of lithium-ion trash they leave behind can become the next ecological disaster if not addressed of before it’s too late.
India, which has one of the most rapidly expanding electric vehicle (EV) markets in the world, is already bearing the brunt of this challenge. Close to 39% of consumer electronics batteries at end-of-life are never collected, and of those that are, nearly 80% are processed by informal channels, as per an ICEA–Accenture report. The outcome: close to half of recovered batteries never reach formal recycling units. Unchecked, this is a time bomb waiting to explode.
But the potential is equally immense. India can open a USD 3.5 billion lithium-ion recycling and manufacturing economy by 2030, generating up to 41,000 jobs, saving millions of gallons of water, and reducing carbon emissions (ICEA–Accenture, 2024). The Battery Waste Management Rules (2022) and Extended Producer Responsibility system are beginning points towards an organized recycling economy.
In a previous article — The Trillion-Rupee Charge: 5 Stocks Wiring India’s Battery Revolution — we discussed how India’s clean-energy future is being powered by storage. Recycling comes as the inevitable follow-up, so that this trillion-rupee charge doesn’t culminate in a trillion-tonne mess.
With this billion-dollar opportunity unfolding before us, it’s high time investors began taking notice of the few listed companies at the forefront of India’s battery recycling revolution.
#1 Gravita India
Established in 1992, Gravita India is one of the largest lead producers in India. The company’s business is organized across four specialised verticals: Lead Recycling (flagship), Aluminum recycling, Plastic recycling and Turnkey projects.
The company also has proficiency in recycling of second-life batteries, cable scrap/other Lead scrap, Aluminium scrap, Plastic scrap, etc.
Gravita India has consistently established itself as a major player in battery recycling. The business’s roots lie in lead battery recycling, in which it has ten facilities with production capacity of around 2.36 lakh MTPA and provides purified lead to leading OEMs such as Exide and Amara Raja.
During FY25, the consolidated recycling capacity of Gravita stood at 3.3 lakh MTPA in Asia, Africa, and Europe. The company intends to ramp this up to 7 lakh MTPA by FY28 through responsible investments, and Rs 1,500 crore will be invested in expanding capacity — of which Rs 1,000 crore will be in the current verticals of lead, aluminium, plastic, and rubber, and the balance will be in new projects such as lithium-ion recycling.
Gravita’s milestones include capturing a dominant share of India’s formal lead recycling volumes under tolling arrangements with OEMs, expanding margins in the form of value-added outputs, and less reliance on imports through increasing local sourcing of scrap.
In the future, the company’s Vision 2029 defines it seeking to rank among the global top five recyclers, with a major thrust in lithium-ion battery recycling and more than 30% of revenues coming from non-lead segments.
#2 Pondy Oxides and Chemicals
Incorporated in 1995, Pondy Oxides and Chemicals manufactures Lead Metal and Alloys and other Non-ferrous metals.
Pondy Oxides and Chemicals (POCL) has emerged as one of the pillars of India’s formal battery recycling market, gradually increasing its capacity and capabilities. The company is expanding its lead production base by 72,000 MTPA in two phases and increasing its overall finished goods capacity to 2.04 lakh MTPA by FY26.
Its greenfield Thervoy Kandigai plant is a smart, automated facility, constructed to reduce emissions and enhance efficiency. The unit is at the core of POCL’s strategy of achieving scale in regulated lead recycling while meeting changing environmental standards like the Battery Waste Management Rules.
The company has invested approximately Rs 94 crore in FY25 and an additional Rs 50 crore planned for FY26 to increase its recycling base, supported by a Rs 175 crore QIP and internal accrual.
Looking to the future, POCL is undertaking diversification into recycling of lithium-ion batteries, in addition to possible forays into rubber and e-waste recovery. This diversification drive, based on specialized R&D infrastructure, signifies its intent to become a diversified non-ferrous recycler with batteries being at the center of its growth strategy.
#3 NILE
Incorporated in 1984, Nile is a manufacturer of Pure Lead for battery consumption.
NILE is gradually building a reputation as an official used battery recycler, with business in both lead and lithium-ion segments. It has always been rooted in lead recycling, selling to big battery manufacturers, and is still reaping the reward of the government’s Battery Waste Management Rules that are channelling increasing scrap into regulated players such as itself.
In FY25, NILE achieved its highest turnover and profits, supported by robust demand from lead-acid battery manufacturers. It also noted that Extended Producer Responsibility (EPR) credits are starting to direct more feedstock to big formal recyclers, which enhances its future feedstock pipeline.
The company also made an early foray into lithium-ion recycling in the form of its subsidiary Nile Li-Cycle. Its initial mechanical processing unit is stabilized and now processes 40–50 tonnes per month of scrap from handheld devices, generating black mass for domestic customers. It is planning to go into exports and hydrometallurgical recovery with a pilot plant for the second phase already commissioned.
With capex focused on scaling both lead and lithium-ion recycling, NILE is establishing itself as a dual-technology recycler, marrying proven competence in lead with a visionary approach in new chemistries.
#4 Exide Industries
Exide Industries is primarily engaged in the manufacturing of storage batteries and allied products in India.
Exide Industries has consolidated its footprint in India’s recycling network through its wholly owned subsidiary, Chloride Metals (CML). With three vertically integrated units in Karnataka, Maharashtra and West Bengal, CML is the country’s largest organized lead-acid battery recycler with an annual refining capacity of 3,45,600 tonnes.
