Q2 FY2026 Non-Ferrous Metals Insights

Non Ferrous Metals Sector: Comprehensive Analysis

The Non Ferrous Metals sector, particularly in India, is experiencing a dynamic transformation, driven by robust domestic demand, global commodity price trends, and an accelerating shift towards a circular economy through recycling. This comprehensive analysis synthesizes data from Hindustan Zinc Limited (HZL), Jain Resource Recycling Limited (JAINREC), Gravita India Limited (GRAVITA), Pondy Oxides and Chemicals Limited (POCL), and Baheti Recycling Industries Limited (BAHETI), providing an in-depth view of the market landscape, financial performance, competitive dynamics, operational characteristics, growth drivers, risks, capital allocation strategies, and future outlook. The sector is characterized by a mix of large-scale primary producers like HZL and a rapidly formalizing and expanding recycling industry represented by JAINREC, GRAVITA, POCL, and BAHETI.

A. INDUSTRY OVERVIEW & MARKET LANDSCAPE

The non-ferrous metals sector encompasses a wide array of metals crucial for industrial and technological applications. The extracted data primarily focuses on Zinc, Lead, Silver, Copper, and Aluminium, with a significant emphasis on the recycling segment for the latter three.

**Total Addressable Market Size and Growth Rates:** The Indian aluminium scrap recycling market alone is valued at **$3.8 billion in 2024** and is projected to reach **$11.2 billion by 2034**, exhibiting a robust **CAGR of 10.9%**. This indicates a substantial and rapidly expanding market for recycled non-ferrous metals. While specific aggregate market sizes for other metals or the entire non-ferrous sector are not provided, the growth trajectories of individual companies and the increasing demand for recycled content strongly suggest a buoyant market.

**Market Structure and Segmentation:** The sector can be broadly segmented into: 1. **Primary Production:** Dominated by large, integrated players like Hindustan Zinc Limited (HZL), which is the world's largest integrated zinc producer and India's only integrated producer of Zinc and Lead. HZL also holds a significant position in silver production. 2. **Recycling and Secondary Production:** This segment is growing rapidly and is represented by companies like Jain Resource Recycling (JAINREC), Gravita India (GRAVITA), Pondy Oxides and Chemicals (POCL), and Baheti Recycling Industries (BAHETI). These companies focus on processing various metal scraps (Lead, Copper, Aluminium, Plastics, Rubber, and increasingly Lithium-ion batteries) to produce alloys, ingots, and value-added products. * **By Product:** * **Lead:** All recycling companies (JAINREC, GRAVITA, POCL) are heavily involved in lead recycling, producing lead and lead alloy ingots. This segment is driven by battery demand. * **Copper:** JAINREC and POCL have significant copper recycling operations, with plans for forward integration into value-added products like copper cathode, wire rods, and busbars. Gravita also mentions copper but notes low value-addition. * **Aluminium:** JAINREC, GRAVITA, POCL (trials), and BAHETI are active in aluminium recycling, producing alloy ingots and de-ox alloys. BAHETI is specialized in this segment. * **Silver:** HZL is a major primary producer, with silver contributing significantly to its profits (~40%). * **Zinc:** HZL is the dominant primary producer. JAINREC is exploring zinc alloys. * **Plastics & Rubber:** GRAVITA and JAINREC have diversified into plastic recycling, and GRAVITA is also expanding into rubber recycling. POCL is shifting its plastics unit to its own premises. * **Lithium-ion Batteries:** GRAVITA and POCL are in the pilot/R&D stages for lithium-ion battery recycling, anticipating future demand. * **By Geography:** Companies operate both domestically and internationally. * **Domestic:** All companies have a strong presence in India, catering to local demand. HZL has a ~77% domestic primary zinc market share. Recyclers are increasing domestic scrap sourcing. * **Exports:** JAINREC (63% H1 FY26), POCL (61% H1 FY26), and GRAVITA (30% Q2 FY26 revenue from overseas) have significant export contributions, indicating global competitiveness. BAHETI is expanding into Europe. * **Global Sourcing:** Recyclers source raw materials globally (e.g., JAINREC from >120 countries, POCL from >70 countries).

**Key End Markets and Applications:** * **Automotive:** A major end-user for lead (batteries), aluminium (lightweighting, castings), and copper (electrical components). The automotive sector accounts for **40% of secondary aluminium demand in 2024**, projected to increase to **40-45% by 2028**. Electric Vehicles (EVs) are expected to drive significant demand for aluminium, projected to reach nearly **10 million tonnes by 2030**. * **Construction & Infrastructure:** Zinc is used in galvanization for steel protection. Lead is used in various industrial applications. * **Electrical & Electronics:** Copper (conductors, components), Lead, Silver (electronics). * **Renewable Energy:** Silver (solar panels), Copper (green energy transition), Lead (energy storage). * **Steel Industry:** Aluminium de-ox alloys. * **Die-Casting:** Aluminium alloys. * **Fertilizers:** HZL is commissioning a Fertilizer Plant (DAP/PAP). * **Packaging:** Aluminium (e.g., Used Beverage Cans, though JAINREC does not use UBC).

**Geographic Distribution and Regional Dynamics:** * **India:** Strong domestic GDP growth (**7.8% in Q1 FY26, 6.5%-6.8% for full year FY26**), resilient private consumption, and sustained capital expenditure are key drivers. India's manufacturing PMI consistently reflects sectoral expansion. Government policies like the Battery Waste Management Rule (BWMR) and Extended Producer Responsibility (EPR) frameworks are significantly boosting the organized recycling sector. India has unique strengths in recycling due to cheap/mass labor supply, a plastic ecosystem, and government promotion/incentives. * **Overseas:** Companies like GRAVITA have a deep presence in Asia, Africa, the Middle East, Europe, and America. JAINREC and POCL have extensive global sourcing and export networks. BAHETI is expanding into Europe (Hungary, Turkey, Germany, UK). The EU's low-carbon markets are creating export opportunities for green aluminium.

**Market Maturity and Lifecycle Stage:** * **Primary Production (Zinc, Lead, Silver):** Mature, but with continuous technological advancements, cost optimization, and ESG integration. HZL, as a global leader, focuses on maintaining its low-cost position and expanding capacities. * **Recycling Sector:** This segment is in a high-growth, formalization stage in India. Driven by regulatory mandates (EPR, recycled content), increasing environmental awareness, and the economic viability of secondary production, it is rapidly transitioning from an unorganized to an organized sector. Companies are investing heavily in capacity expansion, technology upgrades, and diversification into new waste streams (e-waste, solar panels, lithium-ion batteries).

**Industry Value Chain and Ecosystem:** * **Raw Material Sourcing:** * **Primary:** HZL has its own mines (world's 2nd largest zinc reserves, 25+ years mine life). * **Recycling:** Companies source scrap both domestically and internationally. * JAINREC: ~61% imported, ~39% local (H1 FY26). Domestic sourcing has gone up significantly. Direct sourcing from scrapyards/dismantling companies is increasing. * GRAVITA: For Indian plants, ~50% import, ~50% domestic. Domestic battery scrap increased by ~35% (Q2 YoY), ~22% (H1). * POCL: Lead ~86% imports, ~14% domestic; Plastics ~54% imports, ~47% domestic; Copper 100% imports (H1 FY26). * BAHETI: Primarily imports from UK, USA, New Zealand, with a small domestic chunk. * **Processing & Refining:** Involves various stages from scrap collection, segregation, melting, refining, alloying, and casting into ingots or other forms. Companies are investing in advanced technologies (e.g., Tilting Rotary Furnaces, vacuum furnaces, hot acid leaching). * **Manufacturing Value-Added Products (VAP):** A key strategic focus for all recyclers to improve margins. Examples include customized alloys, copper cathode, wire rods, busbars, plastic granules, and potentially lithium-ion battery materials. * **Distribution & Sales:** Companies serve a diversified customer base globally, including major automotive OEMs, battery manufacturers, steel producers, and electrical component makers. Strong logistics and supply chain management are critical. * **Regulatory Framework:** Government policies (EPR, BWMR, recycled content mandates) play a crucial role in shaping the industry, particularly for recycling. These policies aim to formalize the sector, increase traceability, and ensure responsible waste management.

B. FINANCIAL & ECONOMIC PROFILE

The financial performance across the non-ferrous metals sector, as evidenced by the provided data, showcases strong growth, albeit with significant differences in margin profiles between primary producers and recyclers.

**Industry Aggregate Revenue Scale and Growth Trajectory:** While an aggregate industry revenue is not provided, individual company performances indicate a robust growth trajectory. * **HZL:** Revenue from operations for H1 FY26 was INR 16,320 crores (almost flat YoY), but Q2 FY26 saw a 10% sequential increase to INR 8,549 crores. * **JAINREC:** H1 FY26 consolidated revenue was INR 3,663 crores (up 27% YoY). Q2 FY26 revenue was INR 2,114 crores (up 52% YoY). Historically, FY22-FY25 revenue CAGR was +52%. FY25 revenue was INR 7,126 crores. * **GRAVITA:** H1 FY26 consolidated revenue was INR 2,075.44 crores (up 13% YoY). Q2 FY26 revenue was INR 1,035.50 crores (up 12% YoY). Historically, 5-year revenue CAGR was 23%. FY25 revenue was INR 3,869 crores. * **POCL:** H1 FY26 standalone revenue was INR 1,231 crores (up 22% YoY). Q2 FY26 revenue was INR 635 crores (up 11% YoY). These were highest-ever half-yearly and quarterly revenues. * **BAHETI:** H1 FY26 revenue from operations was INR 315.14 crores (up 22.53% YoY). FY25 revenue was INR 534.31 crores.

The recycling segment, in particular, is demonstrating high growth rates, with JAINREC leading with a 52% historical revenue CAGR and a 52% YoY growth in Q2 FY26. POCL and BAHETI also show strong double-digit revenue growth.

**Profitability Levels Across Companies:** There's a clear distinction in profitability between the primary producer and the recyclers. * **Gross Margin:** POCL reported gross margins of **14.5%** in Q2 FY26. * **EBITDA Margin:** * **HZL:** Consistently high, around **51-52%** (Q2 FY26: ~52%, H1 FY26: c.51%). This is significantly higher than recycling companies due to its integrated mining and smelting operations, low cost of production, and by-product realization (silver). * **JAINREC:** H1 FY26: **6.8%**, Q2 FY26: **7.6%**. FY25: **7.75%**. Historical EBITDA CAGR FY22-FY25: +72%. * **GRAVITA:** H1 FY26: **10.77%**, Q2 FY26: **10.80%**. Consistent EBITDA margins of **9-10%** historically. * **POCL:** H1 FY26: **>8%**, Q2 FY26: **>8%**. Management guidance for sustainable EBITDA margins is **8% and higher**. * **BAHETI:** H1 FY26: **6.74%**. FY25: **7.75%**. * **Range of Margins:** The EBITDA margin range is wide, from **~6.7% (BAHETI, JAINREC)** for recyclers to **~52% (HZL)** for the primary producer. Gravita consistently maintains higher margins among recyclers at **~10-11%**, possibly due to its diversified portfolio and value-added products. * **Net Margin (PAT Margin):** * **HZL:** Q2 FY26: **30.98%** (2,649 Cr PAT / 8,549 Cr Revenue). H1 FY26: **29.92%** (4,883 Cr PAT / 16,320 Cr Revenue). * **JAINREC:** H1 FY26: **4.2%**, Q2 FY26: **4.7%**. Historical PAT CAGR FY22-FY25: +56%. * **GRAVITA:** H1 FY26: **9.12%**, Q2 FY26: **9.27%**. Historical 5-year PAT CAGR: 57%. * **POCL:** H1 FY26: **>5%** (up from 3% in H1 FY25), Q2 FY26: **>5%**. * **BAHETI:** H1 FY26: **2.94%**. FY25: **3.43%**.

