Jain Resource Recycling shares crash 19% as Q4 margin fails to impress investors; here's what impacted the margin

Shares of Jain Resource Recycling crashed 19% to its intraday low of ₹376.65 apiece on Tuesday, May 19, despite the firm’s margin contracted in the fourth quarter of the financial year 2025-26 (Q4 FY26).

The Chennai-headquartered firm had reported a 26% year-on-year (YoY) increase in its consolidated net profit to ₹66 crore in Q4 FY26 as against ₹52.5 crore seen in the corresponding period a year ago.

Jain Resource Recycling’s revenue from operations surged 76% YoY to ₹3,105 crore during the quarter under review, compared to ₹1,760 crore in the March quarter of FY25.

At an operational level, the company's earnings before interest, tax, depreciation, and amortisation (EBITDA), also known as operating profit, stood at ₹109 crore, up 17% YoY from ₹94 crore in the year-ago period.

Its EBITDA margin, however, contracted to 3.52% in Q4 FY26, as against 5.33% in Q4 FY25.

What impacted the margin

Jain Resource Recycling said that geopolitical tensions between Iran and Israel led to significant disruptions in its import supply chain during the reporting quarter, particularly in March 2026. The company noted that this resulted in vessel rerouting and sharply higher port discharge liner charges imposed by shipping lines, which could not be passed on to suppliers or immediately recovered from customers.

It further highlighted that the conflict triggered a steep rise in global oil and gas prices, increasing fuel procurement costs from domestic vendors and raising the per-metric tonne production cost. The company added that these combined, exceptional and one-time cost pressures materially impacted its Q4 EBITDA per MT and led to margin compression.

Jain Resource Recycling in its investors’ presentation said that during Q4, its sales realisation as a percentage of LME declined by around 1.25% to 1.50%, reflecting a broader global trend. The company noted that sharp surges in LME copper prices led to resistance from buyers worldwide on higher absolute price levels, resulting in pressure on formula-based pricing and compressing realisations across the value chain.

The company further added that the current pressure on realisations is a temporary and self-correcting market dynamic. It said that as LME prices stabilise and sustain at elevated levels, both purchase and sale formula percentages tend to recalibrate naturally to the new pricing environment.

“This reset is already evidencing itself in our Q1 FY27 negotiations, and we are confident this compression will not carry forward,” Jain Resource said.

Here’s what management said

Commenting on the earnings, Chairman and Managing Director Kamlesh Jain, said, “We are pleased to share that in FY26, we crossed the ₹9,000 crore revenue milestone for the first time in the company’s history, achieving our highest-ever annual performance. As our strategic focus on the copper segment continues to strengthen, copper and copper alloy products contributed ~55% of total revenue during the quarter, compared to ~52% in the previous quarter and ~45% a year ago, reflecting the company’s continued emphasis on expanding its copper business in line with its stated guidance.”

Jain further said that the company continues to make steady progress across its expansion pipeline, with overall project implementation largely in line with the guidance shared earlier. During the quarter, the first furnace under the Copper Anode Expansion project was successfully commissioned, adding a capacity of 800 MT per month.

He added that the second furnace, with an additional capacity of 800 MT per month, is at an advanced stage of installation and is expected to be commissioned in the June quarter, in line with earlier guidance.

Jain Resource Recycling share price

At 1:55 PM, Jain Resource Recycling shares were trading at ₹392.30 apiece on the National Stock Exchange, declining 15.35%.

Over a month’s time, the smallcap stock has fallen 7%, while it has tumbled 12% in the last six months. From the beginning of the year, Jain Resource Recycling shares have lost 4%.

The company has a market capitalisation of ₹13,542.89 crore.

Shares of the company had touched their one-year high of ₹593.95 apiece on May 8, 2026, while their 52-week low of ₹247.57 was hit on October 1, 2025.