3 ‘urban mining’ stocks to watch as India’s $21 billion recycling boom takes off

The $21 Billion Opportunity: Why India is Turning to ‘Urban Mining

This article takes that conversation forward. Because the opportunity is now scaling into a meaningful economic engine. Kotakneo estimates that India’s metal recycling industry revenue will reach $21.4 billion (around ₹2 lakh crore) by 2030, up from $14 billion in 2024.

The role of recycling is key as domestic demand for metals, particularly from infrastructure and electric vehicles, continues to outpace primary supply. Consequently, recycling is fast becoming a strategic necessity within the broader industrial supply chain.

Recycling Industry Tailwind

Policy tailwind is further accelerating this transition. Upcoming mandates requiring 10-25% minimum recycled content by FY31, along with the vehicle scrappage policy, are expected to unlock incremental demand. These shifts disproportionately benefit organised corporate players with the ability to scale, comply, and integrate operations.

Against this backdrop, this article examines three recycling stocks positioning themselves to capture this emerging opportunity.

#1 Jain Resources: The ‘L&T of recycling’ with 4 mega-projects and 50% growth target

Jain Resource Recycling is one of India’s largest and fastest-growing non-ferrous metal recycling companies. The company extracts and recycles copper, lead, aluminium, tin, antimony, and plastics from scrap materials. The company’s combined actual production capacity currently stands at over 1.7 lakh metric tons per annum (MTPA).

The business upholds a strict “zero waste, zero landfill, zero burning” philosophy, relying on environmentally friendly green fuels. A key strength of the business is its deep global footprint, supported by a network that sources raw materials from over 120 countries while exporting finished metal products to more than 20 countries.

4 Expansion Projects Targeting High-Margin Copper Products

To ensure future scale, the company is aggressively executing four major capacity expansion projects aimed at both volume and profitability. First, it is establishing a forward integration project to manufacture high-margin, value-added copper products, including anodes, cathodes, wire rods, and busbars.

Why the Jain-C&Y Venture Matters

Copper anode (1,600 MT) plant commissioning is expected by Q1FY27 and cathodes (1,500 MT) by Q3FY27. Second, the company formed a joint venture with the US-based C&Y Group to establish a copper scrap recycling facility in Ahmedabad. C&Y is a large entity in the US that operates 11-12 scrap yards, giving Jain a massive raw-material sourcing network.

Securing Global Supply: Kuwaiti Stakes and Antimony Extraction

The planned facility will boast a massive annual processing capacity of 72,000 metric tons (MT) of scrap material. This plant will output roughly 25,000 MTPA of processed copper starting in June 2026. Third, to secure raw materials, it acquired a 25% equity stake in a Kuwait-based plant capable of processing 2,000 tons of battery scrap per month by Q3 FY27.

Capacity Expansion Roadmap

Finally, it is deploying niche technology to extract 100 MT of valuable antimony per month from lead bullion, with the deployment slated for Q3FY27.

Profitability Outlook: Sustaining 50% Growth and Expanding Margins

The long-term business outlook remains highly positive. Management is confident in sustaining its historical growth rate of 40% to 50% year-on-year, propelled by these four new operational verticals coming online next year.

Strategically, the value-added copper and new antimony extraction projects could increase the company’s margins by up to 1%. The working capital cycle is also expected to normalise to 60-65 days, down from 82 days, due to bulk inventory purchases. This could allow the company to translate up to 50% of its net profit into surplus free cash flow by March.

9MFY26 Financials: 65% Profit Surge on Record ₹6,438 Crore Revenue

Reflecting this strategic momentum, the company posted exceptional financials in 9MFY26. Consolidated revenue grew by approximately 38% year-on-year to ₹6,438 crore, driven largely by a 29% surge in underlying volumes. EBITDA grew 65% to ₹449 crore, with margins at 7.0%. Furthermore, net profit grew by 65% to Rs. 281 crore.

#2 Gravita’s Vision 2029: A ₹1,500-Cr Bet on Capacity and High-Margin Segments

Gravita India is a leading recycling company specializing in the recovery and manufacturing of non-ferrous metals, primarily lead, aluminum, and plastics. It operates a network of 13 facilities across Asia, Africa, and Europe.

Gravita processes scrap into secondary metals, customized alloys, and various value-added products. It has recently ventured into rubber recycling. Currently, the company has an installed recycling capacity of approximately 3,40,000 MTPA. By material, lead recycling dominates the revenue mix, accounting for 88% of revenue.

Revenue Mix: Shifting Focus from Lead to High-Margin Aluminium

The remaining (12%) comes from non-lead business, including Aluminium (9%), Plastics, Rubber, and Turnkey Solutions. Aluminium recycling is Gravita’s fastest-growing vertical. It is shifting its strategic focus to improve margins and sustainability.

