Sunlite Recycling Industries reported a consolidated revenue of ₹783.77 crore for the quarter ended June 30, 2026, representing a 74.62% year-on-year increase. The strong performance in Q1FY27 was driven by robust growth across both its Copper Recycling and Aluminium businesses, marking the company's first full quarter after integrating Sunlite Aluminium Private Limited as a wholly owned subsidiary. This expansion has strengthened the firm's position as an integrated provider of copper and aluminium products.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Nitin Kumar Heda, Managing Director, signed the business update submitted to the National Stock Exchange of India Limited on August 3, 2026.

Financial Performance

The Copper Recycling segment contributed significantly to the top-line growth, with revenue from operations rising to ₹730.91 crore from ₹422.72 crore in Q1FY26, a growth of 72.91%. Sales volume in this segment increased by 15.43% to 5,743.04 MT from 4,975.30 MT in the corresponding previous quarter. Management attributed this to sustainable margins and increased demand.

The Aluminium business recorded even sharper growth rates. Revenue from operations more than doubled to ₹52.86 crore from ₹26.13 crore in Q1FY26, a rise of 102.25%. Sales volume surged by 52.24% to 1,387.15 MT from 911.14 MT. This performance reflects increasing demand for aluminium products used in power transmission and electrical equipment sectors.

Strategic Developments

Sunlite Recycling has approved a strategic capital expenditure program worth ₹37 crore to expand its manufacturing capabilities. Funded through bank borrowings and internal accruals, the project aims to increase Copper Wire Rod capacity to 45,000 MTPA and Value-added Products capacity to 3,540 MTPA. The expansion is targeted for completion by Q1FY28.

The value-added products facility will utilize advanced Upcast and Conform technologies to manufacture specialized copper products for domestic and export markets. Additionally, the company operationalized an Ahmedabad Branch Office to enhance customer engagement and regional responsiveness in Western India. The company currently operates with a combined installed manufacturing capacity of 37,000 MTPA.

What the Numbers Show

The disproportionate growth in aluminium revenue compared to volume highlights a potential shift towards higher-value products or favorable pricing dynamics in that segment. While copper volumes grew by 15.43%, revenue grew by 72.91%, suggesting significant price appreciation or mix improvement in the core business. The simultaneous doubling of aluminium revenue underscores the immediate financial impact of the recent subsidiary integration.

Sunlite Recycling Industries reported a 181.4% year-on-year increase in profit after tax to ₹401.5 million for FY26, driven by a 97.9% surge in total income to ₹27,647.2 million. The company’s EBITDA for the period grew 150.6% to ₹596.9 million, with margins improving to 2.16% from 1.71% in the previous year. The strong performance was supported by high-volume operations and strategic physical hedging of copper prices.

Financial Performance

The standalone annual income statement highlights significant growth across key metrics. Total expenditure rose to ₹26,631.1 million, but operational efficiencies ensured profitability expanded. Finance costs decreased to ₹23.8 million from ₹30.1 million in FY25, aiding the bottom-line growth. Earnings per share (EPS) for FY26 stood at ₹35.20, up from ₹14.61 in the prior year.

Strategic Expansion Plans

To address growing domestic and export demand, the company will invest ₹37 crore to expand its manufacturing capacity by 21,000 tons by the first quarter of FY28. The project is split between the parent company and its wholly-owned subsidiary, Sunlite Aluminium Private Limited. The expansion will be financed through a mix of bank borrowings and internal accruals.

Capacity Addition Details

The subsidiary will enhance copper product capacity, currently utilized at 93.61%, while the parent company will boost value-added products like Copper Busbars and Oxygen-Free Copper (OFC) Rods. Additionally, the company commenced operations at a new branch office in Ahmedabad on June 29, 2026, to strengthen its market presence in Western India.