Gravita India Limited delivered robust financial performance in Q1FY27, reporting a 42% year-on-year revenue surge to ₹1,475 crore and a 14% rise in consolidated net profit to ₹106.39 crore. The growth was primarily driven by higher capacity utilization across key segments, improved operational efficiencies, and a strategic shift toward value-added products, which accounted for 63% of consolidated revenue. Despite geopolitical disruptions affecting scrap supply chains, the company maintained healthy margins, with adjusted EBITDA growing 29% to ₹145 crore and EBITDA margins exceeding 9.80%. This performance underscores the resilience of its diversified recycling platform amid global uncertainties.

The positive operational momentum was further validated by ICRA upgrading Gravita's long-term credit rating from AA- to AA. The rating agency cited the company's consistently improving financial profile, prudent capital allocation, robust cash flow generation, and disciplined balance sheet management as key factors for the upgrade. Management highlighted that the company remains committed to operational excellence and sustainable growth, capitalizing on the expanding circular economy opportunity while delivering long-term value to stakeholders.

Operational Highlights and Capacity Expansion

Total installed capacity now stands at 4.97 lakh metric tons per annum, with the company on track to scale this to over 8 lakh metric tons per annum by FY29. A significant milestone during the quarter was the commissioning of an additional 40,500 metric ton per annum lead recycling capacity at the Phagi, Jaipur facility, bringing its total capacity to 75,819 metric tons per annum. This expansion was funded entirely through internal accruals with an investment of approximately ₹30 crores. Additionally, the company achieved a London Metal Exchange (LME) Brand Listing for lead metal produced at its Mundra, Gujarat division under the brand name GRAVITA M, enhancing global credibility and eligibility for delivery across LME-approved warehouses worldwide.

Segment Performance and Diversification

The copper segment, following the acquisition of Rashtriya Metal Industries Limited, contributed ₹376 crore in revenue while operating at 50% capacity utilization. EBITDA per ton for the copper segment stood at ₹55,151, with management expecting slight increases due to economies of scale and product mix optimization as operations ramp up. The lead, aluminum, and plastic segments reported EBITDA per ton of ₹24,181, ₹25,175, and ₹10,197, respectively. Management noted that supply chain disruptions due to the Middle East conflict impacted lead volumes, as 15% to 20% of imports typically come from the Gulf territory. However, the company is mitigating this by expanding its procurement network in developed economies like the U.S. and focusing on higher profitability through better realization.

What the Numbers Show

A notable divergence in Q1FY27 results is the disproportionate growth in revenue versus volumes. While total volumes increased by only 4%, revenue surged by 42%, indicating a significant improvement in average selling prices and margin expansion rather than pure volume-driven growth. This suggests that Gravita is successfully leveraging supply shortages to command better realizations. Furthermore, the shift toward value-added products, now constituting nearly two-thirds of revenue, highlights a strategic pivot toward higher-margin offerings, particularly in the copper segment which is 100% value-added. This structural change supports the sustainability of margins even if volume growth remains constrained by external supply chain issues.

Gravita India reported a consolidated net profit of ₹106.37 crore for Q1FY27, rising 14% from ₹93.06 crore in the same quarter last year, driven by a robust 42% surge in total income to ₹1,522.60 crore. The Board of Directors, meeting on July 27, 2026, approved the unaudited financial results for the quarter ended June 30, 2026, highlighting strong operational performance and strategic expansions including the London Metal Exchange (LME) Brand Listing for its Mundra plant’s lead metal under "GRAVITA M".

The top-line growth was fueled by increased demand across lead, copper, and aluminium segments. Consolidated revenue from operations reached ₹1,475 crore in Q1FY27 compared to ₹1,040 crore in Q1FY26. EBITDA stood at ₹145 crore, up 29% from ₹112 crore YoY, though the EBITDA margin contracted to 9.52% from 10.77% due to mix shifts and input cost fluctuations. Profit before tax rose to ₹131.28 crore from ₹115.93 crore, while total tax expenses were recorded at ₹24.91 crore.

Segment Performance and Operational Metrics

The lead segment remained the largest contributor, generating significant volume despite slight tonnage declines due to product mix shifts. Copper emerged as a key growth driver, contributing substantially to the revenue surge with high EBITDA per metric tonne. Aluminium revenue also increased, supported by higher margins. The company expanded its Phagi lead recycling capacity by 40,500 MTPA to 75,819 MTPA, reinforcing its domestic manufacturing base.

Strategic developments included the acquisition of a 99.44% stake in Rashtriya Metal Industries Limited (RMIL) for ₹561.84 crore, marking Gravita’s entry into the copper and copper alloys segment. RMIL operates a facility in Sarigram, Gujarat, with a capacity of 31,200 MTPA. Additionally, ICRA Limited upgraded the company’s credit rating, reflecting its strong financial profile and prudent capital management.

Financial Health and Auditor Review

Walker Chandiok & Co LLP, the statutory auditors, reviewed the unaudited standalone and consolidated financial results. Standalone net profit for the quarter was ₹68.05 crore, marginally up from ₹67.95 crore in Q1FY26. Standalone turnover was ₹860.13 crore. The auditors noted that interim financial information for certain subsidiaries and partnership firms was based on unreviewed statements certified by the Board, which they deemed immaterial to the Group.

What the Numbers Show

The significant jump in copper revenue and high EBITDA per MT highlights the successful integration of RMIL and new market opportunities in that segment. The EBITDA margin contraction warrants monitoring as input costs fluctuate. The consolidation of operations through the near-full ownership of RMIL signals a strategic focus on centralizing manufacturing capabilities to improve operational leverage. The LME listing further reduces counterparty risk and expands addressable markets for its lead products.