Jain Resource Recycling Ltd Management Discussions

Global Economic Overview

The global economy is expected to remain on a relatively slower growth trajectory in CY 2026 than in CY2025 and below its long-term average through CY2027, indicating restrained expansion ratherthan a sharp recovery. Advanced economies are expected to record modest growth due to trade frictions, tariff uncertainty, geopolitical tensions, elevated energy costs and cautious sentiment. Shifting protectionist policies and higher borrowing costs could also affect trade flows, investment, housing demand and corporate expansion.

Emerging markets and developing economies have been facing pressure from commodity volatility, regional conflicts, weaker external demand and currency instability, with import-dependent economies exposed to inflationary shocks. Shipping constraints and trade restrictions have affected input availability, freight costs and delivery timelines. However, easing supply pressures, trade route realignment and improving policy stability should support gradual recovery. Structural drivers, including technology, Al, adaptive supply chains, infrastructure spending, services trade, clean energy, skills and innovation, remain important for sustainable long-term growth.

In accordance with the global developments, the global headline inflation is projected to rise to 4.4% in CY 2026 from 4.1% in CY 2025, before easing to 3.7% in CY 2027. The near-term increase is mainly linked to supply-side shocks, including higher energy and food prices caused by ongoing geopolitical conflicts. Overall, the inflationary trends remain uneven across countries due to services inflation, wage pressures, exchange rate volatility, fiscal policies and country-specific supply constraints. The macroeconomic environment is expected to remain fragile but gradually stabilising.

(Source: IMFs World Economic Outlook (April 2026))

Outlook

The global outlook has become more uncertain amid Middle East geopolitical tensions since early CY 2026, disrupting energy supply chains and shipping routes, while increasing commodity price and trade-flow volatility. Higher energy and food prices have renewed inflationary pressures and softened growth expectations. However, investments in technology and Al, resilient services activity and diversified supply chains are expected to support global activity, although medium-term growth is likely to remain moderate.

(Source: IMFs World Economic Outlook (April 2026))

Indian Economic Overview

Indias real GDP grew by an estimated 7.6% in FY 2025-26, compared with 7.2% and 7.1% in the preceding two years, maintaining its position among the fastest-growing major economies. Growth was supported by sustained domestic demand, infrastructure investment and manufacturing activity. Government initiatives, including Make in India, continued to strengthen domestic manufacturing, import substitution and value addition, while Gross Fixed Capital Formation (GFCF) expanded by over 7%, supported by healthy private consumption.

Production Linked Incentive (PLI) schemes continued to facilitate investments across electronics, automobiles, batteries, telecom, pharmaceuticals and speciality manufacturing, supporting capacity creation across the broader industrial ecosystem. During the year, the RBI maintained the repo rate at 5.25%, while inflation moderated to 3.48%, remaining below the medium- term target of 4%.

Indias exports remained resilient at USD 860.09 billion, supported by services exports of USD 418.31 Billion and electronics exports of USD 22.2 Billion during HI FY 2025-26, reflecting continued momentum in manufacturing and technology-led exports.

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Outlook

India is expected to sustain strong economic momentum, supported by favourable demographics, domestic demand, policy reforms, infrastructure development, sustainability and self-reliance. Growth is likely to remain resilient, aided by consumption, public capex, services and industrial expansion. Make in India, PLI- led capacity and the semiconductor mission may deepen linkages across metals, electronics, mobility and energy storage, while supporting circular economy growth through recycling, reuse and resource recovery.

(Source: )

Global Recycled Metal Industry

The global recycled metal and scrap metal recycling industry is growing steadily, supported by sustainability goals, circular economy initiatives, decarbonisation, and rising use of scrap as a secondary raw material. The scrap metal recycling market was estimated at USD 435.50 Billion in CY 2025 and is projected to grow from USD 451.00 Billion in CY 2026, eventually reaching USD 614.00 Billion by CY 2034 at a CAGR of 3.9%. The global availability and processing of recyclable metal scrap continue to expand, with the scrap metal recycling market estimated at approximately 535 Million tonnes in CY2025 and projected to reach nearly 568 Million tonnes in CY 2026. This large and growing scrap pool reflects rising industrial, automotive, construction and electronics-linked metal waste generation, while also indicating the increasing role of recycling in meeting global demand for sustainable raw materials.