**Return Profiles:** * **Return on Capital Employed (ROCE):** * **HZL:** ~65% (for trailing 12 months). This is exceptionally high, reflecting its strong profitability and efficient capital utilization. * **JAINREC:** 24% (FY25). * **POCL:** Target >20% (Target 2030 Vision). * **Return on Equity (ROE):** * **JAINREC:** 41% (FY25). * **Return on Invested Capital (ROIC):** * **GRAVITA:** 25% (FY25). Management Vision 2029 target: >25%.

**Working Capital Characteristics and Cash Conversion Cycles:** * **JAINREC:** Working capital cycle increased from 38 days to ~52 days (due to high inventory days) in H1 FY26, but is expected to normalize to 40-42 days by Feb '26. * **BAHETI:** Focused on reducing working capital and improving cash conversion cycles in H2 FY26 to strengthen liquidity. * **POCL:** Inventories decreased from INR 2,322 Mn (Mar-25) to INR 1,725 Mn (Sep-25), indicating better working capital management.

**Capital Intensity Requirements:** The sector is capital-intensive, with significant investments required for mining, smelting, and recycling facilities. * **HZL:** Growth capex guidance of **$350 million to $400 million** and maintenance capex of around **$400 million** for FY26. Major projects include a **INR 12,000 crore** integrated metal capacity expansion and a **INR 3,800 crore** zinc tailing reprocessing plant. * **JAINREC:** Total capex for Phase I of copper forward integration: estimated **INR 95 crores** (INR 45 crores already spent by Sep 2025). JV with CNY Group: JRR spending ~INR 30 crores. Continuous expansion in existing business: **INR 20-30 crores per annum**. Phase 2 copper VAP: another **INR 50 crores**. Other projects (tire, solar, e-waste): another **INR 100 crores** over next 2-3 years. * **GRAVITA:** Capex budget realigned to **~INR 1,225 crores by FY '28** (from earlier INR 1,500 crores). ~INR 850 crores for existing verticals, remaining for diversification. H1 FY26 capex: ~INR 105 crores. Expected H2 FY26 capex: ~INR 100 crores. Brownfield projects (Mundra, Phagi) have significantly lower capex. * **POCL:** H1 FY26 capex: ~INR 14 crores. Expected H2 FY26 capex: additional **INR 35 crores** (for lead Phase 2 and copper). Total capex for copper (24,000 tons capacity): **INR 100-110 crores**. FY27 copper capex: ~INR 55-60 crores. * **BAHETI:** CAPEX for 1 pair of Tilting Rotary Furnace with Skelner: **INR 25 Cr**.

**Revenue Quality:** * **Repeat Customers:** JAINREC reported **88% revenue from repeat customers** in H1 FY26, indicating strong customer relationships and stable demand. * **Value-Added Products (VAP):** A growing focus for recyclers. * GRAVITA: VAP contributed **47% to revenue** in H1 FY26, targeting 50%. * POCL: VAP in Lead segment: **~70%**. Target 2030 Vision: VAP revenue **>60%**. * BAHETI: Strategic entry into Aluminium Wire Rods, Aluminium Billets, and Zinc Alloys, promising sustainable margins beyond traditional recycling.

**Financial Health:** * **Net Debt Position:** * **GRAVITA:** Net debt-free balance sheet. * **POCL:** Zero net debt, with a net cash balance of **INR 71 crores** (Sep-25). * **HZL:** Expects to be net debt or net cash flat by end of FY26. * **Credit Ratings:** * **GRAVITA:** AA- from ICRA & India Ratings. * **JAINREC:** Crisil A+/Stable (upgraded from 'Crisil A/Stable'). * **POCL:** A/ Stable from CRISIL. * **HZL:** Consistently rated AAA by CRISIL Ratings Limited. These strong credit ratings reflect financial stability and capacity for growth.

C. COMPETITIVE STRUCTURE & DYNAMICS

The non-ferrous metals sector exhibits a dual competitive structure: a highly concentrated primary production segment and a rapidly formalizing, yet still fragmented, recycling segment.

**Number of Players and Market Concentration:** * **Primary Production:** Highly concentrated. HZL is a dominant player, holding **c.77% domestic primary zinc market share**. It is the world's largest integrated zinc producer and India's only integrated producer of Zinc and Lead, and integrated/listed Silver company. * **Recycling Sector:** While historically fragmented and unorganized, the sector is consolidating and formalizing due to regulatory pressures and increasing demand for quality recycled products. Companies like JAINREC, GRAVITA, POCL, and BAHETI are emerging as significant organized players.

**Market Share Distribution:** * **HZL:** * **Zinc:** c.77% domestic primary zinc market share. * **Silver:** Among Top 5 Silver producing mines (Sindesar Khurd). Silver drives c.40% of overall profit. * **JAINREC (India Market Share):** * **Copper:** 3.4%. * **Lead:** 8.6%. * **Aluminum:** 0.5%. * **GRAVITA:** No specific market share provided, but its diversified operations across 4 recycling verticals and 12 plants, with a presence in 70+ countries, suggest a significant global footprint in the recycling space. * **POCL:** No specific market share provided, but its LME registered lead brand and extensive global customer base indicate a strong position in lead recycling. * **BAHETI:** No specific market share provided, but its IATF 16949 certification positions it strongly to serve the automotive sector directly.

**Competitive Intensity Assessment:** * **Bargaining Power of Buyers (Moderate to High):** Large industrial customers (auto, battery, steel) have significant purchasing power. However, the increasing demand for recycled content and the specialized nature of value-added products can somewhat mitigate this. Companies like BAHETI are expanding their client base to reduce concentration risk. * **Bargaining Power of Suppliers (Moderate):** For primary producers like HZL, access to reserves is a key asset. For recyclers, raw material scrap sourcing is crucial. Global sourcing networks (JAINREC from >120 countries, POCL from >70 countries) help diversify supply risk. Domestic scrap availability is increasing due to EPR. * **Threat of New Entrants (Moderate for Recycling, Low for Primary):** * **Primary:** High capital intensity, regulatory hurdles, and the need for extensive reserves create high barriers to entry. * **Recycling:** Lower capital intensity for smaller players, but increasing regulatory compliance (EPR, environmental norms), technology requirements, and the need for established sourcing/distribution networks raise barriers for organized, large-scale players. LME branding (JAINREC, POCL) also acts as a differentiator. * **Threat of Substitutes (Low to Moderate):** While new materials are always emerging, the fundamental properties and cost-effectiveness of non-ferrous metals in their core applications make widespread substitution challenging. For example, lead-acid batteries are expected to remain in automobiles for functions other than engine replacement. * **Rivalry Among Existing Competitors (High for Recycling, Moderate for Primary):** * **Primary:** HZL's dominant market share suggests moderate rivalry in its core segments. * **Recycling:** Intense competition, but the rapidly expanding market (e.g., India Aluminium Scrap Recycling Market CAGR 10.9%) allows multiple players to grow. Companies differentiate through technology, value-added products, global reach, and adherence to ESG standards.

**Entry Barriers and Competitive Moats:** * **Scale and Integration:** HZL's integrated mining and smelting operations, coupled with its vast reserves, provide a significant cost advantage and a strong moat. * **Technology and R&D:** Investment in advanced recycling technologies (e.g., TRF, vacuum furnaces, hot acid leaching, lithium-ion battery recycling R&D) creates competitive advantages. * **Regulatory Compliance & ESG:** Adherence to stringent environmental norms, EPR frameworks, and ESG certifications (e.g., S&P Global CSA #1 for HZL, ILA accreditation for GRAVITA, IATF 16949 for BAHETI) are becoming critical entry barriers and differentiators, especially as customers become more ESG-conscious. * **LME/MCX Branding:** LME-registered lead brands (JAINREC, POCL) and MCX empaneled brands (GRAVITA, JAINREC) provide credibility, market access, and hedging capabilities. * **Global Sourcing & Distribution Networks:** Extensive networks for raw material procurement and finished product sales provide resilience and market reach. * **Value-Added Products:** Focus on customized and value-added products (VAP) allows for higher margins and stronger customer relationships.

**Pricing Power Dynamics and Pricing Trends:** * **Commodity Price Linkage:** Prices for primary metals (Zinc, Lead, Silver, Copper, Aluminium) are largely dictated by global LME/LBMA prices. Companies like HZL are directly exposed to these fluctuations. * **HZL LME Prices (Q2 FY26 vs YoY):** Zinc $2,825/MT (up 2%), Lead $1,966/MT (down 4%), Silver $39.4/oz (up 34%). * **HZL LME Prices (H1 FY26 vs YoY):** Zinc $2,736/MT (down 2%), Lead $1,957/MT (down 7%), Silver $36.6/oz (up 26%). * **Hedging:** Most companies employ robust hedging mechanisms (LME futures, FOREX hedging) to mitigate commodity price and currency volatility, reducing windfall profits/losses and ensuring stable margins. * **Value-Added Products:** Companies focusing on VAP can command better pricing and achieve higher EBITDA per ton, providing some insulation from pure commodity price swings. * **EBITDA per ton:** * **JAINREC (Q2 FY26):** Lead INR 18,920, Copper INR 51,000. * **GRAVITA (Q2 FY26):** Lead INR 23,196, Aluminium INR 14,786, Plastics INR 10,122. Sustainable guidance: Lead INR 19-20/kg, Aluminium INR 12-14/kg, Plastic INR 10-11/kg, Rubber INR 7-8/kg. * **POCL (Q2 FY26):** Lead INR 19,970. * **Comparison:** Gravita generally reports higher EBITDA per ton for Lead and Aluminium compared to JAINREC and POCL, possibly due to its focus on customized and value-added products and diversified portfolio. Copper shows significantly higher EBITDA per ton.

**Consolidation Trends and M&A Activity:** * The recycling sector is ripe for consolidation, driven by regulatory formalization and the need for scale and advanced technology. * **GRAVITA:** Acquired a tire recycling company in Romania and is exploring options for more units or acquisitions in Eastern Europe (tire, lead, aluminium recycling). * **JAINREC:** Acquired 70% stake in Jain Ikon Global Ventures (JIGV) in UAE for gold refining (later discontinued due to low margins), and entered a JV with CNY Group for a copper scrap recycling plant in Ahmedabad.

