Graphite India Limited shareholders approved a significant capital raising measure at the company's 51st Annual General Meeting (AGM), granting permission to issue debentures and bonds up to ₹5,000 crore. The resolution was passed as a special business item during the meeting held on August 4, 2026, via Video Conferencing (VC) / Other Audio Visual Means (OAVM). This authorization provides the management with substantial flexibility to raise debt capital to fund future expansion or refinancing needs.

The AGM, convened at 10.45 a.m., saw participation from 49 members, with the quorum present throughout the proceedings. In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company facilitated remote e-voting from August 1, 2026, at 9.00 a.m. until August 3, 2026, at 5.00 p.m. Voting facilities were also available during the meeting and for 15 minutes after its conclusion to ensure all attending members could exercise their voting rights.

Beyond the debt issuance mandate, the Board of Directors sought approval for several ordinary and special resolutions. Key ordinary business items included the adoption of the Standalone Audited Financial Statement and the Consolidated Financial Statement for the financial year ended March 31, 2026, along with the Reports of the Board of Directors and Auditors. Shareholders also approved the declaration of dividends on equity shares for FY26.

Directorship changes were ratified during the session. Mr. K K Bangur (DIN: 00029427), who retires by rotation, was reappointed to the Board. Furthermore, Mrs. Sudha Krishnan (DIN: 02885630) was reappointed as an Independent Director under a special resolution. The company also obtained ratification for the remuneration payable to its Cost Auditors for the fiscal year 2026-2027.

Key Resolutions Passed

The meeting concluded at 11.45 a.m. Sanjeev Marda, Company Secretary (ACS14360), certified the proceedings and submitted the summary to the Bombay Stock Exchange and the National Stock Exchange on August 4, 2026.

Graphite India Limited reported a consolidated net profit of ₹171 crore for the quarter ended June 30, 2026, a 28.6% increase from ₹133 crore in the same period last year. The growth was primarily driven by a 26.6% year-on-year rise in net sales to ₹842 crore, fueled by higher volume realization. This performance underscores the company’s resilience in a mixed global steel demand environment, with India emerging as a key growth driver amid subdued production in China and stable output in Europe.

Consolidated EBITDA stood at ₹241 crore, up 24.9% from ₹193 crore in Q1FY26, though the operating margin contracted slightly to 28.6% from 29.0% due 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 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.

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.

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.

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, with China’s output falling 2.9%. However, India’s production surged 7.5% to 87.0 million MT, positioning it as a core market for steel industry growth. 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) and aerospace-grade products.