(Source: )

Growth is being driven by higher recycling of steel, aluminium, copper, stainless steel, batteries, electronics, end-of-life vehicles, and construction waste. The global copper scrap market size was valued at USD 69.95 Billion in CY 2025. The market is projected to grow from USD 73.90 Billion in 2026 to USD 114.97 Billion by CY 2034, exhibiting a CAGR of 5.7%. The global recycled lead market size was valued at USD 25.78 Billion in CY 2025 and is projected to grow from USD 26.93 Billion in CY2026 to USD 38.26 Billion by CY2034, exhibiting a CAGR of 4.49%. Aluminium scrap is a key segment, projected

to grow from USD 56.77 Billion in CY 2026 to USD 91.49 Billion by CY 2034, supported by lower energy use and reduced emissions compared with primary production.

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Asia-Pacific continues to lead global growth, buoyed by rapid industrialisation, infrastructure development, and rising scrap generation. In Europe, regulatory frameworks, such as the EU Critical Raw Materials Act, are strengthening the recycling ecosystem. Across global markets, governments are increasingly prioritising domestic recycling capacity to reduce import dependence, improve resource security, and support the energy transition. Technology adoption, including Al-based sorting, sensor separation, robotics, and digital traceability, is improving recovery rates and material quality. Overall, scrap recycling is evolving beyond traditional waste management into a strategic circular economy and low-carbon industrial model.

(Sources:

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Demand Drivers

Lower Emissions and Supply \ 2 / Security:

Demand for recycled metal is rising as industries seek lower emissions, energy savings, cost optimisation and circular supply chains. With mining disruptions, geopolitical risks and export restrictions affecting virgin metal supply, secondary sourcing offers a local, reliable and flexible alternative.

(Source: )

©Energy Transition, Al Infrastructure and Sustainability-led Demand:

Government-backed decarbonisation targets and rising investments in renewable energy, EVs, grids, electronics, infrastructure, data centres and Al systems are driving higher demand for copper, aluminium, steel and other metals. Under the IEA net zero scenario, copper demand is expected to rise by 50% by CY2040, while nickel, cobalt and rare earth demand doubles from CY 2024 levels.

As energy intensity and sustainability expectations increase, recycled metals are gaining relevance as cost-effective, lower-carbon inputs that reduce dependence on virgin raw materials, monetise waste streams and support circular supply chains.

(Source: )

Critical Metals, Regulation and

Circular Economy Demand:

Copper, aluminium and other critical metals are

becoming priority materials for electrification, renewable energy, EVs, grids and digital infrastructure. As demand rises, scrap is increasingly being redirected from waste streams into formal circular value chains for recovery, processing and reuse as low-carbon industrial inputs. Secondary copper supply is expected to rise from 10 Million tonnes in CY 2025 to 11 Million tonnes by CY 2030. Policy support is also strengthening this shift, with recycling targets, recycled-content mandates, green procurement incentives, the EU Critical Raw Materials Act, and Indias Battery Waste Management Rules, 2022 promoting formal recycling of lead, lithium, nickel, cobalt and copper.

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r Closed-loop Recycling:

Industries are adopting closed-loop systems to secure lower-carbon raw materials, reduce import dependence, and support circular-economy goals. Recycled metals already form a meaningful part of global metal supply. More than 30% of annual copper use is met through recycled sources, while over 60% of global lead production originates from end-of-life products, largely used lead-acid batteries. Aluminium also demonstrates strong circularity, with a global recycling efficiency rate of around 76%.

(Sources: , )

Indian Recycled Metal Industry

The Indian recycled metal industry is witnessing steady growth. The market was valued at USD 14.14 Billion in CY 2024, estimated to reach approximately USD 15.18 Billion in CY 2025, USD 16.28 Billion in CY 2026, and USD 21.38 Billion by CY 2030, scaling at a CAGR of 7.3%. Growth is likely to be supported by rising steel, aluminium, copper, automotive, construction, infrastructure, and manufacturing demand, along with policy focus on circular economy, resource efficiency, and reduced import dependence. The Indian recycled metal industry is witnessing steady growth, supported by increasing focus on resource efficiency, sustainability, and circular economy initiatives.

