Jain Resource Recycling Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Jain Resource Recycling Ltd filed with BSE on 25 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Jain Resource Recycling reported FY26 revenue growth of 48% and EBITDA growth of 53%, with EBITDA margin improving to 5.9% and PAT margin to 3.6%. Q4 FY26 EBITDA margin fell to around 3.5% due to a decline in sales realization formulas versus LME copper prices and higher shipping and logistics costs from the Iran-Israel conflict. Management said the copper anode facility commenced production in March 2026 and detailed progress on cathode, wire rod, bus bar, Ahmedabad joint venture, and Kuwait projects.
Numbers mentioned
Revenue: approximately INR9,543 crores (FY26)
p. 6
“Consolidated revenue from operations stood at approximately INR9,543 crores compared to around INR6,429 crores in FY '25, representing a year-on-year growth of approximately 48%.”
Hemant Jain, page 6 of the filed PDF · View the filing
EBITDA: approximately INR559 crores (FY26)
p. 6
“EBITDA for FY '26 came in at approximately INR559 crores compared to INR365 crores in the corresponding period last year, translating into a growth of approximately 53%.”
Hemant Jain, page 6 of the filed PDF · View the filing
EBITDA margin: approximately 5.9% (FY26)
p. 6
“The EBITDA margins also improved to approximately 5.9% in FY '26 as compared to 5.7% in FY '25, supported by better operating leverage, improved product mix, and stable operational execution.”
Hemant Jain, page 6 of the filed PDF · View the filing
Profit after tax: approximately INR347 crores (FY26)
p. 6
“The profit after tax for FY '26 stood at approximately INR347 crores compared to INR223 crores in the FY '25, representing a year-on-year growth of around 56%, while the PAT margins improved to approximately 3.6% in FY '26 compared to 3.5% in the previous year.”
Hemant Jain, page 6 of the filed PDF · View the filing
Q4 revenue: approximately INR3,105 crores (Q4 FY26)
p. 6
“The consolidated revenue from the operations stood at approximately INR3,105 crores compared to around INR1,760 crores in Q4 of FY '25, representing a year-on-year growth for approximately 76%.”
Hemant Jain, page 6 of the filed PDF · View the filing
Q4 EBITDA margin: around 3.5% (Q4 FY26)
p. 6
“The EBITDA margin stood at around 3.5% during Q4 FY '26.”
Hemant Jain, page 6 of the filed PDF · View the filing
Return on equity: approximately 30.4% (as at March 2026)
p. 7
“the return on equities stood at approximately 30.4%, while return on capital employed stood at approximately 25.3%.”
Hemant Jain, page 7 of the filed PDF · View the filing
Working capital cycle: around 66 days (as at March 2026)
p. 7
“Accordingly, the overall working capital cycle stood at around 66 days.”
Hemant Jain, page 7 of the filed PDF · View the filing
Copper anode installed capacity: 800 metric ton per month (March 2026)
p. 4
“I am pleased to share that copper anode production has already commenced in March 2026 with an initial installed capacity of 800 metric ton per month.”
Mayank Pareek, page 4 of the filed PDF · View the filing
Copper capacity utilization: around 65% (FY26)
p. 14
“So the copper, presently we are utilizing around 65% of the total installed capacity, while lead we are almost close to 97% to 100%, and aluminum is around 35% of the installed capacity.”
Hemant Jain, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Copper EBITDA per ton — approximately INR32,000 to INR30,000 · steady state basis / forward
stated firmly by Kamlesh Jain
p. 9
“the management expects normalized EBITDA to stabilize at approximately INR32,000 to INR30,000 on a steady state basis.”
Kamlesh Jain, page 9 of the filed PDF · View the filing
Copper cathode capacity — 1,500 metric ton per month · after phase two completion
stated firmly by Mayank Pareek
p. 5
“Once phase two is completed, cathode capacity will scale up to 1,500 metric ton per month.”