**Competitive Advantages of Each Player:** * **Hindustan Zinc Limited (HZL):** * **Scale & Integration:** World's largest integrated zinc producer, India's only integrated Zinc/Lead/Silver company. * **Low Cost Producer:** Among lowest cost Zinc producers globally, with Zinc CoP excluding royalty at $994/ton (5-year lowest for Q2 FY26). * **Reserves:** World's 2nd largest Zinc Reserves & Resources with 25+ years of mine life. * **By-product Realization:** Silver contributes ~40% of overall profit. * **ESG Leadership:** Ranked 1st in Metals & Mining sector in S&P Global CSA 2024 for 2nd consecutive year, Asia's first low carbon 'green' zinc producer, ICMM member. * **Jain Resource Recycling Limited (JAINREC):** * **LME Branding:** Lead ingot listed as an LME brand (Jain 9998), one of only two Indian recyclers. * **Global Reach:** Sourcing from >120 countries, customer base >20 countries, strong export contribution (>63%). * **Diversification:** Broad portfolio across Lead, Copper, Aluminium, Plastics, and strategic forward integration into copper value-added products. * **Strong Growth:** High historical revenue and EBITDA CAGRs. * **Gravita India Limited (GRAVITA):** * **Diversified Portfolio:** 4 Recycling Verticals (Lead, Aluminium, Plastic, Rubber) and 12 plants. * **Net Debt-Free:** Strong financial position supporting aggressive expansion. * **Global Presence:** Commercial presence across 70+ countries, 1900+ touch points. * **ILA Accreditation:** India's only Accredited Plants by International Lead Association. * **Value-Added Focus:** High contribution from customized and value-added products (47% of revenue). * **Pondy Oxides and Chemicals Limited (POCL):** * **LME Branding:** India's First 3N7 LME Registered Lead Brand. * **Zero Net Debt & Cash Rich:** Strong balance sheet to fund expansion. * **Global Footprint:** 61% exports in H1 FY26, 20+ export destinations, 200+ partners. * **Value-Added Focus:** ~70% value-added products in Lead segment. * **Strategic Expansion:** Aggressive capacity expansion in Lead and Copper, with plans for Lithium-ion battery recycling. * **Baheti Recycling Industries Limited (BAHETI):** * **Automotive Focus:** IATF 16949 certification enables direct supply to Tier-1 automotive manufacturers. * **Specialized in Aluminium:** Primarily focused on aluminium recycling, with diversification into wire rods, billets, and zinc alloys. * **Operational Efficiency:** Modernizing melting operations with TRF-Skelner units, targeting 8-9x asset turnover. * **ESG Integration:** Implementing solar PV plant, adhering to EPR, and leveraging low-carbon aluminium production.

D. OPERATIONAL CHARACTERISTICS

Operational efficiency, capacity management, and technological advancements are critical for competitiveness in the non-ferrous metals sector.

**Capacity and Utilization Trends Across Companies:** All companies are in an aggressive expansion phase, indicating strong demand and confidence in future growth. * **Hindustan Zinc Limited (HZL):** * Current refined metal capacity: ~1.128 million tons. * Existing mined metal capacity: 1,180 Kt. * **Expansion Targets:** * New roaster at Debari: 160,000 tons per annum (commissioned Q2 FY26). * Debottlenecking of Dariba Cell House: from 200 kiloamps to 210 kiloamps. * Debottlenecking of Chanderiya Lead Zinc Smelter: on schedule for Q3 FY26. * New 250 KTPA integrated metal capacity expansion (expected 2QFY29). * India's first 10 million ton per annum zinc tailing reprocessing plant (expected 4QFY28). * Post expansion refined metal capacity: 1,379 Kt. * Post expansion mined metal capacity: 1,510 Kt. * **Production (Q2 FY26):** Mined metal 258 Kt (up 1% YoY), Refined metal 246 Kt, Saleable silver 144 MT. * **Production (H1 FY26):** Mined metal 523 Kt (up 1% YoY), Refined metal 496 Kt (down 5% YoY), Saleable silver 293 MT (down 16% YoY). * **Jain Resource Recycling Limited (JAINREC):** * Current capacity utilization: **>100%**. Management states they always keep some grace capacity and are expanding 30-40% capacities every year. * Lead capacity utilization: upwards of 80% (from DRHP), now running 100%. * **Expansion Targets:** * Copper cathode plant capacity: 9,000 MTPA (expected Q1 FY27). * Lead capacity expansion: additional 20%. * Ahmedabad JV copper scrap recycling plant. * **Gravita India Limited (GRAVITA):** * Current installed capacity: 3.40 lakh metric tons per annum. * Aim to more than double to **>7 lakh metric ton per annum by FY '28**. * **Capacity (MTPA):** FY24: 3,02,859; FY25: 3,33,659; FY26E: 4,66,159; FY27E: 5,89,159; FY28E: 7,03,659. * **Capacity Utilization (%):** FY24: 67.70%; FY25: 92.10%; FY26E: 88.80%; FY27E: 62.90%; FY28E: 63.80%. (Note: FY27/28 utilization drops due to significant new capacity coming online, which will then ramp up). * **Expansion Projects:** Mundra lead Phase 1 (30k MTPA) Nov 2025, Phase 2 (50k MTPA) Jan 2026. Phagi lead (45k MTPA) Dec 2026. Mundra rubber Q4 FY26. Pilot lithium unit Q3 FY26. * **Pondy Oxides and Chemicals Limited (POCL):** * Total Lead capacity: 168,000 MTPA (existing 48 KTPA + 84 KTPA + TKD Phase 1 36 KTPA). * TKD Lead Division, Phase 1 (36 KTPA) commissioned Q1 FY26, operated at 50% utilization in Q2 FY26, targeting 70% in coming quarters. * TKD Lead Division, Phase 2 (36 KTPA) slated for commissioning H2 FY26. * Combined utilization of new lead plant: ~60% by year-end FY26, targeting 80% for FY27. * Copper capacity: currently ~6,000 tons, increasing to 12,000 tons on recycling front, and another 12,000 tons of value-added products this year, targeting total 24,000 tons by end of FY27. * Plastics capacity: 9,000 MTPA. Aluminium capacity: 12,000 MTPA. * **Production (H1 FY26):** Lead 50,475 MT (up 8% YoY). Copper significant increase (~2,200-2,500 MT). * **Baheti Recycling Industries Limited (BAHETI):** * Installed proposed capacity scaled to 38,000 MTPA. * **Capacity (MT):** FY21: 12,000; FY25: 29,160; FY27E: 38,000. * **Actual Production (MT):** FY25: 18,160. FY27E: 32,300. * **Total Capacity Utilization (%):** FY25: 63.80%; FY27E: 85%. * **Expansion:** One pair of new TRF+Skelner commissioned, second goes live by H2 FY26. New 12,500 MTPA wire rod facility.

**Production Economics and Cost Structures:** * **HZL (Primary Producer):** Focus on maintaining a low cost of production (CoP). * Zinc CoP excluding royalty: **USD 994 per ton** (5-year lowest for Q2 FY26, better by 7% YoY). * Zinc CoP without Royalty (INR/MT): **86,800** (down 3% YoY). * Zinc CoP with Royalty ($/MT): **1,389** (down 4% YoY). * Guidance for FY26: CoP excluding royalty around **$1,000 per ton** (revised down), expecting **$950 to $975 in Q4 exit**. * Cost drivers: softened input commodity prices, better metal grades, enhanced domestic coal and renewable energy consumption. * **Recyclers:** Cost structure is heavily influenced by raw material scrap prices, which are linked to LME prices, and operational efficiency. * **JAINREC:** EBITDA per ton for Lead INR 18,920, Copper INR 51,000 (Q2 FY26). * **GRAVITA:** EBITDA per ton for Lead INR 23,196, Aluminium INR 14,786, Plastics INR 10,122 (Q2 FY26). * **POCL:** EBITDA per tonne of lead INR 19,970 (Q2 FY26). * **BAHETI:** Focused on optimizing operational efficiencies and accelerating revenue generation to scale up cash flows. Advanced thermal technology reduces operational downtime and dependency on labor and better utilization of electricity. * **Energy Costs:** A significant component. Companies are investing in renewable energy to reduce costs and carbon footprint. * HZL: Wind power 132 million units (up 2% YoY) in Q2 FY26. Renewable energy proportion 19%. Targeting 70% renewable energy share by FY '28. * GRAVITA: 13.7% green energy (biofuels + RE) in total energy usage (FY24-25). 26.3% energy consumption from alternative fuels (AFR). 49% jump in RE power generation YoY (H1 FY26). Targeting 30% of energy needs through renewables by FY '27. * BAHETI: Implementing 1.65MW DC Solar PV Plant, reducing energy costs by 60% and delivering INR 1.3 Cr in annual savings. * POCL: Substitution of Fuel from Furnace Oil to LNG to reduce carbon footprint.

**Supply Chain Structure and Dependencies:** * **Global Sourcing:** All recycling companies rely on a global network for scrap procurement, making them susceptible to international supply chain disturbances (e.g., shipping line issues). * **Domestic Sourcing:** Increasing due to EPR frameworks and government initiatives to formalize waste collection. This reduces reliance on imports and strengthens local supply chains. * **Integrated Operations (HZL):** HZL's integrated mining-to-metal operations provide a stable and controlled supply chain for its primary products. * **Logistics:** Strategic plant locations (e.g., SIPCOT Industrial Estate near Chennai ports for JAINREC and POCL, Mundra for GRAVITA and BAHETI) offer connectivity and reduce freight costs, especially for exports. HZL is deploying EV and LNG trucks for logistics.

**Technology Landscape and Innovation Pace:** * **Modernization:** Companies are replacing older, less efficient technologies (e.g., traditional Pit Furnaces with Tilting Rotary Furnaces at BAHETI, conventional liquid fuel pots with electric refining pots at GRAVITA). * **Value-Added Processing:** Investment in technologies for producing higher purity metals and specialized alloys (e.g., vacuum furnace for tin production at JAINREC, hot acid leaching for silver/lead recovery at HZL). * **Recycling New Waste Streams:** R&D into lithium-ion battery recycling (POCL with ACE Green Recycling, GRAVITA with pilot unit) and e-waste/solar panel recycling (JAINREC, GRAVITA) indicates a forward-looking approach to innovation. * **ESG Technologies:** Air & Water Pollution Mitigation systems (POCL), oxygen trials (GRAVITA), and advanced waste utilization technologies are being adopted.

**Operational Efficiency Benchmarks:** * **Asset Turnover:** BAHETI targets **8X Asset Turnover** for new machinery, indicating a focus on maximizing revenue from capital investments. * **Yield & Consistency:** Modern melting operations (TRF-Skelner at BAHETI) aim to boost efficiency, yield, and product consistency. * **Automation & Labor Dependency:** Advanced thermal technology reduces dependency on labor (BAHETI). * **Energy Intensity:** GRAVITA targets a **>10% reduction in energy intensity** by FY '27. POCL targets **+20% reduction in energy consumption** by 2030.

**Key Performance Indicators (Company-Specific and Industry Averages):** * **Mined Metal Production (HZL):** 258 Kt (Q2 FY26), 523 Kt (H1 FY26). * **Refined Metal Production (HZL):** 246 Kt (Q2 FY26), 496 Kt (H1 FY26). * **Saleable Silver Production (HZL):** 144 MT (Q2 FY26), 293 MT (H1 FY26). * **Zinc Cost of Production (HZL):** $994/ton (Q2 FY26, ex-royalty). * **EBITDA per ton (Recyclers):** Key metric for profitability in recycling. Ranges from INR 10,122 (Plastics, GRAVITA) to INR 51,000 (Copper, JAINREC). * **Capacity Utilization:** Generally high (>100% for JAINREC, ~63% for GRAVITA in Q2 FY26, ~60% for POCL's new lead plant by FY26 end). * **Domestic Coal Proportion (HZL):** 58% (Q2 FY26), 52% (H1 FY26). * **Renewable Energy Proportion (HZL):** 19% (Q2 FY26).

**Asset Efficiency Metrics:** * **ROCE/ROIC:** HZL's ROCE of ~65% is exceptional. GRAVITA's ROIC of 25% and JAINREC's ROCE of 24% are strong for the recycling sector. * **Capital Employed:** GRAVITA's FY25 Capital Employed was INR 2,375 Cr (68% India, 32% Overseas).

E. GROWTH DYNAMICS & DRIVERS

The non-ferrous metals sector is experiencing robust growth, propelled by a combination of macroeconomic factors, specific commodity trends, and a transformative shift towards sustainable practices.

