1. At a Glance
Move over goldsmiths, India’s aluminium alchemist is here —Baheti Recycling Industries Ltd (BRIL)— a ₹570 crore market-cap dynamo turning metallic trash into sparkling cash. From humble aluminium scrap heaps in Dahegam, Gujarat, the company has built a ₹582 crore sales empire with aprofit of ₹20.3 croreand aP/E of 28.1xthat screams “growth stock wearing a recycling badge.”
In the latestH1 FY26 results, BRIL posted a22.5% YoY surge in salesto ₹315 crore andPAT of ₹9.27 crore, up32% YoY. TheROE stands tall at 35.6%, with aROCE of 21.8%, proving this is no scrap-dealer circus — it’s a full-blown profit foundry. But don’t miss the punchline: despite profits melting like aluminium, it trades at8.33x its book value, a premium that would make even Hindalco blush.
Debt sits at ₹203 crore (D/E 2.97x), but hey, when you’re turning scrap into bullion, banks don’t mind getting their hands dirty.
2. Introduction
Baheti Recycling Industries is like that quiet engineering student who topped every subject while everyone else partied. Incorporated in 1994, the company has steadily evolved from a metal scrap trader to a full-fledged aluminium recycler — and not the jugaadu kind with backyard furnaces, but a professionally managed setup withthree rotary furnaces, seven electric furnaces, anda tilting rotary furnace (TRF)boasting Skelner technology.
The company’s transformation over the last decade is striking. Back in FY17, sales were a modest ₹72 crore; today, it’s₹582 crore TTM, clocking38% CAGRin revenue and a stunning143% CAGR in profitover five years. It’s the recycling version of compounding — where even scrap appreciates with time.
And here’s where it gets juicy: BRIL’s customer list includes the who’s who of Indian manufacturing — Tata Steel, JSW, Honda, Motherson, CIE, L&T — basically, every industrialist with a metal fetish. But there’s a twist —the top 10 customers make up 75% of revenue, a concentration risk tighter than a new iPhone’s packaging.
Yet, the Baheti family, holding74.7% promoter stake, seems unbothered. No pledges, no dilution drama, no funny business — just a serious obsession with molten metal.
3. Business Model – WTF Do They Even Do?
BRIL’s business model is deceptively simple:buy scrap, melt scrap, sell shiny alloy— and repeat till profits pour. But beneath this simplicity lies an efficient system of metallurgy, automation, and energy management.
The company processes aluminium-based scrap into a variety ofvalue-added products:
- Aluminium Alloy Ingots– core product for automotive and manufacturing industries.
- Aluminium De-ox Alloys– used in steelmaking to remove oxygen impurities (the metallic version of Dettol).
- Aluminium Notch Bars, Cubes, and Shots– catering to niche industrial needs.
But Baheti isn’t just about smelting. It alsotrades in aluminium, brass, copper, and zinc scraps, ensuring that when markets melt, margins don’t.
What’s impressive isits 64% capacity utilizationon a 29,160 MT setup. With an additionalTRF pair being added (₹4 crore each), production capacity will soon jump to34,000 MT. By FY27, the management targets80–90% utilization, which means more alloy, more orders, and definitely more heat in the income statement.
Add to that a1.2 MW solar plantat ₹3.5 crore capex (saving ₹1.25 crore annually), and Baheti’s roasting the competition while saving on electricity bills.
In short, it’s not just recycling metals — it’s recycling costs, efficiency, and maybe even karma.
4. Financials Overview
Data Type: Half-Yearly Results (Figures in ₹ Crore)
| Metric | Sep’25 (H1FY26) | Sep’24 (H1FY25) | Mar’25 (Prev Half) | YoY % | HoH % |
|---|---|---|---|---|---|
| Revenue | 315 | 257 | 267 | 22.5% | 18.0% |
| EBITDA | 21 | 16 | 24 | 31.3% | -12.5% |
| PAT | 9.27 | 7.03 | 10.60 | 32.0% | -12.5% |
| EPS (₹) | 8.94 | 6.77 | 10.60 | 32.0% | -15.6% |
Annualised EPS (Half-Yearly × 2): ₹17.88P/E = 550 / 17.88 = 30.8x (slightly higher than industry average of 20.3x)
Commentary:Despite a hot furnace, profits cooled slightly sequentially, thanks to a rise in raw material and power costs. But the YoY story remains strong — 22.5% sales growth and a 32% PAT bump. For a
company that used to report losses as recently as FY22, this is like turning scrap into sculpture.
5. Valuation Discussion – Fair Value Range Only
Let’s break the alloy into its valuation elements:
Method 1: P/E Method
- EPS (Annualised): ₹17.88
- Industry P/E: 20x – 25x
- Fair Value Range = ₹358 – ₹447
Method 2: EV/EBITDA
- EV = ₹773 Cr
- EBITDA (TTM) = ₹45 Cr
- EV/EBITDA = 17.1x (slightly premium)If rerated to a more sustainable 14–16x multiple → Fair Value = ₹630 – ₹720 Cr EVMinus debt (₹203 Cr) → Equity Value Range = ₹427 – ₹517 Cr→ Fair Value per Share = ₹411 – ₹498
Method 3: Simplified DCF (5-year projection)Assume:
- Revenue CAGR = 20%
- OPM = 8%
- WACC = 12%→ Fair Value per Share ≈ ₹460–₹500
Educational Fair Value Range:₹410 – ₹500
Disclaimer: This fair value range is for educational purposes only and not investment advice. Aluminium might conduct heat, but it shouldn’t conduct financial FOMO.
6. What’s Cooking – News, Triggers, Drama
The furnaces are not the only things heating up. In FY26 alone, Baheti:
- Bagged a ₹50 crore orderfromArcelorMittal Nippon Steelfor 1,720 MT aluminium deoxidants (Sep–Dec 2025).
- Signed an MOU with Minda Corpfor ₹121 crore aluminium alloy ingot supply.
- Commissioned its solar PV plant(1.2 MW) to slash energy costs by 60%.
- Started adding two new TRFsworth ₹10 crore total to hit 34,000 MT capacity.
And during the H1FY26 concall (Nov 2025), management dropped their metal mic:
“We’re targeting ₹650 crore revenue for FY26 and 63,000 TPA by FY28.”
If they deliver that, BRIL might just go from SME to NSE main board before its furnaces cool down.
7. Balance Sheet (₹ Crore)
| Particulars | Mar’23 | Mar’24 | Sep’25 |
|---|---|---|---|
| Total Assets | 127 | 165 | 329 |
| Net Worth (Equity + Reserves) | 34 | 59 | 68 |
| Borrowings | 71 | 102 | 203 |
| Other Liabilities | 21 | 21 | 58 |
| Total Liabilities | 127 | 165 | 329 |
Auditor’s Nightmare in Short:
- Assets doubled faster than your salary hikes.
- Borrowings have grown too, because growth doesn’t come cheap.
- Yet, net worth has nearly doubled in two years — not bad for
