Gravita India (GRAVITA) Q1 26/27 earnings summary

Executive summary

• Achieved 42% year-over-year revenue growth, 29% EBITDA growth, and 14% PAT growth in Q1 FY27, driven by capacity additions, operational excellence, value-added product mix, and copper diversification, despite global geopolitical uncertainties and supply chain disruptions.

• Expanded Phagi lead recycling capacity to 75,819 MTPA, commissioned a pilot lithium-ion battery recycling project, and consolidated Kathua operations into Jaipur for efficiency.

• Acquired RMIL, marking entry into copper recycling and strengthening the non-lead portfolio.

• Achieved London Metal Exchange (LME) brand listing for lead metal, enhancing global credibility and OEM access.

• Consolidated revenue from operations for Q1 FY27 was ₹1,475.06 crore, up from ₹1,039.94 crore in Q1 FY26.

Financial highlights

• Q1 FY27 revenue: INR 1,475 crore, up 42% year-over-year; EBITDA: INR 145 crore (9.8% margin); PAT: INR 106.39 crore (7.2% margin).

• Total volumes: 55,455 MTPA, up 4% year-over-year.

• Copper segment contributed INR 376 crore in revenue at 50% capacity utilization.

• Lead segment contributed ₹954.75 crore in revenue and ₹109.51 crore in segment results for Q1 FY27.

• 5-year revenue CAGR of 25% and PAT CAGR of 48%.

Outlook and guidance

• Vision 2030 targets 20-25% volume CAGR, 30-35% profitability growth, and sustained ROIC of ~25%, supported by capacity expansions and business diversification.

• Copper segment EBITDA per ton expected to rise from INR 55,000 to INR 70,000-75,000 over 2-3 years as capacity ramps up and backward integration is achieved.

• Group-wide capacity utilization targeted at 70% as supply chain normalizes.

• Management expects no material impact from the closure of Gravita Metal Inc. and Recyclers South Africa (PTY) Ltd, as similar operations continue elsewhere in the group.

• ROCE/ROIC expected to improve to 25%+ over the next three years as copper and lead capacities are fully utilized.