Baheti Recycling Industries Ltd. H1 FY26 Concall Decoded: ₹315 crore revenue, record profits, and management quietly planning a 2x business

1. Opening Hook

While most metal companies complain about cycles, Baheti Recycling chose a better strategy—ignore the noise and melt scrap profitably. H1 FY26 delivered the highest-ever profits, inventory ballooned (on purpose), and management casually dropped a plan to take capacity from 29,000 tons to 63,000 tons.

Margins dipped? Blame summer heat. Working capital stretched? Apparently “industry norm.” Wire rod capex? Just ₹30 crore for a potential ₹500 crore revenue engine.

Somewhere between IATF certification, EPR tailwinds, and OEM conversations, Baheti stopped behaving like a small recycler and started sounding like a serious ESG-led aluminum play.

Read on—because this concall wasn’t about the past. It was a blueprint for what Baheti wants to become next.

2. At a Glance

• Revenue ₹315 crore – Up 22%, scrap clearly behaving better than equity markets.
• Highest-ever H1 profit – Recycling finally paying recycling wages.
• EBITDA margin ~8–10% (guided) – Summer melted margins, winter will fix them.
• PAT margin ~3.5–4% (guided) – Thin, but apparently “best-in-industry.”
• Inventory ~9,000 tons – Stockpiled like winter is coming.
• FY26 revenue guidance ₹650 crore – Management not shy with round numbers.

3. Management’s Key Commentary

“This is our highest-ever H1 profit.”
(Translation: Something is finally working 😏)

“We are setting up a 12,500 TPA wire rod facility, scalable to 25,000 TPA.”
(Translation: Small capex, big ambition.)

“We can scale total capacity to 63,000 tons in two years.”
(Translation: Forget incremental growth.)

“PAT margin of 3% is sustainable.”
(Translation: Don’t expect miracles, expect consistency.)

“After IATF certification, OEM doors are open.”
(Translation: Finally allowed into the big boys’ club 🚪)

“Aluminium recycling emits only 15% carbon vs primary aluminium.”
(Translation: ESG tailwinds doing the heavy lifting 🌱)

4. Numbers Decoded