Rising demand for steel, aluminium, copper, and other non-ferrous metals across infrastructure, automotive, renewable energy, and manufacturing sectors is driving greater utilisation of recycled materials. The industry is also benefiting from policy support aimed at improving domestic metal recovery and reducing dependence on imported raw materials. This aligns with Indias 300 MTPA steel capacity target by CY 2030 under the National Steel Policy, with 35-40% expected from scrap- based EAF/IF routes. The Steel Scrap Recycling Policy, 2019 promotes organised recycling, resource conservation, import reduction, and lower-carbon steel production.

Critical mineral infrastructure is also emerging as an important growth area for the recycled metal industry. As India scales clean energy, electronics, EVs, batteries, and advanced manufacturing, the need for domestic systems to collect, sort, test, process, and recover critical minerals from end-of- life products is increasing. Recycling infrastructure for e-waste, spent batteries, electronic components, industrial residues, and non-ferrous scrap can help build a more secure domestic supply base for strategic minerals.

The sector is undergoing gradual formalisation, with organised players gaining prominence as end- user industries increasingly prioritise traceability, environmental compliance, quality assurance, and responsible sourcing practices. Regulatory frameworks and digital reporting mechanisms introduced by environmental authorities are further accelerating the transition towards a more organised recycling ecosystem.

Ecosystem sustainability for recycling in India will depend not only on higher recycling capacity, but also on cleaner collection channels, scientific dismantling, safe waste handling, pollution control, material traceability, worker safety, and reliable downstream offtake. A stronger recycling ecosystem can support formalisation, improve recovery efficiency, reduce informal processing, and make secondary materials more acceptable for high-quality industrial use.

With scrap requirement projected to increase from around 30 Million tonnes to over 70 Million tonnes in tandem with the CY 2030 capacity enhancement target, India continues to depend on imported scrap. However, it creates a significant opportunity for ramping up domestic availability through vehicle scrappage, infrastructure replacement, consumer durables, construction waste, industrial activity, and organised recycling under the Steel Scrap Recycling Policy. Sustainability priorities, critical minerals security, and circular economy practices are expected to drive long-term sector development.

Government initiatives like National Critical Mineral Mission are focused on critical minerals availability, domestic manufacturing, sustainable resource utilisation, and ease of doing business, strengthening investments in targeted fields. The Mission also provides a policy pathway for building critical mineral infrastructure across recycling, recovery, processing, refining, testing,

and certification. This can help India develop domestic capabilities for minerals required in batteries, electronics, renewable energy systems, and advanced manufacturing. Furthermore, these endeavours are expected to accelerate technology adoption across the recycling value chain. This will translate into more efficient automated sorting, better scrap segregation, advanced refining, effective hydrometallurgical and metallurgical recovery processes, more reliable quality testing, and streamlined certification systems. Over time, these enhanced processes are set to improve recovery yields, reduce material losses, and increase the availability of secondary critical minerals. Moreover, these interventions will make recycled inputs more acceptable for high-specification end-use sectors, including batteries, electronics, EVs, renewable energy equipment, and industrial manufacturing.

(Sources: , ,

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Company Overview

Jain Resource Recycling Limited (JRRL or the Company) is an India-based non-ferrous metal recycling company engaged in the recycling of lead, copper, and aluminium scrap into value-added products, including lead and lead alloy ingots, copper and copper ingots, and aluminium and aluminium alloys. It also undertakes trading of non-ferrous metals and other commodities.

JRRL operates five recycling facilities in Tamil Nadu including a facility functioning as segregating facility. The combined actual production capacity was 2.4 Lakhs+ MTPA as of March 31 2026. Its lead ingot is registered as a brand on the London Metal Exchange (LME), enabling access to a broader customer base with products aligned to international quality standards.

