Skip to content

    JAINREC

    JAINRECStrong
    Metals & Mining·11 Feb 2026
    Management Summary

    Jain Resource Recycling delivered a strong performance in the first nine months of FY26, marked by robust revenue and volume growth, and significant margin expansion. The growth was driven by healthy volumes, disciplined hedging, and improved operating leverage. While the working capital cycle saw a temporary spike, management is confident of normalization. The company is aggressively pursuing four new growth verticals, including high-margin value-added products and international JVs, which are expected to sustain its high-growth trajectory and further improve profitability.

    Highlights

    8

    • 9M FY26 Revenue from Operations grew 38% YoY to ₹6,438 crores.

    • 9M FY26 EBITDA increased 65% YoY to ₹449 crores, with margin expanding 116 bps to 7.0%.

    • 9M FY26 PAT grew 65% YoY to ₹281 crores, with margin improving 71 bps to 4.4%.

    • 9M FY26 Volume growth stood at 29.34% YoY.

    • Q3 FY26 EBITDA margin was 7.2% and PAT margin was 4.5%, showing continued improvement.

    • Working capital cycle elongated to 82 days due to a large tender and higher copper mix, with normalization expected in the next quarter.

    • Significant progress reported on four new growth verticals: value-added copper products, Ahmedabad JV, Kuwait JV, and Antimony extraction.

    • Copper EBITDA/tonne for Q3 was ~₹42,000, with management guiding for a stable range of ₹48,000-50,000 in the future.

    Concerns

    1

    • Elevated Working Capital Cycle

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹6,438 Cr+38%YoY
    2. 02EBITDA₹449 Cr+65%YoY
    3. 03EBITDA Margin7%
    4. 04PAT₹281 Cr+65%YoY
    5. 05PAT Margin4.4%

    Segment breakdown

    Revenue Mix (9M FY26)
    52% Copper & Copper Alloy43% Lead & Lead Alloy4% Aluminum & Aluminum Products
    List

    Guidance & targets

    13
    CategoryTargetPriority
    Capacity
    Copper Anode Production
    800 tons/month
    		High
    Capacity
    Copper Cathode Production
    750 tons/month
    		High
    Capacity
    Copper Anode Expansion
    1,600 tons/month
    		High
    Capacity
    Copper Cathode Expansion
    1,500 tons/month
    		High
    Capacity
    Ahmedabad JV Plant Start
    Operational
    		High
    Capacity
    Kuwait Battery Recycling Plant
    2,000 tons/month
    		High
    Capacity
    Antimony Extraction Plant
    100 tons/month output
    		High
    Capex
    Antimony Extraction Plant Capex
    around INR 20 crores
    		High
    Capex
    Next Financial Year Capex
    around INR 110 crores
    		High
    Profitability
    Copper EBITDA per ton
    INR 48,000 to 50,000
    		Medium
    Profitability
    EBITDA Margin Impact from New Projects
    up to 1% addition
    		Medium
    Balance Sheet
    Working Capital Cycle
    60-65 days
    		High
    Growth
    Overall Company Growth
    40-50%
    		Medium

    Risks & concerns

    6
    RiskSeverity

    Elevated Working Capital Cycle

    Working capital days spiked to 82, impacting cash flow. Management has a clear plan for normalization within 3 months. — Analyst acknowledged

    high

    Commodity Price Volatility Impacting Margins

    Despite hedging, price volatility causes quarterly fluctuations in EBITDA/tonne due to lags in procurement and sales formulas. — Analyst acknowledged

    medium

    Project Execution Risk

    The company has multiple large-scale projects commissioning over the next 18 months. Any delays could impact guided growth. — Management acknowledged

    medium

    SEBI Investigation Against Promoter

    An ongoing appeal against a SEBI penalty exists. While management terms it a small, old matter, it represents a minor governance overhang. — Analyst downplayed

    low

    Areas of Evasion(2)

    • Specific revenue/profit potential of the new antimony project
    • Detailed mechanics of the hedging strategy

    Q&A highlights

    3

    “This time the working cycle has happened a little longer because one was the New Year... second was the due to the we have taken a very huge tender and that has come... And one more reason is the compared to the lead last year, this time the copper is predominating and copper is the major part of the sale. Copper cycle is not as fast as lead cycle.”

    It addresses a key balance sheet concern, explaining the operational reasons for the deviation and provides a timeline for normalization.

    asked by Rahul from Lucky Investment Management

    2 min read5 chapters

    Detailed Narrative

    01

    Stellar 9M FY26 Performance Driven by Volume and Margins

    Jain Resource Recycling reported a robust performance for the nine months ending Dec 2025. Revenue grew 38% YoY to ₹6,438 crores, supported by a strong volume growth of 29.34%. Profitability saw a significant uplift, with EBITDA growing 65% to ₹449 crores and PAT also growing 65% to ₹281 crores. This was accompanied by substantial margin expansion, as the EBITDA margin improved by 116 basis points to 7.0% and the PAT margin rose by 71 basis points to 4.4%, reflecting better operating leverage and disciplined execution.

    02

    Aggressive Expansion through Four Key Verticals

    Management detailed a clear roadmap for future growth centered on four new verticals. The first is a profitability-focused value-added copper project (anodes, cathodes, wire rods) at Jain Green Technologies, with phase-wise commissioning starting Feb 2026. The second is a volume-driven copper recycling JV in Ahmedabad, expected to be operational by June 2026 and add ~₹650 crores to revenue. The third is a JV in Kuwait for battery recycling to secure lead raw material, starting Q3 FY27. The final vertical is a high-margin antimony extraction plant, a new technology for India, with a capex of ₹20 crores and commissioning in Q3 FY27.

    03

    Working Capital Spike and Normalization Path

    A key point of discussion was the increase in the working capital cycle to 82 days. Management attributed this to three factors: payment delays due to New Year holidays in key export markets like China, a large inventory build-up from a major tender, and a higher mix of copper sales, which has a longer cash conversion cycle than lead. Management expressed high confidence that the cycle will normalize, with inventory levels reducing over the next 1-2 months, and guided for the overall cycle to return to the 60-65 day range.

    04

    Copper EBITDA/Tonne Dynamics

    Analysts questioned the volatility in copper EBITDA per ton, which was ~₹42,000 in Q3 after being higher in previous quarters. Management explained that while LME prices are hedged, the 'formula' or premium/discount is not, and it fluctuates with price movements. A lag between procurement and sales can cause this quarterly volatility. However, on a 9-month basis, the metric was stable at ₹46,000-47,000 per ton. They guided for a stable range of ₹48,000-50,000 going forward⏳, with a potential to reach ₹70,000-75,000 once the value-added plant is operational.

    05

    Capex and Funding Strategy

    The company is funding its immediate capex primarily through internal accruals, demonstrating balance sheet discipline. The value-added copper project has a total capex of ~₹95 crores, of which ₹57 crores was spent by Dec 2025. For the next financial year (FY27), the total planned capex is around ₹110 crores, which includes the remaining amount for the copper project and an investment of ₹7-8 crores for the Kuwait JV. This clear capex plan underpins the company's expansion strategy.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.