Jain Resource's Q2 Revenue Rose 58% as H1 Margin Fell

Jain Resource Recycling Limited reported Q2 FY27 revenue of Rs 3,337 crore, up 58% year on year, as copper and copper-ingot volume reached 16,411 metric tons, up 73%; however, its H1 FY27 EBITDA margin fell to 4.1% from 6.8% a year earlier.

Why did Jain Resource's Q2 revenue rise 58%?

Jain Resource's Q2 FY27 revenue rose 58% because higher copper volumes and initial value-added copper sales lifted revenue from operations to Rs 3,337 crore from Rs 2,113 crore in Q2 FY26. Revenue was also 22% above Rs 2,724 crore in Q1 FY27, showing sequential growth as well as the year-on-year increase.

Copper and copper-ingot volume reached 16,411 metric tons in Q2 FY27, compared with 9,434 metric tons a year earlier and 14,683 metric tons in Q1 FY27. Management said higher copper volumes and the initial contribution from value-added products supported revenue, while copper including new initiatives accounted for 8% of Q2 revenue.

H1 FY27 revenue from operations was approximately Rs 6,061 crore, comprising the disclosed Rs 2,724 crore in Q1 and Rs 3,337 crore in Q2. The finance presentation described H1 growth as about 65% year on year, while opening remarks on the same call described the increase as 55%.

Why did Jain Resource's H1 EBITDA margin fall?

Jain Resource's H1 FY27 EBITDA margin fell to 4.1% because EBITDA was Rs 248 crore against Rs 250 crore in H1 FY26 while revenue increased to around Rs 6,061 crore. Management cited an evolving business mix, raw-material dynamics and the initial ramp-up of its newer value-added plants.

The margin improved sequentially during the half year. Q2 EBITDA rose 27% to about Rs 138 crore from Rs 109 crore in Q1, and EBITDA margin increased to 4.2% from 4.0%, a 14-basis-point improvement. Management attributed that quarterly movement to operating efficiencies despite mix changes and ramp-up costs.

Profit after tax rose 30% sequentially to around Rs 90 crore in Q2 from Rs 69 crore in Q1, while the profit-after-tax margin increased to 2.7% from 2.5%. For H1 FY27, profit after tax increased about 3% to Rs 160 crore, even as EBITDA was Rs 2 crore lower than the prior-year half.

Which Jain Resource segments improved in Q2 FY27?

Jain Resource's copper, lead and aluminium businesses each recorded sequential volume or EBITDA improvement in Q2 FY27. Copper segment EBITDA increased to Rs 61 crore from Rs 46 crore in Q1, and EBITDA per ton rose to Rs 37,237 from Rs 31,825.

Lead and lead-alloy ingot volume increased to 34,851 metric tons in Q2 from 32,150 metric tons in Q1. Lead EBITDA increased to Rs 67 crore from Rs 60 crore and EBITDA per ton rose to Rs 19,310 from Rs 18,660, although management said lead volume remained below the year-earlier quarter because of supply disruption.

Aluminium and aluminium-alloy volume increased to 2,493 metric tons in Q2 from 2,201 metric tons in Q1. Segment EBITDA rose to Rs 5.3 crore from Rs 4.7 crore, alongside initial sales from the value-added copper portfolio, whose profitability management said would develop as operations become more consistent and utilisation increases.

How did Jain Resource improve cash flow and working capital?

Jain Resource reduced its working-capital cycle to 49 days at the end of September 2026 from 66 days at the end of FY26, and net debt to equity declined to 0.5 times from 0.7 times at the end of March 2026. H1 FY27 net cash inflow from operating activities was approximately Rs 129 crore.

Management linked lower capital requirements partly to more local procurement, saying imported material can require payment against loading and take about two months to reach its factories. Domestic sourcing represented about 38% to 39% of purchases across metals, while management said freight costs and West Asia shipping disruption had created lead-sourcing challenges.

Management said it was addressing supply constraints through local purchases and new overseas sourcing locations, and said it had raw material for the next four months as of the call. It also said the recently notified reverse-charge mechanism for electrical and electronic-waste scrap might be a positive but was unlikely to materially help sourcing unless the government reduced goods and services tax on scrap purchases.

What expansion projects will Jain Resource commission next?

Jain Resource has commissioned both phases of its copper-anode plant, taking installed capacity to 1,600 metric tons per month, although Phase II was in trial runs. Value-added copper sales volume was about 3,575 metric tons in H1 FY27, and management said its focus was consistent output, product quality and utilisation rather than a rapid ramp-up.

The first 750-metric-ton-per-month copper-cathode phase was at an advanced stage before commissioning, while the second 750-metric-ton-per-month phase was targeted for Q4 FY27. Management said it was working towards London Metal Exchange-grade cathodes; it also targeted Q3 FY27 commissioning for a 600-metric-ton-per-month wire-rod plant and a 1,500-metric-ton-per-month busbar and profiles facility.

Jain CY Circular Solutions, Jain Resource's Ahmedabad subsidiary, began commercial operations and generated approximately Rs 25.4 crore of Q2 revenue. The unit has annual scrap-processing input capacity of about 71,000 metric tons and potential output of around 25,000 metric tons of copper products at full ramp-up.

Management also targeted Q3 FY27 commissioning for an antimony facility with planned output of about 100 metric tons per month and a dedicated plastic-recycling plant with planned capital expenditure of Rs 15 crore. The Kuwait project remained subject to West Asia logistics, although management said machinery was ready and expected shipment within the following 30 days after specialised containers became available.

Conclusion

Jain Resource's Q2 figures show that volume expansion, particularly the 73% rise in copper and copper-ingot volume, drove revenue growth to Rs 3,337 crore. Yet the H1 comparison shows the effect of mix change and facility ramp-up: revenue increased while EBITDA was Rs 248 crore versus Rs 250 crore a year earlier, lowering the EBITDA margin to 4.1%.

The next results will show whether Q2's 4.2% EBITDA margin can be sustained as the anode plant stabilises and cathode, wire rod and busbar projects approach their Q3 or Q4 FY27 targets. Other disclosed items to watch are lead sourcing amid shipping disruption, working-capital days after the shift toward local procurement, and the timing of Kuwait machinery shipment.