Gravita India (GRAVITA) Q3 24/25 earnings summary

Executive summary

• Achieved strong financial and operational performance in Q3 and nine-month FY25, with significant volume and profitability growth across lead, plastic, and aluminum segments, progressing toward Vision 2028 with ambitious targets for volume, profitability, ROIC, and diversification.

• Commenced commercial production at Ghana subsidiary's aluminum recycling facility and expanded into new recycling verticals including lithium, steel, rubber, and paper.

• Raised INR 1,000 crore via QIP to fund growth, capacity expansion, and global leadership ambitions.

• Focused on sustainability, eco-friendly innovation, and stakeholder value creation, with a strategic focus on ESG and plans for over 5 lakh MT capacity by FY27.

• Consolidated revenue from operations for Q3 FY25 was ₹996.42 crore, up from ₹757.77 crore in Q3 FY24, with nine-month revenue at ₹2,831.70 crore, up from ₹2,297.34 crore year-over-year.

Financial highlights

• Q3 FY25 consolidated revenue up 31% YoY and 7% QoQ to INR 996 crore; Q3FY25 volumes, revenues, EBITDA, and PAT grew 33%, 31%, 14%, and 29% YoY, respectively.

• Nine-month FY25 revenue up 23% YoY to INR 2,832 crore; adjusted EBITDA up 18% to INR 295 crore; PAT up 28% to INR 217 crore.

• 5-year revenue CAGR at 21% and PAT CAGR at 74%; consistent EBITDA margins of 9-10%.

• Overseas business contributed 32% of revenue and 53% of profit in Q3FY25.

• Value-added products accounted for 46% of revenue in FY25 and 50% in FY24, progressing toward Vision 2028 target of 50%.

Outlook and guidance

• Targeting 25%+ volume growth, 35%+ profitability growth, and ROIC over 25%, with Vision 2028 aiming for 500,000+ MTPA capacity and 50%+ value-added products.

• Sustainable EBITDA margin guidance: INR 18-19/kg for lead, INR 14-15/kg for aluminum, INR 10/kg for plastic.

• Next major capacity expansions in Mundra and Romania expected in H1 FY26.

• Long-term plan to reduce lead share to 70% in three years and further to 50-55% in five to six years.

• Over Rs. 600 crore capex planned by FY27 and 10%+ reduction in energy consumption.