Jain Resource Recycling IPO Q2 FY26: ₹7,162 Cr Revenue, ₹223 Cr PAT, 41% ROE – Recycling Metals or Printing Money?
1. At a Glance
Recycling old batteries and scrap into shiny new ingots is already a profitable game. But Jain Resource Recycling Ltd. is trying to recycle not just metal, but investor hopes with a ₹1,250 crore IPO. With ROE at 41%, EBITDA margins tighter than jeans after Diwali, and a P/E that makes FMCG stocks blush, this Chennai-based scrap artist is pitching itself as the Vedanta of Recycling – minus the mining, plus the hype.
2. Introduction
Welcome to yet another episode of Indian IPO Circus. Today’s star: Jain Resource Recycling Ltd., a company that started in 2022 and is already talking in crores like your neighborhood uncle who “almost” bought Infosys in the ’90s.
What do they do? Simple. Collect scrap metal, refine it, melt it, and sell it to battery makers, auto guys, and some Japanese/Korean traders who probably resell it at double margins. Their claim to fame? A 60% jump in revenue in FY25. Sounds glamorous until you realize this is the business equivalent of making money from kabadiwala with an MBA certificate.
The IPO math is juicy: fresh issue of ₹500 crore (to repay loans, of course – India’s favorite use of IPO money), plus OFS of ₹750 crore (so promoter Kamlesh Jain can lighten his portfolio faster than LIC sells PSU stakes).
But don’t underestimate them. With three facilities in Chennai and one gold refining unit in Sharjah, plus a client list featuring Vedanta, Luminous, Nissan Trading, and Mitsubishi, this isn’t your galli-ka-scrap dealer. This is industrial-scale, global-reach scrap management – the kind where EBITDA margins are 5% but promoter confidence is 500%.
3. Business Model – WTF Do They Even Do?
Think of Jain Resource Recycling as a glorified kabadiwala with SAP ERP installed. They:
Import and source metal scrap (copper, lead, aluminium, tin, plastics).
Run it through their plants at Gummidipoondi (say that thrice fast), producing lead ingots, copper ingots, and aluminium alloys.
Ship it to customers like battery makers (Luminous), smelters (Vedanta), and Japanese trading houses who love Indian cheap supply.
Hedge commodity prices (because one bad week in LME copper can bankrupt you).
Extra perk: They even dabble in gold refining via a UAE subsidiary. Because why stop at aluminium cans when you can mint gold bars?
The economics: They buy scrap cheap, process it, and sell with margins of 3–5%. Yes, it’s a volume game. Imagine running a kirana where you make ₹5 on every ₹100 sold, but your turnover is ₹7,000 crore. Welcome to recycling.
Narrator verdict: A business where you pray that commodity cycles don’t treat you like Paytm investors post-IPO.
4. Financials Overview
Here’s the quarterly fun (annualised EPS = ₹6.90 pre-IPO, ₹6.47 post-IPO):
Source table
Metric
Latest FY25 (₹ Cr)
FY24 (₹ Cr)
FY23 (₹ Cr)
YoY %
2Y CAGR %
Revenue
7,162
4,485
3,108
59.7%
55%+
EBITDA
369
227
124
62.2%
70%+
PAT
223
164
92
36.2%
57%+
EPS (₹)
6.90
5.05
2.84
36.6%
–
Witty Commentary:
Revenue growth looks like a smallcap stock chart during bull run – up and to the right.
PAT margin of 3.1% is thinner than Haldiram’s samosa wrapper.
