Sunlite Recycling Industries: A Half-Year of Remarkable Growth and Strategic Expansion

Sunlite Recycling Industries Limited, a key player in India's copper recycling sector, has reported an outstanding performance for the first half of fiscal year 2026 (H1 FY26). The company's financial results underscore its robust operational capabilities and strategic foresight, positioning it for sustained growth in a dynamic market. With revenue from operations soaring by 76% year-on-year, EBITDA witnessing an impressive 83% surge, and Profit After Tax (PAT) registering a remarkable 103% growth, Sunlite is clearly on an accelerated trajectory.

This exceptional growth is not merely a statistical anomaly but a reflection of Sunlite's strategic initiatives and efficient execution. The company's total sales volume for H1 FY26 stood at 12,502 tonnes, marking a strong 61% year-on-year increase. This volume momentum translated directly into the significant top-line expansion, supported by healthy market demand and consistent customer engagement across its core markets. The profitability metrics further highlight operational efficiency, with the EBITDA margin improving to 1.95% and the PAT margin expanding to 1.28%.

Strategic Moves for a Unified Future

Sunlite's management is not resting on its laurels. A pivotal strategic development is the planned integration of Sunlite Aluminium Private Limited (SAPL), a promoter group entity, into the listed company. This move is expected to create a unified copper-plus-aluminium platform, enhancing scale, market position, and operational synergies. SAPL, which manufactures aluminium wire rods for the power and transmission industry, brings a robust FY25 performance with revenue of INR 139.62 crore, EBITDA of INR 8.69 crore, and PAT of INR 4.88 crore. This integration, expected in H2 FY26, will immediately boost Sunlite's consolidated profitability and strengthen its capital structure through a preferential issue of INR 62.90 crore, backed by marquee investors.

Beyond this acquisition, Sunlite is aggressively pursuing forward and backward integration strategies. The company is undertaking significant capacity expansion in Annealed Tinned Copper (ATC) wires and copper busbars. ATC wire capacity is set to double by December 2025, driven by strong demand from the renewable energy sector. Busbar production, which commenced in September 2025, is targeted to reach 60-70% utilization by the end of FY26. These value-added products are crucial for high-performance electrical applications and are expected to significantly improve profit margins.

Pioneering High-Purity Copper Production

Looking further ahead, Sunlite is planning a cumulative CapEx of approximately INR 40 crore by FY 2028 to establish a copper cathode plant using an advanced electrolysis recycling process. This initiative represents a major strategic leap, enabling the company to manufacture 99.99% copper purity cathodes, a product currently imported into India. This move will not only act as a significant import substitution but also strengthen domestic capabilities in a critical raw material, with an expected gross margin of around 5%. The plant, with an initial capacity of 15,000 metric tonnes per annum, is expected to be operational by mid-calendar 2027.

Sunlite's commitment to sustainability is also a key differentiator. The company's operations are clean, relying on solar generation and natural gas, with no smelting or mining involved. A rooftop solar rollout is underway to further lower energy costs, reinforcing its eco-conscious approach. This focus on sustainable manufacturing aligns with global trends and appeals to environmentally aware investors and customers.

Outlook and Management Confidence

Management's guidance reflects confidence in sustained growth. The company anticipates a revenue growth of 10-15% for FY26 and FY27, with PAT margins expected to comfortably reach 1.35%. For FY26, Sunlite is targeting a revenue of INR 2,400-2,500 crore, with an ambitious goal of INR 5,000 crore in the next 4-5 years. This outlook is supported by India's robust copper demand, projected to grow by 7-10% in FY25 and nearly double by 2030, driven by renewable energy, EV infrastructure, and construction sectors.

Sunlite Recycling Industries Limited's H1 FY26 performance, coupled with its strategic acquisitions, capacity expansions, and commitment to high-purity product development and sustainability, paints a picture of a company well-positioned for long-term value creation. The management's deep industry experience and disciplined capital allocation further instill confidence in its ability to navigate market dynamics and achieve its ambitious growth targets.