**Historical Growth Trajectory (3-5 year view with specific rates):** * **JAINREC:** Revenue CAGR of +52% and EBITDA CAGR of +72% from FY22-FY25. PAT CAGR of +56%. * **GRAVITA:** Revenue CAGR (5 Yrs) of 23% and PAT CAGR (5 Yrs) of 57% from FY21-FY25. * **BAHETI:** Aluminium Alloy Ingots production grew from 4,931 MT in FY21 to 11,576 MT in FY25. Total production grew from 8,125 MT in FY21 to 18,160 MT in FY25.

These figures demonstrate a strong historical growth trajectory, particularly for the recycling companies, indicating a rapidly expanding market and successful execution of growth strategies.

**Current Growth Rates and Acceleration/Deceleration:** * **HZL:** Q2 FY26 revenue up 10% sequentially, PAT up 19% QoQ and 14% YoY. H1 FY26 EBITDA up 3% YoY, PAT up 5% YoY. Mined metal production up 1% YoY in Q2 and H1 FY26. * **JAINREC:** Q2 FY26 revenue up 52% YoY, EBITDA up 82% YoY, PAT up 88% YoY. H1 FY26 revenue up 27% YoY, EBITDA up 37% YoY, PAT up 38% YoY. This shows an acceleration in Q2 FY26. * **GRAVITA:** Q2 FY26 revenue up 12% YoY, EBITDA up 10% YoY, PAT up 33% YoY. H1 FY26 revenue up 13% YoY, EBITDA up 16% YoY, PAT up 36% YoY. Consistent double-digit growth. * **POCL:** Q2 FY26 revenue up 11% YoY, EBITDA up 84% YoY, PAT up 105% YoY. H1 FY26 revenue up 22% YoY, EBITDA up 83% YoY, PAT up 98% YoY. Significant acceleration in profitability. * **BAHETI:** H1 FY26 revenue up 22.53% YoY, EBITDA up 28.94% YoY, PAT up 32.01% YoY. Strong double-digit growth.

The recycling companies (JAINREC, GRAVITA, POCL, BAHETI) are generally exhibiting higher revenue and profit growth rates compared to HZL, reflecting the high-growth phase of the organized recycling sector.

**Volume vs Price Contribution to Growth:** * **HZL:** Q2 FY26 EBITDA bridge shows prices impact of +475 Cr QoQ and +373 Cr YoY, and Fx impact of +140 Cr QoQ and +284 Cr YoY. Volume impact was negligible QoQ (+2 Cr) and negative YoY (-343 Cr). This indicates that price and currency movements were significant drivers for HZL's EBITDA growth in Q2 FY26, offsetting negative volume impact YoY. * **Recyclers:** While not explicitly detailed in EBITDA bridges, the strong volume growth from capacity expansions and increasing demand for recycled content suggests that volume is a significant contributor to their revenue growth. Price realization for value-added products also plays a role in margin expansion.

**Organic vs Inorganic Growth Components:** * **Organic Growth:** All companies are pursuing significant organic growth through capacity expansions, modernization of existing facilities, and diversification into new product lines within their core verticals. * HZL: 250 KTPA integrated metal capacity expansion, 10 MTPA zinc tailing reprocessing plant. * JAINREC: Copper cathode/wire rod/busbar manufacturing, 20% lead capacity expansion. * GRAVITA: Doubling capacity to >7 lakh MTPA by FY '28 across Lead, Aluminium, Plastic, Rubber, Lithium-ion. * POCL: 108,000 MTPA lead capacity expansion, 24,000 tons copper capacity. * BAHETI: Scaling to 38,000 MTPA aluminium, new 12,500 MTPA wire rod facility. * **Inorganic Growth:** * JAINREC: Joint venture with Texas-based CNY Group for a copper scrap recycling plant in Ahmedabad. * GRAVITA: Acquired a tire recycling company in Romania, exploring further acquisitions in Eastern Europe.

**Geographic Expansion Opportunities and Progress:** * **India:** All companies are expanding their footprint within India, driven by strong domestic demand and government initiatives. GRAVITA is exploring a project in East India. BAHETI is expanding into South India. * **International:** * JAINREC: Strong export focus (63% H1 FY26), customer base in >20 countries. * GRAVITA: Commercial presence across 70+ countries, exploring projects in Dominican Republic and Eastern Europe. * POCL: 61% exports in H1 FY26, 20+ export destinations. Plans to set up a facility in Mundra (for better export connectivity). * BAHETI: Geographic expansion into South India and Europe (Hungary, Turkey, Germany, UK). EU's low-carbon markets create export opportunities for green aluminium.

**Product/Service Innovation Pipeline:** * **Value-Added Products (VAP):** A key focus for recyclers to improve margins and cater to specific customer needs. * JAINREC: Forward integration into copper cathode, copper wire rod, and copper busbar manufacturing. * GRAVITA: Customized and value-added products (47% of revenue). Exploring various options in rubber recycling (RCV, rubber sheets, carbon black). * POCL: New alloys in lead, flat and extruded copper products, then foils and coils. ABS compounding and other plastics compounding. * BAHETI: Aluminium Wire Rods, Aluminium Billets, Zinc Alloys. * **New Recycling Verticals:** * GRAVITA: Lithium-ion battery recycling (pilot unit Q3 FY26), paper, steel recycling (next year onwards). * JAINREC: International scrapyard acquisition, automotive tire recycling, e-waste processing, solar panel recycling. * POCL: Lithium-ion battery recycling (R&D and pilot scale, full-fledged entry ~2027). * **Minor Metals/Critical Minerals (HZL):** Enhancing capacities for minor metal recovery, expanding critical mineral portfolio (Potash, Tungsten, REEs).

**Adjacent Market Opportunities:** * **Fertilizers (HZL):** Commissioning a 510 Ktpa Fertilizer DAP/PAP plant by 1QFY27. * **Turnkey Recycling Technology Solutions (GRAVITA):** Executed 70+ projects globally, offering expertise to other players.

**Customer Acquisition and Penetration Trends:** * **Diversified Customer Base:** Companies aim to expand their customer networks to reduce concentration risk. * GRAVITA: 34+ countries, 340+ customers. * POCL: 20+ export destinations, 200+ partners. * BAHETI: 150+ worldwide customers, 25+ cities in India. IATF 16949 certification enables direct supply to Tier-1 automotive manufacturers. * **Repeat Customers:** JAINREC's 88% revenue from repeat customers indicates strong customer loyalty. * **Strategic Partnerships:** Companies partner with marquee clients like Amara Raja, Exide, Luminous, Tata Batteries, Trafigura, Vedanta (GRAVITA), Hyundai Sungwoo, Panasonic (POCL), ArcelorMittal, TATA STEEL, TOYOTA TSUSHO, Honda Trading (BAHETI).

F. RISK LANDSCAPE

The non-ferrous metals sector, while exhibiting strong growth, is subject to various risks, both systemic and company-specific.

**Industry-Wide Systematic Risks:** * **Global Growth Softness and Elevated Uncertainty:** Economic slowdowns in key global economies can dampen demand for metals, impacting prices and volumes. * **Volatile Commodity Cycles:** Prices of zinc, lead, silver, copper, and aluminium are inherently volatile, driven by global supply-demand dynamics, geopolitical events, and speculative trading. While hedging mitigates this, extreme volatility can still impact profitability. * **Mounting Trade Tensions:** Protectionist policies, tariffs, and trade disputes can disrupt global supply chains, increase costs, and restrict market access. * **Policy Tightening in Key Economies:** Higher interest rates and tighter monetary policies can reduce industrial activity and investment, affecting metal demand.

**Cyclicality and Economic Sensitivity:** * The demand for non-ferrous metals is highly correlated with industrial production, construction, and the automotive sector, making it sensitive to economic cycles. Strong domestic GDP growth (7.8% in Q1 FY26) currently provides a tailwind in India.

**Regulatory and Policy Risks by Geography:** * **EPR Implementation:** While a growth driver for organized recycling, the evolving nature of EPR frameworks, especially regarding pricing and credit mechanisms, can introduce uncertainty. POCL notes EPR is "still evolving, not at mature price level." * **Battery Waste Management Rule (BWMR):** A huge opportunity for the organized sector, but its effective implementation and enforcement are crucial. * **Recycled Content Mandates:** Government mandates for minimum recycled content (e.g., Copper: 5% from 2021, 20% by 2031; Aluminum: 5% from 2028, 10% by 2031) are supportive but require consistent policy enforcement. * **Import/Export Restrictions:** Potential bans or restrictions on scrap exports from major sourcing countries (e.g., proposal to ban export of UBC from US, though JAINREC not dependent on UBC) could impact raw material availability for recyclers. Investigation of copper imports by US (Feb 2025) is another example. * **GST Changes:** GST reduction on batteries led to a 5-8% drop in volumes for Gravita as trade reduced inventories. * **MCX Approvals:** Delay in MCX approval for aluminium hedging (GRAVITA) can expose companies to price risks.

**Technology Disruption Threats:** * **Battery Technology Evolution:** While lead-acid batteries are expected to remain relevant, the rapid advancements in lithium-ion and other battery technologies could shift demand dynamics in the long term. Companies are proactively exploring lithium-ion recycling to mitigate this. * **New Materials:** Development of alternative materials with superior properties or lower costs could pose a long-term threat.

**ESG and Sustainability Challenges:** * **Compliance Costs:** Adhering to increasingly stringent environmental regulations and achieving ambitious ESG targets (e.g., Net Zero by 2050 or sooner for HZL) requires significant investment and operational changes. * **Reputational Risk:** Failure to meet ESG commitments or incidents related to environmental or social impact can severely damage reputation and investor confidence. * **Fatality Risk:** Mining operations carry inherent safety risks. HZL maintains fatality-free operations, highlighting the importance of safety.

**Supply Chain Vulnerabilities:** * **Raw Material Scarcity:** While EPR aims to increase domestic scrap, specific raw materials (e.g., lithium for recycling) may face scarcity in the short to medium term. * **Logistics Disruptions:** Global supply chain disturbances (e.g., shipping line issues) can lead to delays and increased costs. * **Concentration in Sourcing:** Over-reliance on a few countries or suppliers for raw materials can create vulnerabilities.

**Competitive Threats:** * **Unorganized Sector:** For recyclers, the continued presence of the unorganized sector, though shrinking due to EPR, can still pose a challenge through lower-cost, less compliant operations. * **New Entrants:** While barriers exist, the attractive growth rates in recycling could draw new players, intensifying competition.

**Customer Concentration Risks:** * BAHETI mentions the need to reduce concentration risk by expanding its client base. Over-reliance on a few large customers can make a company vulnerable to their demand fluctuations or pricing pressures.

**Company-Specific Risks:** * **HZL:** Lower plant availability and lower silver input during H1 FY26, delay in commissioning of Roaster 6 impacted calcine availability in H1. * **JAINREC:** Sector volatility in gold refining led to discontinuation of JIGV operations due to low margins, high costs, working capital, and AML restrictions. * **GRAVITA:** Capacity constraint in H1 FY26 due to delayed commissioning. Low value-addition and ROCs for copper, making it less attractive for significant investment compared to other businesses. * **POCL:** While hedged, commodity price and FOREX volatility remain inherent risks.

G. CAPITAL ALLOCATION & INVESTOR RETURNS

Capital allocation strategies in the non-ferrous metals sector are heavily geared towards capacity expansion, modernization, and diversification, reflecting the growth opportunities and the need for operational efficiency and sustainability.

