Gravita India (GRAVITA) Q4 25/26 earnings summary

Executive summary

• Achieved strong FY26 results with consolidated revenue of ₹4,265.27 crore and PAT of ₹378.80 crore, reflecting 10% and 21% YoY growth, and a 5-year CAGR in revenue, EBITDA, and PAT of 25%, 49%, and 31% respectively, despite macroeconomic and logistics challenges.

• Acquired a 99.44% stake in Rashtriya Metal Industries (RMIL) for approximately ₹560 crore, entering the copper segment and enhancing the non-lead portfolio.

• Commissioned a 6,000 MTPA lithium-ion battery recycling plant and expanded Mundra lead recycling capacity by 80,300 MTPA.

• Ceased hyperinflation accounting for Ghana operations from October 2025 as Ghana is no longer classified as hyperinflationary.

• ESG rating of 65 assigned, reflecting commitment to sustainability and increased renewable energy initiatives.

Financial highlights

• FY26 consolidated revenue at ₹4,265.27 crore, up 10% YoY; value-added products contributed 42%-50% of the business mix.

• Adjusted consolidated EBITDA at ₹452.48 crore, up 12% YoY, with margins at 10.6%; PAT at ₹378.80 crore, up 21% YoY, with PAT margin at 8.88%.

• Q4 FY26: revenue grew 13% YoY to ₹1,172.76 crore; volume up 5% YoY; EBITDA up 4% YoY; PAT declined 3% YoY.

• Earnings per share (EPS) for FY26 was ₹52.02, compared to ₹45.11 in FY25.

• Maintained AA- credit rating and 15 years of dividend payouts.

Outlook and guidance

• Vision 2030 targets 800,000+ MTPA capacity by FY29, 20%-25% volume CAGR, and 30%-35% profitability growth.

• CapEx plan increased to ₹1,700 crore through FY29, with ₹700 crore allocated to copper expansion; annual investments of ₹335-380 crore planned.

• Working capital cycle expected to remain at 85-90 days, with peak working capital debt projected at ₹800-900 crore.

• Sustainable EBITDA per ton guidance: lead ₹19-20/kg, copper ₹45/kg (rising to ₹60-65/kg post-integration), aluminum ₹14-15/kg, plastic ₹10-12/kg, rubber ₹7-8/kg.

• Company is monitoring the impact of new Indian labor codes and will adjust employee benefit accounting as rules are notified.