Recycling stock held by Ashish Kacholia sees strong future growth in revenue, margins and more

Synopsis: A small-cap recently listed stock is in focus after announcing that its management has given the future outlook of the company.

A newly listed Company that specialized in recycling non-ferrous metal scrap and producing lead, copper, and aluminium alloys, is in the spotlight following the announcement of its Revenue and margin guidance for FY26 in their Q2 results. The article below provides a detailed overview of the company’s performance and future outlook.

With a market capitalization of Rs. 13,239.22 crore, the shares of Jain Resource Recycling Limited is trading at Rs. 383.65, down by 0.17 percent from its previous closing price of Rs. 383.95 per equity share. The ace investor Ashish Kacholia, through its firm Bengal Finance And Investment Pvt Ltd holds 1.14 percent stake in the company.

Q2 Results

The company reported robust Q2 FY26 performance with revenue rising 53.1% YoY from ₹1,343 crore to ₹2,055 crore and surging 39.9% QoQ from ₹1,470 crore. The company reported EBITDA of Rs. 156 crore in Q2 FY26, increased by 136.36 percent compared to Rs. 66 crore in Q2 FY25 and increased by 164.41 percent from Rs. 59 crore in Q1 FY26.

Net profit also improved significantly, climbing 80% YoY from ₹55 crore to ₹99 crore and increasing 67.8% QoQ from ₹59 crore, reflecting strong operational efficiency and healthy demand momentum.

Revenue Growth Outlook

Management expects revenue growth to remain in the 20–25% range, consistent with the company’s performance trend over the past 4–5 years. This outlook is reinforced by strong momentum in H1 FY26, where revenue grew 27%, indicating sustained demand and operational strength.

Lead Segment Margin Performance

In the lead segment, EBITDA stands at approximately INR 18,920 per ton, a level management views as comparable to peers and structurally sustainable due to the company’s scale advantages. This stability provides a dependable earnings base for the business.

Copper Segment Margin Outlook

The copper business currently delivers EBITDA of around INR 51,000 per ton, and management expects a meaningful improvement from FY27 onward, driven by the full integration of the cathode, wire rod and busbar value chain. This vertical integration is anticipated to strengthen profitability and operational efficiency.

About the Company

Jain Resource Recycling Limited, incorporated in 2022, specializes in recycling and manufacturing non-ferrous metal products. It operates three metal recycling facilities in Chennai and a gold refining unit in Sharjah, UAE. Serving both domestic and international clients, the company produces lead, copper, aluminium, tin ingots, alloys, and plastics, supplying markets in Singapore, China, Japan, South Korea, and various industrial sectors.

With a price range of Rs. 220 to Rs. 232 per equity share, Jain Resource Recycling Limited launched its initial public offering (IPO). The subscription period was open from September 24 to September 26, 2025. On October 1, 2025, the company’s shares went public on the BSE and NSE platform, initially trading for Rs. 265.05 each. This indicated strong investor interest and represented a listing gain of about 14.25 percent over the upper end of the issue price.

It is trading at a price-to-earnings (P/E) ratio of 52x, which is higher than the industry average of 40.9x. A return on equity (ROE) of about 39 percent, a return on capital employed (ROCE) of about 27.2 percent and debt to equity ratio of 0.9 demonstrate the company’s financial position. 

Written by: Akshay Sanghavi

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Recycling stock held by Ashish Kacholia sees strong future growth in revenue, margins and more appeared first on Trade Brains.