**Capex Trends and Requirements (Growth vs. Maintenance):** All companies are undertaking significant capital expenditure. * **Hindustan Zinc Limited (HZL):** * FY26 Guidance: Growth capex **$350 million to $400 million**. Maintenance capex around **$400 million**. * Major growth projects: INR 12,000 crore for 250 KTPA integrated metal capacity expansion, INR 3,800 crore for 10 MTPA zinc tailing reprocessing plant. * **Jain Resource Recycling Limited (JAINREC):** * Continuous expansion in existing business: **INR 20-30 crores per annum**. * Copper value-added products (Phase 1): **INR 95 crores** (INR 45 crores spent by Sep 2025). Phase 2: another **INR 50 crores**. * Ahmedabad JV: **INR 30 crores** from JRR side. * Other projects (tire, solar panel, e-waste recycling): another **INR 100 crores** over next 2-3 years. * **Gravita India Limited (GRAVITA):** * Capex budget realigned to **~INR 1,225 crores by FY '28** (from earlier INR 1,500 crores). * ~INR 850 crores for existing verticals, remaining for diversification (lithium ion, paper, steel). * H1 FY26 capex incurred: **~INR 105 crores**. Expected H2 FY26 capex: **~INR 100 crores**. * **Pondy Oxides and Chemicals Limited (POCL):** * H1 FY26 CAPEX: **~INR 14 crores**. Expected H2 FY26 CAPEX: additional **INR 35 crores**. * Lead capacity expansion (Phase 2): estimated CAPEX of **~INR 20 crores**. * Total CAPEX for copper (24,000 tons capacity): **INR 100-110 crores**. H2 FY26 copper capex: **~INR 35 crores**. FY27 copper capex: **~INR 55-60 crores**. * **Baheti Recycling Industries Limited (BAHETI):** * CAPEX for 1 pair of Tilting Rotary Furnace with Skelner: **INR 25 Cr**.

The significant capex across the board highlights the capital-intensive nature of the industry and the strong growth expectations. Recyclers are focusing on brownfield expansions and technology upgrades, which often have lower capex requirements per unit of capacity compared to greenfield primary production.

**R&D Investment Levels as % of Revenue:** Specific R&D investment percentages are not provided, but companies are actively investing in R&D for new technologies and recycling verticals. * **POCL:** Interest in ACE Green Recycling for lithium-ion batteries, deploying R&D on a pilot scale. * **GRAVITA:** Pilot lithium and battery recycling unit. * **HZL:** Focus on enhancing capacities for minor metal recovery and expanding critical mineral portfolio (Potash, Tungsten, REEs).

**Dividend Policies and Payout Ratios:** * **GRAVITA:** Has a history of sustainable dividend payouts for 14 years, indicating a commitment to shareholder returns alongside growth investments. * Dividend information for other companies is not explicitly provided in the extracts.

**Share Buyback Programs:** No information on share buyback programs is provided in the extracted data.

**M&A Activity and Strategy:** * **JAINREC:** Joint venture with CNY Group for copper scrap recycling. * **GRAVITA:** Acquired a tire recycling company in Romania, exploring further acquisitions in Eastern Europe. * **HZL:** Acquisition of Zinc International is "out of question," but demerger into zinc, lead, and silver company is "still believed to be the right process." This indicates a focus on internal restructuring rather than external acquisitions for now.

**Cash Generation and Free Cash Flow Profiles:** * **HZL:** Cash & Cash Equivalents of **INR 8,155 crores** (H1 FY26). Expects to be net debt or net cash flat by end of FY26. * **POCL:** Zero net debt and a net cash balance of **INR 71 crores** (Sep-25), with cash and bank balances increasing from INR 397 Mn (Mar-25) to INR 1,061 Mn (Sep-25). This strong cash position provides flexibility for funding growth. * **BAHETI:** Focused on scaling responsibly, maintaining margins, and steadily becoming a cash flow positive business.

**Capital Efficiency Improvements:** * **BAHETI:** Targets **8X Asset Turnover** for new machinery, emphasizing efficient capital deployment. * **GRAVITA:** Brownfield projects have significantly lower capex, improving capital efficiency. * **POCL:** Disciplined execution and operational efficiency, focus on value-added products, and process efficiencies contribute to profitability enhancement.

H. FUTURE OUTLOOK & PROJECTIONS

The future outlook for the non-ferrous metals sector, particularly in India, is overwhelmingly positive, driven by strong underlying demand, supportive regulatory frameworks for recycling, and strategic investments in capacity and value-added products.

**Industry Growth Projections (with timeframes):** * **India Aluminium Scrap Recycling Market:** Projected to reach **$11.2 billion by 2034** from $3.8 billion in 2024 (CAGR of 10.9%). * **Automotive Sector (Secondary Aluminium Demand):** Expected to increase to **40-45% by 2028** from 40% in 2024. * **EVs (Aluminium Demand):** Projected to reach nearly **10 million tonnes by 2030**. * **Domestic Steel Production:** Expected to grow to **300 Mtpa by 2030**, driving zinc demand. * **Recycled Content Mandates:** * **Copper:** Minimum 5% from 2021, 10% in 2029, 20% by 2031. * **Aluminum:** Minimum 5% from 2028, 10% in 2029, continuing to 2031. * **Recycled Aluminium Content (BAHETI):** 5% FY28-29E, 10% FY29-30E, 10% FY30-31E, 10% FY31-32E. * **Battery Waste Management Rule (BWMR):** Expected to shift 90% of material to the organized sector in 2-3 years (from 35% currently), creating a huge opportunity.

**Management Guidance Across Companies:** * **Hindustan Zinc Limited (HZL):** * **FY26 Guidance:** Mined metal: 1,125 (±10) Ktpa. Refined metal: 1,075 (±10) Ktpa (revised). Silver: 680 (±10) tons per annum (revised). Zinc CoP excluding royalty: around $1,000 per ton (revised down), expecting $950 to $975 in Q4 exit. Growth capex: $350-400 million. Maintenance capex: ~$400 million. Net debt or net cash flat by end of FY26. * **FY27 Outlook:** Refined metal production >1.1 million tons. Silver production: 700-750 tons. * **Long-term Outlook:** Zinc remaining in resilient trading band, Lead continuing to be underpinned by battery and industrial demand, Silver potentially sustaining further gains, driving incremental margin expansion. * **Jain Resource Recycling Limited (JAINREC):** * **FY26 & FY27 Outlook:** Revenue growth of 20%-25%. EBITDA margins sustainable, expected to go up due to value-added products. Copper EBITDA per ton expected to go up from next year. Copper cathode plant and wire rod plant to start from Feb '26. Ahmedabad JV plant production to go online next year. * **Long-term Outlook:** Recycling will keep growing. Margins sustainable and will go up due to expansion, diversification, value-added products. Copper segment will grow faster. * **Gravita India Limited (GRAVITA):** * **Vision 2029 Targets:** Volume CAGR: >25%. Profitability growth: >35%. ROIC: >25%. Non-lead segment share: >30% of total revenue. Energy needs from renewables: 30%. Energy intensity reduction: >10%. * **FY26 Outlook:** H2 volumes expected to cover H1 drop. Ample inventories for Q3. Procurement ongoing for Q4. * **FY27 Outlook:** Lead capacity: ~400,000 tons. Rubber business revenue: ~INR 70-80 crores. New capacity utilization: 60-70% from Q1/Q2 FY27. * **Long-term Outlook:** Confident of achieving 25% volume growth. Sustainable EBITDA per ton for Lead (INR 19-20/kg), Aluminium (INR 12-14/kg), Plastic (INR 10-11/kg), Rubber (INR 7-8/kg). * **Pondy Oxides and Chemicals Limited (POCL):** * **FY26 Outlook:** Q3 growth led by volumes and margins. Plastics production from new premises by December. ABS/other plastics compounding in Q4. Copper value-added products construction starting. Sustainable EBITDA margins: 8% and higher. Sustainable gross margins: 12-14%. Copper top line: ~INR 400 crores. Lead volumes for H2: ~70,000 tons. Quarter-on-quarter volume growth expected. * **FY27 Outlook:** Copper value-added products rollout in H1 FY27. Combined utilization of new lead plant: 80%. Copper volumes in H1 FY27: ~3,500-4,000 tons (recycling front). * **Target 2030 Vision:** Volume growth: >15%. Revenue CAGR: >20%. Profitability CAGR: >20%. EBITDA margins: >8%. ROCE: >20%. Revenue from value-added products: >60%. Energy consumption reduction: (+20%). * **Long-term Outlook:** Minimum 20% growth year-on-year. Copper could generate even more revenues than lead (7-8 years view). Other verticals (plastic, aluminum, lithium) could be equivalent to lead (7-8 years view). * **Baheti Recycling Industries Limited (BAHETI):** * **FY27E Outlook:** Capacity: 38,000 MTPA. Total Actual Production: 32,300 MT. Total Capacity Utilization: 85%. * **FY28 Outlook:** Revenue milestone of INR 1,200+ Cr. * **Long-term Outlook:** Scaling responsibly, maintaining margins, steadily becoming a cash flow positive business. Lead in sustainable aluminium recycling through innovation, operational excellence, and financial discipline.

**Emerging Opportunities and Whitespace:** * **Lithium-ion Battery Recycling:** A significant future opportunity, with companies like GRAVITA and POCL making early moves into R&D and pilot projects. Raw material scarcity is a current challenge but expected to ease as EV adoption grows. * **E-waste and Solar Panel Recycling:** Growing waste streams from the green energy transition present new recycling verticals. * **Critical Minerals Recovery:** HZL's focus on Potash, Tungsten, and REEs indicates a broader trend towards resource optimization. * **Formalization of Recycling:** The shift from unorganized to organized recycling, driven by EPR, creates a large whitespace for compliant, efficient players. * **Green Aluminium/Metals:** Increasing demand for low-carbon products, especially from markets like the EU, creates export opportunities.

**Transformation Themes and Inflection Points:** * **Circular Economy:** The overarching theme, with recycling becoming a compulsion rather than a choice, driven by environmental concerns and resource scarcity. * **ESG Integration:** Deep integration of ESG principles into business strategy, operations, and reporting is becoming a competitive imperative and a source of value creation. * **Technological Advancement:** Continuous investment in advanced recycling technologies, automation, and process optimization to improve efficiency, yield, and product quality. * **Regulatory Support:** Government mandates (EPR, recycled content) are acting as a powerful catalyst for industry transformation and growth.

**Long-term Structural Trends (5-10 year view):** * **Increased Recycled Content:** Mandates will drive a structural increase in the use of secondary metals across industries. * **Diversification into New Waste Streams:** Recycling will expand beyond traditional metals to include complex waste streams like e-waste, solar panels, and EV batteries. * **Value-Added Products:** A sustained shift towards producing higher-margin, customized value-added products from recycled materials. * **Globalized Recycling Supply Chains:** Continued global sourcing of scrap and international sales of recycled products, with a focus on regional hubs. * **Energy Transition Impact:** The shift to green energy will drive demand for specific metals (copper, silver, aluminium) and create new recycling opportunities (solar panels, EV batteries).

**Potential Disruptions on the Horizon:** * **Breakthroughs in Primary Production:** While unlikely to displace recycling entirely, significant cost reductions or technological advancements in primary production could alter market dynamics. * **Unforeseen Regulatory Changes:** Sudden shifts in environmental or trade policies could disrupt established business models. * **Raw Material Supply Shocks:** Geopolitical events or natural disasters could severely impact global scrap availability.

**Expected Margin Evolution:** * **HZL:** Expects incremental margin expansion driven by sustained firmness in zinc, lead, and silver prices, and continued cost discipline. * **Recyclers:** Generally expect margins to be sustainable and to go up due to: * Increased contribution from value-added products (e.g., JAINREC expects copper segment to add 3-4% to EBITDA margin). * Operational efficiencies from new technologies and capacity utilization. * Favorable regulatory environment (e.g., zero duty for lead and copper imports for JAINREC). * Shift from unorganized to organized sector, allowing for better pricing and compliance.

