Gravita India Limited has announced its decision to voluntarily close Recyclers South Africa (PTY) Ltd., a step-down subsidiary held entirely by Gravita Netherlands B.V. The closure comes as a result of a lack of business activity and is expected to have minimal financial impact on the company's operations.

Key Details of the Closure

The decision to close the South African subsidiary was disclosed in a regulatory filing by Gravita India Limited. Here are the essential points of the announcement:

Closure Process and Timeline

The company has stated that the process for closure will be initiated in accordance with applicable laws and regulations. While the exact date of completion for the closure has not been specified, Gravita India has committed to providing a separate intimation once the subsidiary is officially closed.

Financial Implications

According to the regulatory filing, the closure of Recyclers South Africa (PTY) Ltd. is not expected to have any material financial impact on Gravita India's books. This is primarily due to the subsidiary's lack of business activity and its minimal contribution to the parent company's financials.

Corporate Governance and Disclosure

Gravita India's decision to close the inactive subsidiary and its prompt disclosure to stakeholders aligns with good corporate governance practices. The company has provided detailed information as required under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The closure of this inactive subsidiary may be seen as a step towards streamlining operations and potentially improving overall efficiency within the Gravita India group. However, given the subsidiary's negligible financial contribution, the move is unlikely to significantly alter the company's financial position or operational capabilities in the near term.

Investors and stakeholders of Gravita India Limited should note that while this corporate action represents a change in the company's structure, its impact on the overall business appears to be minimal based on the information provided.

Gravita India Limited, a leading recycling company, has reported robust financial results for the first half of FY26, demonstrating steady growth across key metrics. The company also unveiled ambitious expansion plans, aiming to more than double its capacity by FY28.

Financial Highlights

For H1 FY26, Gravita India reported:

The company's Q2 FY26 performance was equally impressive:

Expansion Plans and Strategic Initiatives

Gravita India has outlined an ambitious growth strategy:

• Capacity Expansion: The company aims to increase its installed capacity from the current 3.40 lakh metric tons per annum to over 7 lakh metric tons by FY28.
• Capex Realignment: The capex budget has been adjusted to approximately INR 1,225 crore by FY28, with INR 850 crore allocated for strengthening existing verticals and the remainder for diversification initiatives.
• Mundra Facility Expansion:
  • Phase 1 (30,000 metric tons) expected by November 2025
  • Phase 2 (50,000 metric tons) targeted for January 2026
• Phagi Lead Recycling: Capacity enhancement of 45,000 metric tons per annum, expected completion by December 2026.
• Diversification: Entry into lithium-ion battery recycling with a pilot unit at Mundra scheduled to be operational in Q3 FY26.

Value-Added Products and Market Presence

• 47% of revenue in H1 FY26 came from value-added products, progressing towards the Vision 2029 target of 50% contribution.
• The company operates across 70+ countries with 13 environmentally responsible state-of-the-art facilities.

Management Commentary

Yogesh Malhotra, Whole Time Director and CEO, stated, "Gravita delivered a steady performance in H1 FY26, reflecting consistent strength across operational and financial parameters in all major business verticals. Supported by a net debt-free balance sheet, the company remains well-positioned for continued growth and long-term value creation."

Future Outlook

Gravita India is advancing towards its Vision 2029, focusing on scaling core businesses and expanding into emerging sectors. The company is targeting:

• Volume CAGR of over 25%
• Profitability growth above 35%
• Maintaining ROIC of over 25%
• Increasing non-lead segment share to 30% of total revenue
• Meeting 30% of energy needs through renewables
• Reducing energy intensity by more than 10%

With its strong financial performance, ambitious expansion plans, and focus on value-added products, Gravita India appears well-positioned for sustainable growth in the recycling industry.