Jain Resource Recycling Ltd Q2FY26 – From Scrap to ₹12,756 Cr Market Cap: India’s Non-Ferrous Alchemist Pulls 80% Profit Jump Out of the Furnace

1. At a Glance

If there were a trophy for fastest alchemy in Dalal Street history, Jain Resource Recycling Ltd would already have melted it down, refined it, and sold it as copper ingots. Born in 2022 and already worth a cool₹12,756 crore, this Chennai-based recycler has gone from humble scrap piles to pure non-ferrous gold.InQ2FY26, the company reported₹2,055 crore in sales, up53% YoY, whilePAT jumped 80.5%to ₹98.6 crore. Thestock trades at ₹370, having sprinted from its IPO price (₹250-ish) faster than your cable guy switches off Wi-Fi after due date.Return on equity?39%. ROCE?27.2%. Both sparkling clean — almost suspiciously so. And withzero pledged shares, promoter holding of73.6%, and an industry-crushing3-year sales growth of 196%, Jain Resource looks less like a metals recycler and more like an industrial magic trick.

But is this sustainable recycling or just another shiny mirage of molten margins? Let’s dive — with gloves on.

2. Introduction – From Scrapheap to Spotlight

In India, “scrap dealer” used to be the guy shouting“kabadiwalaaa!”from a van. Jain Resource Recycling decided to make that job sexy.Founded barely three years ago, the company now operates acrosslead, copper, and aluminium, recycling everything from old car batteries to industrial chips. In the process, it’s refined both metal and perception — turning the scrap industry into a high-margin export engine.

Itsexport revenue (60%)now rides to Japan, Korea, Singapore, and China — ironically sending back recycled copper to the same people who once sold us electronics. Karma really does recycle.

Yet, behind the glamour of IPOs and expansion slides lies a slightly awkward question — can a three-year-old company manage ₹6,000+ crore in annual sales without melting down under working-capital heat?The auditors’ calculators are already sweating.

3. Business Model – WTF Do They Even Do?

Jain Resource’s business model is simple — they collect metal scrap, process it like industrial biryani, and serve up shiny non-ferrous dishes. Their kitchen includes three main recipes:

• Lead & Lead Alloys (39% of revenue)– Mostly catering to battery makers likeLuminousandExide’s ecosystem, where even a 1% lead purity difference can change margins.
• Copper & Copper Ingots (45%)– Sold to industrial heavyweights and exporters, includingMitsubishi JapanandNissan Trading.
• Aluminium Alloys (4%) + Precious Metals (10%)– Because diversification is just corporate FOMO with balance sheets.

They also makeplastic granules, because apparently, even their waste has a side hustle.All facilities are based in Tamil Nadu — Chennai and Hosur — with full-stack recycling and refining. Their newest venture, theforward-integration project for copper cathodes and wire rods, aims to make them India’s copper-wire whisperer by FY27.

To sum it up: they take in scrap, melt it, purify it, and sell it at premium margins — like a modern-day dhobi for metals.

4. Financials Overview – Numbers Don’t Lie (But They Wink)

EBITDA margins rose to7.6%(up from 5% YoY), proving that recycling can indeed pay better than reinventing the wheel.AtP/E of ~61x, the market’s optimism is so high it probably needs an oxygen cylinder.

Still, when profits grow 80% and revenue 53%, valuation discussions become like traffic cops ignoring a BMW — “Sir, chaliye jaaiye.”

5. Valuation Discussion – Fair Value Range (Educational)

Let’s crunch the scrap:

Method 1 – P/E Approach:FY25 EPS: ₹6.53 → Annualized FY26 (run-rate): ₹11.44 (based on ₹2.86 × 4)Applying conservative multiples of 35x–45x (industry 45.3x):→Fair Range = ₹400 – ₹515

Method 2 – EV/EBITDA:FY25 EBITDA: ₹345 Cr → FY26E (annualized from latest quarter): ₹624 CrEV/EBITDA band (25x–30x) →Implied EV = ₹15,600 – ₹18,700 CrMinus Debt ₹1,220 Cr →Equity Value = ₹14,380 – ₹17,480 CrPer