Jain Resource Recycling Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with the National Stock Exchange of India Limited and BSE Limited, pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, submitted on August 5, 2026, forms an integral part of the company's Annual Report for FY 2025-26 and is prepared on a consolidated basis. The company, incorporated on February 25, 2022, is registered at The Lattice, 4th Floor, Old No. 7/1, New No. 20, Bishop Ezra Sargunam Road, Kilpauk, Chennai - 600 010, Tamil Nadu, India, with a paid-up capital of ₹69,01,71,628.

Business Overview and Market Presence

Jain Resource Recycling Limited operates as a non-ferrous metal recycling enterprise, with 100% of its business activity classified under manufacturing. Its product mix, as per NIC 2025 codes, comprises manufacturing of lead, zinc and tin products and alloys (NIC 242006) contributing 40% of turnover, manufacture of copper products and alloys (NIC 242002) contributing 55%, and manufacture of aluminium from alumina (NIC 242004) contributing 4%. The company operates 4 plants and 1 office nationally, with no international locations. It serves approximately 371 clients across over 20 countries, with exports contributing about 62% of total turnover.

The following table summarises the company's key financial and operational parameters for FY 2025-26:

Domestic marquee clients include Vedanta Limited, Amara Raja Batteries Limited, Luminous Power Technologies, HBL Batteries, and Chloride Metals Limited. International clients include Mitsubishi Corporation, Nissan Trading Company, Trafigura, IXM SA, Toko Company Limited, and Hodaka.

Workforce Composition and Employee Well-Being

As at the end of FY 2025-26, the company employed 443 permanent employees and engaged 1,350 other-than-permanent workers. The workforce breakdown is presented below:

The Board of Directors comprises 8 members, of whom 1 is female (12.5%). Among Key Management Personnel, there are 4 members with no female representation. Employee turnover rates for permanent employees stood at 15% (male), 36% (female), and 16% (total) in FY 2025-26, compared to 17%, 38%, and 38% respectively in FY 2024-25.

Of the 443 permanent employees, 263 (59.37%) were covered by health insurance in FY 2025-26, while 36 female employees (100% of female permanent employees) were covered under maternity benefits. Health and safety training was provided to 221 employees (49.89%) and 965 workers (71.48%) during the year. Performance and career development reviews covered 356 employees (80.36%) and 1,566 workers (116.00%).

Environmental Performance

The company's energy consumption data for FY 2025-26 and FY 2024-25 is detailed below:

Greenhouse gas emissions for FY 2025-26 included Scope 1 emissions of 26,035.51 metric tonnes of CO2 equivalent and Scope 2 emissions of 2,665.56 metric tonnes of CO2 equivalent, compared to 13,710.14 and 7,759.95 metric tonnes of CO2 equivalent respectively in FY 2024-25. Combined Scope 1 and Scope 2 emission intensity per employee stood at 64.79 tCO2e in FY 2025-26 versus 52.37 tCO2e in FY 2024-25.

On water management, total water withdrawal was 14,340 kilolitres in FY 2025-26 (FY 2024-25: 14,113 kilolitres), sourced entirely from third parties. The company has implemented a Zero Liquid Discharge (ZLD) mechanism covering manufacturing units JRR U1 and JRR U2, with all effluents treated and reused within the manufacturing process. Total hazardous waste generated was 8,127.82 metric tonnes in FY 2025-26 (FY 2024-25: 7,062.72 metric tonnes), with 7,243.72 metric tonnes disposed via landfilling.

The company has entered into long-term captive solar power agreements with a combined capacity of 5.6 MW and is developing a Green Copper Cathode project utilising rooftop solar power. Its operations are supported by an ISO 50001:2018 certified Energy Management System.

Governance, Compliance, and CSR

The company's policies across the nine NGRBC Principles are Board-approved and translated into procedures, with certifications including ISO 9001:2015, IATF 16949, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, and ISO/IEC 17025:2017 mapped to relevant principles. Policy review for Principles 1 through 6, 8, and 9 is conducted on a need-based basis by the Board of Directors, CSR Committee, or Compliance Committee as applicable. No independent external assessment of policies was carried out during the year.

A monetary penalty of ₹25,00,000/- was levied by the Securities and Exchange Board of India under Principle 1, pertaining to allegations that Mr Kamlesh Jain (Chairman) and the Jain Family Trust traded shares of Refex Industries Limited while possessing unpublished price-sensitive information. The company clarified that these allegations do not concern the company's own shares. An appeal was filed before the Securities Appellate Tribunal (SAT), which admitted the appeal and granted a stay of recovery of the penalty subject to deposit of 50% of the penalty amount within four weeks. The matter was listed for hearing on April 23, 2026.

The company's accounts payable days stood at 14 days in FY 2025-26, compared to 6 days in FY 2024-25. Purchases from trading houses as a percentage of total purchases declined to 21.06% in FY 2025-26 from 37.07% in FY 2024-25. Sales to dealers/distributors as a percentage of total sales increased to 53.33% from 41.45% over the same period.

