Baheti Recycling FY26 profit jumps 50% as revenue rises 38% to US$86.8M

INDIA – Baheti Recycling Industries has reported FY26 profit after tax of ₹27.06 crore (approximately US$3.2 million), up over 50%, with revenue rising 38% to ₹724.86 crore (approximately US$86.8 million), driven by steady demand for recycled aluminium and tighter primary metal supply.

EBITDA came in at ₹60.97 crore (approximately US$7.3 million), also higher by about 50%, with margins seeing a marginal improvement. 

Growth was stronger in the second half of the year, with revenue rising more than 53% from a year earlier, indicating continued demand from sectors such as automobiles and industrial manufacturing.

Capacity Expansion for Margin-Accretive Products

The company is replacing older furnaces with electric furnaces, with total smelting capacity reaching 38,000 metric tonnes. 

Additional units are expected to be installed during the year. Baheti plans to invest ₹20-25 crore (approximately US$2.4-3.0 million) in FY27 to set up an aluminium wire rod unit. 

The first phase is expected to have a capacity of 12,500 metric tonnes, with further expansion planned over time.

Energy costs remain a key factor for recyclers. 

A captive solar power plant is expected to be operational by May 2026, which could help reduce power expenses, particularly as the share of electric furnaces increases.

Market Tailwinds from Supply Constraints

The broader aluminium market has been influenced by supply constraints. 

Disruptions in the Middle East have reduced the availability of primary aluminium, leading some manufacturers to turn to secondary producers. 

Recycled aluminium requires up to 95% less energy than primary production, helping contain costs when primary metal prices rise.

During the year, the company added new customers in the automotive segment, including original equipment manufacturers. 

Supplying directly to such firms involves tighter quality and delivery requirements. The company said its order book for Q1 FY27 stands at over ₹175 crore (approximately US$21 million), suggesting demand has remained stable.

When Recycling Gets a Tailwind

A 50% profit jump in a single year is not just operational improvement, it is a market signal. As Middle East disruptions squeeze primary aluminium supply, recyclers like Baheti fill the gap. 

The company’s expansion into wire rod production moves it up the value chain, from scrap processor to industrial supplier. For India’s recycling sector, that is the direction of travel.

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