Gravita India , a leading recycling company, has reported strong financial results for the first quarter, demonstrating significant growth across key metrics and reaffirming its ambitious expansion plans.

Financial Highlights

• Revenue surged by 15% year-on-year to INR 1,040.00 crores
• Profit After Tax (PAT) witnessed a remarkable 39% increase, reaching INR 93.26 crores
• EBITDA grew by 22% to INR 111.70 crores, with margins holding steady at 10.74%
• PAT margin improved to 8.97%

Operational Performance

• Total volumes grew by 12% compared to the same quarter last year
• Value-added products contributed 47% to the total revenue, inching closer to the company's VISION 2029 target of 50%
• EBITDA per ton improved across all segments:

Expansion Plans and Future Outlook

Gravita India has outlined an ambitious growth strategy, targeting a capacity of 7 lakh metric tons per annum by FY28. The company plans to invest INR 1,500.00 crores in capex through FY28, with INR 1,000.00 crores allocated to existing business lines and the remainder for emerging verticals.

Key points of the expansion plan include:

• Current capacity stands at 3.40 lakh metric tons per annum
• Aim to add 100,000 metric tons capacity this fiscal year, primarily in lead, rubber, and lithium-ion recycling segments
• A pilot lithium-ion battery recycling unit in Mundra is expected to be operational in Q2

Management Commentary

Yogesh Malhotra, Whole Time Director and CEO of Gravita India, commented on the results, stating, "Gravita has made an excellent start to the fiscal year, delivering outstanding performance across our key business segments. The company reported healthy growth in revenue, EBITDA, and PAT, reflecting the strength of our operations and the resilience of our business model."

He further added, "We are advancing steadily towards our VISION 2029, underpinned by a well-defined strategy to scale our core businesses and diversify into emerging sectors such as lithium-ion, rubber, steel, and paper recycling."

Future Targets

Gravita India has set ambitious targets for the coming years:

• Volume CAGR exceeding 25%
• Profitability growth above 35%
• Maintaining a return on invested capital above 25%
• Growing the non-lead segment to contribute over 30% of total revenue
• Deriving more than 30% of energy needs from renewable sources
• Reducing energy intensity by over 10%

The company expects sustainable lead margins of INR 19-20 per kg and aluminum margins of INR 14-15 per kg.

With its strong performance in Q1 and clear expansion plans, Gravita India appears well-positioned to capitalize on the growing recycling market and deliver value to its stakeholders in the coming years.

Gravita India Limited , a leading recycling company, has announced plans to establish a lithium-ion battery recycling unit in Mundra, Gujarat, as part of its expansion strategy. The company also reported robust financial results for the first quarter, demonstrating significant growth across key metrics.

Expansion into Lithium-Ion Battery Recycling

Gravita India revealed its intention to set up a lithium-ion battery recycling facility in Mundra, with operations expected to commence in the second quarter. This strategic move aligns with the growing demand for sustainable solutions in the battery recycling sector.

Strong Financial Performance in Q1

The company reported impressive financial results for the quarter ended June 30:

Gravita India's consolidated revenue grew by 15% year-over-year to ₹1,040.00 crore in Q1. The company's EBITDA saw a significant increase of 22%, reaching ₹112.00 crore, while Profit After Tax (PAT) surged by 39% to ₹93.00 crore compared to the same period last year.

Growth Projections and Margin Expectations

Looking ahead, Gravita India projects 15-16% volume growth from its existing businesses and an additional 7-8% growth from new additions. The company expects lead EBITDA margins to be around ₹19-20 per kg, while aluminum EBITDA margins are projected at ₹14-15 per kg.

Diversification into Rubber Sector

Gravita India is also expanding its presence in the rubber sector, anticipating an EBITDA of ₹7-8 per kg and revenue of ₹300-400 crore by FY28. This diversification strategy aims to create additional revenue streams and enhance the company's overall growth prospects.

Long-Term Targets

The company has set ambitious long-term targets, including:

• Volume growth exceeding 25%
• Profit growth above 35%
• Return on invested capital over 25%

These targets reflect Gravita India's confidence in its business model and growth strategy.

Commitment to Sustainable Recycling

Yogesh Malhotra, Whole-time Director & CEO of Gravita India, emphasized the company's commitment to responsible recycling, stating, "At Gravita, we understand that responsible recycling not only creates sustainable value for the green economy but also for all our stakeholders. We have maintained a growth trajectory and are confident to keep progressing on our vision: 'To be the most valuable company in the recycling space globally.'"

Gravita India's expansion into lithium-ion battery recycling, strong financial performance, and ambitious growth targets position the company as a key player in the recycling industry, with a focus on sustainability and value creation for stakeholders.