Jain Resource Recycling shares crack over 33% in two days; here is why
Jain Resource: The stock slumped 18.51 per cent to hit a low of Rs 378 in the early session. At this level, it has crashed 33.23 per cent in just two trading days.
- May 19, 2026,
- Updated May 19, 2026 10:37 AM IST
Shares of Jain Resource Recycling Ltd continued to decline sharply in Tuesday's trade following the company's declaration of fourth quarter (Q4 FY26) results. The stock slumped 18.51 per cent to hit a low of Rs 378 in the early session. At this level, it has crashed 33.23 per cent in just two trading days.
Motilal Oswal Financial Services Ltd (MOFSL) noted that copper price volatility and the West Asia crisis impacted Jain Resource's margins.
"Jain Resource reported EBITDA growth of 18 per cent YoY despite constrained scrap availability, volatile copper prices, and elevated logistics costs. Revenue grew 76 per cent YoY to Rs 3,170 crore (blended volume/realisation up 12 per cent/57 per cent), led by YoY growth in the copper and lead businesses of 2.5x and 26 per cent, respectively," the brokerage stated.
"We believe the sharp margin contraction in Q4 FY26 is temporary in nature, as it was primarily driven by exceptional copper volatility following the sharp spike in LME prices, along with geopolitical supply chain disruptions. With copper realisation formulas transitioning toward longer-term 'green formula' contracts, which are showing signs of normalisation in Q1 FY27 negotiations, along with supplies increasingly being rerouted through alternative shipping routes, material availability is improving. Consequently, we expect a gradual recovery in profitability of the copper segment going forward," MOFSL added.
The brokerage reduced the FY27-FY28 earnings estimate, while retaining its 'Buy' call. "Factoring in lower-than-estimated earnings in Q4, we reduce our FY27/FY28 earnings estimate by 15 per cent/16 per cent and reiterate our BUY rating on the stock with a TP of Rs 560 (premised on 27x FY28E EPS)," it further stated.
In a separate development, the company informed bourses that Bibhu Kalyan Rauta has resigned as Company Secretary, Compliance Officer and Key Managerial Personnel, effective June 20, 2026, citing personal commitments.
It also mentioned the appointment of B Venkateswar as the company's cost auditor for the financial year 2026-27 (FY27).
Shares of Jain Resource Recycling Ltd continued to decline sharply in Tuesday's trade following the company's declaration of fourth quarter (Q4 FY26) results. The stock slumped 18.51 per cent to hit a low of Rs 378 in the early session. At this level, it has crashed 33.23 per cent in just two trading days.
Motilal Oswal Financial Services Ltd (MOFSL) noted that copper price volatility and the West Asia crisis impacted Jain Resource's margins.
"Jain Resource reported EBITDA growth of 18 per cent YoY despite constrained scrap availability, volatile copper prices, and elevated logistics costs. Revenue grew 76 per cent YoY to Rs 3,170 crore (blended volume/realisation up 12 per cent/57 per cent), led by YoY growth in the copper and lead businesses of 2.5x and 26 per cent, respectively," the brokerage stated.
"We believe the sharp margin contraction in Q4 FY26 is temporary in nature, as it was primarily driven by exceptional copper volatility following the sharp spike in LME prices, along with geopolitical supply chain disruptions. With copper realisation formulas transitioning toward longer-term 'green formula' contracts, which are showing signs of normalisation in Q1 FY27 negotiations, along with supplies increasingly being rerouted through alternative shipping routes, material availability is improving. Consequently, we expect a gradual recovery in profitability of the copper segment going forward," MOFSL added.
The brokerage reduced the FY27-FY28 earnings estimate, while retaining its 'Buy' call. "Factoring in lower-than-estimated earnings in Q4, we reduce our FY27/FY28 earnings estimate by 15 per cent/16 per cent and reiterate our BUY rating on the stock with a TP of Rs 560 (premised on 27x FY28E EPS)," it further stated.
In a separate development, the company informed bourses that Bibhu Kalyan Rauta has resigned as Company Secretary, Compliance Officer and Key Managerial Personnel, effective June 20, 2026, citing personal commitments.
It also mentioned the appointment of B Venkateswar as the company's cost auditor for the financial year 2026-27 (FY27).