Gravita India (GRAVITA) Q4 24/25 earnings summary

Executive summary

• Achieved record revenue, EBITDA, and PAT in FY2025, with a five-year CAGR of 23% in revenue and 57% in PAT, driven by capacity expansion and value-added products.

• Maintained a net debt-free status and upgraded credit rating to ICRA AA-, with a 14-year track record of dividend payouts.

• Strategic focus on expanding core and new recycling verticals, targeting 25%+ volume CAGR and 35%+ profitability growth by 2029.

• Emphasis on ESG initiatives, increasing renewable energy usage, and robust risk management through hedging.

• Completed a Qualified Institutional Placement (QIP) raising ₹1,000 crore, with proceeds used for debt repayment and capital expenditure.

Financial highlights

• FY2025 revenue rose 22% year-over-year to ₹3,868.77 crore; Q4 revenue at ₹1,037 crore, up 20% YoY.

• Adjusted EBITDA increased 22% to ₹404 crore for FY2025; Q4 adjusted EBITDA up 17% YoY to ₹109 crore.

• PAT grew 31% YoY to ₹312.90 crore for FY2025; Q4 PAT at ₹95 crore, up 22% YoY.

• Value-added products contributed 46% of revenue in FY2025.

• Overseas business contributed 32% of revenue and 25% of profit in Q4 FY25.

Outlook and guidance

• Targeting 25-30% annual capacity and revenue growth over the next three years, with FY2026 growth expected in the 20-30% range depending on CAPEX execution.

• Aims for volume CAGR above 25%, profitability growth over 35%, and ROIC above 25% through FY29.

• Over ₹1,500 crore capex planned to reach 700,000+ MTPA capacity by FY28.

• EBITDA per ton guidance: lead ₹18-19/kg, aluminum ₹14-15/kg, plastic ₹10-11/kg, with incremental improvements expected.

• Blended tax rate expected to remain at 12-13% globally, with India at 30%.