01 — At a Glance
The Scrap Detective Just Cracked Another Case
- 52-Week High / Low₹461 / ₹248
- Q3 FY26 Revenue₹2,676 Cr
- Q3 FY26 PAT₹127 Cr
- TTM EPS₹10.1
- Annualised EPS (Q1–Q3 Avg × 4)₹11.0
- Book Value / Share₹39.1
- Price to Book11.1x
- Exports Share60–70%
- Debt₹1,220 Cr
- Promoter Holding73.59%
Flash Summary: Jain Resource Recycling delivered Q3 FY26 revenue of ₹2,676 crore (+55.2% YoY) and PAT of ₹127 crore (+204% YoY). Volume grew 29%, margins expanded on better mix, and the scrap-to-LME-ingot machine is humming. Stock at ₹432 trades at 43.7x TTM EPS with 39% ROE and 27.2% ROCE — but the promoter’s SEBI penalty (stayed by SAT) and one IPO fund deviation keep the detective’s notebook open.
02 — Introduction
The Scrap-to-Ingots Detective Agency Nobody Knew Existed
Picture this: you’re following a trail of old car batteries, copper cables, and aluminium scrap from 120 countries. It lands in three SIPCOT plants near Chennai, gets melted, refined, and turned into LME-registered lead ingots, copper billets, and aluminium alloys. That’s Jain Resource Recycling — a 2022-incorporated smallcap that listed in Oct 2025 after raising ₹1,250 crore and is already printing ₹7,840 crore TTM sales.
Q3 FY26 was pure fireworks: 55% revenue jump, 204% PAT explosion, EBITDA margin touching 7.2%. Exports are 60–70% of the pie. Promoter holding 73.59%. Debt ₹1,220 crore. And just when you think it’s a clean case, SAT stays a SEBI penalty on the promoter and CRISIL notes an IPO fund deviation where ₹540 million was used to repay a promoter loan (later returned). Classic smallcap thriller.
Concall (Feb 2026) confirmed: forward-integration copper project 80% complete, Ahmedabad JV kicking off June 2026, Kuwait battery-scrap stake approved. Management says “next year will be very, very promising.” The detective in me is intrigued — but I’m keeping the handcuffs handy.
CRISIL Note (Oct 2025, upgraded Feb 2026): Long-term rating Crisil A+/Stable. Gearing expected below 0.7x post-IPO debt repayment. Business risk profile strong, hedging watertight. Only watch-outs: low 5–6% EBITDA margin and environmental policy risk.
03 — Business Model: WTF Do They Even Do?
They Turn Global Scrap into LME-Registered Gold (Literally Almost)
Jain Resource Recycling is the classic “buy low, melt, sell high” detective story. They import non-ferrous scrap (lead batteries, copper cables, aluminium chips) from 120+ countries, process it in Chennai and Hosur facilities, and output LME-registered lead ingots, copper ingots/billets, aluminium alloys, plus plastic granules as by-product. 39% revenue from lead, 45% copper, 4% aluminium, 10% precious metals recovered.
Exports 60–70% — Singapore, China, Japan, South Korea love the stuff. Domestic clients include Vedanta-Sterlite and battery makers. The moat? LME registration for lead (global credibility) and 99-year leased land for forward integration into copper cathodes, wire rods, busbars. They hedge LME and forex religiously — natural hedge on 80% imported RM vs 60% exports.
Recent detour: tried gold refining in UAE (70% subsidiary) but shut in April 2025 — margins sucked. Now pivoting to value-added copper and new JVs. Simple business, volatile commodity prices, razor-thin 6–7% margins. But 39% ROE and 27% ROCE say they’re damn good at the game.
Copper45%Revenue share
Lead39%Revenue share
Exports60–70%Revenue
Scrap Sourced120 Countries
Fun fact: They even recover plastic peels and grinds from the same scrap. Nothing wasted except the promoter’s old SEBI file.
💬 Ever wondered where your old car battery ends up? Drop a comment — is Jain Resource the unsung hero of India’s circular economy or just another scrap-metal gambler?
04 — Financials Overview
Q3 FY26: The Numbers Go Brrr… With a Side of Drama
Result type: Quarterly Results | Q3 FY26 EPS: ₹3.68 | Q1 EPS ₹1.71, Q2 ₹2.87, Q3 ₹3.68 → Avg ₹2.75 | Annualised EPS: ₹11.0
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 2,676 | 1,724 | 2,055 | +55.2% | +30.2% |
| Operating Profit | 190 | 90 | 156 | +111% | +22% |
| OPM % | 7.1% | 5.2% | 7.6% | +190 bps | -50 bps |
| PAT | 127 | 42 | 99 | +204% | +28% |
| EPS (₹) | 3.68 | 1.22 | 2.87 | +202% | +28% |
P/E Check: TTM EPS ₹10.1. CMP ₹432. P/E 43.7x. Industry median 28.2x. Jain trades at 55% premium — justified by 196% 3-yr sales CAGR and 95% profit CAGR? Or is the market pricing in the forward-integration upside and ignoring the SEBI/SAT subplot?
💬 At 43.7x on 39% ROE, is this scrap detective over-valued or just getting started? Comment below, detective!
05 — Valuation: Fair Value Range
What Is This Scrap Empire Actually Worth?
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