JAINREC

Jain Resource Recycling Limited achieved a landmark FY26, delivering its highest-ever annual performance with revenue growing 48% year-on-year to INR 9,543 crores from INR 6,429 crores in FY25. EBITDA increased 53% to INR 559 crores, with the margin improving to 5.9% from 5.7%. Profit after Tax grew 56% to INR 347 crores, expanding the PAT margin to 3.6%, driven by 26.5% volume growth and disciplined execution despite geopolitical uncertainties and volatile commodity markets.

Q4 FY26 saw consolidated revenue grow 76% year-on-year to INR 3,105 crores, but EBITDA margin compressed to 3.5%. This compression was primarily due to a decline in sale realization formulas as a percentage of LME copper prices during a sharp price surge, and increased logistics and fuel costs stemming from geopolitical disruptions in the Middle East. Management expects these impacts to be temporary, with normalization anticipated in Q1 FY27 as shipping disruptions ease and realization formulas recalibrate, guiding for a normalized copper EBITDA per ton of INR 30,000-32,000.

The company is making significant progress on its forward integration roadmap to enhance its value-added product mix. Copper anode production commenced in March 2026 with an initial capacity of 800 metric tons per month, with a second furnace expected to double this to 1,600 metric tons per month by Q1 FY27. Copper cathode phase one commissioning is targeted for Q2 FY27, wire rod for August 2026, and bus bar for September 2026, which are expected to improve realizations and strengthen profitability.

JainREC is investing in several strategic projects, including an Ahmedabad joint venture with C&Y Group to strengthen copper sourcing and recycling, with processing expected to commence in September 2026. The company is also establishing a dedicated plastic recycling unit with a capex of INR 15 crores, targeted to be operational by Q3 FY27, and progressing with antimony extraction capabilities with an investment of INR 20 crores. The Kuwait battery recycling venture is also advancing, though facing temporary shipping delays.

The company's operating cash flow was negative INR 600 crores in FY26, primarily due to increased receivables and inventories driven by higher copper prices and volume growth. As of March 2026, inventory days stood at 62 days, debtor days at 18 days, and creditor days at 14 days, resulting in an overall working capital cycle of 66 days. From the IPO primary issue of INR 500 crores, INR 375 crores were utilized for debt repayment, with the balance earmarked for general corporate purposes.

For FY26, copper and copper alloy products contributed 55% of total revenue, lead and lead alloy ingots 40%, and aluminium and related products 5%. Exports accounted for 62% of revenue, with 38% from the domestic market. The company maintains a robust global procurement network across over 120 countries, complemented by growing domestic sourcing, positioning it uniquely in the non-ferrous recycling industry.