Jain Resource Recycling LtdQ3 FY25Diversified Metals

Jain Resource Recycling Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Capex

Yes

2 of 5 growth signals are positive.

Revenue guidance

Category 2

→Jain Resource Recycling Limited expects revenue growth of around 20%-25% annually for FY '26 and FY '27, consistent with the 27% growth shown in H1 FY '26 and historical 4-5 years' performance.
→Volume growth has been strong, with lead segment sales up 30%-40% recently and copper segment also growing steadily.
→The company plans incremental capacity expansions, typically adding 20% capacity once existing capacity utilization exceeds 80%, ensuring sustained volume growth.
→New projects, including value-added copper products and JV ventures, are expected to further augment sales over the next couple of years.
→The company is confident of no raw material shortage due to deep sourcing from over 120 countries and increased domestic sourcing, supporting steady volume growth.
→Overall, a sustainable CAGR of ~20%-25% in sales and volumes is projected for the near future.

Category 3

→Revenue growth of 20%-25% expected for FY '26 and FY '27, continuing a consistent 4-5 year trend (Page 20).
→EBITDA margins expected to sustain or improve due to zero-duty structure on lead and copper imports and new value-added plants (Pages 20, 12).
→Finance cost projected to reduce by INR 20-22 crores annually due to IPO debt repayment and better working capital management (Page 21).
→Lead segment capacity utilization currently at 100%, with plans to add 20% capacity yearly to support 30%-40% growth in lead sales (Page 19).
→Copper EBITDA per ton expected to increase due to new copper cathode and wire rod plants commissioning around February FY '26 (Page 12).
→Overall strong operational performance and growth backed by sourcing capabilities, export advantage, and strategic JV expansions (Pages 9-21).

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Yes

→The company raised INR1,250 crores through IPO proceeds, part of which (around INR375 crores) was used to repay bank debt, reducing finance costs significantly.
→No explicit mention of new fundraising through debt or equity in the near future.
→Ongoing capex plans to the tune of INR20-30 crores per annum for continuous expansion and additional projects requiring approximately INR95 crores to INR100 crores over the next 2-3 years, but no specific funding method stated.
→The company is pursuing asset-light models, leasing land and facilities rather than buying, which may reduce immediate capital requirements.
→No direct commentary on fresh fundraising plans; internal accruals are expected to fund volume growth and capex.

→Jain Resource Recycling Limited operates in a business where sourcing directly determines recycling and sales; there is no traditional order book but a purchase order book tied to sourcing capacity.
→The company emphasizes deep sourcing capabilities across 120+ countries, including domestic and international sources, ensuring steady raw material supply.
→There is no mention of a traditional pending order book; growth and operations depend on sourcing volume rather than fixed customer orders.
→Management assures no supply chain challenges, with continuous growth of about 40% CAGR year-on-year.
→Sourcing expansion and strategic partnerships (e.g., with C&Y in the US) reinforce their strong supply pipeline, enabling steady future production and sales scaling.

Yes

→Continuous expansion in existing business with year-on-year capex of INR 20-30 crores.
→Copper value-added products plant (Phase 1) with 9,000 tons per annum capacity, capex around INR 95 crores.
→Follow-up expansion (Phase 2) of the copper plant with additional INR 50 crores capex to double capacity.
→Ahmedabad JV with an estimated capex of INR 30 crores from Jain Resource Recycling side.
→Advanced-stage studies for projects including tire recycling, solar panel recycling, and EV recycling with potential capex of around INR 100 crores over 2-3 years.
→Asset-light model, with land and buildings on rent rather than owned assets.
→Lead capacity expansion planned with incremental 20% capacity additions as utilization reaches 100%.

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