Baheti Recycling H1 Net Profit Doubles to ₹19.1 Crore as EBITDA Margin Hits 8%

Market snapshot: Baheti Recycling Industries Limited reported strong operational performance for H1, with standalone net profit doubling year-on-year to ₹19.1 crore. EBITDA surged to ₹42.4 crore while operating margins expanded to 8%, signaling robust demand in the secondary aluminium segment.

Data Snapshot

• H1 standalone net profit increased to ₹19.1 crore compared to ₹9.3 crore in the prior-year period.
• H1 EBITDA reached ₹42.4 crore, doubling from ₹21.2 crore in H1 of the previous year.
• H1 EBITDA margin expanded to 8% from 6.7% in the corresponding prior-year period.
• Q1 FY27 net total revenue stood at ₹253.94 crore, up 88.90% YoY from ₹134.43 crore.

What's Changed

• Standalone Net Profit: ₹19.1 crore in H1 vs ₹9.3 crore in prior-year H1 (≈105.38% YoY increase).
• EBITDA: ₹42.4 crore in H1 vs ₹21.2 crore in prior-year H1 (100% YoY increase).
• EBITDA Margin: 8% in H1 vs 6.7% in prior-year H1 (+130 basis points expansion).

Key Takeaways

• Significant operating expansion supported double-digit margin performance in the secondary aluminium segment.
• Net profit doubled to ₹19.1 crore, highlighting positive operating leverage.
• Margin trajectory improved by 130 bps, indicating effective scrap input procurement and pricing power.

SAHI Perspective

Baheti Recycling's strong financial momentum reflects accelerating demand for recycled metal alloys across automotive and industrial applications. Operating leverage appears healthy as profit metrics outpaced top-line expansion, providing solid baseline profitability for the fiscal year.

Market Implications

The sharp expansion in EBITDA margins to 8% highlights operational strength in secondary metal recycling. As primary aluminium costs remain sensitive to energy input shifts, recycled alloy processing continues to capture competitive advantage.

Trading Signals

Market Bias: Bullish

Strong financial performance with EBITDA doubling to ₹42.4 crore and standalone net profit expanding to ₹19.1 crore supports near-term bullish momentum for the stock.

Overweight: Aluminium Recycling, Secondary Metals

Trigger Factors:

• Sustained volume expansion in alloy ingot processing
• Stability in scrap material input costs versus finished product pricing
• Quarterly execution on ongoing expansion projects

Time Horizon: Near-term (0-3 months)

Industry Context

The secondary aluminium industry benefits from growing corporate demand for sustainable manufacturing materials and lower energy intensity compared to primary smelters. Suppliers catering to automotive and steel OEMs are well positioned as volume production expands.

Key Risks to Watch

• Volatility in global secondary aluminium scrap procurement costs
• Cyclical demand slowdown in key customer segments such as auto component manufacturing

Recent Developments

Baheti Recycling scheduled its H1 FY27 Post Results Earnings Conference Call for November 04, 2026. Earlier, the company issued its Annual Report for FY 2025-26 on September 07, 2026.

Closing Insight

Sustained margin performance and strong profit growth position Baheti Recycling to capture additional market share in the secondary metals processing sector.

High Performance Trading with SAHI.