CMR Green Technologies Limited is one of the largest aluminium recycling companies in India and among the largest globally by installed recycling capacity. Incorporated in 2005 and renamed following a merger in 2021, the company focuses on recycling and processing non-ferrous metals including aluminium, zinc, copper, brass, lead and magnesium.
The company manufactures recycled aluminium alloys in both ingot and liquid form, zinc alloy ingots, dross and segregated furnace-ready scrap. It serves some of India's largest automotive manufacturers including Maruti Suzuki, Honda, Bajaj Auto, Hero MotoCorp and Royal Enfield.
Why is the Company Important?
Aluminium recycling is becoming increasingly important because recycled aluminium requires significantly lower energy than primary aluminium production. As India moves toward sustainability, decarbonisation and circular economy practices, recycling businesses are expected to play a larger role in industrial supply chains.
CMR Green Technologies has built a strong competitive position through capacity leadership, diversified sourcing, long-term customer relationships and technology partnerships.
Industry Overview
The Indian secondary aluminium industry is expected to benefit from rising consumption of aluminium across automotive, infrastructure, engineering and industrial applications. According to the analyst note, recycled aluminium penetration is expected to increase from approximately 41% currently to around 45% by FY2030.
The broader recycled aluminium market is expected to grow at a CAGR of approximately 13.2% and reach around 3.71 million metric tonnes. These industry trends support the long-term growth outlook for organised recyclers.
Business Model
CMR procures metal scrap from domestic and international sources and converts it into value-added products. The company operates through a network of strategically located facilities that allow efficient sourcing, processing and distribution.
Its business benefits from:
Large installed capacity
Strong OEM relationships
Global sourcing network
Patented liquid aluminium delivery technology
Japanese joint venture partnerships
Long operating history
Production Footprint
The company operates 13 recycling facilities across India with a combined production capacity of approximately 615,150 MTPA. This scale provides significant advantages in procurement, logistics and customer servicing.
Management claims capacity approximately four times larger than the nearest domestic competitor, creating meaningful entry barriers.
Customer Base
The company serves major automotive OEMs and Tier-1 suppliers. Automotive customers contribute roughly 83% of total revenue. This demonstrates strong industry acceptance but also highlights concentration risk.
Financial Performance Analysis
Revenue Performance
Revenue from operations stood at approximately ₹6,665 crore in FY2025 while revenue for the first nine months of FY2026 reached approximately ₹6,276 crore. The company's long-term revenue CAGR from FY2007 to FY2025 is approximately 23%, indicating strong historical growth.
Profitability Trends
EBITDA improved from approximately ₹207 crore in FY2023 to ₹304 crore in FY2025. This demonstrates improving operating performance and benefits from scale expansion.
Profit after tax recovered to ₹155 crore in FY2025 after a one-time goodwill impairment distorted FY2024 earnings. The annualised run-rate based on nine months FY2026 numbers suggests PAT of roughly ₹216 crore.
Return Ratios
RONW improved sharply to around 31% in FY2025 compared with approximately 8% in FY2023. This indicates significantly improved shareholder returns.
Balance Sheet Position
The company reported a Net Debt to Equity ratio of approximately 0.58x. While leverage appears manageable, future expansion funding may require internal accruals and incremental borrowing due to the OFS nature of the IPO.
Objects of the Issue
The issue has two primary objectives:
Offer for Sale of up to 3.28 crore equity shares by existing shareholders.
Achieve listing benefits on stock exchanges.
Importantly, the company will not receive any proceeds from the issue.
Key Investment Positives
Market leadership position.
Largest installed capacity among domestic peers.
Strong automotive customer relationships.
Patented liquid aluminium delivery capability.
Diversified global sourcing network.
Favourable industry outlook.
Improving profitability metrics.
Strong return ratios.
Strategic Japanese technology partnerships.
Key Risks
IPO is entirely an OFS.
No fresh capital enters the business.
Heavy dependence on automotive sector.
Thin operating margins.
Commodity price sensitivity.
Growth funding may depend on debt or internal accruals.
Bull Case vs Bear Case
| Bull Case | Bear Case |
|---|
| Industry leader with scale advantage. | Thin margins typical of processing businesses. |
| Strong growth outlook for recycling sector. | High dependence on automotive demand. |
| Improving profitability. | No fresh funds raised through IPO. |
| Strategic partnerships. | Investor exit may concern some investors. |
Who Should Consider This IPO?
Long-term investors interested in sustainability, recycling, circular economy themes and industrial growth opportunities may evaluate the issue. Investors seeking exposure to aluminium recycling may find the company strategically positioned.
Who Should Be Cautious?
Investors seeking strong margin businesses, substantial fresh capital infusion or lower sector concentration risk may wish to approach the issue conservatively.
IPO Timeline
| Event | Date |
|---|
| Issue Opens | 3 June 2026 |
| Issue Closes | 5 June 2026 |
| Basis of Allotment | 8 June 2026 |
| Refunds / ASBA Release | 9 June 2026 |
| Demat Credit | 9 June 2026 |
| Listing | 10 June 2026 |
Final View
CMR Green Technologies represents a unique play on India's growing recycling economy. The company enjoys market leadership, a strong customer franchise, diversified sourcing and improving profitability. Industry trends remain favourable and management has built a sizeable competitive moat.
Nevertheless, investors should recognise that the IPO is a pure OFS, meaning no capital is being raised for expansion. Margin profile remains modest and automotive concentration risk exists. Balancing these factors, the overall investment view remains cautious.
Frequently Asked Questions (FAQs)
What does CMR Green Technologies do?
The company recycles non-ferrous metals and manufactures recycled aluminium and zinc alloy products.
What is the IPO price band?
₹182 to ₹192 per share.
What is the lot size?
78 Shares & in Multiples thereafter
Will the company receive money from the IPO?
No. The IPO is entirely an Offer For Sale.
