Gravita India (GRAVITA) Q2 24/25 earnings summary

Executive summary

• Delivered strong financial and operational performance in Q2 and H1 FY25, with significant year-over-year growth in revenue, EBITDA, and PAT, supporting a positive outlook for the remainder of the year.

• Strategic expansion includes acquisition of a waste rubber recycling plant in Romania, marking entry into Europe, and ongoing pilot projects in lithium-ion battery and rubber recycling in India.

• Focused on diversification, capacity expansion to over 500,000+ MTPA by FY27, and ESG integration to drive sustainable growth and innovation.

• Board approved fund raising up to INR 1,000 crores for CapEx, M&A, and debt reduction, subject to shareholder approval.

Financial highlights

• Q2 FY25 consolidated revenue rose 11% YoY to INR 927 crores; H1 FY25 revenue up 19% YoY to INR 1,835 crores.

• Q2 FY25 adjusted EBITDA increased 27% YoY to INR 101 crores; EBITDA margin at 11%.

• Q2 FY25 PAT up 24% YoY to INR 72 crores; H1 FY25 PAT up 27% YoY to INR 139.33 crores; PAT margin at 7.6%.

• Value-added products contributed 47% of revenue in Q2 FY25, progressing toward 50% target by FY28.

• Domestic scrap availability grew 140% YoY, supporting higher margins.

Outlook and guidance

• Targeting 25%+ CAGR in volumes and 35%+ profitability growth by 2028.

• FY25 volume growth expected at 25%, with lead projected at 17-20% and plastics/aluminum at 35-40%.

• Sustainable EBITDA per kg for lead guided at INR 18-19, with potential upside if arbitrage opportunities persist.

• ROCE expected to remain above 25%, with further improvement as new verticals scale.

• ESG roadmap integrated into strategy, with ambitious sustainability targets.