Copper recycling stock hits 5% upper circuit after reporting 107% YoY increase in revenue

Synopsis: Sunlite Recycling’s shares hit a 5% upper circuit after Q3 revenue more than doubled, about 107%, on strong volume growth, helped by higher plant utilisation, expanded capacity, and an aluminium merger that improves margins and supports long-term growth.

The shares of this company, which manufactures copper rods & wires, copper earthing wires, copper earthing strips, copper conductors, copper wire bars and more through the recycling of copper scrap, had its shares in momentum today after the company announced a jump in its revenue and in its sales volume. 

With the market cap of Rs 430 crore, the shares of Sunlite Recycling Industries Ltd hit a 5% upper circuit and reached a high at Rs 395.75, compared to their previous day’s closing price of Rs 376.95; today’s high also marks its 52-week high. The shares are trading at a PE of 20, whereas its industry PE is at 21.4, and the shares have given a return of about 100% since its listing in Aug 2024.  

Q3 business updates

Sunlite Recycling Industries witnessed good operational performance in Q3 FY26, with revenue more than doubling to Rs 717 crore, riding on a 76% YoY jump in volumes. The sharp growth points to higher plant utilisation, improved demand conditions, and an improving product mix. This suggests that the performance was indeed volume-led rather than being driven by one-off pricing gains. This kind of growth indicates strong underlying demand across power, transmission, and industrial end markets.

The commissioning of Phase 2 of the ATC wire facility, thereby doubling capacity from 800 MTPA to 1,600 MTPA, was the main strategic driver for such performance. This will help the company meet rising demand, especially from the solar power transmission segment, besides giving the benefit of operating leverage. Value-added products with higher capacity utilisation would underpin margin resilience as volumes scale up.

Further, the consolidation of Sunlite Aluminium Private Limited into the listed entity has provided a copper-aluminium platform, placing Sunlite stronger across the non-ferrous value chain. Preferential allotment and fresh capital have resulted in flexibility of the balance sheet and visibility on long-term growth. Overall, this update looks like a company transitioning from scale-up to sustained growth on the back of capacity, capital, and structural demand tailwinds.

Management Commentary 

“Q3 FY26 marks a significant milestone in Sunlite’s growth journey. We delivered a 107% YoY increase in revenue, supported by a 76% growth in volumes, reflecting strong demand for our products, higher capacity utilisation, and continued improvement in our product mix. The successful completion of our Phase-2 ATC wire expansion and the strategic integration of SAPL have strengthened our position across the aluminium value chain and enhanced our ability to offer value-added solutions to customers. With expanded capacity and fresh growth capital, we remain confident of sustaining strong growth and delivering long-term shareholder value.”

H1 Financial highlights

The revenue from operations for the company stood at Rs 1,122 crores in H1 FY26 compared to H1 FY25 revenue of Rs 637 crores, up by about 76 per cent YoY. Similarly, the net profit stood at Rs 14 crore in H1 FY26, doubling compared to the Rs 7 crore profit in H1 FY25.

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