Synopsis: India’s metal recycling sector is emerging as one of the country’s fastest-growing policy-backed industries. With a ₹9,585 crore vehicle scrappage scheme, stricter EPR regulations, and rising EV battery waste, the industry is entering a major growth phase.
India is rapidly shifting toward circular manufacturing as policies like the Vehicle Scrappage Policy, EPR mandates for batteries and electronics, and customs duty cuts on 12 critical minerals make scrap recovery increasingly profitable. This has put the formal recycling industry, valued at $14 billion in FY24, on track to surpass $21 billion by 2030.
An end-of-life vehicle still contains nearly 800 – 900 kg of valuable materials like steel, aluminum, copper, and lithium-ion batteries. In unorganized recycling channels, much of this value is lost, while organized facilities can recover and reuse these materials efficiently at far lower energy costs than fresh mining.
Why the Business Is Highly Profitable
Gravita India Ltd
Gravita India has transformed itself from a local lead smelter into a global recycling leader. The company now operates 11 advanced facilities focused on recycling lead, aluminium, plastic, rubber, and copper. With exports reaching more than 38 countries, Gravita has built a strong international presence that distinguishes it from most Indian mid-cap companies.
Its business model focuses on converting industrial waste, aluminium scrap, and used batteries into certified and traceable raw materials for manufacturers. Alongside this core recycling business, Gravita also operates an Extended Producer Responsibility (EPR) consulting division, helping major brands comply with India’s environmental regulations while generating a steady stream of recurring advisory revenue. In FY26, the company reported strong financial performance with revenue of ₹4,265 crore and a 21% rise in net profit to ₹378 crore.
Looking ahead, Gravita has set disciplined growth targets, aiming for 20 – 25% volume CAGR and 30 – 35% profit growth while maintaining a strong Return on Invested Capital (ROIC) of around 25%. Growth plans include a new copper recycling facility in Gujarat, expansion into steel recycling, and sustainability initiatives targeting a 25 – 30% renewable power mix.
Supported by these long-term expansion strategies, analysts remain optimistic on the stock, with a median long-term price target of ₹3,032, while the company currently holds a market capitalization of ₹12,531.20 crore and trades at ₹1,697.80 per share.
MSTC Ltd
MSTC Limited, a Government of India enterprise operating under the Ministry of Steel, plays a critical role as the country’s designated agency for regulating and channeling ferrous scrap. Founded in 1964 to manage scrap exports, the company has successfully transformed itself into a modern e-commerce and recycling leader. Today, MSTC runs India’s largest digital auction platform, enabling transparent sales of industrial scrap, surplus equipment, minerals, and end-of-life materials.
One of the company’s biggest growth drivers is its vehicle scrappage business through CERO, its joint venture with Mahindra Accelo. As India’s first government-authorized vehicle recycling network, CERO operates across several major cities and is expanding aggressively to strengthen domestic supply chains by converting old vehicles into certified steel scrap for local mills.
The segment is strongly supported by government policy, with investor sentiment turning sharply positive after the launch of India’s ₹9,585 crore vehicle scrappage incentive scheme, which pushed MSTC shares up 14% in a single trading session.
Financially, MSTC has maintained solid momentum with steady quarterly revenue growth, reaching nearly ₹150 crore per quarter by early 2026. This consistent performance supported a final dividend declaration of ₹8.10 per share for FY26. Reflecting its stable financial position, the company currently has a market capitalization of ₹4,643.58 crore, with shares trading at ₹659.60, a P/E ratio of 21.16, and the stock remaining close to its 52-week high of ₹724.40.
Jain Resource Recycling Ltd
Jain Resource Recycling has grown rapidly from a specialized regional recycler into a major player in the non-ferrous metal recycling industry. The company, along with its subsidiaries, operates an integrated recycling and refining business focused on lead, copper, and aluminum alloys.
A major milestone for the company has been securing London Metal Exchange (LME) registration for its lead ingots, reflecting international quality standards. This gives Jain Resource the advantage of premium pricing and smoother access to global commodity markets.
Its business model is supported by a large domestic and international sourcing network that feeds scrap metal into highly efficient processing facilities. By operating across multiple high-demand metal segments, the company reduces dependence on any single commodity while strengthening its position in industrial supply chains.
Financially, Jain Resource has delivered exceptional growth, with revenue compounding at 46% over the last three years to reach ₹9,543 crore in FY26, while net profit stood at ₹347 crore. With strong return ratios of 30.8% ROE and 25.5% ROCE, a market cap of ₹12,404.11 crore, share price of ₹359.45, and fresh capital from its ₹1,250 crore IPO, market sentiment remains positive as the company expands into new copper recycling projects.
CMR Green Technologies Ltd
CMR Green Technologies is India’s leading pure-play company in automotive aluminum recycling, playing a key role in transforming how the auto sector sources raw materials. The company operates advanced recycling plants that convert aluminum scrap into high-grade alloy ingots and liquid metal for industrial use.
One of CMR’s biggest strengths is its innovative supply model, where molten aluminum is delivered directly to auto component manufacturers through specialized insulated tankers. This removes the need for clients to re-melt aluminum, making CMR deeply integrated into the supply chains of India’s leading automobile manufacturers.
The business benefits from a strong environmental and cost advantage, as recycled aluminum requires only 5% of the energy needed for fresh bauxite mining. This makes CMR an important partner for ESG-focused OEMs, while promoter holding of 84% reflects strong confidence from insiders.
Financially, CMR Green Tech has shown steady growth, reporting ₹6,666 crore in sales and an operating profit of ₹302 crore in FY25. Following its main-board stock exchange listing in June 2026, the company now holds a market capitalization of ₹5,460.18 crore, with shares currently trading at ₹249.26. With a ROCE of 12.4% and fresh capital being used to expand its recycling network, investor interest remains strong ahead of its FY26 financial release.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
