Rajputana Industries Limited is that classic SME stock which looks boring at first glance, then starts throwing around ₹628 crore sales, 42% TTM growth, and suddenly you’re like — “arre bhai, yeh toh heavy metal chal raha hai.” Trading at ₹84.5 with a market cap of ~₹188 crore, this Rajasthan-based recycler of copper, aluminium and brass is quietly running a scale game. Latest H1 FY26 numbers show ₹333 crore in sales and ₹5.41 crore PAT, up 29% YoY, while the stock has delivered ~4.9% return in three months — not explosive, but not sleeping either.
Margins are thin (OPM ~3.6%), debt is visible (₹51.5 crore borrowings), but ROCE at ~18% and ROE ~17% suggest capital is still being sweated properly. Promoters hold a comfortable 66.1%, zero pledge, and yes — it’s a subsidiary of Shera Energy, which already exists in the same metals recycling circus.
This is not a “wow-margin-wow-brand” story. This is a volume, churn, scrap-in–metal-out, truckloads-moving-daily kind of business. The question is simple: is Rajputana playing smart metallurgy… or just melting scrap with thin patience?
2. Introduction
Non-ferrous metal recycling is not glamorous. There are no fancy apps, no AI buzzwords, no “disruptive platform”. It’s sweaty, cyclical, working-capital-hungry, and brutally dependent on commodity prices. And yet, companies like Rajputana Industries survive and sometimes even thrive because India consumes copper and aluminium like chai — daily, everywhere, and without asking questions.
Established in 2011, Rajputana Industries takes scrap metal from open markets and refines it into copper rods, aluminium wire rods, brass billets, busbars, conductors, and even bullet shells (yes, literally). It operates out of Sikar, Rajasthan, with an installed capacity of 13,150 MT as of FY25. Capacity utilisation ranges between 76% and 85% depending on product — which means machines are not just for show.
The company went public via an SME IPO, raised ₹23.9 crore, and used it mainly for working capital, solar power setup, and general corporate needs. No fancy acquisitions, no overseas adventures. Just more metal, more turnover.
But here’s the twist: Top 5 customers contribute 85% of revenue. That’s not concentration — that’s emotional dependence. One bad breakup and revenue gets awkward. So while the topline is growing fast, stability is always under question.
So is Rajputana a disciplined recycler scaling responsibly, or a thin-margin operator one copper crash away from stress? Let’s dig.
3. Business Model – WTF Do They Even Do?
Imagine a giant industrial kitchen. Instead of vegetables, they buy scrap copper, aluminium, and brass. Instead of cooking, they melt, refine, cast, draw, roll, and finish. Instead of serving food, they sell rods, wires, billets, busbars, and conductors to electrical, industrial, and engineering customers.
That’s Rajputana Industries.
They procure scrap metal from open markets, recycle it, and convert it into premium-grade non-ferrous products. Revenue mix is dominated by copper products (55%), followed by brass & alloys (23%) and aluminium products (19%). This is important because copper prices are volatile — great for topline, dangerous for margins.
Product portfolio is wide: Copper rods, copper billets, mother tubes, busbars, enamelled conductors; aluminium wire rods, busbars, conductors; brass rods, billets, wires; and even bullet shells. Basically, if it conducts electricity or gets melted, Rajputana wants a piece of it.
The company operates a single manufacturing unit in Sikar with cumulative installed capacity of 13,150 MT. Capacity utilisation is healthy — aluminium at 78%, copper at 85%, brass at 76%. This means the plant isn’t idle, but also not fully maxed out — scope for incremental growth without massive capex.
But the business model has one permanent villain: working capital. Scrap purchase, inventory holding, receivables — all suck cash faster than a government tender payment cycle. This explains why revenue grows faster than cash flows.
Simple business. Hard execution. Thin margin survival.
Since the official result heading clearly states “Half Yearly Results”, this is treated as HALF-YEARLY RESULTS. 👉 Annualised EPS = Latest EPS × 2
Financial Performance Table (₹ Crores)
Source table
Metric
Latest Half (H1 FY26)
Same Half Last Year
Previous Half
YoY %
HoH %
Revenue
333
257
295
29.4%
12.9%
EBITDA
13
8
10
~62%
~30%
PAT
5.41
4
4
32.9%
~35%
EPS (₹)
2.44
1.83
1.89
33%
29%
Annualised EPS (Half-Yearly) = ₹2.44 × 2 = ₹4.88
Commentary time. Revenue growth is strong, no doubt. EBITDA has improved faster than sales — which suggests operating leverage or slightly better cost control. But let’s not celebrate too early: OPM is still ~3–4%. One copper price spike and margins can evaporate faster than your Diwali bonus.
PAT growth is decent, but absolute profits remain small compared to turnover. This is a scale-with-discipline story, not a margin-expansion fairy tale.
