Axis Securities has maintained a 'BUY' rating on Gravita India following its Q2FY27 results. The company reported a 38% YoY revenue increase to Rs 1,427 crore, driven by robust performance in copper recycling and value-added products, despite minor volume headwinds in lead recycling. Management remains focused on its 'Vision 2030' capacity expansion plans.
Gravita India Q2 Results: Revenue Hits Rs 1,427 Crore
Axis Securities has upgraded its target price for Gravita India to Rs 2,270 per share, up from the previous Rs 2,200, maintaining a 'BUY' recommendation. The brokerage reports that the company’s Q2FY27 revenue grew by 38% year-on-year to Rs 1,427 crore, with adjusted EBITDA standing at Rs 143 crore, a 28% increase.
Reader Takeaway: Strong copper recycling margins and expansion plans support growth, despite lead segment supply-chain bottlenecks.
What just happened
Gravita India reported revenue of Rs 1,427 crore for the quarter, beating analyst estimates by 5%. While net profit grew by 6% to Rs 102 crore, EBITDA margins saw a slight contraction of 75 basis points to 10.0%. The copper segment was a standout performer, generating Rs 420 crore in revenue with significantly improved margins per metric tonne due to a shift toward high-value defense and industrial products.
Why this matters
The company is aggressively pivoting toward its 'Vision 2030' roadmap. By focusing on non-lead segments like copper, aluminium, and plastic, Gravita aims to diversify its revenue base. The newly formed US subsidiary, Gravita Recyclers USA Inc., is a strategic move to secure raw material supply directly, which management expects will improve margins by 2–3%.
Risks to watch
Supply-chain disruptions in West Asia and transit delays remain primary concerns for the company's lead recycling volumes, which dipped 11.3% this quarter. Additionally, the execution risk regarding the Rs 1,680 crore capex plan through FY29 remains a critical factor for investors, as any delay in commissioning new facilities could impact growth projections.
What to track next
Investors should monitor the recovery of lead recycling volumes expected in Q3FY27 and the progress of the company’s capacity expansion, which aims to scale total capacity from 480,000 MTPA to over 800,000 MTPA by FY29.