Gravita India (GRAVITA) Q1 25/26 earnings summary

Executive summary

• Delivered strong Q1 FY26 results with double-digit growth in revenue, EBITDA, and PAT, supported by a net debt-free balance sheet and operational resilience.

• Strategic focus on capacity expansion, targeting over 700,000 tons by FY28 with a capex plan of INR 1,500 crores.

• Diversification into new verticals such as lithium-ion, paper, rubber, and steel recycling, with a pilot lithium-ion battery recycling unit expected operational in Q2 FY26.

• ESG targets for FY27, FY34, and FY50 are integral to the long-term strategy, emphasizing sustainability and responsible business practices.

• Recognized as a 4-star Export House and received sustainability awards.

Financial highlights

• Q1 FY26 consolidated revenue reached ₹1,039.94 crore, up 15% year-on-year; 47% of revenue from value-added products.

• Adjusted EBITDA grew 22% year-on-year to ₹115.93 crore, with a margin of 10.74%.

• PAT increased 39% year-on-year to ₹93.06 crore; PAT margin at 8.97%.

• Overseas business contributed 26% of revenue and 25% of profit in Q1 FY26.

• 5-year revenue CAGR at 23% and PAT CAGR at 57%, with consistent 9-10% EBITDA margins.

Outlook and guidance

• Targeting volume CAGR over 25% and profitability growth above 35% through FY28, with ROIC maintained above 25%.

• Plans to increase value-added products to over 50% of revenue and non-lead business to over 30%.

• FY26 volume growth expected at 20–22%, with 15–16% from existing capacity and 7–8% from new expansions.

• EBITDA per kg guidance: lead at INR 19–20, aluminum at INR 14–15, rubber at INR 7–8, plastics at INR 10.

• Management expects continued growth, supported by recent QIP proceeds and expansion initiatives.