I. COMPANY-BY-COMPANY PROFILES

Hindustan Zinc Limited (HZL)

**Brief Description:** Hindustan Zinc Limited is a leading global integrated producer of zinc, lead, and silver. It is a subsidiary of Vedanta Limited. HZL operates as the world's largest integrated zinc producer and India's only integrated producer of Zinc and Lead, as well as the only integrated and listed Silver company.

**Scale Metrics:** * **Revenue (Q2 FY26):** INR 8,549 crores. * **Revenue (H1 FY26):** INR 16,320 crores. * **Mined Metal Capacity (Existing):** 1,180 Kt. * **Refined Metal Capacity (Existing):** ~1.128 million tons. * **Post-Expansion Refined Metal Capacity:** 1,379 Kt. * **Domestic Primary Zinc Market Share:** c.77%. * **Zinc Reserves & Resources:** World's 2nd Largest with 25+ years of mine life. * **Silver Production (H1 FY26):** 293 metric tons. Target 1,500 MTPA long-term.

**Financial Performance Summary:** * **Q2 FY26:** Highest-ever Q2 EBITDA (INR 4,467 crores, up 16% QoQ), PAT (INR 2,649 crores, up 19% QoQ, 14% YoY), Revenue (INR 8,549 crores, up 10% sequentially). EBITDA margin ~52%. EPS INR 6.3. * **H1 FY26:** EBITDA (INR 8,328 crores, up 3% Y-o-Y), PAT (INR 4,883 crores, up 5% over last year), Revenue (INR 16,320 crores, almost flat YoY). EBITDA margin c.51% (up c.150 bps YoY). * **Cost of Production (Zinc ex-royalty):** USD 994 per ton (Q2 FY26, 5-year lowest for Q2, better by 7% YoY). * **ROCE (trailing 12 months):** ~65%. * **Cash & Cash Equivalents (H1 FY26):** INR 8,155 crores.

**Strategic Priorities and Focus Areas:** * **Capacity Expansion:** Significant investments in integrated metal capacity expansion (250 KTPA), zinc tailing reprocessing (10 MTPA), and debottlenecking projects. * **Cost Leadership:** Maintaining its position as one of the lowest-cost zinc producers globally, targeting CoP below $1,000/MT. * **Sustainability & ESG:** Targeting 70% renewable energy share by FY '28, Net Zero by 2050 or sooner, significant reductions in emissions, waste, and water consumption. Ranked 1st in Metals & Mining sector in S&P Global CSA 2024. * **Value-Added Products & Diversification:** Enhancing VAP share to 50%, scaling capacities for minor metal recovery, expanding critical mineral portfolio (Potash, Tungsten, REEs), and commissioning a fertilizer plant. * **Shareholder Returns:** Superior total shareholder returns of 7% in Q2 compared to Nifty 100 of (3%).

**Competitive Advantages and Positioning:** * **Global Dominance:** World's largest integrated zinc producer, 2nd largest zinc reserves. * **Cost Efficiency:** Among the lowest cost zinc producers globally. * **Integrated Operations:** Full value chain from mining to refined metal, including by-product silver (40% of profit). * **ESG Leadership:** Recognized as a global leader in sustainability. * **Strong Financials:** AAA credit rating, high ROCE, healthy cash position.

**Key Metrics and KPIs:** * Zinc CoP (ex-royalty): $994/ton (Q2 FY26). * EBITDA Margin: ~52% (Q2 FY26). * Silver Production: 144 MT (Q2 FY26). * Renewable Energy Proportion: 19% (Q2 FY26).

**Management Outlook and Guidance:** * **FY26:** Mined metal 1,125 (±10) Ktpa, Refined metal 1,075 (±10) Ktpa, Silver 680 (±10) tons. Zinc CoP ~$1,000/ton, expecting $950-975 in Q4 exit. Growth capex $350-400M, maintenance capex ~$400M. Net debt/cash flat by year-end. * **FY27:** Refined metal >1.1 million tons, Silver 700-750 tons. * **Long-term:** Positive outlook for zinc, lead, and silver prices, driving margin expansion.

**Recent Developments and Initiatives:** * Commissioned 160,000 TPA roaster at Debari (Q2 FY26). * Completed debottlenecking of cell houses at Dariba Smelting Complex (Q2 FY26). * Signed MOUs for deploying 100 EV trucks and expanding LNG truck fleet. * Included in Nifty 100 and Nifty Next 50 indices w.e.f. 30th September 2025.

Jain Resource Recycling Limited (JAINREC)

**Brief Description:** Jain Resource Recycling Limited is an integrated non-ferrous recycling enterprise, part of the Jain Metal Group with a legacy spanning over seven decades. It specializes in recycling lead, copper, and aluminium scrap into ingots and value-added products.

**Scale Metrics:** * **Revenue (H1 FY26):** INR 3,663 crores. * **Revenue (FY25):** INR 7,126 crores. * **Copper Market Share (India):** 3.4%. * **Lead Market Share (India):** 8.6%. * **Aluminum Market Share (India):** 0.5%. * **Exports Contribution (H1 FY26):** 63%.

**Financial Performance Summary:** * **Q2 FY26:** Revenue INR 2,114 crores (up 52% YoY), EBITDA INR 160 crores (up 82% YoY), PAT INR 99 crores (up 88% YoY). EBITDA margin 7.6%, PAT margin 4.7%. * **H1 FY26:** Revenue INR 3,663 crores (up 27% YoY), EBITDA INR 250 crores (up 37% YoY), PAT INR 155 crores (up 38% YoY). EBITDA margin 6.8%, PAT margin 4.2%. * **Historical (FY22-FY25):** Revenue CAGR +52%, EBITDA CAGR +72%, PAT CAGR +56%. * **ROCE (FY25):** 24%. ROE (FY25): 41%. * **EBITDA per ton (Q2 FY26):** Lead INR 18,920, Copper INR 51,000.

**Strategic Priorities and Focus Areas:** * **IPO & Debt Reduction:** Successfully listed on NSE and BSE (Oct 2025), utilizing fresh issue proceeds for debt prepayment/repayment. * **Diversification & Forward Integration:** Expanding into copper cathode, wire rod, and busbar manufacturing (9,000 MTPA capacity by Q1 FY27). Diversified into plastic and aluminium recycling. * **Strategic Joint Ventures:** JV with CNY Group for a copper scrap recycling plant in Ahmedabad. * **New Recycling Verticals:** Exploring international scrapyard acquisition, automotive tire recycling, e-waste processing, solar panel recycling, and future lithium recycling. * **Sustainability & ESG:** Investing in advanced technologies, strict compliance, and leveraging India's mandated recycled content and EPR regime.

**Competitive Advantages and Positioning:** * **LME Brand Recognition:** Lead ingot listed as an LME brand (Jain 9998), enhancing credibility and market access. * **Global Sourcing & Customer Base:** Sourcing from >120 countries, serving >20 countries, with high export contribution. * **Strong Growth Trajectory:** Demonstrating high revenue and profit CAGRs. * **Integrated Recycling:** Comprehensive recycling capabilities across multiple non-ferrous metals.

**Key Metrics and KPIs:** * EBITDA Margin: 7.6% (Q2 FY26). * Revenue from repeat customers: 88% (H1 FY26). * Raw material sourcing: 61% imported, 39% local (H1 FY26).

**Management Outlook and Guidance:** * **FY26 & FY27:** Revenue growth of 20%-25%. Sustainable EBITDA margins, expected to go up due to value-added products (copper segment alone to add 3-4%). Copper cathode/wire rod plant to start Q1 FY27. * **Capex (next 3-4 years):** INR 20-30 crores per annum for existing business, INR 95 crores for copper VAP Phase 1 (another INR 50 crores for Phase 2), INR 30 crores for Ahmedabad JV, INR 100 crores for other new projects. * **Long-term:** Recycling will keep growing, margins will sustain and improve, copper segment to grow faster.

**Recent Developments and Initiatives:** * Successfully listed on NSE and BSE on October 1, 2025. * Commenced manufacturing of copper cathode, wire rod, and busbar through subsidiary JGTPL. * Formed JV with Texas-based CNY Group for a copper scrap recycling plant.

Gravita India Limited (GRAVITA)

**Brief Description:** Gravita India Limited is a leading global recycling company with a net debt-free balance sheet, specializing in recycling Lead, Aluminium, Plastic, and Rubber. It operates 13 state-of-the-art facilities and has a commercial presence across 70-plus countries.

**Scale Metrics:** * **Revenue (H1 FY26):** INR 2,075.44 crores. * **Revenue (FY25):** INR 3,869 crores. * **Installed Capacity (Current):** 3.40 lakh metric tons per annum. * **Target Capacity (FY28):** >7 lakh metric tons per annum. * **Orderbook:** 60000 MT+. * **Overseas Operations Contribution (Q2 FY26):** ~30% to top line, INR 10 crores to bottom line.

**Financial Performance Summary:** * **Q2 FY26:** Revenue INR 1,035.50 crores (up 12% YoY), Adjusted EBITDA INR 111.81 crores (up 10% YoY), PAT INR 95.9 crores (up 33% YoY). EBITDA margin 10.80%, PAT margin 9.27%. * **H1 FY26:** Revenue INR 2,075.44 crores (up 13% YoY), Adjusted EBITDA INR 223.51 crores (up 16% YoY), PAT INR 189.25 crores (up 36% YoY). EBITDA margin 10.77%, PAT margin 9.12%. * **Historical (FY21-FY25):** Revenue CAGR 23%, PAT CAGR 57%. Consistent EBITDA margins 9-10%. * **ROIC (FY25):** 25%. * **EBITDA per ton (Q2 FY26):** Lead INR 23,196, Aluminium INR 14,786, Plastics INR 10,122.

**Strategic Priorities and Focus Areas:** * **Aggressive Capacity Expansion:** Aiming to more than double capacity to >7 lakh MTPA by FY '28, with significant investments in lead, rubber, and new verticals. * **Diversification:** Expanding into new recycling domains like lithium-ion batteries (pilot unit Q3 FY26), paper, and steel (next year onwards). * **Value-Added Products:** Increasing contribution of customized and value-added products (47% of revenue, target 50%). * **ESG Leadership:** Comprehensive ESG roadmap to FY '50, targeting 30% renewable energy by FY '27, 10% energy intensity reduction, and water neutrality. India's only ILA Accredited Plants. * **Global Footprint:** Deep presence across continents for raw material sourcing and product sales, exploring acquisitions in Eastern Europe.

**Competitive Advantages and Positioning:** * **Net Debt-Free:** Strong financial position to fund ambitious growth plans. * **Diversified Portfolio:** Across 4 recycling verticals, reducing reliance on a single commodity. * **Global Reach & Sourcing:** Extensive international presence and sourcing network. * **Strong Management & ESG Focus:** Robust management, high employee association, and a comprehensive ESG roadmap. * **Arbitrage Strategy:** Leveraging global sourcing and domestic sales for better margins.

**Key Metrics and KPIs:** * EBITDA Margin: 10.80% (Q2 FY26). * Value-added products contribution: 47% of revenue (H1 FY26). * Capacity Utilization: 63% (Q2 FY26). * RE Power Usage: 13.7% (FY24-25).

