Gravita India , a leading recycling company, has reported robust financial results for the second quarter of fiscal year 2026, while also announcing ambitious growth targets for the coming years. The company aims to achieve a compound annual growth rate (CAGR) of over 25% by FY27, with plans to reach ₹4,000 crore in revenue and ₹600 crore in EBITDA.

Q2 FY2026 Financial Highlights

For the quarter ended September 30, 2025, Gravita India reported:

• Consolidated revenue from operations of ₹1,035.50 crore, up 12% year-on-year
• EBITDA of ₹111.81 crore, with an EBITDA margin of 10.80%
• Net profit after tax of ₹95.97 crore, a significant increase of 33% compared to the same quarter last year
• Earnings per share (EPS) of ₹13.38, up from ₹10.66 in Q2 FY2025

Segment-wise Performance

The company's performance across its key business segments for Q2 FY2026 was as follows:

Growth Strategy and Targets

Gravita India has outlined an ambitious growth strategy, focusing on:

1. Capacity Expansion: The company plans to increase its battery recycling capacity to 410,000 tonnes per annum across lead, aluminum, and plastic verticals.

2. Global Footprint: Gravita aims to expand its presence in Africa and Asia, leveraging its existing international operations.

3. Margin Sustainability: Through backward integration, the company intends to maintain sustainable margins above 15%.

4. Financial Targets:

   • Revenue goal of ₹4,000 crore by FY27
   • EBITDA target of ₹600 crore
   • Targeting a CAGR of over 25% by FY27

5. Return on Capital: The company is focused on achieving high return on capital employed.

Management Commentary

Yogesh Malhotra, Whole Time Director & CEO, commented on the results: "Gravita has reported a steady performance in H1FY26, showcasing consistent strength across both operational and financial parameters in all major business verticals. We remain committed to achieving over 25% volume CAGR, 35%+ profitability growth, and 25%+ ROIC, while steadily increasing the share of value-added products beyond 50% and non-lead segments above 30%."

Future Outlook

Gravita India's growth strategy aligns with its VISION 2029, which includes:

• Diversification into new recycling verticals such as lithium, steel, rubber, and paper
• Increasing the share of value-added products to over 50%
• Expanding non-lead business to more than 30% of total revenue
• Focusing on sustainable practices, including a 10%+ reduction in energy consumption and 30%+ renewable power usage

The company's strong Q2 FY2026 results and ambitious growth targets reflect its confidence in the recycling sector's potential and its ability to capitalize on emerging opportunities in the circular economy.

Investors and stakeholders will be watching closely to see how Gravita India executes its expansion plans and navigates the challenges of rapid growth in the coming years.

The Indian government is reportedly considering the introduction of an incentive program aimed at promoting the recycling of critical minerals, a move that could potentially benefit companies like Gravita India .

Potential Policy Support for Critical Minerals Recycling

According to recent reports, the government is exploring ways to encourage the recycling of critical minerals through an incentive program. This development has been linked to Gravita India, a leading recycling company, suggesting that the sector might receive policy support in the near future.

Critical minerals, which are essential for various high-tech and green technologies, have become increasingly important in the global supply chain. The proposed incentive program could play a crucial role in promoting sustainable practices and reducing dependence on primary mineral extraction.

Implications for Gravita India

Gravita India, a prominent player in the recycling industry, stands to potentially benefit from this government initiative. The company specializes in recycling lead and other non-ferrous metals, which are considered critical in various industrial applications.

While specific details of the proposed incentive program are yet to be announced, such a move could provide a significant boost to Gravita's operations and potentially enhance its market position in the recycling sector.

Recent Investor Engagements

In related news, Gravita India has been actively engaging with institutional investors. According to the company's latest LODR (Listing Obligations and Disclosure Requirements) filings, Gravita's executives participated in one-on-one meetings with institutional investors.

The company stated that these meetings did not involve the sharing of any unpublished price-sensitive information. Investors interested in learning more about these engagements can access the presentation made to analysts and investors on Gravita India's official website.

As the recycling industry awaits further details on the government's proposed incentive program, stakeholders will be closely monitoring its potential impact on companies like Gravita India and the broader critical minerals recycling sector.