Mayank Pareek, page 5 of the filed PDF · View the filing
Copper wire rod commissioning — installed capacity of 600 metric ton per month · August 2026
stated firmly by Mayank Pareek
p. 5
“We expect commissioning by August 2026 with an installed capacity of 600 metric ton per month.”
Mayank Pareek, page 5 of the filed PDF · View the filing
Copper bus bar and profile commissioning — planned capacity of 1,500 metric ton per month · September 2026
stated firmly by Mayank Pareek
p. 5
“Machinery erection is expected to commence in July 2026 and commissioning is targeted for September 2026 with a planned capacity of 1,500 metric ton per month.”
Mayank Pareek, page 5 of the filed PDF · View the filing
Plastic recycling unit — estimated capex of around INR15 crores · quarter three financial year '27
stated firmly by Mayank Pareek
p. 6
“The new unit is targeted to become operational by quarter three financial year '27 and will entail an estimated capex of around INR15 crores, which will help us further strengthen our zero waste and circular economy model.”
Mayank Pareek, page 6 of the filed PDF · View the filing
Lead volume growth — 10% to 15% · FY27
stated as an aspiration by Mayank Pareek
p. 12
“So lead will be in the range of 10% to 15%, but copper, because the recycling is increasing and the application is increasing and availability of scrap is increasing, therefore copper could be even higher.”
Mayank Pareek, page 12 of the filed PDF · View the filing
Copper volume growth — beyond 15% · FY27
stated as an aspiration by Mayank Pareek
p. 18
“So, on the growth side, I'd given my comment on this. And I mean, volumes depend upon many things but copper growth will be a good double-digit figure. It has potential to go beyond 15%.”
Mayank Pareek, page 18 of the filed PDF · View the filing
Copper downstream project EBITDA margin addition — 2% to 4%
stated as an aspiration by Mayank Pareek
p. 12
“Copper downstream project has potential to further increase the EBITDA margin from 2% to 4%.”
Mayank Pareek, page 12 of the filed PDF · View the filing
Incremental EBITDA per kg from value addition — INR22 to INR45 per kg
stated as an aspiration by Mayank Pareek
p. 17
“Yes. Or more conservatively, we can say INR22-INR45 per kg.”
Mayank Pareek, page 17 of the filed PDF · View the filing
Total capex — around INR115 to INR120 crores · FY27
stated firmly by Hemant Jain
p. 14
“So, this all put together plus the phase two of the copper value-added project will be around INR115 to INR120 crores.”
Hemant Jain, page 14 of the filed PDF · View the filing
Working capital cycle — below 60 days
stated as an aspiration by Hemant Jain
p. 18
“which is around presently 66 days which should come down further below 60.”
Hemant Jain, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management explained the formula mechanism tied to LME pricing and said they are shifting to long-term hedging contracts to reduce future volatility.
Answered by Kamlesh Jain
Asked by Naman Parmar: How does the realization formula work and will LME volatility keep affecting EBITDA per ton?
p. 8
“So in the future we will be working on a long-term hedging formula mechanism where the price of the formula which varies up and down won't affect our sale price.”
Kamlesh Jain, page 8 of the filed PDF · View the filing
Management guided to approximately INR32,000 per ton as the forward-looking normalized figure, noting Q3 and Q4 both had one-time effects.
Answered by Kamlesh Jain
Asked by Rahul Bhangadia: What should be considered a normal EBITDA per ton for copper going forward?
p. 9
“So, more or less I feel it will be INR32,000 per ton for forward earnings.”
Kamlesh Jain, page 9 of the filed PDF · View the filing
Management said the stuck material is not a great percentage of total raw material and is fully hedged against price risk.
Answered by Kamlesh Jain
Asked by Sumant Kumar: How much raw material is stuck at the Strait of Hormuz and is it hedged?
p. 11
“No, percentage I can't say but it's not that great percentage of raw material. There is some quantity got stuck, but I can give you all details by separate email, how many containers and what is the value of the material.”
