Graphite India reported a consolidated profit of Rs 94 crore for Q2 FY27. The results include a Rs 22 crore exceptional charge related to the closure of two loss-making German subsidiaries. While standalone revenue grew sequentially to Rs 806 crore, overall profitability was dampened by the restructuring costs and ongoing litigation over electricity duty.
Graphite India Q2 FY27 Earnings Report
Consolidated Profit: Rs 94 Crore | Revenue: Rs 826 Crore
Reader Takeaway: Revenue shows YoY growth, but profitability reflects a Rs 22 crore one-time hit from structural reorganization.
What just happened
Graphite India announced its financial results for the quarter ended September 30, 2026. The company reported a consolidated profit of Rs 94 crore, compared to Rs 76 crore in the same quarter last year. Consolidated revenue from operations stood at Rs 826 crore, up from Rs 729 crore in Q2 FY26. The results were primarily impacted by an exceptional charge of Rs 22 crore, attributed to the winding down of German subsidiaries.
Why this matters
The company is executing a strategic exit from its German operations, specifically Bavaria Carbon Specialities GmbH and Graphite COVA GmbH. Management cited persistent adverse business conditions and a lack of competitiveness in these specific European units as the primary drivers for this closure. Investors are currently absorbing the financial impact of these restructuring costs, which include inventory write-downs and employee termination expenses.
The backstory
The decision to close the German units was finalized on July 8, 2026, by the subsidiary Graphite International B.V. The entities are currently in an orderly wind-down phase, focusing on fulfilling existing orders and liquidating remaining inventory. This shift is expected to improve long-term operational efficiency by removing loss-making components from the group structure.
Risks to watch
Investors should monitor the finalization of the German unit wind-down to ensure no further unexpected costs arise. Additionally, the company faces ongoing legal hurdles, including litigation regarding electricity duty on captive power generation following a Supreme Court order, and pending tax assessment appeals related to claims from 2018-2020.
What to track next
The market will watch for the completion of the subsidiary closures and the eventual resolution of the tax and electricity duty disputes, which continue to influence the company's financial profile.