Backed by multi-metal recycling capabilities, a diversified sourcing network, and a growing export presence, JRRL is well-positioned to benefit from the rising demand for secondary metals and circular material solutions.

JRRLs diversified product portfolio includes:

Representing 40% of FY 2025-26 revenue, JRRL produces refined, antimony and remelted lead ingots from lead scrap and lead-acid batteries. JAIN 9997 is registered with LME and approved by MCX. Purity ranges from 99.97% to 99.99%, with applications across batteries, cables, shielding, electronics and marine ballast.

Accounting for 55% of FY 2025-26 revenue, copper is JRRLs largest product category. The Company recycles copper wires, cables and scrap into refined billets, alloy billets, ingots and finished scrap. Billet purity ranges from 95.00% to 99.07%, serving cables, machinery, chemicals, automotive and planned value-added copper products.

Aluminium and Aluminium Alloys

Accounting for 5% of FY 2025-26 revenue, JRRL recycles tread, talon and tense scrap through Jain Green Technologies into aluminium alloy ingots and molten alloys. Its grades include XSB, LM6 and ADC-12. These products serve automotive, engineering, electrical, power and industrial uses, valued for lightweight, strength and recyclability.

Key Business Strengths

Integrated Multi-Metal Recycling Platform

JRRL operates an integrated non-ferrous recycling platform across lead, copper and aluminium. Its Gummidipoondi, Chennai facilities process multiple scrap grades through sorting, smelting, refining and conversion, serving domestic and export customers with optimised delivery, reduced lead times and closer engagement.

Global Sourcing and Domestic Procurement Strength

JRRL has imported recyclable materials from over 120 countries in the last three years. Supported by sourcing teams and traders in the US and South America, it procures directly from overseas scrapyards, improving planning, inspection, logistics coordination, cost efficiency and supply- chain control.

Quality-led Market Acceptance

JRRLs lead ingot is registered with the LME, while JAIN 9997 is accepted by MCX in India for settlement of lead contracts. These recognitions strengthen quality-led market acceptance and increase customer confidence in product consistency across domestic and international markets.

Diversified Product Portfolio and End-Use Exposure

JRRLs portfolio includes lead and lead alloy ingots, copper ingots, aluminium alloys, tin-related products and plastic granules from battery and copper cable recycling. These products serve industrial, electrical, power, electronics, automotive, cable, packaging and household applications, reducing single-product dependence.

Hedging-led Risk Management

JRRL operates in a commodity-linked business exposed to LME price fluctuations in lead, copper and aluminium. To manage this risk, the Company follows a back-to-back hedging strategy through LME futures derivative contracts executed via registered brokers, primarily as a risk management tool.

Port-proximate Infrastructure

JRRLs recycling facilities are located at SIPCOT Industrial Estate, Gummidipoondi, Chennai. The strategic locations of these units help optimise deliveries, reduce lead times, and facilitate customer interaction.

Experienced Management and Croup Legacy

JRRL traces its origins to Jain Metal Rolling Mills, established on April 01 1953. Led by Kamlesh Jain, associated with the Jain Metal Group for over three decades, the management team brings experience across operations, manufacturing, supply chain, finance, marketing and business development.

Value Addition and Resource Recovery Capabilities

JRRL is expanding into copper cathodes, wire rods and busbars using recycled copper and in-house products. It also recovers plastic granules from battery and cable recycling, undertakes tin recycling through VDF technology and produces lead-tin solders/ingots for industrial applications.

Sustainability-led Operations

JRRLs circular business model converts lead, copper and aluminium scrap into reusable industrial inputs Its recovery streams include plastic granules from battery and copper cable recycling. The Company also has power sourcing arrangements, including 2.6 MW and 3 MW supply agreements for facilities.

Developments during the Year

Public Listing

A key milestone during the year was the successful listing of the Company on the National Stock Exchange of India Limited (NSE) and BSE Limited on October 1 2025. This marked JRRLs transition to the public markets, strengthening its institutional profile, governance framework, capital market access, and visibility among customers, suppliers, and investors.