Gravita Vision 2029

By product complexity, Value-Added Products (VAP) account for 46% of sales. It manufactures Value-Added Lead products, such as specific lead alloys, red lead, lead suboxide, litharge, lead sheets, and lead powder. It aims to increase the revenue contribution of VAP to over 50% ( and non-lead businesses to above 30% by 2029.

₹1,500-Crore Capex: Scaling Capacity to 7,00,000 MTPA

To support this future growth, Gravita has charted an aggressive expansion plan backed by an earmarked capital expenditure of around ₹1,225-1,500 crore through FY28. The core objective of this expansion is to scale up the company’s total recycling capacity to over 7,03,659 MTPA by FY28.

Gravita’s Capacity Expansion

Of this, the 125,000 MTPA lead processing plant is targeted for completion by Q4FY26. While a major portion of the CAPEX will strengthen existing operations, the company also aims to penetrate new, high-potential recycling verticals, including lithium-ion batteries, paper, and steel.

Target 2029: The Roadmap for 25% CAGR and 50% Value-Added Sales

The company’s long-term outlook is anchored by its ambitious “Vision 2029,” aiming to position Gravita among the top five global recycling companies. Management is targeting a sustained volume Compound Annual Growth Rate of over 25%, profitability growth exceeding 35%, and a Return on Invested Capital of over 25%.

Gravita delivered strong financial results in 9MFY26, demonstrating steady progress across its operational metrics. The company’s revenue grew 9% to ₹3,093 crore, driven by a 5% increase in volume. However, operating profit rose by 39% to ₹323 crore, while margin expanded by 220 bps to 10.4%. Net profit increased by 31% to ₹286 crore.

#3 Pondy Oxides & Chemicals: The LME-registered ‘Lead King’

Pondy Oxides (POCL) is a leading Indian recycling company specializing in non-ferrous metals. POCL recycles industrial scrap and end-of-life products to manufacture industry-grade VAP, such as lead alloys, copper, aluminium alloys, and plastic granules for diverse industrial applications.

Pondy’s Capacity

Notably, POCL is India’s first 3N7 LME-Registered Lead Brand. The company currently boasts a robust total lead recycling capacity of 204,000 MTPA. To fuel its next phase of growth, POCL has a strategic expansion plan centered on backward integration and portfolio diversification. It is also doubling its copper capacity to 12,000 MTPA by early 2026.

Strategic Pivot: Reducing Lead Concentration to 65% by FY27

POCL’s revenue mix is heavily concentrated in its core metal, with lead accounting for over 95% of revenues. Management anticipates that as new capacities in copper, aluminium, and plastics ramp up, lead’s contribution to the overall revenue mix will taper down to a more balanced 65% to 70% by FY27.

It is expanding its lead and copper businesses to leverage proximity to global markets by H2FY27. The company is also actively exploring new, high-growth verticals, including lithium-ion battery, rubber, and e-waste recycling. Like Gravita, POCL also aims to increase VAP’s revenue contribution to over 60% in the coming years.

Target 2030: The Roadmap for 20% CAGR and 60% Value-Added Sales

POCL’s business outlook is guided by its “Target 2030” vision, which projects a revenue CAGR of over 20% and sustained volume growth above 15%. Operationally, the company aims to maintain EBITDA margins above 8%, achieve a Return on Capital Employed (ROCE) exceeding 20%, and increase the revenue share of value-added products to over 60%.

Pondy’s Target 2030

Record Performance: 114% Net Profit Surge in 9MFY26

POCL delivered its highest-ever financial performance in 9MFY26, driven by improved capacity utilization and higher sales volumes in both the lead and copper segments. The company achieved net revenue growth of 33% to ₹2,007 crore. EBITDA surged by 96% to ₹157 crore, while margins expanded to 7.8%. Net Profit surged 114% to ₹101 crore.

Valuation View: Assessing the ‘Quality Premium’ in a High-Growth Sector

Jain Resources stands out with strong Return on Capital Employed and Return on Equity, followed by Gravita and POCL. Perhaps this is why, despite its brief trading history, Jain trades at a higher premium multiple than its competitors.

On the other hand, both Gravita and Pondy Oxides trade at a premium to their 5-year median EV/EBITDA multiples and also the industry median.

Peer Comparison (X)
Company	EV/EBITDA			Return Ratios
	Company	5-Yr Median	Industry Median	ROCE (%)	ROE (%)
Jain Resource	25.7	NA	19.5	27.2	39.0
Gravita	23.8	18.7	17.6	21.5	21.2
Pondy Oxides	20.1	10.2	19.5	16.9	13.7
source: screener.in (As of 17 April 2026)

India’s recycling opportunity is already visible in the numbers. The market stands at $14 billion today and is projected to reach $21.4 billion by 2030, supported by 10-25% recycled-content mandates by FY31. As demand continues to outpace primary supply, execution will separate winners.

Jain, Gravita, and POCL are scaling capacity, improving margins, and integrating operations to capture this shift. They could be the prime beneficiary of the industry tailwind. Meanwhile, keep them in your watchlist.

Disclaimer:

Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted, and widely used source of information.

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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