Graphite India (509488) Q1 25/26 earnings summary

Executive summary

• Consolidated net sales for Q1 FY2026 were Rs. 665 Crores, down 8.7% year-over-year due to lower realizations, with stable volumes.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, and an expansion plan for the Graphite Electrodes Division.

• Standalone net sales were Rs. 643 Crores, down 4.3% year-over-year; standalone EBITDA dropped 24.5% to Rs. 200 Crores.

• Standalone capacity utilization was 82%, compared to 87% in Q1 FY2025.

• Company announced a 25,000 TPA capacity expansion plan with a Rs. 600 Crore investment, including Rs. 100 Crore for renewable captive power.

Financial highlights

• Consolidated net sales: Rs. 665 Crores (down 8.7% y-o-y); standalone net sales: Rs. 643 Crores (down 4.3% y-o-y).

• Consolidated EBITDA: Rs. 193 Crores (down 37.1% y-o-y); standalone EBITDA: Rs. 200 Crores (down 24.5% y-o-y).

• Consolidated net profit: Rs. 133 Crores (down 43.6% y-o-y); standalone net profit: Rs. 145 Crores (down 29.3% y-o-y).

• EPS: Rs. 6.87 (consolidated), Rs. 7.43 (standalone).

• Exceptional gain of Rs. 954 Crores from sale of land in Bengaluru.

Outlook and guidance

• Anticipated growth in graphite electrode demand driven by global industry changes and India's infrastructure investments.

• Steel demand in developing world (excluding China) projected to grow by 4.2% in 2025; India expected to see 8% growth over 2024-2025.

• Medium-term prospects supported by policy, infrastructure, and transition to low-emission steelmaking.

• Expansion plan for Graphite Electrodes Division to add 25,000 TPA capacity in two phases, with an investment of Rs. 600 Crores, funded through internal resources and debt.

• Expansion driven by anticipated growth in graphite electrode demand.