Kamlesh Jain, page 11 of the filed PDF · View the filing
Management quantified the war-related impact at about INR6,000 per ton and the formula/LME impact at about INR18,000-18,500 per ton.
Answered by Hemant Jain
Asked by Pratik Singh: How much did higher shipping/energy costs versus formula changes each contribute to the EBITDA per ton decline?
p. 13
“So with respect to the war situation, EBITDA per ton got impacted for around INR6,000 per ton. And with respect to the higher LME and drop in formula, it was nearing approx INR18,000 to INR18,500 per ton.”
Hemant Jain, page 13 of the filed PDF · View the filing
Management stated copper utilization at around 65%, lead near 97-100%, and aluminium around 35%.
Answered by Hemant Jain
Asked by Alisha Mahawla: What is the current capacity utilization in copper and lead?
p. 14
“So the copper, presently we are utilizing around 65% of the total installed capacity, while lead we are almost close to 97% to 100%, and aluminum is around 35% of the installed capacity.”
Hemant Jain, page 14 of the filed PDF · View the filing
Management attributed the decline to increased working capital needs from higher copper prices and volumes, and said they expect positive operating cash flow from Q2 onward as stock levels are reduced.
Answered by Hemant Jain
Asked by Chirag Khasgiwala: Why has operating cash flow turned sharply negative and when will it become positive again?
p. 18
“hopefully we can see some positive working capital coming positive into the CFS from the Q2 onwards.”
Hemant Jain, page 18 of the filed PDF · View the filing
Management explained that a new NFRA-driven accounting requirement now shows discounted receivables separately rather than net-off, inflating the reported receivables figure.
Answered by Hemant Jain
Asked by Chirag Khasgiwala: Why are receivables increasing even though sales are growing?
p. 19
“So that is basically an accounting system which NFRA as per the requirements of NFRA we need to show that presently separately.”
Hemant Jain, page 19 of the filed PDF · View the filing
Management said the decline was due to positive mark-to-market on hedges being recorded within other expenses.
Answered by Hemant Jain
Asked by Aditi: Why did other manufacturing costs decline sharply this quarter versus prior periods?
p. 20
“So basically, in this there was one another change which we have made into this other expense was maintaining this fair value of hedges. So, this was in positive M2M and because of that the other expense has come down during this financial year.”
Hemant Jain, page 20 of the filed PDF · View the filing
Risks flagged
Sharp LME copper price volatility disrupting sales realization formulas
p. 8
“Formula don't move up and move down in the previous year, but this year copper was extraordinary rallied and the bullish trend in copper and the price went up to skyrocket from US $10,000 to $14,000.”
Kamlesh Jain, page 8 of the filed PDF · View the filing
Geopolitical disruption from the Iran-Israel conflict affecting shipping routes and costs
p. 6
“Secondly, the geopolitical disruptions arising from the Iran-Israel conflict impacted the global shipping routes and increasing logistic and fuel-related costs during March '26.”
Hemant Jain, page 6 of the filed PDF · View the filing
Delayed imported machinery deliveries due to the Iran shipping corridor situation
p. 5
“Certain imported machinery deliveries witnessed temporary delays due to the geopolitical situation relating to Iran shipping corridor.”
Mayank Pareek, page 5 of the filed PDF · View the filing
Containers of raw material stuck at UAE ports due to Hormuz Strait disruption
p. 9
“There is a supply of the raw material has been constrained and a lot of containers got stuck in Dubai port.”
Kamlesh Jain, page 9 of the filed PDF · View the filing
Delay in Kuwait project shipments due to shipping route disruption from the Iran-related situation
p. 5
“However, due to disruption in shipping routes arising from Iran-related geopolitical situation, dispatches have been temporarily delayed.”
Mayank Pareek, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.