Jain Resource Recycling Limited (JRRL) reported robust financial results for Q2 FY26, marking its first earnings call since its successful listing on NSE and BSE on October 1, 2025. The company's strategic focus on expanding its recycling capabilities and moving into value-added products has yielded significant growth across key financial metrics.

Financial Highlights

For H1 FY26, JRRL reported revenue of ₹3,663.00 crores, up 27% from ₹2,889.00 crores in H1 FY25.

Operational Performance

JRRL operates across five product verticals, with copper and lead being the primary contributors:

The company's export markets account for 63% of revenue, while domestic sales contribute 37%.

Strategic Initiatives

1. Joint Venture with CNY Group: JRRL announced a strategic partnership with Texas-based CNY Group for a ₹60.00 crore copper scrap recycling plant in Ahmedabad. This joint venture aims to leverage CNY's strong sourcing capabilities in the US market.

2. Copper Cathode Manufacturing: The company is developing a copper cathode manufacturing facility with a Phase 1 capex of ₹95.00 crores, expected to commence operations in Q1 FY27. This move into value-added products is anticipated to boost margins in the copper segment.

3. Expansion Plans: JRRL plans to invest ₹20.00-30.00 crores annually for continuous expansion in existing business verticals. Additional projects in tire recycling, solar panel recycling, and EV battery recycling are under consideration, with potential capex of ₹100.00 crores over the next 2-3 years.

Market Position and Outlook

JRRL has established a strong market presence with an 8.6% market share in lead recycling and 3.4% in copper recycling in India. The company's global sourcing network spans over 120 countries, providing a robust supply chain for raw materials.

Chairman and Managing Director Kamlesh Jain expressed confidence in the company's growth trajectory, stating, "Recycling is not a choice, it's a compulsion. We expect the growth momentum to continue, supported by our diversified portfolio, strong customer relationships, and future-ready business model."

The management anticipates sustaining a 20-25% revenue growth rate in the coming years, in line with their performance over the past 4-5 years. They also expect EBITDA margins to remain stable, supported by deep sourcing capabilities and favorable duty structures.

JRRL's focus on sustainability and compliance with evolving regulations, including Extended Producer Responsibility (EPR) and mandated recycling content norms, positions the company well to capitalize on the growing emphasis on circular economy practices in India.

Challenges and Opportunities

While JRRL faces potential challenges such as global supply chain disruptions and commodity price volatility, the company's robust hedging mechanisms and diversified sourcing strategy provide resilience. The shift towards electric vehicles presents both a challenge and an opportunity, with the company exploring lithium battery recycling as a future prospect.

With its recent listing and strong financial performance, Jain Resource Recycling Limited demonstrates its commitment to sustainable growth and value creation in the evolving landscape of metal recycling and circular economy initiatives.

Renowned investor Ashish Kacholia has seen a remarkable return on his investment in Jain Resource Recycling, with gains of approximately 214% over an eight-month period. This impressive performance highlights the potential for significant returns in the Indian stock market for astute investors.

Investment Details and Returns

Kacholia's investment strategy included capitalizing on a 1:5 stock split, which effectively increased his shareholding to 39,16,875 shares at an adjusted cost of Rs 126.75 per share.

Jain Resource Recycling's Market Performance

Jain Resource Recycling made its market debut on October 1, listing at a 14% premium to its issue price of Rs 232.00. The stock's performance has been noteworthy:

• Closing price on debut day: Rs 318.00
• Price as of October 24: ~Rs 400.00

Strong Quarterly Results

The stock's recent momentum can be attributed to the company's robust quarterly performance:

Operating margins also saw improvement, reaching 7.6%.

Company Overview

Jain Resource Recycling, based in Chennai, specializes in recycling non-ferrous metals including lead, copper, and aluminium. The company has expanded its operations with a gold refining subsidiary in the UAE, diversifying its business portfolio.

Kacholia's Portfolio Adjustments

In addition to his investment in Jain Resource Recycling, Ashish Kacholia made several changes to his portfolio during the September quarter:

• Added five new positions
• Reduced stakes in:
  • Dhabriya Polywood
  • Xpro India
  • Brand Concepts

These moves demonstrate Kacholia's active management approach and his ability to identify potential market opportunities.

The significant returns on Kacholia's investment in Jain Resource Recycling underscore the potential for substantial gains in the Indian stock market. However, investors should note that such high returns are not typical and often come with considerable risk. It's crucial to conduct thorough research and consider one's risk tolerance before making investment decisions.