Jain Resource Recycling H1 revenue climbs 65% as margin falls

Jain Resource Recycling Private Limited reported H1 FY27 revenue of Rs 6,061.4 crore, up 65.5% from H1 FY26, while earnings before interest, tax, depreciation and amortisation (EBITDA) declined 0.7% to Rs 248.3 crore and the EBITDA margin fell 273 basis points to 4.1%, showing that higher sales did not translate into higher operating profit.

Why did Jain Resource Recycling’s H1 FY27 margin fall?

Jain Resource Recycling’s H1 FY27 margin fell because EBITDA did not keep pace with revenue growth. Revenue from operations rose from Rs 3,663.0 crore in H1 FY26 to Rs 6,061.4 crore in H1 FY27, while EBITDA edged down from Rs 250.1 crore to Rs 248.3 crore. EBITDA margin therefore fell from 6.8% to 4.1%, while profit after tax, or PAT, margin declined from 4.2% to 2.6%.

The cost base increased with sales, led by cost of goods sold of Rs 5,679.2 crore in H1 FY27 against Rs 3,272.4 crore a year earlier. Employee cost rose to Rs 23.1 crore from Rs 17.6 crore, although other expenses declined to Rs 110.8 crore from Rs 122.8 crore. The presentation specifically links lower EBITDA per tonne in copper value-added products to initial capacity ramp-up and under-absorption of fixed operating costs.

The reported profit outcome was less severe than the EBITDA movement because other income increased to Rs 22.0 crore in H1 FY27 from Rs 13.3 crore in H1 FY26, while finance cost fell to Rs 39.7 crore from Rs 43.7 crore. Profit for the period still rose 3.2% to Rs 160.0 crore, compared with Rs 155.1 crore, despite the lower operating margin.

Which segments drove Jain Resource Recycling’s H1 FY27 revenue?

Copper and copper ingots drove Jain Resource Recycling’s H1 FY27 revenue expansion. Segment revenue rose to Rs 3,737.3 crore from Rs 1,697.8 crore in H1 FY26, as volume increased to 31,094 metric tonnes, or MT, from 17,942 MT. Segment EBITDA increased to Rs 107.8 crore from Rs 91.7 crore, while copper value-added products contributed Rs 469.0 crore of revenue and 3,575 MT of volume during the half year.

Lead and lead alloy ingots moved in the opposite direction. Revenue declined to Rs 1,600.8 crore from Rs 1,740.1 crore, volume declined to 67,002 MT from 81,032 MT, and EBITDA fell to Rs 127.3 crore from Rs 153.3 crore. Aluminium and aluminium alloys generated Rs 154.2 crore of revenue, compared with Rs 154.5 crore a year earlier, but EBITDA increased to Rs 10.0 crore from Rs 5.9 crore.

Strategic initiatives, including copper value-added products and the Jain C&Y joint venture, accounted for about 8% of H1 FY27 revenue. The Jain C&Y joint venture contributed Rs 25.4 crore in the half year, while the presentation separately identifies Rs 74.7 crore of revenue under others, compared with Rs 154.2 crore from aluminium and aluminium alloys.

Did Jain Resource Recycling improve in Q2 FY27?

Jain Resource Recycling improved sequentially in Q2 FY27, although its margin remained below the prior-year quarter. Revenue rose to Rs 3,337.0 crore from Rs 2,724.5 crore in Q1 FY27, EBITDA increased to Rs 138.8 crore from Rs 109.5 crore, and EBITDA margin rose 14 basis points from 4.0% to 4.2%.

Against Q2 FY26, revenue increased from Rs 2,113.7 crore to Rs 3,337.0 crore, but EBITDA declined from Rs 160.0 crore to Rs 138.8 crore. The Q2 EBITDA margin was 4.2%, down 341 basis points from 7.6% a year earlier. PAT was Rs 90.6 crore, above Rs 69.4 crore in Q1 FY27 but below Rs 98.6 crore in Q2 FY26.

Copper and copper-ingot EBITDA per tonne improved sequentially to Rs 37,237 in Q2 FY27 from Rs 31,825 in Q1 FY27, but remained below Rs 62,461 in Q2 FY26. Lead and lead-alloy EBITDA per tonne was Rs 19,310, compared with Rs 18,660 in Q1 FY27 and Rs 22,147 a year earlier. Aluminium and aluminium-alloy EBITDA per tonne was Rs 21,204, nearly unchanged from Rs 21,197 in Q1 FY27.

What could change Jain Resource Recycling’s margin trajectory?

Jain Resource Recycling identifies greater production of copper value-added products as its stated mechanism for improving margins. Both copper-anode phases, giving total capacity of 1,600 MT a month, were commissioned in March 2026 and July 2026, with trial runs under way. The company expects capacity utilisation to increase progressively, while copper cathode Phase I, with capacity of 750 MT a month, was nearing commissioning.

The value-added-products business reported H1 FY27 EBITDA of Rs 2.6 crore on revenue of Rs 469.0 crore, equivalent to EBITDA per tonne of Rs 7,226. Jain Resource Recycling says better operating leverage should improve EBITDA per tonne as volumes rise. It also states that value-added copper products command higher margins than recycled copper ingots, but does not disclose a target margin or a timetable for achieving a specified utilisation level.

Jain CY Circular Solutions Pvt Ltd, in which Jain Resource Recycling holds a 52% stake, reported Rs 25.4 crore of Q2 FY27 revenue in its first contributing quarter. The Ahmedabad plant was operating at around 12,000 MT of current capacity and is planned to ramp towards approximately 25,000 MT of annual copper output, subject to regulatory approvals. Jain Resource Recycling describes the facility as captive copper feed for its anode, cathode and wire-rod chain.

Conclusion

Jain Resource Recycling’s H1 FY27 results combined rapid revenue growth with a lower operating margin: sales increased by Rs 2,398.4 crore year on year, but EBITDA declined by Rs 1.8 crore. Copper and copper-ingot revenue increased by Rs 2,039.5 crore, while lead and lead-alloy EBITDA declined by Rs 26.0 crore, helping explain why group EBITDA did not rise with revenue.

The next disclosed milestones are the Q3 FY27 commissioning targets for copper wire rod, busbar and profiles, the antimony project and the dedicated plastic recycling unit, followed by copper cathode Phase II in Q4 FY27. Jain Resource Recycling also says benefits from its Kuwait investment are expected from Q3 FY27, while noting possible delays from the West Asia war and shipping disruptions.