Synopsis: Sunlite Recycling Industries has approved a Rs. 37 crore expansion to boost copper capacity and value-added products, aiming to strengthen margins, meet rising demand, and support long-term growth in FY2027–28.
Sunlite Recycling stock has delivered strong momentum, gaining nearly 174% over the past year. It trades near Rs. 452 with continued investor interest driven by strong financial performance and expansion visibility.
Sunlite Recycling stock has delivered strong momentum, gaining nearly 174% over the past year. It trades near Rs. 452 with continued investor interest driven by strong financial performance and expansion visibility.
What’s the News?
Sunlite Recycling Industries Limited has announced a Rs. 37 crore strategic capacity expansion plan aimed at scaling both its copper and value-added product segments.
The expansion will be undertaken through Sunlite Aluminium Private Limited (wholly owned subsidiary) along with upgrades in the parent company’s value-added product line. The project is expected to be completed by Q1 FY2027–28and will be funded through a combination of internal accruals and bank borrowings.
The total expansion includes two major components: a 20,000 MT increase in copper product capacity and a 1,000 MT expansion in value-added products, taking total copper capacity from 25,000 MT to 45,000 MT and value-added products from 2,540 MT to 3,540 MT.
The company currently operates at a high utilisation level of 93.61% in copper products, indicating strong existing demand and limited spare capacity, which justifies the expansion strategy.
Capacity Expansion Breakdown
The company is investing Rs. 24 crore to expand copper capacity, strengthening its recycled copper manufacturing base and supporting rising industrial and infrastructure demand across key end-use sectors.
Around Rs. 13 crore is allocated to value-added products, focusing on upgrading technology and shifting toward higher-margin items like oxygen-free copper rods and copper busbars, improving quality and profitability potential.
Sunlite will install advanced systems like Upcast and Conform extrusion technology. These will enhance efficiency and precision, enabling production of high-purity copper rods and busbars used in EVs and renewable energy systems.
The expansion marks a strategic shift toward a technology-driven model, improving efficiency, reducing bottlenecks, and increasing exposure to premium products while reducing reliance on commodity-grade copper manufacturing.
Financial Snapshot & Growth Momentum
Sunlite Recycling has a market cap of around Rs. 624 crore, with shares trading near Rs. 452 as of July 6, 2026. The stock has shown strong investor interest backed by consistent business performance and improving operational metrics.
The stock has delivered nearly 173.9% returns over the past year, driven by strong revenue growth, improving profitability, and efficient execution across its recycled copper manufacturing operations and value-added product segments.
Valuation remains reasonable with a P/E of around 15, while strong return ratios like ROE at 36.4% and ROCE at 46.5% highlight efficient capital deployment. The stock still trades below its 52-week high, leaving room for re-rating.
Growth remains strong with 46% sales expansion and improving scale efficiencies. Low debt levels of 0.07 debt-to-equity and 74.5% promoter holding reflect financial discipline, stability, and strong management confidence.
The Rs. 37 crore expansion reflects Sunlite Recycling’s shift toward higher-value, technology-driven copper products instead of just increasing capacity. With advanced technologies like Upcast and Conform, the company is targeting premium applications in EVs and renewable energy. Strong utilisation and demand support growth, with potential gains in margins and revenue visibility.
Company Overview
Sunlite Recycling Industries, founded in 2012, manufactures copper products from recycled scrap including rods, wires, and busbars. Based in Gujarat, it sources scrap globally and serves power, automotive, and infrastructure sectors. The company focuses on sustainable, value-added copper manufacturing with a growing presence in India’s industrial and clean energy ecosystem.
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