**Management Outlook and Guidance:** * **Vision 2029:** Volume CAGR >25%, Profitability growth >35%, ROIC >25%. * **FY26:** H2 volumes expected to cover H1 drop. * **FY27:** Lead capacity ~400,000 tons. Rubber business revenue ~INR 70-80 crores. New capacity utilization 60-70%. * **Long-term:** Confident of achieving 25% volume growth, sustainable EBITDA per ton across segments.

**Recent Developments and Initiatives:** * Phase 1 of Mundra lead capacity expansion (30,000 MTPA) scheduled for Nov 2025. * Pilot lithium and battery recycling unit at Mundra scheduled for Q3 FY '26. * Acquired a tire recycling company in Romania. * Commissioned 250 KWp Senegal solar plant.

Pondy Oxides and Chemicals Limited (POCL)

**Brief Description:** Pondy Oxides and Chemicals Limited is a leading Indian non-ferrous metal recycling company, primarily focused on lead, copper, and plastics. It is India's first 3N7 LME Registered Lead Brand and has a strong global footprint.

**Scale Metrics:** * **Revenue (H1 FY26):** INR 1,231 crores. * **Revenue (Q2 FY26):** INR 635 crores. * **Total Lead Capacity:** 168,000 MTPA. * **Copper Capacity (Target FY27):** 24,000 tons. * **Exports Contribution (H1 FY26):** 61%.

**Financial Performance Summary:** * **Q2 FY26:** Highest ever quarterly revenue, EBITDA, PAT and margins. Revenue INR 635 crores (up 11% YoY), EBITDA INR 55 crores (up 84% YoY), PAT INR 36 crores (up 105% YoY). EBITDA margin >8%, PAT margin >5%. * **H1 FY26:** Highest ever half yearly revenue, EBITDA, PAT and margins. Revenue INR 1,231 crores (up 22% YoY), EBITDA INR 98 crores (up 83% YoY), PAT INR 63 crores (up 98% YoY). EBITDA margin >8%, PAT margin >5%. * **EBITDA per tonne of lead (Q2 FY26):** INR 19,970 (up 62% YoY). * **Gross margins (Q2 FY26):** 14.5%. * **Net Cash Balance (Sep-25):** INR 71 crores (Zero net debt).

**Strategic Priorities and Focus Areas:** * **Capacity Expansion:** Aggressive expansion in lead capacity (108,000 MTPA at TKD), copper capacity (to 24,000 tons by FY27), and modernization of older lead capacities. * **Value-Added Products:** Focus on increasing value-added products in Lead (~70% currently) and copper (flat and extruded products, foils, coils). ABS and other plastics compounding. * **New Verticals & R&D:** Exploring lithium-ion battery recycling (with ACE Green Recycling) with a full-fledged entry targeted around 2027. * **Sustainability & ESG:** Target 2030 vision for energy consumption reduction (+20%), fuel substitution to LNG, and robust pollution mitigation. * **Global Market Penetration:** Leveraging LME brand and strong procurement/sales network across 70+ countries.

**Competitive Advantages and Positioning:** * **LME Brand Recognition:** India's First 3N7 LME Registered Lead Brand. * **Strong Financial Health:** Zero net debt and healthy net cash position. * **Global Footprint:** Significant export contribution and diversified international sourcing. * **Value-Added Focus:** High proportion of value-added products in its lead segment. * **Experienced Leadership:** Disciplined execution and operational efficiency.

**Key Metrics and KPIs:** * EBITDA Margin: >8% (Q2 FY26). * Lead Production: 50,475 MT (H1 FY26). * Exports Contribution: 61% (H1 FY26). * Value-added products in Lead: ~70%.

**Management Outlook and Guidance:** * **FY26:** Sustainable EBITDA margins >8% and gross margins 12-14%. Copper top line ~INR 400 crores. H2 lead volumes ~70,000 tons. * **FY27:** Copper value-added products rollout in H1 FY27. New lead plant utilization 80%. * **Target 2030 Vision:** Volume growth >15%, Revenue CAGR >20%, Profitability CAGR >20%, EBITDA margins >8%, ROCE >20%, VAP revenue >60%. * **Long-term:** Minimum 20% growth year-on-year. Copper could generate more revenues than lead in 7-8 years.

**Recent Developments and Initiatives:** * Phase-1 of TKD lead capacity expansion (36,000 MTPA) began commercial production in Q1 FY26. * Plastics unit shifting to own premises at TKD by Q3 FY26. * Construction of copper value-added products plant underway.

Baheti Recycling Industries Limited (BAHETI)

**Brief Description:** Baheti Recycling Industries Limited is an aluminium recycling company primarily engaged in processing aluminium-based metal scrap to manufacture aluminium alloys (Ingots) and aluminium de-ox alloys. It serves end-user applications in the automotive, electrical, die-casting, and steel sectors.

**Scale Metrics:** * **Revenue (H1 FY26):** INR 315.14 crores. * **Revenue (FY25):** INR 534.31 crores. * **Installed Capacity (FY27E):** 38,000 MTPA. * **Total Actual Production (FY25):** 18,160 MT. * **Total Actual Production (FY27E):** 32,300 MT. * **Customers:** 150+ worldwide.

**Financial Performance Summary:** * **H1 FY26:** Revenue INR 315.14 Cr (up 22.53% YoY), EBITDA INR 21.23 Cr (up 28.94% YoY), PAT INR 9.26 Cr (up 32.01% YoY). EBITDA% 6.74%, PAT margin% 2.94%. * **FY25:** Revenue INR 534.31 Cr, EBITDA INR 40.63 Cr, PAT INR 18.00 Cr. EBITDA% 7.75%, PAT margin% 3.43%. * **Capital Efficiency:** Targets 8X Asset Turnover for new machinery. Annual Revenue target from 1 pair of TRF+Skelner: INR 200 Cr.

**Strategic Priorities and Focus Areas:** * **Capacity Expansion & Modernization:** Scaling capacity to 38,000 MTPA by FY27E, installing modern Tilting Rotary Furnaces (TRF) with Skelner units to replace traditional furnaces. New 12,500 MTPA wire rod facility. * **Product Diversification:** Strategic entry into Aluminium Wire Rods, Aluminium Billets, and Zinc Alloys to achieve sustainable margins. * **Geographic Expansion:** Expanding into South India and Europe (Hungary, Turkey, Germany, UK), targeting major automotive clients. * **Operational Efficiency:** Optimizing operations, boosting efficiency, yield, and product consistency through advanced thermal technology. * **Sustainability & ESG:** Implementing a 1.65MW DC Solar PV Plant, adhering to EPR, and leveraging the low-carbon benefits of aluminium recycling.

**Competitive Advantages and Positioning:** * **Automotive Sector Focus:** IATF 16949 certification enables direct supply to Tier-1 automotive manufacturers. * **Specialized in Aluminium:** Deep expertise in aluminium recycling and alloys. * **Operational Excellence:** Modern melting operations and focus on asset turnover. * **ESG Credentials:** Significant investment in renewable energy and adherence to sustainability norms. * **Long Industry Experience:** 70+ years of excellence and rich industry experience.

**Key Metrics and KPIs:** * EBITDA%: 6.74% (H1 FY26). * Total Capacity Utilization (FY25): 63.80%. * Volumes Sold (H1 FY26): 10,323 MT. * Energy cost reduction from solar: 60%.

**Management Outlook and Guidance:** * **H2 FY26:** Second TRF-Skelner unit goes live. Focus on reducing working capital and improving cash conversion cycles. * **FY27E:** Capacity 38,000 MTPA, Production 32,300 MT, Utilization 85%. * **FY28:** Revenue milestone of INR 1,200+ Cr. * **Long-term:** Scaling responsibly, maintaining margins, steadily becoming a cash flow positive business, leading in sustainable aluminium recycling.

**Recent Developments and Initiatives:** * IATF 16949 License Granted in June 2025. * One pair of new TRF+Skelner commissioned, second goes live by H2 FY26. * Implementing 1.65MW DC Solar PV Plant.

J. TABLES

**Hindustan Zinc Limited (HZL) - Key Financials & Operational Metrics**

| Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 | H1 FY26 | H1 FY25 | FY26 Guidance | FY27 Outlook | | :-------------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Revenue from operations (INR Cr) | 8,549 | 7,772 | 7,772 | 16,320 | 16,320 | | | | EBITDA (INR Cr) | 4,467 (up 16% QoQ) | 3,860 | 4,164 | 8,328 (up 3% YoY) | 8,085 | | | | EBITDA Margin | ~52% | ~49.6% | ~53.6% | c.51% (up c.150 bps YoY) | c.49.5% | | | | PAT (INR Cr) | 2,649 (up 19% QoQ, 14% YoY) | 2,226 | 2,324 | 4,883 (up 5% YoY) | 4,650 | | | | Zinc CoP ex-royalty ($/ton) | 994 (5-yr lowest Q2, better 7% YoY) | 1,010 | 1,068 | 1,002 (5-yr lowest H1, better 8% YoY) | 1,089 | ~1,000 (revised down) | | | Zinc CoP ex-royalty (INR/MT) | 86,800 (down 3% YoY) | | 89,484 | 86,639 (down 5% YoY) | 91,200 | | | | Zinc LME Price ($/MT) | 2,825 (up 2% YoY) | 2,650 | 2,769 | 2,736 (down 2% YoY) | 2,792 | | | | Lead LME Price ($/MT) | 1,966 (down 4% YoY) | 1,950 | 2,048 | 1,957 (down 7% YoY) | 2,104 | | | | Silver LBMA Price ($/oz) | 39.4 (up 34% YoY) | 33.8 | 29.4 | 36.6 (up 26% YoY) | 29.0 | | | | INR:USD | 87.31 (up 4% YoY) | 85.50 | 83.95 | 86.44 (up 3% YoY) | 84.0 | | | | EPS (INR) | 6.3 | 5.3 | 5.5 | | | | | | Mined Metal Production (Kt) | 258 (up 1% YoY) | 265 | 255 | 523 (up 1% YoY) | 518 | 1,125 (±10) Ktpa | | | Refined Metal Production (Kt) | 246 | 250 | 262 | 496 (down 5% YoY) | 522 | 1,075 (±10) Ktpa | >1.1 million tons | | Saleable Silver Production (MT) | 144 | 149 | 180 | 293 (down 16% YoY) | 349 | 680 (±10) tons | 700-750 tons | | Wind Power (million units) | 132 (up 2% YoY) | 134 | 129 | 266 (up 12% YoY) | 238 | | | | Renewable Energy Proportion | 19% | | | | | | | | Domestic Coal Proportion | 58% | | | 52% | | | | | ROCE (trailing 12 months) | ~65% | | | | | | | | Cash & Cash Equivalents (INR Cr) | | | | 8,155 | | | |

**HZL - EBITDA Bridge QoQ (2Q FY26 vs 1Q FY26)**

| Impact | Amount (Cr) | | :----------------- | :---------- | | 1Q FY26 EBITDA | 3,860 | | Prices impact | +475 | | Fx impact | +140 | | Adj. EBITDA | 4,475 | | Volume impact | +2 | | Cost impact | +1 | | Marketing & others | -11 | | **2Q FY26 EBITDA** | **4,467** |

**HZL - EBITDA Bridge YoY (2Q FY26 vs 2Q FY25)**

| Impact | Amount (Cr) | | :----------------- | :---------- | | 2Q FY25 EBITDA | 4,164 | | Prices impact | +373 | | Fx impact | +284 | | Adj. EBITDA | 4,821 | | Volume impact | -343 | | Cost impact | +74 | | Marketing & others | -85 | | **2Q FY26 EBITDA** | **4,467** |

