CMR Green Tech Confirms 25% Volume Growth Target Following 25% Q1 Growth

Market snapshot: CMR Green Technologies reported a strong performance for Q1 FY27, with a 64.92% year-on-year increase in revenue to ₹3,122.73 crore and a 21.9% rise in Net Profit to ₹68.18 crore. Sales volumes grew 25.2% YoY to 1,12,336 tonnes, driving the management to confirm their 25% volume growth target for FY27.

Data Snapshot

• Q1 FY27 Revenue rose 64.92% YoY to ₹3,122.73 crore
• Q1 FY27 Net Profit increased 21.9% YoY to ₹68.18 crore
• Sales volumes for Q1 FY27 grew 25.2% YoY to 1,12,336 tonnes
• EBITDA rose 27.1% YoY to ₹139.50 crore

What's Changed

• Quarterly revenue climbed to ₹3,122.73 crore in Q1 FY27 from ₹1,893.46 crore in Q1 FY26 (derived: ₹3,122.73 crore with 64.92% growth YoY)
• Net Profit rose to ₹68.18 crore in Q1 FY27 compared to ₹55.93 crore in Q1 FY26 (derived: ₹68.18 crore with 21.9% growth YoY)

Key Takeaways

• Management remains highly confident in sustaining a 25% volume growth trajectory for the full fiscal year (FY27) after a stellar 25.2% growth in Q1.
• The company invested ₹53 crore in Q1 FY27 toward two major recycling plants in Shoolagiri (Tamil Nadu) and Bawal (Haryana).
• The new plants are strategically positioned to tap into electric vehicle component manufacturers and scale up the northern India footprint.
• Annual recycling capacity is projected to exceed 7,00,000 tonnes by the end of FY27 from the current 6,00,000 tonnes.

SAHI Perspective

CMR Green Tech's performance in Q1 FY27 reinforces the strong, structural transition toward recycled aluminium by automotive OEMs to fulfill decarbonization goals. Although EBITDA margins expanded at a slower rate than revenue (27.1% vs 64.92%), the massive volume scale-up and 25% target for the full year demonstrate high operational visibility. The ₹53 crore capital expenditure in Southern and Northern hubs further consolidates their leadership position.

Market Implications

The non-ferrous secondary metal sector is witnessing significant momentum as automotive OEMs shift to recycled metals to reduce emissions. CMR Green's rapid capacity expansion will likely capture additional market share, although near-term profitability remains tied to fluctuations in scrap sourcing costs and global aluminium pricing.

Trading Signals

Market Bias: Bullish

Strong Q1 FY27 volume growth of 25.2% coupled with a reconfirmed 25% full-year FY27 growth target supports a positive outlook. Capital expenditure of ₹53 crore provides visible capacity headroom to achieve these targets.

Overweight: Metals & Mining, Auto Ancillaries

Trigger Factors:

• Commissioning and ramp-up of the Shoolagiri and Bawal recycling plants in FY27.
• Monthly automotive volume updates, particularly from major clients Maruti Suzuki and Bajaj Auto.
• Global recycled aluminium scrap pricing trends.

Time Horizon: Medium-term (3-12 months)

Industry Context

India's non-ferrous secondary metal recycling industry is expanding due to rising demand for lightweight materials in electric vehicles. Recycled aluminium generates up to 95% less carbon emissions compared to primary smelting, making circular economy models attractive for automotive manufacturers who are CMR Green's primary clients.

Key Risks to Watch

• High customer concentration, with a significant portion of revenue dependent on key automotive OEMs.
• Fluctuations in global aluminium scrap prices which could compress EBITDA margins.
• Execution delays in commissioning the new Shoolagiri and Bawal facilities.

Recent Developments

In Q1 FY27, CMR Green Technologies invested ₹53 crore in expanding its capacities, focusing on new plants in Tamil Nadu and Haryana to serve EV manufacturers and northern markets. The company completed its IPO in June 2026, raising ₹631 crore and listing at a 43% premium.

Closing Insight

With a robust 25% volume growth target backed by structural recycling trends and aggressive capacity expansion, CMR Green Tech is well-positioned to capitalize on India's automotive and EV transition.

High Performance Trading with SAHI.