/** CMR Green Technologies: Q1 FY27 growth, capacity build-out, and the shift toward higher-value recycled aluminium */

CMR Green Technologies: A Strong Start to FY27, Backed by Volume Growth and Capacity Expansion

CMR Green Technologies opened FY27 with a sharp jump in reported revenue, supported by higher volumes and a supportive metal price environment. In Q1 FY27, the company reported revenue of INR 3,122.7 crore, up 64.9% year on year. EBITDA (after adjustment of income or loss from forex and commodities hedging) rose 27.1% year on year to INR 139.5 crore, while profit after tax increased 21.9% year on year to INR 68.2 crore.

Management framed the quarter as a combination of healthy volume growth, operational efficiencies, and disciplined cost management. It also highlighted EBITDA per kg as a key operating metric for the business, given the pass-through nature of metal prices in revenue.

What drove Q1 FY27 performance

Sales volumes grew 25.2% year on year to 112,336 metric tonnes. The presentation attributed this to demand strength, particularly in aluminium. Aluminium volumes grew 32.5% year on year. Within the aluminium portfolio, billet volumes increased 14% year on year, and used beverage can recycling volumes grew 333% year on year, signalling traction in newer and more value-added verticals.

Despite significant aluminium price volatility, the company stated that it managed to mitigate metal price fluctuations through diversified scrap sourcing, an effective hedging strategy, and a prudent risk management framework. EBITDA per kg improved to INR 12.4 in Q1 FY27 versus INR 12.2 in Q1 FY26.

Note: EBITDA is stated after adjustment of income or loss from forex and commodity hedging. Non-aluminium includes stainless steel, copper, brass, zinc, lead and magnesium.

Business model and portfolio mix: aluminium remains the core

CMR positions itself as an integrated recycler converting global metal scrap into engineered recycled aluminium alloys, liquid aluminium, and other non-ferrous products. The presentation describes the company as India’s largest non-ferrous metal recycler and a market leader in secondary aluminium, with a footprint of 13 facilities and installed capacity above 6 lakh tonnes annually.

For FY26, the presentation and concall consistently describe a revenue mix of roughly 80% to 81% aluminium and 19% to 20% other non-ferrous metals. The CFO stated on the FY26 call that aluminium products such as liquid metal, ingots, and billets contributed 81% of overall revenue, with 19% from other non-ferrous metals.

The company’s product narrative is increasingly centred on moving up the value curve. Besides aluminium ingots and liquid aluminium, it highlights billets and green sheet ingots and used beverage can recycling as margin and mix improvement levers.

Capacity expansion and capex: the near-term execution focus

A central theme across the investor presentation and the FY26 concall is scale expansion. The company disclosed investments of INR 53 crore in Q1 FY27 toward greenfield projects at Shoolagiri and Bawal, and toward brownfield and technology-led initiatives at Tirupati and other sites.

Management stated that these projects are progressing as planned and are expected to increase installed recycling capacity to over 700,000 tonnes per annum by the end of the current financial year. The presentation also provides FY27 capex guidance of roughly INR 200 crore for greenfield and brownfield expansion.

In the concall, management reiterated that capacity is around 605,000 tonnes currently and is expected to rise to nearly 700,000 tonnes by FY27, with about 80% aluminium and 20% non-aluminium.

Two greenfield projects were highlighted in the presentation:

1. Shoolagiri, Tamil Nadu: located at a Future Mobility Park site, positioned to service EV component manufacturers.
2. Bawal, Haryana (second plant): developed to cater to incremental demand.

These expansions sit alongside the company’s push to ramp up newly operational units and improve capacity utilisation.

Risk management: why per-kg economics matter

Management repeatedly emphasised that its performance should be assessed on a per-kg basis rather than purely on EBITDA margin percentage, given that aluminium prices can move rapidly. On the FY26 call, management described how pricing works with automotive customers: a monthly pricing mechanism passes changes in aluminium prices and exchange rates to customers.

However, the company still faces timing risk due to the working cycle: it buys on day one and sells later. Management stated that customer price protection covers part of the window, but exposure from day one to day 60 must be hedged. It also clarified that OCI movements are linked to cash flow hedge transactions representing predictable future sales.

Diversification beyond auto: UBC and wrought alloys

Historically, the company has been strongly linked to the automotive value chain, serving major OEMs and Tier-1 suppliers. Over time, it has also broadened into non-auto segments.

Two initiatives stand out from the FY26 concall narrative:

• A beverage can recycling plant in Odisha near Hindalco, supplying recycled liquid metal to Hindalco. Management described this as strategic because it supplies a primary producer and aligns with the broader transition toward circular aluminium.
• A facility for recycled green billets and sheet ingots targeted at construction, solar, and EV-related demand. Management stated that ramp-up is progressing well and suggested the possibility of another plant as the opportunity scales.

These initiatives are also consistent with the presentation’s mention of billet growth and sharp UBC volume growth in Q1 FY27.

Takeaways

CMR Green’s Q1 FY27 results show strong top-line growth driven by higher volumes and better realisations, while maintaining EBITDA per kg despite volatility in aluminium prices. The bigger story is the execution of capacity expansion and the effort to diversify the product mix toward billets, sheet ingots, and used beverage can recycling.

The next few quarters will likely be shaped by three measurable factors already outlined by management: commissioning and ramp-up of Shoolagiri and Bawal, the pace of volume growth versus FY26’s roughly 25% trajectory, and whether the portfolio shift toward higher-value products continues to gain scale without compromising per-kg profitability.