Jain Resource Recycling Limited – Investor Presentation Summary

Key Operational Highlights

  • Consolidated Revenue from Operations for Q1 FY27 stood at ₹2,724.5 crore
  • Copper and copper products contributed approximately 67% of consolidated revenue during the quarter
  • Successfully commissioned entire Copper Anode production line with both furnaces now operational (1,600 MT/month capacity)
  • Operations at Unit-II facility temporarily impacted following a fire incident in one manufacturing shed, with manufacturing operations resumed across Unit-II excluding the affected shed
  • Ahmedabad joint venture with C&Y Group started trial production and expected to streamline operations by Q2 FY27
  • Kuwait strategic investment continues to progress with temporary shipment delays due to geopolitical situation in West Asia

Key drivers of operational performance: Strong growth in copper volumes, initial contribution from value-added products, forward integration strategy, diversified product portfolio, disciplined sourcing capabilities

Segment-wise Performance

  • Lead & Lead Alloy Ingots: Registered as LME brand, used in Lead Acid Batteries, Radiation Shielding, Ammunition, Aerospace
  • Copper & Copper Ingots: Refined Copper Billet (95.00% to 99.07% purity), Copper Alloy Billets/Ingots, Copper Ingots, Finished Copper Scrap
  • Aluminum & Aluminum Ingots: Various grades of primary and secondary alloys, Molten Aluminum Alloy
  • Tin: Extracted as by-product in lead recycling process, applications in electronics, food packaging, automotive components
  • Plastics: Recycled into PP/PVC granules from lead battery plastic scrap

Financial Highlights

Revenue: ₹2,724.5 crore

EBITDA: ₹109.5 crore

PAT: ₹69.4 crore

EPS: ₹2.02

Margins: EBITDA Margin 4.0%, PAT Margin 2.5%

YoY comparison: Revenue growth 76% YoY, EBITDA growth 22% YoY, PAT growth 23% YoY

QoQ comparison: Revenue decline 12% QoQ, EBITDA flat 0% QoQ, PAT growth 5% QoQ

Drivers of financial performance: Robust revenue growth, evolving product mix, initial ramp-up of value-added copper business, strong copper volume growth

Key Risks: Raw material price fluctuations, geopolitical situation affecting shipments, margin compression due to product mix changes, operational disruptions from fire incident

Geographical Revenue Split

Domestic vs Export: Not specified in exact figures

Export Countries: 20+ countries

Raw Material Sourcing: 120+ countries

Balance Sheet Snapshot

Inventories: ₹1,476.7 crore (Mar-26)

Trade Receivables: ₹476.0 crore (Mar-26)

Cash and Cash Equivalents: ₹69.7 crore (Mar-26)

Borrowings: ₹1,270.8 crore (Current), ₹0.7 crore (Non-current) as of Mar-26

Total Equity: ₹1,558.1 crore (Mar-26)

Financial Health Insights: Post-IPO equity base increased following capital infusion, returns expected to normalize as new capital deployed

Capex & Cash Flow Health

Capital Expenditure: Copper value-added expansion Phase I total capex plan ₹95 crore, with ₹74 crore spent till March 2026

Free Cash Flow: Not specified

Operating Cash Flow: Net cash from operating activities (₹590.7) crore for FY26

Net Debt Movement: Not specified

Investment Rationale: Focus on capacity expansion, value-added product portfolio enhancement, customer integration, competitive positioning strengthening

Strategic & R&D Initiatives

Investments in Innovation: Copper cathode project (1,500 MT/month, Q2 FY27 commissioning), Copper wire rod (600 MT/month, Q3 FY27), Copper busbar & profiles (1,500 MT/month, Q3 FY27), Antimony project (Q3 FY27), dedicated plastic recycling facility

Expected impact on growth: Expansion into higher-margin specialty metal products, strengthening raw material security and recycling ecosystem

Strategic Rationale: Becoming fully integrated player across copper value chain, expanding presence in specialty metals, improving operational efficiency

Industry Trends & Business Environment

Macro/Industry Trends: India's ₹1,500 crore Critical Mineral Recycling Scheme, Extended Producer Responsibility framework for non-ferrous metals, Vehicle Scrappage Policy, National Non-ferrous metal scrap recycling framework, government mandate for minimum 5% recycled content in new non-ferrous metal products

Impact on Company: Favorable regulatory initiatives, increasing demand for recycled metals, global transition towards sustainable manufacturing, energy savings (copper recycling saves 85% energy, aluminum recycling saves up to 95% energy, secondary lead reduces CO2 emissions by 99%)

Management Commentary & Growth Outlook

Strategic Outlook: "We remain optimistic about the long-term prospects of the non-ferrous recycling industry, supported by favourable regulatory initiatives, increasing demand for recycled metals and the global transition towards sustainable manufacturing"

FY Guidance: Multiple value-added projects nearing commercialization - copper cathode (Q2 FY27), copper wire rod (Q3 FY27), copper busbar (Q3 FY27), antimony project (Q3 FY27)

Risks and Opportunities: Geopolitical situation affecting Kuwait shipments, product mix evolution impacting margins, fire incident restoration progress, commodity price fluctuations managed through hedging mechanism

ESG Updates

Sustainability Commitments: Rooftop solar power plant for green copper cathode production, environmental responsibility through recycling energy savings

Social Initiatives: Supporting digital access boards for government schools, construction of government school building in Rajasthan, transforming 15 government schools in Tamil Nadu, sponsoring 21 pink autos for women empowerment, free UPSC coaching for underprivileged aspirants

Discontinued Operations

Gold refining operations through Jain Ikon Global Ventures (FZC) discontinued effective April 17, 2025, due to low margins, high operational overheads, working capital constraints and volatility in gold refining sector. Subsidiary reclassified as asset held for disposal.