Nupur Recyclers Ltd Reports Strong Quarterly Upswing Amid Challenging Market Conditions

Feb 13 2026 11:01 AM IST
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Nupur Recyclers Ltd has delivered a notable turnaround in its financial performance for the quarter ended December 2025, registering its highest quarterly revenue and profit metrics in recent history. This positive shift contrasts with the company’s previous flat financial trend and comes amid a broader challenging environment for the non-ferrous metals sector.
Nupur Recyclers Ltd Reports Strong Quarterly Upswing Amid Challenging Market Conditions

Quarterly Financial Performance Surges

The December 2025 quarter marked a significant improvement for Nupur Recyclers, with net sales reaching a record ₹58.88 crores. This represents a substantial increase compared to the preceding quarters, reflecting both improved operational efficiency and favourable market conditions. The company’s Profit Before Depreciation, Interest and Tax (PBDIT) also hit a peak at ₹5.97 crores, underscoring enhanced profitability.

Operating profit margin, measured as operating profit to net sales, expanded to 10.14%, the highest in recent quarters. This margin expansion signals better cost control and pricing power, which is particularly commendable given the volatility in raw material prices typical of the non-ferrous metals industry.

Profit Before Tax (PBT) excluding other income stood at ₹4.04 crores, matching the highest level recorded by the company. Correspondingly, the Profit After Tax (PAT) also reached ₹4.04 crores, with Earnings Per Share (EPS) climbing to ₹0.58, the best quarterly figure to date. These metrics collectively indicate a robust operational turnaround and improved bottom-line health.

Financial Trend Shift: From Flat to Positive

MarketsMOJO’s financial trend parameter for Nupur Recyclers has shifted from flat to positive, with the score improving markedly from -1 three months ago to +14 in the latest quarter. This quantitative improvement reflects the company’s enhanced revenue growth and margin expansion, signalling a potential inflection point in its financial trajectory.

However, it is important to note that non-operating income accounted for 38.69% of the Profit Before Tax, indicating a significant contribution from sources outside core operations. While this boosts profitability in the short term, investors should monitor the sustainability of such income streams going forward.

Stock Price and Market Performance

Despite the strong quarterly results, Nupur Recyclers’ stock price closed at ₹54.43 on 13 Feb 2026, down 1.18% from the previous close of ₹55.08. The stock traded within a range of ₹53.91 to ₹56.49 during the day. Over the past 52 weeks, the share price has fluctuated between ₹48.80 and ₹94.00, reflecting significant volatility.

When compared to the broader market, the stock’s returns have lagged considerably. Year-to-date, Nupur Recyclers has declined by 3.97%, underperforming the Sensex’s 2.10% loss. Over the last one year, the stock has plunged 37.47%, while the Sensex gained 11.07%. The three-year performance also shows a negative return of 30.84% against the Sensex’s robust 43.95% gain. This underperformance highlights the challenges faced by the company and the sector at large.

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Sector Context and Industry Challenges

Nupur Recyclers operates within the non-ferrous metals sector, a segment known for cyclical demand and price fluctuations influenced by global commodity trends. The recent quarter’s positive performance is encouraging, especially as many peers continue to face margin pressures due to rising input costs and subdued demand in certain end markets.

The company’s ability to expand operating margins to over 10% is a notable achievement in this context. However, the reliance on non-operating income to bolster profits warrants caution. Investors should watch for consistent core earnings growth to confirm a sustainable recovery.

Mojo Score and Rating Update

MarketsMOJO has downgraded Nupur Recyclers from a Hold to a Sell rating as of 9 June 2025, reflecting concerns over the company’s longer-term fundamentals despite the recent quarterly improvement. The current Mojo Score stands at 40.0, indicating a cautious stance. The Market Cap Grade is 4, suggesting a relatively small market capitalisation and associated liquidity considerations.

This rating downgrade underscores the need for investors to weigh the recent positive quarterly results against the company’s historical underperformance and sector headwinds.

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Investor Takeaway and Outlook

While Nupur Recyclers’ latest quarterly results demonstrate a clear improvement in revenue and profitability metrics, the company’s longer-term performance remains under pressure. The positive financial trend shift is a welcome development, but the significant contribution of non-operating income to profits and the stock’s persistent underperformance relative to the Sensex suggest that caution is warranted.

Investors should monitor upcoming quarters for sustained core earnings growth and margin stability before considering a more optimistic stance. The current Mojo Sell rating and modest market capitalisation imply that the stock may remain volatile and sensitive to sector dynamics.

In summary, Nupur Recyclers has taken a meaningful step towards recovery, but the path ahead requires careful scrutiny of operational consistency and market conditions.

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