Sunlite Recycling Industries: FY26 growth, ATC scale-up, and a pivot to multi-metal

Sunlite Recycling Industries Limited reported a sharp step-up in FY26 performance, led by higher volumes, a stronger value-added product mix, and higher copper prices. On a standalone basis, total income rose to INR 2,764.7 crore in FY26 from INR 1,396.7 crore in FY25, while EBITDA increased to INR 59.69 crore from INR 23.82 crore. Profit after tax rose to INR 40.15 crore from INR 14.27 crore, and the companys EBITDA margin improved to 2.16% from 1.71%.

The second half was meaningfully stronger. Standalone H2FY26 revenue was INR 1,642.4 crore versus INR 759.9 crore in H2FY25. EBITDA rose to INR 37.79 crore from INR 11.88 crore, and PAT increased to INR 25.8 crore from INR 7.21 crore. EBITDA per tonne expanded sharply, and management attributed the improvement primarily to a higher contribution from value-added products.

Financial snapshot (Standalone)

Note: Presentation numbers are provided in INR million; the table converts them to INR crore.

What drove FY26: volumes, copper price, and value-added mix

Management acknowledged that the near-doubling of revenue in FY26 outpaced volume growth because copper prices were higher versus the prior year. Volumes expanded 52.5% year-on-year to 25,694 MT in FY26, while total income rose 97.9%.

Profitability improved as the company increased the output of value-added products. In the concall, management described higher production of value-added products as the key reason for the increase in EBITDA per tonne. This was supported by the companys scaling-up of Annealed Tinned Coated Copper (ATC) and the ramp-up in busbars.

Capacity and utilization data in the presentation showed strong utilization in core copper rods and relatively lower utilization in newer value-added categories. For FY26, copper rods capacity was 25,000 MTPA with 93.61% utilization. ATC (classified within value-added copper wires) had a capacity of 1,920 MTPA with 56.08% utilization, while copper busbars had 720 MTPA capacity with 38.06% utilization.

ATC capacity doubled, aluminium added through acquisition

A major operational highlight for FY26 was the doubling of ATC wire production capacity from 800 MTPA to 1,600 MTPA. The company disclosed capex of INR 2.62 crore for machinery and upgrades and reported FY26 production of about 1,077 MT, translating to roughly 56% utilization.

In parallel, the company completed a 100% acquisition of Sunlite Aluminium Private Limited (SAPL). Management positioned this as a strategic move from a single-metal copper player to a multi-metal platform, with benefits including entry into aluminium wire rods, greater resilience across metal cycles, and potential cost efficiencies through shared manufacturing and logistics.

The management also shared consolidated numbers, noting that consolidation was effective from February 2026 and therefore not comparable with the previous year. On a consolidated basis, management stated FY26 revenue from operations of about INR 2,791 crore, PBT of INR 54.86 crore, and PAT of about INR 41 crore.

Geography concentration and customer mix

The investor presentation provided a state-wise revenue mix for FY26. Gujarat contributed 40.44% of revenue, Dadra and Nagar Haveli 30.92%, Maharashtra 7.46%, Madhya Pradesh 5.78%, and Rajasthan 4.07%. The company stated that 88.68% of revenue came from the top five states.

On end-use mix, management stated on the concall that around 80% of demand was from cable industries, with 5% to 10% from transformer industries, and the balance from super enamel (motor wire) industries.

Capital allocation: dividend and the next capex cycle

The board recommended a final dividend of INR 1 per share, which is 10% of face value. Management described it as a maiden dividend and framed it as a discretionary decision given profitability and cash availability.

Looking ahead, management outlined a capex plan of about INR 30 crore to INR 35 crore over the next 1.5 years, to be executed in phases. The stated focus areas were doubling capacity in copper rods and copper busbars and setting up a copper anode plant. Management also disclosed that the anode plant capex would be about INR 6 crore and that the earlier idea of a cathode plant was dropped after reassessing market conditions.

Management guidance emphasized volumes rather than revenue because revenues are linked to copper prices. For FY27, the company indicated a volume growth target of around 10% to 12% (also stated as 10% to 15% in another response), with more meaningful capacity-led growth expected in FY28 once new facilities are operational.

Key takeaways

FY26 was a step-change year on standalone numbers, with revenue, EBITDA, and PAT rising sharply and margins improving from a low base. The ATC scale-up and busbar push underpin the companys stated strategy of raising the value-added mix to improve EBITDA per tonne. The aluminium acquisition adds a second metal platform, though full-year subsidiary financials were not provided in the call.

Near-term, the story hinges on execution of the INR 30 crore to INR 35 crore capex plan, ramp-up in busbars and ATC utilization, and working capital management in a commodity-linked business. Management maintained a volume-focused outlook for FY27 and expects the larger capacity expansion benefits to show in FY28.