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.

• 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.

• Board approved raising up to INR 1,000 crores for CapEx, M&A, and other corporate purposes, subject to shareholder approval.

• Focused on ESG integration, capacity expansion, and value-added product growth as part of Vision 2028.

• Standalone revenue for Q2 FY25 was ₹786.30 crore, with profit after tax at ₹50.58 crore.

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% to revenue; domestic scrap availability grew 140% YoY.

• Earnings per share (consolidated) for Q2 FY25 stood at ₹10.66, up from ₹8.52 in Q2 FY24.

Outlook and guidance

• Targeting 25% CAGR in volume and 35% profitability growth over the next four years, with over 5 lakh MTPA capacity by FY27.

• Lead volume expected to grow 17-20%, plastics and aluminum 35-40% annually.

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

• ROC/ROCE expected to remain above 25%, with further improvement as scale and value-added share increase.

• Plans to expand into new recycling verticals including lithium-ion, steel, and paper.