During FY25, Exide accelerated recycling activity by installing two new rotary furnaces at Malur and Supa, with an increased capacity of 31,000 tonnes. The gross amount of used batteries and lead scrap processed rose to more than 1.3 lakh tonnes, an increase of 33% from the last fiscal.
In addition to increasing lead capacity, the company also doubled its plastic recycling capability to 9,000 tonnes so that casings and lids of waste batteries are recycled back into reusable granules for new production.
Cumulatively, these efforts support Exide’s closed-loop battery recycling scheme in reclaiming both plastic and metal from end-of-life batteries and recycling them back into its production pipeline.
Exide is also making investments in energy efficiency for its recycling plants, using solar captive units, cleaner fuels and producer gas technology to reduce emissions. Cumulatively, these efforts enhance its model of the circular economy while ensuring sustainable raw material supply for new battery production.
#5 Amara Raja Energy & Mobility
Amara Raja Energy and Mobility, the flagship company of the Amara Raja Group, is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.
Amara Raja Energy & Mobility is adding strength to its recycling credentials in the form of a new facility at Cheyyar, Tamil Nadu. Refining operations are already underway, while full-fledged battery breaking will be operational by October–November once trial runs of imported equipment are over.
The Cheyyar plant is an important milestone in the closed-loop system of the company, for recovering lead and other materials from used-up batteries. Recycling will cut raw material expenditure, and import dependence, while also ensuring compliance with the Battery Waste Management Rules, management has stressed.
The company has budgeted Rs 1,200–1,300 crore of capex for FY26, of which almost ₹800–900 crore will be for new energy ventures, including the recycling plant. In addition, Amara Raja is developing capabilities in advanced chemistry cells, indicating its intention to combine lead-acid recycling prowess with nascent lithium-ion recovery over the next few years.
#6 Tata Chemicals
Incorporated in 1939, Tata Chemicals, an arm of the Tata Group, manufactures and exports basic chemistry and specialty products.
Tata Chemicals is making an early foray towards becoming a known player in India’s battery recycling market, albeit its present engagement being limited to pilot and R&D levels. The company has emphasized circular economy and resource recovery as key to its long-term sustainability agenda, connecting them to the impending requirement of lithium-ion battery recycling.
Over the last few years, Tata Chemicals has embarked on pilot programmes and research at its Innovation Centre to create processes for recycling important materials like lithium, cobalt and nickel from spent batteries. These are being done with a view to establishing technical capability before launching scaled-up operations.
On the investment front, the company has focused capex on pollution reduction and circularity initiatives, as well as research on energy storage materials, including the development of recycling technologies. Even though still in the exploratory stage, these programs are consistent with its strategic aim of zero waste to landfill by 2030 and net zero by 2045.
For now, Tata Chemicals’ role in battery recycling is limited, but its R&D-driven approach positions it to be an important player as the sector formalises
Valuations
Let’s now turn to valuations of these battery recycling and energy storage companies, through the lens of the Enterprise Value to EBITDA ratio compared against their 10-year medians.
Current VS Historic Valuations Comparison
| Sr No | Company | EV/EBITDA | 10-year EV/EBITDA |
| 1 | Gravita India | 25.8x | 12.5x |
| 2 | Pondy Exides and Chemicals | 25.4x | 6.6x |
| 3 | NILE | 9.1x | 6.5x |
| 4 | Exide Industries | 19.0x | 12.1x |
| 5 | Amara Raja Energy & Mobility | 11.6x | 12.0x |
| 6 | Tata Chemicals | 12.7x | 6.2x |
Source: Screener.in
The most striking thing at first glance is that the majority of the players are trading significantly above their historical medians. Gravita India and Pondy Oxides, for example, are priced at over double their historical multiples as the market remains optimistic on formal recyclers taking share with tightening regulation. Exide also trades at a premium, with its EV/EBITDA multiple at 19.0 compared to its 10-year median of 12.1, showing the street’s faith in its integrated recycling model.
Conversely, Amara Raja is trading just below its median, and NILE’s modest premium indicates investors are waiting until its lithium-ion foray picks up scale. Tata Chemicals, on the other hand, is trading twice its historical median despite its recycling initiatives still being at the pilot stage.
The bigger picture is evident: valuations already account for much of the growth story on formalisation, circular economy and policy tailwinds. The only question for investors is if the sharp premium to long-term medians preserves sufficient margin of safety, or if profitability in the future has already been factored in.
Investor takeaway
Battery recycling is no longer a niche tale. With regulatory pressure building, formalisation accelerating, and sustainability goals informing company strategy, the industry is moving fast from informal scrapyards to organized, large-scale facilities. The promise is obvious: a circular battery economy that can generate employment, reduce dependence on imports, and lower emissions.
Valuations do imply that potentially much of this enthusiasm is already priced into shares, with multiples well ahead of their long-term medians. This indicates high confidence in the growth narrative but also concerns how much of the future potential is already accounted for. Execution will be critical more than ever — from creating effective collection networks to scaling up lithium-ion recovery and capital-efficient growth.
The potential is undeniable, but it is also complicated and rapidly changing. Investors should look beyond the headlines and make a comprehensive assessment of financial resilience, regulatory preparedness, and technological competence before taking a long-term view on this new green frontier.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to dig deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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