Jain Resource Recycling Limited – Investor Presentation Summary
Key Operational Highlights
- Copper and copper ingot volumes registered 74% year-on-year growth in Q2 FY27
- Combined copper business accounted for approximately 72% of consolidated quarterly revenue
- Working capital days reduced to 49 days from 66 days in FY26
- Plant capacity of 3.8 lakh MTPA authorized production capacity
- 550+ employees and 350+ customers as of September 30, 2026
Key drivers of operational performance:
- Robust revenue growth and expanding operations in copper business
- Enhanced manufacturing capabilities and progress on key expansion projects
- Improved working capital efficiency and focus on cash generation
Segment-wise Performance
- Copper Business: Primary growth driver with 72% revenue contribution in Q2 FY27
- Lead Business: Witnessed improvement in sequential profitability
- Aluminum Segment: Maintained healthy volume growth
- Value-added Products: Begun contributing to revenue, supporting downstream integration strategy
Financial Highlights
Revenue: Rs. 3,337.0 crore (Q2 FY27), Rs. 6,061.4 crore (H1 FY27)
EBITDA: Rs. 138.8 crore (Q2 FY27), Rs. 248.3 crore (H1 FY27)
PAT: Rs. 90.6 crore (Q2 FY27), Rs. 160.0 crore (H1 FY27)
EPS: Rs. 2.63 (Q2 FY27), Rs. 4.65 (H1 FY27)
Margins: EBITDA Margin 4.2% (Q2 FY27), 4.1% (H1 FY27); PAT Margin 2.7% (Q2 FY27), 2.6% (H1 FY27)
YoY/QoQ comparison: Q2 revenue grew 58% YoY and 22% QoQ; H1 revenue grew 65% YoY
Drivers of financial performance:
- Higher revenue growth across business segments
- Sequential improvement in profitability (EBITDA up 27% QoQ, PAT up 30% QoQ)
- Operational efficiencies and scaling operations
- Positive cash flow from operations of approximately Rs. 137 crore
Key Risks:
- Margin pressure on year-on-year basis (EBITDA margin declined 341 bps YoY in Q2)
- Geopolitical disruptions in West Asia affecting Kuwait investment timeline
- Commodity price fluctuations impacting profitability
Balance Sheet Snapshot
Net Debt/Equity: Not Specified
Reserves: Rs. 1,653.2 crore (Sep-26)
Current Assets/Liabilities: Current Assets Rs. 3,383.6 crore, Current Liabilities Rs. 1,928.6 crore (Sep-26)
Working Capital/Leverage Metrics: Working capital days improved to 49 days from 66 days
Financial Health Insights: Positive cash flow generation, improved working capital efficiency
Capex & Cash Flow Health
Capital Expenditure: CWIP of Rs. 93.6 crore (Sep-26)
Free Cash Flow: Not Specified
Operating Cash Flow: Rs. 129.6 crore net cash from operating activities (Sep-26)
Net Debt Movement: Not Specified
Investment Rationale: Focus on capacity expansion, technology upgrades, and value-added product integration
Strategic & R&D Initiatives
Investments in Innovation: Copper value-added products (Anode, Cathode, Wire Rod, Bus Bars); Antimony project; dedicated plastic recycling unit; Kuwait strategic investment
Expected impact on growth: Enhanced presence across copper value chain, broader product portfolio, raw material security
Strategic Rationale: Building integrated and diversified business portfolio, expanding downstream integration, enhancing product mix
Industry Trends & Business Environment
Macro/Industry Trends: Government incentives including Rs. 1,500 crore Critical Mineral Recycling Scheme; Extended Producer Responsibility framework; Vehicle Scrappage Policy; mandate for 5% recycled content in new non-ferrous metal products
Impact on Company: Supportive regulatory environment for metal recycling; energy efficiency benefits (copper recycling saves 85% energy, aluminum recycling saves 95% energy compared to primary production)
Management Commentary & Growth Outlook
Strategic Outlook: Focus on accelerating capacity utilization, strengthening operational efficiencies, increasing contribution from value-added products
FY Guidance: Copper Cathode project commissioning in Q2 FY27; Copper Wire Rod and Copper Busbar & Profiles projects commissioning in Q3 FY27 and Q4 FY27 respectively; Antimony project and plastic recycling facility targeted for Q3 FY27
Risks and Opportunities: Geopolitical disruptions may cause delays in Kuwait project; expected improvement in EBITDA per tonne as capacity utilization improves
ESG Updates
- Environmental: Energy-efficient recycling processes (85-95% energy savings vs primary production)
- Social: Supporting education through digital access boards and school construction; empowering women through pink auto sponsorship; supporting UPSC aspirants
- Governance: Experienced board of directors with independent directors; CRISIL AA-/Stable credit rating