Strategic Forward Integration Project

Value-added Copper Project

JRRL continued to advance its value-added copper project in a phased manner, aimed at moving the Company up the copper value chain through anode, cathode, wire rod, and busbar capabilities. The Anode Phase was commissioned in February 2026 with an initial capacity of 800 MT per month, followed by the Cathode Phase I and II are targeted to commission in Q2 and Q3 of FY 2026-27 with an initial capacity of 750 MT per month. Production of wire rods and busbars is expected to commence in FY 2026-27.

Antimony Extraction

JRRL secured niche technology for setting up an antimony extraction plant from lead-acid battery streams. The project is targeted for commissioning in Q3 FY 2026-27 and is expected to enhance the Companys capabilities in critical metal recovery. By extracting antimony from existing lead-acid battery streams, the initiative aims to augment resource efficiency, improve value extraction, and broaden circularity within the Companys lead recycling operations.

Global Alliances and Sourcing

C&Y Croup Investments Inc. Joint Venture

JRRL entered into a joint venture with C&Y Group Investments Inc., US, to establish Jain CY Circular Solutions near Mundra Port, Gujarat. The facility will process 72,000 MT of copper scrap annually and is expected to become operational by June 2026.

Middle East Expansion - Kuwait

The Board approved acquiring a 25% stake in Abraj Al Khaleej, Kuwait, to support battery dismantling and segregation before final recycling in India. Civil work is complete, South Korean-soureed technology is nearing fabrication completion, with dispatch subject to logistics normalisation.

Sourcing Optimisation

The Company increased its domestic raw material sourcing to 39% by volume during the year. This helped reduce dependence on long-lead-time imports and augmented supply chain agility. Higher domestic sourcing is also likely to ensure shorter procurement cycles, better responsiveness to customer requirements, and improved working capital management over time.

Operational Portfolio Realignment

Discontinuation of UAE Cold Operations

JRRL discontinued its gold and silver refining operations at Jain Ikon Global Ventures in Sharjah, effective April 17 2025, in view of low margins, high operating overheads, and regulatory volatilities. Machinery from the facility was relocated to India for deployment across other projects. This decision reflects the Companys strategic focus on strengthening its core non-ferrous recycling operations and reallocating resources towards higher-priority, long-term growth areas.

Performance Review

JRRL delivered a strong operating and financial performance during the year, with consolidated revenue of R9.543.il Crores in FY2025-26, reflecting a year-on-year growth of 48.4%. This growth was driven by a significant increase in volumes, with the balance generated through improved value realisation across key metal categories.

Revenue performance was supported by greater execution in lead, copper, and aluminium portfolios, higher customer uptake, and stronger contribution from domestic and export markets.

Profitability also strengthened during the year, with EBITDA increasing by 53.1% to R558.93 Crores. EBITDA margin expanded by~20 basis points to 5.86%, demonstrating better operating performance, scale efficiencies, and procurement discipline, while emphasising favourable value addition across the portfolio. Profit After Tax stood at R352.22 Crores, with a growth of 58.8% over the previous year, while PAT margin improved to 3.69%.

The Company maintained a sound focus on working capital discipline, inventory optimisation, commodity price risk management, and foreign exchange exposure monitoring. These measures are critical to ensure financial discipline, given the global sourcing, commodity-linked pricing, and working-capital-intensive nature of the recycling business.

Ratio	FY 2025-26	FY 2024-25	Percentage Change	Reason for Deviation
Debtors Turnover Ratio	31.09	40.72	(24%)	-
Inventory Turnover Ratio	8.24	9.73	(15%)	-
Interest Coverage Ratio	5.99	4.64	29%	Improved following IPO- funded debt repayment
Current Ratio	1.78	1.51	18%	-
Net Debt-Equity Ratio	0.70	0.90	(22%)	-
Operating Profit Margin i.e., (EBIT Margin)	6.01%	6.02%	0%	-
Net Profit Margin	3.70%	3.45%	7%	-
Return on Net Worth	30.40%	40.80%	(25%)	Increased due to IPO fresh issue proceeds

