Baheti Recycling Industries Ltd. (BAHETI)
SME CapIndustrials stocks · SME cap · NSE
Baheti Recycling Industries Ltd. is a 7-decade-old Gujarat-based aluminum recycling business. Its core operations include alloy and deoxidant production. The company is expanding into higher-margin aluminum wire rod products and modernizing its furnace infrastructure for greener, more efficient operations.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 100/100Rev +84% YoY · PAT +350% YoY · margin expansion · +30% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹410 Cr | +83.9% | +30.2% |
| EBITDA | ₹40 Cr | +66.7% | +90.5% |
| Operating margin | 10.0% | +100 bps | +300 bps |
| PAT | ₹18 Cr | +350.0% | +100.0% |
| PAT margin | 4.4% | +27 bps | +153 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Baheti Recycling reported strong FY26 results with revenue up 38% YoY to 725 crores and profit up 50% YoY to 27 crores, driven by improved operational efficiency and margin expansion. The company is expanding capacity and entering the aluminum wire rod segment.
The company delivered robust FY26 growth, supported by new OEM client additions and strategic capacity expansion into higher-margin wire rods. While management is addressing historical negative operating cash flows and high inventory, sustained improvement in working capital efficiency is crucial for long-term thesis validation.
Revenue by Product
Latest issuer-disclosed distribution across 2 reported categories.
Aluminum Wire Rod Product Entry
Entering into aluminum wire rod, a higher margin product segment. Phase 1 targets 12,500 MTPA with 250 crores annual revenue potential, total 25,000 MTPA for 500 crores.
OEM Client Penetration
Added automotive clients like Bajaj Auto, TVS Motor, Royal Enfield directly to OEMs in H2 FY26. Targeting Maruti Suzuki, Hero Motors, Honda Motors, and Yamaha.
Capacity Expansion & Utilization Ramp-up
Commencing 5 new electrical furnaces in FY27, increasing total installed capacity to 38,000 tons annually. Plan to ramp up to full capacity utilization by FY28.
Government EPR Norms
EPR norms will be mandatory from FY28 (5%) and FY29 (10%), pushing demand for secondary aluminum in industries like cable conductors.
New Electrical Furnaces
5 new electrical furnaces are ready to commence in FY27, increasing total installed capacity to 38,000 tons annually.
Solar Plant Commissioning
Solar plant is on track and will be commenced by the end of May 2026.
Aluminum Wire Rod Plant (Phase 1)
Investing 25 crores to build Phase 1 (12,500 MTPA) on existing freehold land, targeting commissioning by end of October/early November FY27.
Additional Capacity in Existing Premises
Planning another 5000-7000 tons capacity addition in the same premises in H2 FY27.
Favorable Recycling Industry Environment
Global primary aluminum supply disruption, particularly from geopolitical tension, is pushing customers towards reliable secondary sources.
Government Policy Support for Sustainability
Government is pushing EPR norms and initiatives like JNARDCC, focusing on sustainability and cleaner aluminum.
Potential FTA Benefits
FTAs like India-UK could decrease manufacturing cost by 2.75% (basic custom duty plus educational sales cess) on 80% imported raw material.
Increased Cost of Production
Fuel prices increased cost of production by 15%, though it has been passed on to the selling price.
Domestic Scrap Availability & Cost
Domestic scrap is 7-8% more expensive and difficult to obtain in consistent quality and quantum; vehicle scrap policy implementation is slow.
Working Capital Management
Company has faced negative cash flow for the past 4 years, attributed to maintaining excess inventory and paying creditors upfront.
LME Price Volatility
While naturally hedged, a vertical fall in LME prices over 6-12 months could lead to losses, though management expects recovery in subsequent periods.
New Product Customer Approvals
Aluminum alloy wire rod and EC grade wire rod require a 3-month testing phase with new customers like Polycab, APAR, KEI, RR cable.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Financial results for FY26 are explicitly compared to the previous year (FY25) for revenue and profit, indicating that annual performance trends are most relevant for assessing growth and profitability.
Revenue
FY26 revenue rose to 725 crores, a significant increase compared to the previous year's 520 crores, growing approximately 38% year-on-year.
Profit
FY26 profit reached 27 crores, compared to 18 crores in the previous year, increasing by 50%.
EBITDA Margin
EBITDA margin in our industry is sustainable, anywhere between 7% to 10%. This year we did around 8%.
Order Book
Heading into FY27 with an order of Minimum 200 crores (excluding aluminum wire rod plant).
FY27 Revenue Target
Management is hopeful to reach somewhere around 4-digit (1000+ crores) revenue in FY27 from the existing plant, excluding aluminum wire rod.
FY28 Utilization Target
Plan to ramp up to full capacity utilization (38,000 tons) by FY28. Aluminum wire rod Phase 1 is expected to reach 70% utilization in FY28.
Working Capital Improvement
Expect substantial change in inventory levels in FY27 and FY28 by getting clarity from OEMs and utilizing 'build to ship to' facilities.
EBITDA Margin Outlook
Sustainable EBITDA margin of 7-10%. Expect 1-2% improvement from aluminum wire rod in FY28, potentially closer to 10% for the overall business.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth | FY26 revenue: 725 crores (38% YoY growth). | Achievement of FY27 target of 1000+ crores from existing plant, excluding wire rod contribution. |
| Working Capital Efficiency | Negative operating cash flow for 4 years due to high inventory and upfront creditor payments. | Reduction in inventory days and improvement in operating cash flow in FY27-FY28 as OEM relationships stabilize. |
| Wire Rod Project Execution & Ramp-up | Phase 1 commissioning by Oct/Nov FY27, initial 10-15% utilization for 3 months. | Timely commissioning, achievement of 70% utilization in FY28, and realization of expected margin improvement. |
| OEM Client Penetration | Recently started with trial lots to Bajaj Auto, TVS Motor, Royal Enfield. | Scaling up business with existing OEMs and securing approvals from targeted new OEMs (Maruti, Hero, Honda, Yamaha). |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
67Bullishfull bull SMA stack · SMA20 +13.3% / mo · MACD − · near 52W high
Technical chart
BAHETIdaily · 1Y · AUTO+46.7%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 69. Wait for confirmation.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~11.7% over last month) — short-term momentum positive.
- RSI(14) at 69 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 4% off 52W high · 77% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 49 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 49 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 18.2%.
- Quality contributes 19/20 to the score.
- Growth contributes 21/25 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Balance sheet is weaker at 3/15; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 35th percentile of the scored universe and 32nd percentile within Industrials. Main check: cash conversion is weak at 40/100.
Healthy Trust Lite: Promoter holding is 74.1%. Key concern: Operating cash flow is negative at ₹-36 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 32nd pctile, median 68 · SME: 41st pctile, median 64
8 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.1%.
- ▸Promoter pledge is zero.
- ▸ROCE is 21.7%.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Operating cash flow is negative at ₹-36 Cr.
- ▸Debt/equity is 2.46.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
- ▸OPM spread across recent quarters is 17%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 32.40
- P/B
- 9.37
- EV/EBITDA
- 17.28
- Market Cap
- 877.00Cr
Profitability
- ROE
- 35.40%
- ROCE
- 21.70%
- ROA
- 7.18%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 42.00%
- EPS 5Y
- 125.00%
- Revenue 3Y
- 27.00%
- EPS 3Y
- 72.00%
Balance Sheet
- Debt/Equity
- 2.46
- Interest Coverage
- 2.77×
- Altman Z
- 4.72
- Book Value
- 90.30
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- -36.00 Cr
- EPS TTM
- 26.10
Shareholding
- Promoter Hold
- 74.13%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 91%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.