IPO closes on 5 Jun'26
CMR Green Technologies Ltd
Minimum Investment
₹ 14,976 / 78 shares
Our Verdict:
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- CMR Green Technologies Ltd (CMR) is a market leader in India’s secondary aluminium industry, with the highest market share and an installed capacity nearly four times that of its nearest domestic competitor.
- While the company has delivered steady revenue growth, its bottom-line performance has been inconsistent. FY24 was impacted by a reported net loss, but profitability recovered meaningfully in FY25 and remained strong in 9MFY26.
- From a valuation perspective, the IPO appears reasonably priced at a P/E of 29.5x based on FY25 earnings, which is at a discount to the broader industry average.
- CMR is also well positioned to benefit from structural industry tailwinds. The Government’s Vehicle Scrappage Policy and the Extended Producer Responsibility (EPR) mandates for non-ferrous metals, effective from April 2026, are expected to push the industry toward organised and compliant recyclers. This could support a gradual market-share shift from fragmented unorganised players to institutional companies like CMR.
- CMR’s leadership position, large-scale capacity, strong customer relationships and exposure to India’s EV theme make it well placed to capture long-term volume growth in aluminium recycling.
- While earnings volatility and cash-flow concerns remain key monitorables, CMR’s market leadership, reasonable valuation and favourable industry outlook support a positive view.
About the company
Founded in
23 Aug'05
Managing director
Mohan Agarwal
- CMR is a leading non-ferrous metal recycler, converting metal scrap into recycled aluminium alloys in ingot and liquid form. Its portfolio also includes aluminium billets, zinc alloy ingots, dross and furnace-ready scrap of stainless steel, copper, brass, zinc, lead, magnesium and other metals.
- CMR serves automotive OEMs, Tier-1 suppliers and foundries as a critical B2B supply-chain partner, helping them maintain a steady supply of casting alloys.
- CMR holds around 42–45% market share by volume in India’s automotive cast alloy segment and is a key supplier of recycled liquid aluminium.
STRENGTHS
- Market Leadership: CMR is among the largest aluminium recycling companies globally by installed capacity and has the highest market share in India’s secondary aluminium market by revenue in FY25.
- Large-Scale Advantage: With a combined installed capacity of approximately 6,15,150 MTPA across 13 strategically located recycling facilities, CMR’s capacity is nearly four times that of its nearest domestic competitor. This gives the company significant scale benefits, stronger procurement leverage and better ability to service large customers.
- Strong Customer Stickiness: CMR enjoys a highly sticky customer base, with repeat customers contributing around 96% of revenue during 9MFY26. Its relationships with the top five customers span 16 to over 19 years, highlighting consistent execution, product quality and long-standing customer trust.
- Japanese Strategic Alliances: CMR is differentiated from domestic peers through its technical and equity joint ventures with leading Japanese companies, including Toyota Tsusho Corporation, Nikkei MC Aluminium and Nippon Light Metal. These partnerships provide access to advanced casting technologies and strengthen CMR’s position with Japanese automakers operating in India.
- Steady Top-Line Growth: Although bottom-line performance has been inconsistent, CMR has delivered steady revenue growth, with revenue increasing at a CAGR of ~7% between FY23 and FY25.
- Strong Unit Economics: CMR has shown improving pricing power and operational efficiency, with EBITDA per MT expanding from ₹6,908 in FY24 to ₹10,552 in 9MFY26. This improvement in per-unit profitability helped drive absolute EBITDA to a record ₹324.44 crore in 9MFY26.
RISK FACTORS
- Inconsistent Earnings: While CMR has delivered steady top-line growth, its bottom-line performance has been uneven, including a reported loss of ₹838 crore in FY24 due to a goodwill write-off of ₹1,240 crore. However, the business remained operationally cash-generative, with PAT rebounding to ₹155 crore in FY25 and further to ₹162 crore in 9MFY26.
- Client Concentration: CMR derives a meaningful share of revenue from a limited customer base. In 9MFY26, the top three customers contributed 21% of revenue, while the top five customers contributed 32.5%. Any loss or reduction in business from key customers could adversely impact revenue, profitability, cash flows and overall business performance.
- Cash Flow Concerns: CMR reported negative operating cash flows in both FY25 and 9MFY26. If this trend continues, it could affect working-capital flexibility, operational stability and the company’s ability to fund future growth efficiently.
- Supply Chain Dependency: India remains structurally short of high-quality metal scrap, making CMR dependent on imports for raw materials. In FY25, imported raw materials formed 73.15% of total procurement. However, this risk is partly diversified, as the company sources from 198 suppliers across 73 countries, reducing exposure to any single geography or supplier.
- Commodity Price Volatility: CMR operates in a thin-spread recycling business, making profitability sensitive to London Metal Exchange aluminium price movements, scrap price fluctuations and foreign-exchange volatility.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 631 crore
Fresh Issue
₹ -
OFS
₹ 631 crore
Price range
₹ 182 - 192
Lot size
78 shares
Issue Objective
This is a pure Offer for Sale (OFS), which means the company will not receive any proceeds from the offer, and all proceeds will go to the Selling Shareholders.
Dates
Bidding open
3 Jun'26
Bidding close
5 Jun'26
Allotment date
8 Jun'26
Refund date
9 Jun'26
Listing
10 Jun'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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