Jain Resource Recycling Limited (JRRL) has reported robust financial performance for the second quarter, coupled with a strategic joint venture announcement that positions the company for further growth in the recycling sector.

Q2 Financial Highlights

JRRL's consolidated revenue from operations surged by 52% year-over-year to Rs 2,113.7 crore, compared to Rs 1,392.1 crore in the same quarter last year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed an impressive growth of 82%, reaching Rs 160 crore, up from Rs 87.8 crore in the corresponding quarter. The EBITDA margin improved by 127 basis points to 7.6%.

The company's net profit after tax from continuing operations witnessed a substantial increase of 78%, climbing to Rs 99.2 crore from Rs 55.8 crore in the corresponding quarter of the previous year.

Segment-wise Performance

JRRL's diverse product portfolio contributed to its strong performance:

The Aluminium and Alloys segment showed the highest growth rate, with revenue more than doubling compared to the same quarter last year.

H1 Performance

For the first half of the fiscal year, JRRL reported:

• Consolidated Revenue: Rs 3,663 crore (27% YoY growth)
• EBITDA: Rs 250.1 crore (37% YoY growth)
• PAT: Rs 155.1 crore (38% YoY growth)

Strategic Joint Venture Announcement

JRRL announced a joint venture agreement with C&Y Group Investments, Inc., a major North American scrap metal exporter. The joint venture will establish a recycling and manufacturing facility in Ahmedabad, Gujarat, focusing on various scrap materials including cables, motors, and copper scrap.

Key points of the joint venture:

• JRRL will hold a 52% stake in the new entity
• C&Y Group will hold 45%, with 3% reserved for employee sweat equity
• The joint venture company will become a subsidiary of JRRL
• C&Y Group will supply a guaranteed annual quantity of scrap materials at competitive prices

This strategic partnership is expected to enhance JRRL's value chain within India and drive long-term growth in the recycling sector.

Market Response

Following the announcement of the Q2 results and the joint venture, JRRL's stock price jumped 9% to a new 52-week high. The stock has gained 51% from its IPO price of Rs 232 per share since listing on October 1, 2025.

Management Commentary

Kamlesh Jain, Chairman & Managing Director of JRRL, expressed satisfaction with the company's performance, stating, "Our continued focus on ESG excellence, innovation, and operational efficiency serves as the foundation of our growth strategy — ensuring we deliver lasting value to our stakeholders and contribute responsibly to a sustainable future."

The company's strategic moves, including the recent joint venture, align with its vision of fostering a circular and sustainable future in the recycling industry.

JRRL plans to expand its capacities and explore new growth avenues, including potential diversification into tyre, e-waste, and solar panel recycling, positioning itself to capitalize on the growing demand for sustainable recycling solutions in India and beyond.

Jain Resource Recycling Limited (JRRL) has unveiled plans for expansion, coupling a forward-integration strategy with a newly announced joint venture to strengthen its position in the recycling industry.

Strategic Joint Venture with C&Y Group Investments

JRRL has entered into a joint venture agreement with C&Y Group Investments, Inc., a major player in the global scrap metal industry. The partnership aims to establish and operate a recycling and manufacturing facility in Ahmedabad, Gujarat.

Key aspects of the joint venture include:

• JRRL will hold a 52% stake in the new joint venture company, with C&Y Group holding 45%.
• The facility will focus on recycling various materials, including cables, motors, alternators, and copper scrap.
• C&Y Group, with its international presence including ten scrap yards in North America and operations in Thailand and Japan, plans to provide a guaranteed annual supply of scrap materials.

This collaboration is expected to enhance JRRL's supply chain efficiency and expand its footprint in the recycling sector.

Growth Strategy

Alongside the joint venture, JRRL has outlined a growth strategy focusing on:

1. Forward Integration: The company plans to expand into copper cathode, wire rod, and copper busbar manufacturing, utilizing products from its existing recycling facilities.

2. Capacity Expansion: JRRL is working on increasing its manufacturing capabilities.

3. New Recycling Verticals: The company is exploring entry into new areas such as automotive tyre, e-waste, and solar panel recycling.

Market Impact

These developments may strengthen JRRL's position in the recycling industry. The company's focus on diversification and sustainable practices aligns with global trends towards circular economy principles.

As JRRL implements its growth strategy, the impact of these initiatives on the company's performance and the broader recycling sector in India remains to be seen.