One of India’s leading non-ferrous metal recyclers, Jain Resource H1 FY26 result reported a strong financial performance. It is the first reporting as a listed company.
Adding to that confidence, renowned investor Ashish Kacholia recently acquired a 1.14% stake, his 50th portfolio investment, through Bengal Finance & Investment. The purchase of 3.89 million shares worth about INR 143.6 crore is being viewed by market watchers as a strong endorsement of the company’s financial discipline and sector leadership in sustainable metal recycling.
Jain Resource H1 FY26: Financial Performance
Jain Resource H1 FY26 results reported a 27% year-on-year increase in consolidated revenue, reaching INR 3,663 crore, compared to INR 2,889 crore in H1 FY25. EBITDA surged 37% YoY to INR 250 crore, while Profit After Tax rose 38% to INR 155 crore.
Margins also improved, with EBITDA margin expanding to 6.8% (from 6.3%) and PAT margin strengthening to 4.2% (up 35 bps YoY). The company attributed the gains to a higher value-added product mix, export-led diversification, and better cost discipline.
| Metric | H1 FY26 | H1 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | 3,663.0 | 2,888.6 | +26.8% |
| EBITDA | 250.1 | 182.1 | +37.3% |
| PAT | 155.1 | 112.2 | +38.2% |
| EBITDA Margin | 6.8% | 6.3% | +52 bps |
| PAT Margin | 4.2% | 3.9% | +35 bps |
Segmentally, lead and lead alloy ingots contributed 48% of total revenue, while copper and copper alloys accounted for 46%, and aluminium products made up 4%.
The company’s export share stood at 63%, underscoring its strong international footprint and product acceptance across over 20 countries.
Jain Resource Q2 FY26 Results: Margin Expansion & Operating Leverage
Jain Resource Q2 FY26 reported a revenue of INR 2,113.7 crore, up 52% YoY, and an EBITDA of INR 160 crore, up 82% YoY, with margins expanding by 127 basis points.
The company’s PAT for Q2 FY26 rose 88% YoY to INR 98.6 crore, aided by higher gross profit and a favourable sales mix.
Chairman and Managing Director Mr. Kamlesh Jain highlighted,
“Our first half of FY26 demonstrates our commitment to disciplined growth and sustainable value creation. With a diversified portfolio, prudent hedging mechanisms, and strong global sourcing, we continue to build a resilient enterprise capable of navigating volatility.”
Balance Sheet Strengthened by IPO Proceeds
The company’s balance sheet expanded significantly post-listing, with total assets rising to INR 4,263 crore as of September 2025, from INR 1,836 crore in March 2025.
This includes INR 1,250 crore of IPO proceeds, of which INR 750 crore was raised through the Offer for Sale (OFS) by the promoters.
Equity capital rose to INR 1,364 crore, while borrowings stood at INR 1,289 crore, translating into a net debt-to-equity ratio near 0.1x (post-IPO). Jain Resource’s credit rating was upgraded by CRISIL to A+/Stable, reflecting improved leverage and business visibility.
The company also recorded a negative operating cash flow of INR 403 crore, largely due to higher working capital tied up in inventories and trade receivables — a common dynamic post-capacity expansion and scaling phase.
Jain Resource H1 FY26: Operational Overview
Jain Resource operates four recycling facilities located across Tamil Nadu, covering over 40 acres with integrated processing for lead, copper, aluminium, and plastic recycling.
The facilities boast advanced technologies, including regenerative burner furnaces, automatic casting lines, and battery-breaking machines, ensuring efficiency, quality, and environmental compliance.
Its current annual production capacity exceeds 1,00,000 MTPA, with multi-product capabilities across:
- Lead refining (1,84,000 MTPA)
- Copper and copper alloy processing (45,000+ MTPA)
- Aluminium recycling (24,000 MTPA)
A robust supplier base of 400+ vendors across 120 countries ensures deep sourcing capability, with around 69% of imported raw material procured directly from scrap yards — an advantage in quality and traceability.
Forward Integration: Copper Cathode Project Nearing Completion
A key strategic milestone is the forward integration into copper cathode, wire rod, and busbar manufacturing, being implemented by subsidiary Jain Green Technologies.
The project, located at SIPCOT Industrial Estate, Gummidipoondi, is 70% complete as of September 2025, with commissioning expected in Q1 FY27. The company has earmarked a capex of INR 95 crore (Phase I), funded entirely through internal accruals. Once operational, the 9,000 MTPA green copper cathode plant is expected to enhance margins and reduce dependency on third-party intermediate products.
The project also includes a rooftop solar power plant to produce “Green Copper Cathodes”, reinforcing the firm’s ESG positioning.
Industry Context
India’s non-ferrous recycling market is gaining momentum, driven by:
- Mandatory 5% recycled content in new non-ferrous products from FY28 onwards,
- Significant energy savings (up to 95%) in recycled aluminium versus primary production,
- And rising ESG-linked sourcing mandates from global manufacturers.
As one of the only two Indian recyclers with LME-registered lead ingots, Jain Resource is strategically positioned to benefit from this structural shift towards circular manufacturing.
Conclusion
Jain Resource Recycling has entered a new phase of growth — combining financial prudence, operational scale, and sustainability-driven innovation. With strong balance sheet health, consistent margin expansion, and visible growth catalysts in forward integration and ESG domains, the company stands out as a resilient compounder in India’s evolving recycling ecosystem.
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