Total installed capacity
38,000 tonnes
+33% YoY
Capacity increased from ~28,500 tonnes with addition of five new electric furnaces.
BAHETIRECYCLING
Diversified
15 May 2026
Baheti Recycling Industries Ltd — Q4 FY26
Baheti Recycling reported a strong FY26 with revenue of ₹725 crore (up ~39% YoY) and PAT of ₹27 crore (up 50% YoY), driven by favorable industry dynamics, capacity expansion, and new OEM wins.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Baheti Recycling reported a strong FY26 with revenue of ₹725 crore (up ~39% YoY) and PAT of ₹27 crore (up 50% YoY), driven by favorable industry dynamics, capacity expansion, and new OEM wins. The company is commissioning five new electric furnaces (total capacity 38,000 tonnes) and entering the higher-margin aluminum wire rod segment with a ₹25 crore capex targeting ₹500 crore revenue potential. Management guided for ₹1,000 crore revenue in FY27 (excluding wire rod) and EBITDA margins improving to ~10% by FY28. Key risks include negative operating cash flows due to high inventory, reliance on imported scrap (80%), and potential margin compression from a sharp fall in LME aluminum prices.
Key Numbers
Capacity utilization
60%
flat YoY
Utilization remained at 60% due to rapid capacity expansion; target full utilization by FY28.
Order book (ex-wire rod)
₹200 crore
new metric
Order book for FY27 stands at minimum ₹200 crore, excluding wire rod division.
OEM sales volume (March)
500 tonnes
new metric
Sold 250t to Bajaj Auto, 150t to TVS Motor, 100t to Royal Enfield in March; orders repeated in May.
Management Guidance
FY27 revenue target of ₹1,000 crore
Management expects to reach four-digit revenue in FY27 from existing operations, excluding wire rod contribution.
Management guidance revenueWire rod division commissioning by early November 2026
Phase one (12,500 tonnes) to be operational by end of October/early November 2026, with initial utilization of 10-15% in Q4.
Management guidance expansionEBITDA margin improvement to ~10% by FY28
Current EBITDA margin of ~8% expected to inch towards 10% in FY28 driven by wire rod segment and operational efficiencies.
Management guidance marginsCapacity utilization target of 75-80% in FY27
Management aims to reach 75-80% utilization of the 38,000-tonne capacity in FY27.
Management guidance growthKey Risks
Negative operating cash flows and high debt
Company has reported negative operating cash flows for four consecutive years, with debt increasing to fund operations due to high inventory levels.
high · analyst_questionDependence on imported scrap (80%)
80% of raw material is imported from UK, Europe, and US, exposing the company to geopolitical disruptions, freight cost volatility, and currency fluctuations.
medium · analyst_questionMargin risk from sharp LME aluminum price decline
Management acknowledged that a vertical fall in LME prices over 6-12 months could cause losses, though natural hedging provides some protection.
medium · management_commentaryPreferential issue cancellation due to market conditions
A planned preferential issue of ₹40 crore was canceled after a key investor backed out due to market conditions and internal CIO restrictions.
low · analyst_questionNotable Quotes
We are heading into FY27 with a order book of minimum 200 crores with us and there are lot of excitement development.
Our target is four digit from the existing plant. As of now we have catered only to the three OEMs and that too only the trial lots. We have not catered a maximum chunk of their business. So we are more than hopeful and the journey is just started.
The EBITDA margin will improve by one or two percentage from the existing business.
Frequently Asked Questions
What was Baheti Recycling Industries's revenue in Q4 FY26?
Baheti Recycling Industries reported revenue of ₹725 Cr in Q4 FY26, representing a +39.4% change compared to the same quarter last year.
What guidance did Baheti Recycling Industries management give for FY27?
FY27 revenue target of ₹1,000 crore: Management expects to reach four-digit revenue in FY27 from existing operations, excluding wire rod contribution. Wire rod division commissioning by early November 2026: Phase one (12,500 tonnes) to be operational by end of October/early November 2026, with initial utilization of 10-15% in Q4. EBITDA margin improvement to ~10% by FY28: Current EBITDA margin of ~8% expected to inch towards 10% in FY28 driven by wire rod segment and operational efficiencies. Capacity utilization target of 75-80% in FY27: Management aims to reach 75-80% utilization of the 38,000-tonne capacity in FY27.
What are the key risks for Baheti Recycling Industries in FY27?
Key risks include Negative operating cash flows and high debt — Company has reported negative operating cash flows for four consecutive years, with debt increasing to fund operations due to high inventory levels.; Dependence on imported scrap (80%) — 80% of raw material is imported from UK, Europe, and US, exposing the company to geopolitical disruptions, freight cost volatility, and currency fluctuations.; Margin risk from sharp LME aluminum price decline — Management acknowledged that a vertical fall in LME prices over 6-12 months could cause losses, though natural hedging provides some protection.; Preferential issue cancellation due to market conditions — A planned preferential issue of ₹40 crore was canceled after a key investor backed out due to market conditions and internal CIO restrictions..
Did Baheti Recycling Industries meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Baheti Recycling Industries Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.