CSR activities during FY 2025-26 spanned education promotion, women empowerment, healthcare, animal welfare, disability support, and cultural preservation. Quantifiable beneficiaries included 32 persons under Project Dhruv (education promotion), 19 women under a livelihood enhancement programme, 100 students under an education and skill development programme, and 10-20 persons under a medical relief programme, with 100% of these beneficiaries drawn from vulnerable and marginalised groups. No consumer data breaches were recorded during the year, and product-related complaints stood at 3 (FY 2024-25: 1), all resolved with nil pending at year-end.

Jain Resource Recycling Limited reported a consolidated net profit of ₹694.07 million for the quarter ended June 30, 2026 (Q1FY27), a 23% increase from ₹565.27 million in Q1FY26. Consolidated revenue from operations surged 76% year-on-year to ₹27,244.58 million, primarily driven by higher volumes in the Copper & Copper Ingots segment. Chairman and Managing Director Kamlesh Jain attributed the growth to successful execution of the company’s forward integration strategy, noting that copper products contributed approximately 67% of consolidated revenue during the quarter. The strong top-line growth underscores the effectiveness of recent capacity expansions in the copper business, which is now the dominant revenue driver.

The Board of Directors approved the unaudited standalone and consolidated financial results in a meeting held on August 3, 2026, in compliance with Regulation 33 and Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by M/s. MSKC & Associates LLP, the statutory auditors. Concurrently, the Board approved the convening of the fifth Annual General Meeting (AGM) scheduled for August 27, 2026. Independent Director Kandaswamy Paramasivan resigned from the Board with effect from August 3, 2026, citing personal reasons. He also ceased to be a member of the Audit Committee and Chairman of the Nomination and Remuneration Committee.

Key Financial Metrics

Consolidated EBITDA improved to ₹1.06 billion compared to ₹880 million in Q1FY26. However, EBITDA margin contracted to 4% from 6% in the prior year period. Management stated that margin moderation was due to the evolving product mix and the initial ramp-up of value-added copper business, which carries lower initial margins. Standalone net profit grew to ₹726.87 million from ₹591.51 million, while standalone revenue reached ₹26.4 billion versus ₹14.7 billion in Q1FY26. Profit before tax from continuing operations stood at ₹941.05 million.

Segment Performance and Volume Growth

The Copper & Copper Ingots segment remained the primary revenue driver, contributing ₹18,373.47 million to consolidated sales, up significantly from ₹6,967.97 million in Q1FY26. Copper volumes rose to 14,679 metric tons in Q1FY27, compared to 8,509 metric tons in Q1FY26. The Lead & Lead Alloy Ingots segment generated ₹7,855.39 million in revenue with volumes of 32,150 metric tons, down from 36,572 metric tons in Q1FY26. Aluminium & Aluminium Alloys contributed ₹714.38 million, with volumes declining to 2,201 metric tons from 3,783 metric tons in the same period last year.

Capacity Expansion and Strategic Initiatives

The company achieved a significant milestone with the commissioning of the entire Copper Anode production line, with both furnaces now operational. Phase 1 was commissioned in March 2026, and Phase 2 in July 2026, with a total capacity of 1,600 MT/month. The Copper Cathode project, with a capacity of 1,500 MT/month, remains on track for commissioning in Q2 FY27. Additionally, the Copper Wire Rod (600 MT/month) and Copper Busbar & Profiles (1,500 MT/month) projects are progressing as planned for commissioning in Q3 FY27.

Other strategic developments include the Antimony project, targeting 1,000 MT lead-antimony bullion processing capacity, expected to be commissioned in Q3 FY27. The joint venture with C&Y Group Investments Inc. in Ahmedabad, focused on copper scrap recycling, started trial production and is expected to be fully operational by Q2 FY27. A dedicated plastic recycling facility, estimated at a capex of ₹15 crore, is also targeted for operation in Q3 FY27. During the quarter, the company granted a loan of ₹122.96 million to its joint venture, Jain CY Circular Solutions Private Limited. Subsequently, the company provided a corporate guarantee of ₹500 million in favour of ICICI Bank Limited for the joint venture.

Operational Risks and Disclosures

The company disclosed an accident involving a furnace explosion at its manufacturing facility in Gummidipoondi on July 14, 2026. Operations at Unit-II were temporarily impacted but have resumed following corrective actions. Management does not expect the financial impact to be material. Furthermore, the company’s strategic investment in Kuwait faces temporary shipment delays due to geopolitical situations in West Asia, though machinery is ready. The company has fully utilized its IPO proceeds of ₹4,736.43 million as of June 30, 2026. This includes ₹540 million used towards repayment of loans taken from the promoter, ratified by shareholders via postal ballot on April 28, 2026. Additionally, shareholders approved an alteration to the Memorandum of Association at an EGM on July 30, 2026, to include the business of telecommunication and communication cables.