Jain Resource Recycling: Q3 FY26 Performance and Strategic Roadmap

Jain Resource Recycling Limited, a prominent player in India's non-ferrous metal recycling sector, has reported a robust financial performance for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26). The company demonstrated significant growth across key financial parameters, underscoring its operational efficiency and strategic initiatives. For the nine-month period, revenue from operations surged by 38% year-on-year to INR 6,438 crore. This impressive top-line growth was complemented by a substantial increase in profitability, with EBITDA expanding by 65% to INR 449 crore, achieving an EBITDA margin of 7%. Profit After Tax (PAT) also witnessed a remarkable 65% growth, reaching INR 281 crore, with a PAT margin of 4.4%. These figures highlight a strong trajectory, supported by healthy volumes, disciplined hedging practices, and improved operating leverage.

The company's diversified product portfolio played a crucial role in its performance. Copper and copper alloy products were the largest contributors, accounting for approximately 52% of the total revenue for 9M FY26. Lead and lead alloy ingots followed closely, contributing around 43%, while Aluminium and Aluminium products made up about 4%. The remaining 1% came from other segments. This balanced mix across various non-ferrous metals provides resilience against market fluctuations in any single commodity. Furthermore, Jain Resource Recycling Limited maintains a strong export-led revenue mix, with 70% of its revenue generated from international markets, showcasing its deep global sourcing capabilities and extensive customer base across more than 20 countries.

Jain Resource Recycling Limited is actively pursuing a clear strategic roadmap that extends beyond mere scale in recycling, focusing on both volume and profitability drivers. A key initiative is the forward integration into value-added copper products through its Jain Green Technologies – Unit 3 project. This project, which is 80% complete as of December 2025, aims to produce higher-margin products like copper anodes, cathodes, wire rods, and busbars. The anode phase is expected to commission in Q4 FY26, with the cathode phase following in Q1 FY27. This strategic move is anticipated to enhance the company's product mix, deepen customer relationships, and support margin expansion over the medium term, potentially adding up to 1% to the overall company's EBITDA margin.

In addition to copper, the company is strengthening its lead recycling ecosystem. It has approved a strategic investment to acquire a 25% equity stake in M/s. Abraj Al Khaleej, Kuwait, which will expand its presence in the Middle East and secure priority access to high-quality recycled materials. Furthermore, building on its successful tin extraction, Jain Resource Recycling Limited is now focusing on antimony extraction from lead-acid battery streams, a niche technology expected to be commissioned by Q3 FY27. This initiative, with an estimated capex of INR 20 crore, is projected to yield approximately 100 MT of antimony per month, realizing higher value from by-products. The company also expanded its tin production capacity from 125 MTPA to 500 MTPA by installing an additional Vacuum Distillation Furnace, improving output stability and profitability.

Despite the strong performance, the company acknowledged an expansion in its working capital cycle to 82 days, up from a typical 45-50 days. This was attributed to factors such as New Year holidays affecting collections, volatility in copper prices leading to payment delays, and a large tender that increased inventory. Management expressed confidence that this situation would normalize in the coming quarter, expecting a cash flow surplus and a return of ROCE to the 25-30% range. The company also transparently addressed the discontinuation of its gold refining operations (Jain Ikon Global Ventures FZC) due to low margins and high operational overheads, reclassifying it as an asset held for disposal. This decision reflects management's proactive approach to pruning underperforming assets and reallocating resources to more profitable ventures.

Jain Resource Recycling Limited's Q3 FY26 performance and strategic initiatives underscore its commitment to sustained growth and profitability. The company's focus on forward integration, diversification into value-added products, and strengthening its global sourcing and processing ecosystems positions it well for future expansion. With a clear roadmap for capacity enhancements and entry into new recycling verticals like tires, e-waste, and solar panels, Jain Resource Recycling Limited is not just growing its business but also contributing to a sustainable, circular economy, reinforcing investor confidence in its long-term vision.