Revenue from operations grew 65% year-on-year to ₹3,122 crores.
EBITDA increased 27% to ₹139 crores.
Profit After Tax (PAT) rose 22% to over ₹68 crores.
Sales volume grew 25% year-on-year.
The company considers EBITDA per ton a more meaningful metric than percentage margins. EBITDA per kg was ₹12.40 (₹12,400 per ton).
The average sale price per kg was approximately ₹350, a significant increase from ₹226-230/kg in the previous quarter.
Operating cash flow was negative for the quarter, primarily due to a 40% increase in aluminum prices, which drastically increased working capital requirements.
Volume Breakdown and Business Mix
Aluminum business volume grew 32% year-on-year.
Billets volume increased 149%.
UBC (Used Beverage Can) volumes grew 333%.
The volume mix in FY26 was 66% automotive alloys, 10% non-automotive, and 24% other metals. The company aims to rebalance this to 60% automotive, 20% non-automotive, and 20% other metals.
The domestic vs. export split: Exports constituted 3.4% of turnover in the previous year (FY26). The company focuses on niche product exports to Japan, Europe (Belgium, Germany), Southeast Asia (Thailand), and China.
Operational and Strategic Highlights
The company is India's largest secondary aluminium recycling company, with an installed alloy capacity more than four times that of its nearest domestic competitor.
Key strengths include strategically located plants, a diversified scrap sourcing network, and joint ventures with three large Japanese companies.
Long-standing partnerships exist with leading automotive OEMs, Tier 1 suppliers, Hindalco, and Jindal Stainless.
Ather Energy, a leading electric two-wheeler manufacturer, is a new customer.
The liquid aluminium business now constitutes over 50% of aluminium sales. Its benefits include lower melting losses, reduced energy consumption, significantly lower carbon emissions (~300 kg/ton vs. ~16 tons/ton for primary aluminium), and creating a predictable, locked-in customer relationship.
Capacity Expansion and Capex
Installed recycling capacity is planned to exceed 7 lakh tons per annum by the end of FY27.
The company invested ₹53 crores in greenfield projects at Shoolagiri and Bawal during the quarter.
Brownfield projects and technology-led initiatives at Tirupati and other locations are advancing.
A plant in Odisha, established with Hindalco, has a capacity of 48,000 tons per annum. It produced 6,000 tons in the quarter and is ramping up towards a target of 4,000 tons per month. Full capacity utilization is expected within FY27.
An MOU was signed with Hindustan Zinc, but no definitive agreement has been finalized, and no construction activity has begun.
Guidance and Outlook
Management maintained its volume growth guidance of 25% for FY27.
The EBITDA per kg target is maintained at ₹12.
The debt-equity ratio is historically maintained at 0.5 but is currently at 0.86 due to working capital needs. The company aims to reduce it as prices stabilize.
Working Capital and Hedging
The cash conversion cycle was reduced to 65 days in Q1 from 69 days in the previous quarter.
Inventory days were reduced to 40 days from 45 days in the previous quarter. An AI-enabled system for tracking imports is being implemented to further reduce inventory days.
The company employs a complex hedging strategy for its secondary aluminium exposure, balancing LME hedging with cost-plus pricing from automotive customers.
A cash flow hedge related cost of ₹36 crores was recorded in 'Other Expenses' during the quarter.
Market Context and Regulatory Tailwinds
The company operates despite an uncertain global environment marked by geopolitical tensions, supply chain disruptions, and price volatility.
Passenger vehicle and two-wheeler sales grew nearly 26% and 20% year-on-year, respectively, in Q1 FY27.
India's EV penetration reached 8.26% of total vehicle registrations in FY26.
Favourable regulatory trends support demand: India's proposed EPR framework expects minimum recycled content requirements for aluminium to increase from 5% in FY28 to 10% over time. The EU's CBAM is also accelerating the adoption of low-carbon materials.
India's aluminum extrusion industry is expected to grow at a 12% CAGR through FY29.
