Baheti Recycling Industries Ltd – FY26 Financial & Strategic Update

Date: 29 April 2026
Source: Company press release (NSE Symbol: BAHETI)

Key Financial Highlights (FY26)

H2 FY26 alone showed a 53.6% jump in total income, driven by a 53.4% rise in revenue.

Strategic Developments

• New OEM Clients: TVS Motor, Royal Enfield, Bajaj Auto now sourced directly, enhancing brand credibility and pricing leverage.
• Capacity Expansion:
  • Investment of ₹20‑25 cr in an Aluminium Wire Rod division (Phase 1: 12,500 MT, expected revenue ₹200‑250 cr; Phase 2: 25,000 MT, potential ₹500 cr).
  • Replacement of older pit furnaces with electric furnaces, raising total smelting capacity to 38,000 MT; five additional furnaces slated for FY27.
• Capital Raise: Preferential allotment of ₹7.48 cr to bolster working capital as volumes increase.
• Energy Cost Management: Captive solar plant to be operational by May 2026, reducing power costs for electric furnaces and improving margins from Q2 onward.

Market Context & Management Commentary

• Global primary aluminium supply constraints (Middle‑East disruptions) are pushing customers toward secondary aluminium, which uses ~95% less energy and benefits Baheti’s cost structure.
• Management expects the order book to start FY27 at >₹175 cr, indicating sustained demand.
• The company emphasizes a long‑term growth narrative, leveraging its lower‑energy footprint and expanding into higher‑value OEM supply chains.

Investor Implications

• Opportunities: Higher margins, diversified OEM base, and upcoming wire‑rod business could drive multi‑year revenue acceleration.
• Risks: Execution risk on new capacity projects, potential dilution from the preferential allotment, and sensitivity to automotive sector cycles.
• Catalysts: Successful commissioning of the solar plant, scaling of the wire‑rod division, and continued primary aluminium supply tightness.

Outlook

• Short‑term: Expect continued revenue growth in Q1 FY27, supported by the existing order book and margin uplift from lower power costs.
• Medium‑term: The wire‑rod division and additional electric furnaces could add ₹200‑500 cr of incremental revenue over the next 2‑3 years, enhancing earnings per share.
• Long‑term: Baheti’s low‑energy recycling model positions it favorably amid global decarbonisation trends and potential regulatory incentives for secondary metal producers.

Prepared by the Senior Finance Analyst – 29 April 2026