Whalesbook
📉 The Financial Deep Dive
The Numbers: Jain Resource Recycling Limited has posted strong financial results for the nine months ended December 31, 2025 (9M FY26) and the third quarter (Q3 FY26).
For 9M FY26, consolidated revenue from operations stood at approximately ₹6,438 crore, marking a significant 38% year-on-year growth from ₹4,669 crore in 9M FY25. EBITDA surged by 65% to ₹449 crore from ₹272 crore, with an EBITDA margin of approximately 7.0%. Profit After Tax (PAT) saw a 65% increase to ₹281 crore, compared to ₹171 crore in the previous year, yielding a PAT margin of 4.4%.
In Q3 FY26, the company's revenue grew by a substantial 56% YoY to ₹2,775.2 crore. EBITDA doubled, increasing by 122% YoY to ₹198.9 crore, with an improved EBITDA margin of 7.2%. PAT from continuing operations in Q3 FY26 jumped 150% YoY to ₹129.5 crore.
The revenue mix for 9M FY26 comprised 52% from copper & copper alloy products, 43% from lead & lead alloy ingots, and 4% from Aluminium & Aluminium products. Geographically, the split was 30% domestic and 70% exports.
🚀 Strategic Analysis & Impact
The company is embarking on an aggressive strategic expansion. Key initiatives include:
- Middle East Expansion: Approval granted to acquire a 25% stake in M/s. Abraj Al Khaleej, Kuwait, for an estimated USD 3 million. This move is expected to provide a platform for Middle East growth and secure product offtake rights, with benefits anticipated by Q3 FY27.
- Copper Scrap Recycling JV: A new entity, Jain CY Circular Solutions Private Limited, has been formed with C&Y Group Investments Inc. to establish a copper scrap recycling facility in Ahmedabad, targeting 72,000 MTPA processing capacity, set to be operational by June 2026.
- Forward Integration into Copper Products: The Value-Added Copper Products project is progressing. The Copper Anode segment is slated for commissioning in Q4 FY26, followed by Copper Cathode in Q1 FY27, and Wire Rod, Busbar, and Coating facilities by Q1-Q2 FY27. This vertical integration aims to enhance product mix and margins.
- Tin Division Expansion: Capacity has been increased from 125 MTPA to 500 MTPA.
- Antimony Extraction: Plans for an antimony extraction plant from Lead Acid Battery lead streams are underway, with commissioning targeted for Q3 FY27 and an estimated capex of ₹20 crore.
These initiatives are supported by favourable government policies such as the Vehicle Scrappage Policy and the National Non-ferrous metal scrap recycling framework.
🚩 Risks & Outlook
Despite the robust growth and expansion plans, significant financial concerns have emerged. The company completed a ₹1,250 crore IPO in October 2025, with proceeds intended for debt repayment and general corporate purposes. However, net borrowings increased substantially to ₹1,288.2 crore as of September 2025, up from ₹916.4 crore in March 2025. This led to a dramatic rise in the Net Debt to Equity ratio from 0.9 (FY25) to 31 (H1FY26).
Furthermore, operating cash flow was negative at ₹403.2 crore for the period ending September 25. The company also announced the discontinuation of its gold and silver refining operations in UAE due to low margins and high costs.
While the credit rating was upgraded to CRISIL A+/Stable, investors must closely monitor the company's ability to manage its heightened leverage and negative operating cash flow alongside the execution risks associated with its ambitious expansion projects. The implementation of Labour Codes has also resulted in increased employee benefit expenses.