Gravita India (GRAVITA) Q2 25/26 earnings summary

Executive summary

• Delivered steady operational and financial performance in H1 FY26, with consistent growth across business verticals, a net debt-free balance sheet, and a focus on sustainability and value creation.

• Strategic expansion underway in lead, aluminium, plastic, rubber, and turnkey solutions, with diversification into lithium-ion, paper, and steel recycling; pilot lithium-ion battery unit set for Q3 FY26.

• Board approved unaudited financial results for Q2 and H1 FY26, with unmodified review reports and no material misstatements.

• ESG milestones progressing, with sustainability and compliance at the core, and targets for net zero emissions by FY50.

Financial highlights

• H1 FY26 consolidated revenue at ₹2,075.44 crore, up 13% year-on-year; Q2 FY26 revenue at ₹1,035.50 crore, up 12% YoY; 47% from value-added products.

• H1 FY26 consolidated net profit at ₹189.03 crore, up 36% YoY; Q2 FY26 net profit at ₹95.97 crore, up 33% YoY.

• 5-year revenue CAGR of 23% and PAT CAGR of 57%; consistent EBITDA margins of 9-10%.

• Basic EPS (consolidated) for H1 FY26 was ₹25.99, up from ₹20.48 YoY.

• Maintained a healthy ROIC of 25% in H1 FY26.

Outlook and guidance

• Targeting volume CAGR above 25%, profitability growth above 35%, and ROIC above 25% through FY29.

• Capacity expansion to over 7 lakh MT by FY28, with CapEx realigned to ₹1,225 crore by FY28.

• Focus on increasing value-added product share beyond 50% and non-lead segments above 30% of revenue.

• ESG roadmap includes 10% reduction in energy and water intensity by FY27, 50% RE power usage by FY34, and net zero emissions by FY50.

• Confident of achieving 25% volume growth in the coming year, supported by new capacity additions.