Graphite India Limited reported a consolidated net profit of ₹171 crore for the quarter ended June 30, 2026, marking a 28.6% year-on-year increase from ₹133 crore in Q1FY26. The strong bottom-line performance was primarily driven by a 26.6% rise in net sales to ₹842 crore, fueled by higher volume realization. This growth underscores the company’s resilience amidst mixed global steel demand, with India emerging as a key growth driver due to a 7.5% surge in domestic crude steel production, contrasting with a 2.9% decline in China.

Consolidated EBITDA stood at ₹241 crore, up 24.9% from ₹193 crore in the previous year, although the operating margin contracted slightly to 28.6% from 29.0%. This margin compression was attributed to higher raw material and logistics costs offsetting marginal gains in graphite electrode prices. Standalone results mirrored this trend, with net profit rising 8.3% to ₹157 crore and net sales growing 19.0% to ₹765 crore. Capacity utilization improved significantly to 97% from 82% in Q1FY26, highlighting operational efficiency gains.

Financial Performance Highlights

The company maintained a robust balance sheet with consolidated gross debt at ₹266 crore and a net cash position of ₹3,939 crore as of June 30, 2026. Standalone gross debt was ₹143 crore with net cash of ₹3,834 crore. Inventory write-downs under Ind AS decreased to ₹24 crore from ₹47 crore in March 2026, reflecting stabilizing electrode prices. Earnings per share (EPS) for the consolidated entity stood at ₹8.82 per share, compared to ₹6.87 in Q1FY26.

Segment-wise Contribution

The Graphite and Carbon segment contributed ₹687 crore to consolidated revenue, up 15.5% year-on-year, while the Steel segment saw a significant jump to ₹111 crore from ₹51 crore. Other segments added ₹45 crore. In standalone figures, Graphite and Carbon revenue grew 13.0% to ₹651 crore, supported by strong domestic and export demand. Chairman K K Bangur noted that global crude steel production declined marginally by 0.3% to 931.7 million MT in the first half of CY2026, but India’s production surged to 87.0 million MT.

What the Numbers Show

A notable divergence exists between operational profitability and bottom-line growth. While EBITDA margins contracted slightly due to input cost pressures, net profit growth outpaced revenue growth by 2 percentage points. This indicates effective cost management and favorable non-operating income dynamics, despite a 35.3% drop in other income to ₹97 crore from ₹150 crore last year. The reduction in inventory write-downs further bolstered profitability, signaling a stabilization in the graphite electrode pricing cycle. The company is proceeding with its electrode capacity expansion phase one, expected to be commissioned in FY27, alongside advancements in Synthetic Graphite Anode Materials (SGAM).

Strategic Developments

Subsequent to the quarter-end, on July 8, 2026, Graphite International B.V., a wholly-owned subsidiary, approved the closure of its Graphite Specialities and Coating businesses in Germany. The decision was driven by the adverse impact of the prolonged Russia-Ukraine conflict and weak market demand on the competitiveness of these operations. Additionally, the company continues to navigate litigation regarding electricity duty levies, having recognized additional interest costs following a Supreme Court order in March 2026.

Graphite India Limited shareholders have formally approved a capital raising mandate to issue Non-Convertible Debentures (NCDs) and bonds up to ₹5,000 crore on a private placement basis. The special resolution received overwhelming support at the company's 51st Annual General Meeting (AGM) held on August 4, 2026, via Video Conferencing (VC) / Other Audio Visual Means (OAVM). This authorization provides management with significant financial flexibility to fund future expansion or refinancing needs.

The consolidated scrutinizer's report, filed by Swati Bajaj of Bajaj Todi & Associates, confirmed that 369 valid folios representing 15,59,71,188 shares participated in the voting process. Remote e-voting was open from August 1, 2026, at 9.00 a.m. until August 3, 2026, at 5.00 p.m., in compliance with Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014. Only three folios were rejected as invalid, representing 44,450 shares.

Key Resolutions and Voting Outcomes

Shareholders also ratified the adoption of standalone and consolidated audited financial statements for FY26, along with the declaration of dividends on equity shares. Both ordinary resolutions saw nearly unanimous support. The Board of Directors' and Auditors' reports were also adopted as part of the ordinary business agenda.

Directorship changes were ratified with strong shareholder backing. Mr. K K Bangur (DIN: 00029427), retiring by rotation, was reappointed to the Board with 99.36% support. Mrs. Sudha Krishnan (DIN: 02885630) was reappointed as an Independent Director under a special resolution, securing 99.43% approval. Additionally, shareholders approved the payment of commission to the Non-Executive Director, which passed with 94.13% support, reflecting slightly higher dissent compared to other items but still constituting a clear majority.

Governance and Compliance

The meeting convened at 10.45 a.m. with a quorum present throughout. Sanjeev Marda, Company Secretary, certified the proceedings and submitted the summary to the Bombay Stock Exchange and the National Stock Exchange on August 4, 2026. The ratification of remuneration for Cost Auditors for the fiscal year 2026-2027 also passed with 99.99% support, ensuring continuity in statutory compliance oversight. The high participation rate and overwhelming approval across all resolutions underscore strong shareholder confidence in the company's strategic direction and governance framework.