Risk and Mitigation Strategies

Area of Risk	Brief	Mitigation Measures
Market and Financial	Commodity Price Volatility: Fluctuations in global market prices for lead, copper, and aluminium directly impact revenue and gross margins.	The Company follows a disciplined hedging mechanism on the LME to manage price exposure. Sales prices are monitored in relation to raw material procurement, mitigating the impact of adverse commodity price movements.
	Foreign Exchange Fluctuations: Significant international trade in US Dollars and Euros exposes the Company to currency risk.	The Company monitors net foreign currency exposures on an ongoing basis and uses forward contracts wherever required. A natural hedge is also available to the extent import and export flows are aligned.
Operational	Raw Material Insecurity: Dependence on scrap availability, both domestic and imported, heightens sensitivity to supply-side disruptions, quality variation, logistics delays, and price volatility.	The Company leverages a diversified sourcing network across domestic and international markets. JRRL\u2019s domestic sourcing avenue, scaling consistently, now accounts for approximately 39% of volume, helping improve supply chain agility and reduce dependence on long-lead-time imports.
	Operational Safety: Recycling, smelting, refining, and handling of molten metals involve safety-sensitive operations necessitating strict process controls, training, and monitoring.	The Company maintains stringent safety policies, risk assessments, employee safety manuals, and training processes. It has also obtained ISO 45001:2018 certification for occupational health and safety.
	Quality Compliance: Strict technical specifications across lead, copper, and aluminium products must be met to avoid rejections, cancellations, or customer dissatisfaction.	The Company undertakes multi-stage quality control processes, including microstructure and spectrometer analysis, to ensure conformity of finished products with customer specifications before dispatch.
Strategic and External	Geopolitical Instability: Conflicts, trade policy changes, port disruptions, or restrictions in key sourcing and export regions can affect procurement, logistics, and market access.	The Company prioritises diversified sourcing and enduring customer relationships across multiple geographies. This reduces dependence on any single country or region while ensuring continuity across procurement and sales channels.
Financial	Working Capital Risk: Timely procurement of scrap, inventory holding, receivables management, and funding support are of critical importance amidst a volatile commodity environment.	The Company oversees inventory, receivables, payables, price exposures, and funding requirements through internal controls, treasury processes, and management review mechanisms.
Regulatory and ESC	Environmental Compliance: Evolving environmental regulations, EPR frameworks, hazardous waste rules, and customer expectations may increase compliance requirements for enterprises involved in recycling businesses.	The Company continues to strengthen its compliance systems, environmental practices, waste management framework, water and energy efficiency initiatives, and documentation processes. With integrated recycling capabilities, it is well- positioned to align with formalisation trends in the recycling ecosystem.

Human Resources

JRRLs people strength underpins its recycling, smelting, refining and global sourcing capabilities, supported by technical skills, safety awareness, process discipline and inclusive workforce deployment.

For a detailed overview, please refer to the Human Capital chapter on page 24.

Internal Control Systems and their Adequacy

JRRL maintains an internal control framework in sync with the scale, nature, and complexity of its operations. The framework covers procurement, inventory management, traceability, production processes, quality checks, sales, receivables, treasury, hedging, foreign exchange exposure, and statutory compliance.

Given the commodity-linked nature of the business, the Company places robust emphasis on segregation of duties, approval-based transactions, periodic reconciliations, material movement tracking, and independent reviews. Its ERP-enabled systems support the accuracy of financial reporting, operational monitoring, and compliance documentation.

The Company also undertakes periodic audits and management reviews to assess the effectiveness of internal controls, with identified observations addressed through corrective actions. This systemic supervision also supports financial integrity, regulatory compliance, and operational discipline.

Cautionary Statement

This Management Discussion and Analysis may include forward- looking statements that reflect the Companys current intentions, beliefs, expectations, or projections. These statements are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated.

Such risks and uncertainties include, among others, changes in commodity prices, foreign exchange rates, raw material availability, regulatory requirements, global trade conditions, customer demand, project execution timelines, financing conditions, and general economic developments.

Readers are advised not to place undue -reliance on forward-looking statements, as actual outcomes may differ from those expressed or implied.