**HZL - Commodity, Currency and COP Sensitivities (annual EBITDA impact)**

| Factor | $100/MT change | INR 1 change | $1/toz change | $25/MT change | | :----------------- | :------------- | :----------- | :------------ | :------------ | | Zinc | INR 660-690 Cr | | | | | Lead | INR 130-150 Cr | | | | | Silver | | | INR 170-190 Cr | | | INR/USD | | INR 190-210 Cr | | | | Zinc COP | | | | INR 210-230 Cr |

**HZL - Capacity Expansion Targets**

| Category | Existing (Kt) | Proposed Expansion (Kt) | Post Expansion (Kt) | | :------------------------ | :------------ | :---------------------- | :------------------ | | Refined Metal Capacity | 1,129 | 250 | 1,379 | | Mined Metal Capacity | 1,180 | 330 | 1,510 | | Zinc Tailing Reprocessing | | 10 Mtpa (feed capacity) | |

---

**Jain Resource Recycling Limited (JAINREC) - Key Financials & Operational Metrics**

| Metric | Q2 FY26 | H1 FY26 | FY25 | FY22-FY25 CAGR | | :-------------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Revenue from operations (INR Cr) | 2,114 (up 52% YoY) | 3,663 (up 27% YoY) | 7,126 | +52% | | EBITDA (INR Cr) | 160 (up 82% YoY) | 250 (up 37% YoY) | 369 | +72% | | EBITDA Margin | 7.6% | 6.8% | 7.75% | | | PAT (INR Cr) | 99 (up 88% YoY) | 155 (up 38% YoY) | 224 | +56% | | PAT Margin | 4.7% | 4.2% | 3.43% | | | ROCE | | | 24% | | | ROE | | | 41% | | | Revenue from repeat customers | | 88% | | | | Segmental Revenue Mix (H1 FY26) | | | | | | - Copper & copper alloy ingots | | 46% | | | | - Lead & lead alloy ingots | | 48% | | | | - Aluminum & aluminum alloys | | 4% | | | | - Other segments | | 2% | | | | Revenue Mix (Domestic vs Export) H1 FY26 | | Domestic 37%, Exports 63% | Domestic 40%, Export 60% | | | EBITDA per ton (INR) Q2 FY26 | | | | | | - Lead | 18,920 | | | | | - Copper | 51,000 | | | | | Working Capital Cycle | | ~52 days (from 38) | | | | Copper Market Share (India) | | | 3.4% | | | Lead Market Share (India) | | | 8.6% | | | Aluminum Market Share (India) | | | 0.5% | |

**JAINREC - Physical Performance (H1 FY26)**

| Segment | Revenue (Cr) | YoY Growth | EBITDA (Cr) | YoY Growth | EBITDA Per Tonne (Rs) | | :-------------------------- | :----------------- | :--------- | :----------------- | :--------- | :-------------------- | | Copper & Copper Ingots | 1,697.8 | 13.9% | 91.7 | 13.0% | 51,092.0 | | Lead & Lead Alloy Ingots | 1,740.1 | 46.8% | 153.3 | 45.2% | 18,920.8 | | Aluminum & Aluminum Alloys | 154.5 | 115.0% | 5.9 | -22.5% | 11,878.4 |

---

**Gravita India Limited (GRAVITA) - Key Financials & Operational Metrics**

| Metric | Q2 FY26 | H1 FY26 | FY25 | FY21-FY25 CAGR | | :-------------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Revenue (INR Cr) | 1,035.50 (up 12% YoY) | 2,075.44 (up 13% YoY) | 3,869 | 23% | | Adjusted EBITDA (INR Cr) | 111.81 (up 10% YoY) | 223.51 (up 16% YoY) | 369 | | | EBITDA Margin | 10.80% | 10.77% | 9-10% (consistent) | | | PAT (INR Cr) | 95.9 (up 33% YoY) | 189.25 (up 36% YoY) | 312 | 57% | | PAT Margin | 9.27% | 9.12% | | | | ROIC (FY25) | | | 25% | | | Value-added products contribution | | 47% of revenue | | | | EBITDA per ton (INR) Q2 FY26 | | | | | | - Lead | 23,196 | | | | | - Aluminium | 14,786 | | | | | - Plastics | 10,122 | | | | | Overseas Operations (Q2 FY26) | | | | | | - Bottom line contribution | 10 Cr | | | | | - Top line contribution | ~30% | | | | | Green Energy (biofuels + RE) FY24-25 | | | 13.7% | | | Alternative Fuels (AFR) FY24-25 | | | 26.3% | | | RE power generation YoY (H1 FY26) | | 49% jump | | | | Domestic battery scrap increase (Q2 YoY) | | ~35% | | | | Domestic battery scrap increase (H1) | | ~22% | | |

**GRAVITA - Capacity (MTPA)**

| Year | Capacity (MTPA) | | :---- | :-------------- | | FY24 | 3,02,859 | | FY25 | 3,33,659 | | FY26E | 4,66,159 | | FY27E | 5,89,159 | | FY28E | 7,03,659 |

**GRAVITA - Capacity Utilization (%)**

| Year | Utilization (%) | | :---- | :-------------- | | FY24 | 67.70% | | FY25 | 92.10% | | FY26E | 88.80% | | FY27E | 62.90% | | FY28E | 63.80% |

**GRAVITA - ESG Roadmap Targets**

| Category | FY27 Targets | FY34 Targets | FY50 Targets | | :---------------- | :----------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Energy Intensity | 10% reduction | 20% Reduction | | | RE Power Usage | 30% of total power usage | 50% RE power usage | | | GHG emissions (S3)| Scope 3 emissions reporting | Strategy and execution for scope 3 reduction | GHG Emissions (Scope 1+2) Net Zero emissions | | Water Intensity | 10% Reduction | 25% Reduction, Water Neutrality for India ops | Water Neutrality for Gravita Group by 2040 | | Waste Utilization | 10% Utilization | Partnership for waste utilization | Zero waste to Landfill for India (2040), Zero Waste to Landfill for Gravita group (2050) | | Safety | ISO 45001 Framework (100% implementation) | LTIFR 50% reduction | Best In class Health & Safety framework | | Quality | Customer Rejection 10% reduction | Zero customer rejection | | | Gender Diversity | | % Women employees 100% improvement | |

---

**Pondy Oxides and Chemicals Limited (POCL) - Key Financials & Operational Metrics**

| Metric | Q2 FY26 (Standalone) | H1 FY26 (Standalone) | H1 FY25 (Standalone) | Target 2030 Vision | | :-------------------------------------- | :------------------- | :------------------- | :------------------- | :----------------- | | Revenue from operations (INR Cr) | 635 (up 6% QoQ, 11% YoY) | 1,231 (up 22% YoY) | 1,009 | Revenue CAGR >20% | | EBITDA (INR Cr) | 55 (up 84% YoY) | 98 (up 83% YoY) | 53 | EBITDA margins >8% | | EBITDA Margin | >8% | >8% | 5.25% | | | PAT (INR Cr) | 36 (up 105% YoY) | 63 (up 98% YoY) | 32 | Profitability CAGR >20% | | PAT Margin | >5% | >5% (from 3%) | 3.17% | | | EBITDA per tonne of lead (INR) | 19,970 (up 62% YoY) | 18,510 (up 48% YoY) | 12,500 | | | Gross margins | 14.5% | | | 12-14% (sustainable) | | EPS - Diluted (Rs.) | 11.66 (up 22% QoQ, 80% YoY) | 20.69 (up 73% YoY) | 11.97 | | | Finance Cost (INR Mn) | 13 (down 55% QoQ, 66% YoY) | 43 (down 30% YoY) | 61 | | | Other Expenses (INR Mn) | 292 (up 37% QoQ, 46% YoY) | 505 (up 35% YoY) | 374 | | | Value-added products in Lead segment | | ~70% | | >60% | | Exports contribution | | 61% of total revenue | | | | Net Cash Balance (INR Cr) | 71 | | | | | Lead Production (MT) | 26,308 (up 9% QoQ) | 50,475 (up 8% YoY) | 46,736 | Volume growth >15% | | Copper Volumes (H1 FY26) | | ~2,200-2,500 MT | | | | Lead Volumes (H2 FY26 Outlook) | | ~70,000 tons | | | | ROCE | | | | >20% | | Energy consumption reduction | | | | (+20%) |

**POCL - Capacity (MTPA)**

| Division/Plant | Capacity (KTPA) | Status/Notes | | :----------------------- | :-------------- | :------------------------------------------ | | Smelter Division I (TN) | 48 | Existing Lead | | Smelter Division II (AP) | 84 | Existing Lead | | Copper Division (AP) | 6 | Existing Copper | | Aluminum Division (TN) | 12 | Existing Aluminum | | Plastics Division (TN) | 9 | Existing Plastics | | TKD Lead Division, Phase 1 | 36 | Commissioned April'25, 50% util Q2 FY26 | | TKD Lead Division, Phase 2 | 36 | Work in Progress, slated H2 FY26 | | **Total Lead Capacity** | **168** | | | **Total Copper Capacity**| **24** | Target by end of FY27 (12k recycling + 12k VAP) |

**POCL - Procurement Mix (H1 FY26)**

| Segment | Imports | Domestic | | :-------- | :-------- | :-------- | | Lead | ~86% | ~14% | | Plastics | ~54% | ~47% | | Copper | 100% | 0% |

---

**Baheti Recycling Industries Limited (BAHETI) - Key Financials & Operational Metrics**

| Metric | H1 FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY27E | | :-------------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Revenue from Operations (INR Cr) | 315.14 (up 22.53% YoY) | 534.31 | | | | | | | EBITDA (INR Cr) | 21.23 (up 28.94% YoY) | 40.63 | | | | | | | EBITDA% | 6.74% | 7.75% | | | | | | | PAT from operations (INR Cr) | 9.26 (up 32.01% YoY) | 18.00 | | | | | | | PAT margin% | 2.94% | 3.43% | | | | | | | Diluted EPS (in Rs) | 8.94 (up 32.05% YoY) | 17.37 | | | | | | | Borrowings (INR Cr) | | 158 | 102 | | | | | | CAPEX for 1 pair of TRF+Skelner (INR Cr) | | 25 | | | | | | | Annual Revenue target from 1 pair TRF+Skelner | | 200 Cr | | | | | | | Volumes Sold (H1 FY26) | 10,323 MT | | | | | | | | Solar PV Plant (MW DC) | 1.65 | | | | | | | | Energy cost reduction from Solar | 60% | | | | | | | | Annual savings from Solar | INR 1.3 Cr | | | | | | |

**BAHETI - Capacity (MT)**

| Year | Capacity (MT) | | :---- | :------------ | | FY21 | 12,000 | | FY22 | 12,000 | | FY23 | 16,800 | | FY24 | 29,160 | | FY25 | 29,160 | | FY27E | 38,000 |

**BAHETI - Actual Production (MT)**

| Year | Aluminium Alloy Ingots (MT) | Aluminium Deox (MT) | Total Actual Production (MT) | | :---- | :-------------------------- | :------------------ | :--------------------------- | | FY21 | 4,931 | 3,194 | 8,125 | | FY22 | 5,925 | 5,128 | 11,053 | | FY23 | 8,472 | 6,454 | 14,926 | | FY24 | 10,494 | 7,849 | 18,343 | | FY25 | 11,576 | 7,034 | 18,160 | | FY27E | | | 32,300 |

**BAHETI - Total Capacity Utilization (%)**

| Year | Utilization (%) | | :---- | :-------------- | | FY21 | 67.70% | | FY22 | 92.10% | | FY23 | 88.80% | | FY24 | 62.90% | | FY25 | 63.80% | | FY27E | 85% |