Jain Resource Recycling Limited has disclosed that its promoter Kamlesh Jain has been penalized ₹25.00 lakh by the Securities and Exchange Board of India (SEBI) for alleged insider trading activities in shares of Refex Industries Limited. The company informed stock exchanges about the regulatory action taken against its promoter.

SEBI Adjudication Order Details

SEBI passed an adjudication order bearing reference number Order/JS/YK/2025-26/31830-31832 in the matter of insider trading activities in Refex Industries Limited scrip. The order was issued under Section 15-I of the SEBI Act, 1992, read with Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995.

Alleged Violations and Contraventions

SEBI alleged that Kamlesh Jain and the Jain Family Trust traded in Refex Industries Limited shares while possessing unpublished price-sensitive information. The regulatory body claimed that the entities made unlawful gains of ₹12.33 lakh through these trading activities.

The alleged contraventions include violations of:

• Section 12A(e) of SEBI Act read with Regulation 3(1) of SEBI PIT Regulations
• Section 12A(d) and (e) of SEBI Act read with Regulation 4(1) of SEBI PIT Regulations

Jain Resource Recycling emphasized that the alleged contravention does not relate to the company's shares in any way.

Promoter's Response and Legal Recourse

Kamlesh Jain and the Jain Family Trust have informed the company of their intention to contest the SEBI order and file an appeal. They believe they can strongly defend their position through the legal process and will avail appropriate recourse available under law against the adjudication order.

Impact Assessment on Company Operations

Jain Resource Recycling has clarified that the SEBI order will not impact the company's financial position, business operations, or other activities. The company stated that the matter pertains to the promoter and his family trust in their personal capacity, with no quantifiable monetary impact on the listed entity.

The company also noted that the subject matter related to the show cause notice issued by SEBI had been duly disclosed in its offer document for the Initial Public Offering, ensuring transparency with investors regarding potential regulatory matters involving the promoter.

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.