Sunlite Recycling Stock Up 16% After FY26 Net Profit Increases 181% YoY; 378% Return in One Year

Synopsis: Sunlite Recycling Industries Limited reported FY26 revenue of Rs. 2,764.72 crore and net profit of Rs. 40.15 crore, marking a sharp 98% year-on-year revenue growth and 181% jump in profit, driven by higher scale, strong demand in copper products and capacity expansion.

Sunlite Recycling has a total market capitalization of Rs. 773.13 crore, according to data on the NSE. The stock was listed on the exchanges on August 20, 2024. Sunlite Recycling shares were trading at Rs. 560 apiece up by 15.16 percent on the National Stock Exchange; the stock has gained around 23.62  percent over the last five sessions, while it has surged about 64.37  percent in the 30 days.

On a year-on-year basis it has given an exceptional return of 378.63  percent, reflecting remarkable overall performance. The stock’s 52-week high was Rs. 583.55 and 52-week low was Rs. 109.50.

Sunlite Recycling delivered exceptional financial performance for the year ended March 31, 2026, reflecting strong growth momentum driven by rising demand for non ferrous metal products and aggressive business expansion. The company reported revenue from operations of Rs. 2,764.72 crore in FY26, compared to Rs. 1,396.71 crore in FY25, translating into a robust 98  percent year-on-year growth, indicating a significant scale up in operations and improved market penetration.

On the profitability front, the company reported net profit of Rs. 40.15 crore, a sharp increase from Rs. 14.27 crore in FY25, reflecting a 181 percent growth in earnings. Profit before tax (PBT) stood at Rs. 53.80 crore, compared to Rs. 19.19 crore in the previous year, highlighting strong operating leverage as revenue growth outpaced cost increases. This substantial improvement in profitability indicates better capacity utilization, pricing power and operational efficiency.

During the second half of FY26, the company continued its strong performance, with revenue of Rs. 1,642.40 crore, growing significantly from Rs. 1,122.31 crore in the previous half year, while net profit stood at Rs. 25.80 crore, reflecting consistent earnings growth. 

Operationally, the company’s total expenses rose to Rs. 2,711.11 crore in FY26 from Rs. 1,377.86 crore in FY25, largely driven by higher input costs and increased scale of operations. The company also maintained efficient working capital management, although increased trade receivables and inventory levels indicate expansion led capital deployment.

A key highlight of the year was the strategic acquisition of Sunlite Aluminium Private Limited, executed through a mix of cash and share swap. The company invested Rs. 6.5 crore in cash and issued shares worth Rs. 43.5 crore, strengthening its backward integration and expanding its product portfolio. Additionally, Sunlite raised Rs. 17.06 crore via preferential allotment, fully utilized for working capital and acquisition purposes, with no deviation from stated objectives.

The balance sheet also strengthened significantly, with total assets increasing to Rs. 224.23 crore from Rs. 94.41 crore, reflecting expansion in inventory, receivables and fixed assets. Reserves and surplus surged to Rs. 146.93 crore, indicating strong internal accruals and improved financial stability.

The company operates in the manufacturing and trading of copper rods, wires, strips and other non ferrous metal products, catering to industrial and infrastructure demand within India. Given the rising demand for copper in sectors like power, EVs and infrastructure, Sunlite is well positioned to benefit from long term structural growth trends.

Overall, the FY26 results indicate that Sunlite Recycling Industries is in a high growth expansion phase, supported by strong revenue momentum, strategic acquisitions and efficient capital deployment. While margins remain inherently thin due to the commodity nature of the business, the company’s ability to scale operations rapidly and improve profitability suggests a positive long term outlook, with future performance likely to be driven by capacity expansion, integration benefits and sustained demand in the metals sector.

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