SUNLITE - Sunlite

📊 NSE: SUNLITE 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 13:52

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 76% YoY in H1 FY26 to INR 1,102.23 Cr. The copper rod segment remains the primary driver, while the newly acquired Sunlite Aluminium Private Limited (SAPL) contributed INR 139.62 Cr in FY25.

Geographic Revenue Split

Sunlite has established a footprint across 10+ Indian states and Union Territories. Specific % split per region is not disclosed.

Profitability Margins

Operating Profit Margin was 1.59% in FY25 (up from 1.42% in FY24). H1 FY26 PAT margin improved to 1.28% from 1.11% YoY, driven by operational efficiencies and higher capacity utilization.

EBITDA Margin

EBITDA margin for H1 FY26 was 1.95%, reflecting an 8 bps YoY expansion. EBITDA grew 83% YoY to INR 21.9 Cr.

Capital Expenditure

Property, Plant, and Equipment (PPE) stood at INR 18.28 Cr in H1 FY26, up from INR 14.84 Cr in FY25. Planned CapEx includes a new copper cathode plant expected to be operational by mid-to-late FY27.

Credit Rating & Borrowing

Finance costs were INR 3.06 Cr in FY25. The company utilizes a 7% interest subsidy through its subsidiary SAPL to lower overall borrowing costs.

⚙️ Operational Drivers

Raw Materials

Copper scrap (recycled) is the primary raw material, with cost of materials consumed representing approximately 94% of total revenue (INR 131.43 Cr in FY25).

Import Sources

Raw materials are sourced from the domestic Indian market and imported from Saudi Arabia, UAE, and the USA.

Key Suppliers

Not specifically named in the documents; sourcing is diversified across domestic and international scrap markets.

Capacity Expansion

Current copper rod smelting capacity is 25,000 MTPA. Capacity was expanded 1.5x in August 2025. Copper busbar utilization is currently 25-30%, with a target to reach 70%.

Raw Material Costs

Raw material costs were INR 131.43 Cr in FY25, a 19% increase from INR 110.51 Cr in FY24, tracking revenue growth.

Manufacturing Efficiency

Capacity utilization for copper rods is high (92%), while busbar utilization is being scaled from 18-30% toward 70% to capture higher value-added margins.

Logistics & Distribution

The combined setup with SAPL enables shared logistics and optimized manufacturing to serve power and transmission sector customers more efficiently.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be achieved through forward integration into value-added products like busbars and wires, the acquisition of Sunlite Aluminium (SAPL) to leverage a 15% tax rate and SGST reimbursements, and the commissioning of a copper cathode plant by FY27 to capture more of the value chain.

Products & Services

Copper rods, copper wires, copper cables, copper busbars, and Annealed Tinned Copper (ATC) products.

Brand Portfolio

Sunlite

New Products/Services

Forward integration into value-added wires and busbars is expected to improve PAT margins from the current 1.28% toward higher levels as utilization reaches 70%.

Market Expansion

Expanding deeper into the power and transmission sectors through the SAPL subsidiary and targeting a revenue of INR 3,000 - 3,500 Cr by FY27.

Market Share & Ranking

One of the largest copper recycling facilities in Western India with 25,000 MTPA capacity.

Strategic Alliances

Acquisition of Sunlite Aluminium Private Limited (SAPL) as a subsidiary to simplify corporate structure and gain tax incentives.

🌍 External Factors

Industry Trends

The industry is shifting toward recycling to meet sustainability goals. Infrastructure growth (40% of demand) and power sector expansion (11-13% of demand) are key drivers for Sunlite's 25,000 MTPA capacity.

Competitive Landscape

Competes with other secondary copper producers in Western India; positioning is strengthened by integrated aluminium and copper platforms.

Competitive Moat

Moat is built on scale (largest in Western India) and a cost-efficient recycling model. Sustainability is enhanced by the 15% corporate tax rate and 10-year SGST reimbursement for the aluminium subsidiary.

Macro Economic Sensitivity

Highly sensitive to infrastructure and construction demand, which consumes 40% of domestic copper.

Consumer Behavior

Increasing demand for recycled copper in the automotive and electronic sectors due to ESG mandates.

Geopolitical Risks

Trade barriers or supply chain disruptions in Saudi Arabia, UAE, or the USA could impact scrap availability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (LODR) Regulations, though SME listing exempts them from certain Corporate Governance Report filings (Regulation 27(2)).

Environmental Compliance

As a recycling-focused entity, the company must adhere to pollution control board norms for smelting, though specific ESG costs are not disclosed.

Taxation Policy Impact

The company benefits from a 15% corporate tax rate and 100% net SGST reimbursement for 10 years through its Sunlite Aluminium subsidiary.

Legal Contingencies

Auditors reported no material legal contingencies or misstatements in the FY25 financial statements.

⚠️ Risk Analysis

Key Uncertainties

Volatility in copper scrap prices (94% of costs) and the successful ramp-up of the copper cathode plant by FY27.

Geographic Concentration Risk

Operations are concentrated in Kheda, Gujarat, though sales span 10+ states.

Third Party Dependencies

50% revenue dependency on the top 20 customers creates concentration risk.

Technology Obsolescence Risk

The shift toward high-purity cathode production is a necessary digital/technical transformation to maintain competitiveness against primary producers.