Graphite India Limited , a leading manufacturer of graphite electrodes, has unveiled plans for a significant capacity expansion while reporting financial results for the first quarter.

Expansion Plans

The company's Board of Directors has approved an ambitious expansion plan for its Graphite Electrodes Division. The highlights of the expansion include:

• A proposed capacity addition of 25,000 tonnes per annum (TPA)
• The expansion will be implemented in two phases:
  • Phase 1: 13,000 TPA to be added within 12 months
  • Phase 2: 12,000 TPA to be completed within 36 months
• An investment of approximately Rs. 600 crore, including Rs. 100 crore for captive power through renewable energy sources
• The expansion will be financed through a combination of internal resources and debt

This strategic move will increase Graphite India's total capacity from the current 80,000 TPA to 105,000 TPA, representing a significant 31.25% boost in production capability. The company cited anticipated growth in graphite electrode demand as the primary rationale for this expansion.

Q1 Financial Highlights

Graphite India also reported its financial results for the quarter ended June 30:

Despite a year-on-year decline in revenue and profit, the company's performance shows resilience in a challenging market environment. The decrease in revenue can be attributed to the overall fall in electrode prices, as noted in the company's statement.

Segment Performance

The Graphite and Carbon segment, which is the company's primary business, reported revenue of Rs. 595 crore for Q1, compared to Rs. 624 crore in the same quarter last year. The Steel segment contributed Rs. 51 crore to the revenue, remaining stable compared to the previous year.

Inventory Valuation

Due to the overall fall in electrode prices, Graphite India has recognized inventory on a Net Realizable Value (NRV) basis, resulting in a write-down of inventory carrying cost. The value of this write-down stood at Rs. 77 crore as of June 30, compared to Rs. 208 crore a year ago, indicating an improvement in market conditions.

Management Commentary

While the company did not provide specific management quotes in the LODR data, the expansion plan clearly indicates the management's confidence in the future growth of the graphite electrode market. The investment in renewable energy sources for captive power also aligns with global sustainability trends.

As Graphite India moves forward with its expansion plans, investors and industry observers will be keenly watching how this increased capacity translates into market share and financial performance in the coming years. The company's ability to navigate the current pricing challenges while positioning itself for future growth will be crucial in determining its long-term success in the graphite electrode market.

Graphite India Limited , a leading manufacturer of graphite electrodes, has reported a robust financial performance for the first quarter ended June 30, along with ambitious expansion plans for its Graphite Electrodes Division.

Q1 Financial Highlights

The company's standalone financial results for Q1 show significant improvement:

Despite a slight decrease in revenue, Graphite India has managed to maintain strong profitability. The company's net profit of Rs 145 crore represents a significant improvement from the previous quarter's Rs 62 crore, indicating a positive trend in its financial performance.

Segment Performance

The Graphite and Carbon segment, which is the company's primary business, generated revenue of Rs 576 crore in Q1 FY2026. The Steel segment contributed Rs 51 crore to the total revenue.

Expansion Plans

In a strategic move to capitalize on the anticipated growth in graphite electrode demand, Graphite India's Board of Directors has approved an ambitious expansion plan for its Graphite Electrodes Division. The key details of the expansion are:

• Proposed Capacity Addition: 25,000 TPA (Tonnes Per Annum)
• Total Investment: Approximately Rs 600 crore
• Implementation: Two phases over 36 months
  • Phase 1: 13,000 TPA in 12 months
  • Phase 2: 12,000 TPA in 36 months
• Financing: Through internal resources and debt

The expansion plan also includes an investment of Rs 100 crore for captive renewable energy power, aligning with sustainable practices.

Current Capacity and Utilization

Graphite India's existing Indian capacity stands at 80,000 TPA, with a current utilization rate of 80-85%. The proposed expansion will significantly enhance the company's production capabilities, positioning it to meet the growing demand for graphite electrodes.

Market Outlook

The approval of this substantial capacity expansion suggests that Graphite India anticipates a positive outlook for the graphite electrode industry. This move is likely to strengthen the company's market position and its ability to cater to increasing demand in both domestic and international markets.

Investors and industry observers will be keenly watching how this expansion unfolds and its impact on Graphite India's future financial performance and market share in the graphite electrode sector.