Gravita India reported a 38% jump in Q2 FY27 revenue to INR 1,427 crore, driven by its diversified recycling portfolio. Despite a temporary dip in lead volumes due to global supply disruptions, the company maintained healthy margins and announced a major INR 1,680 crore multi-year capital expenditure plan. Investors should watch the progress of new copper projects and the company’s push into the U.S. market for future growth.
Gravita India Q2 Revenue Hits INR 1,427 Crore With 38% Growth
Revenue: INR 1,427 crore (+38% YoY); PAT: INR 102 crore (+6% YoY)
Reader Takeaway: Strong revenue growth and value-added product focus offset volume dips; watch execution of large-scale copper expansion projects.
What just happened
Gravita India reported resilient financial results for Q2 FY27, with consolidated revenue rising 38% year-on-year. The company managed an EBITDA of INR 143.37 crore, reflecting a margin exceeding 10%. While total volumes grew 3% to 52,199 metric tons, the lead segment faced temporary headwinds attributed to geopolitical instability and scrap supply issues.
Why this matters
Value-added products now account for 64% of consolidated revenue, showing a successful pivot toward higher-margin offerings. Management has explicitly labeled the lead segment issues as a "one-off" and expects a recovery starting in Q3. The company’s move to incorporate a U.S. subsidiary, Gravita Recyclers USA, signals a strategic intent to de-risk its procurement chain by establishing an independent scrap network.
Strategic Developments
Capital expenditure remains the key theme for the company, with an ambitious INR 1,680 crore roadmap through FY29. Of this, INR 815 crore is earmarked for core business expansion, while the rest targets newer verticals like lithium-ion and copper. Specifically, the copper segment is a major focus, with new facilities at Mundra and Mandvi expected to boost capacity and margin sustainability to INR 80-90/kg over the next few years.
Risks to watch
Execution risk is significant given the scale of the INR 1,680 crore capex plan. The company’s reliance on scrap availability means it remains sensitive to geopolitical shifts and international logistics. Investors should specifically monitor the actual volume recovery in the lead segment in the coming two quarters to confirm that the worst of the supply chain disruption has indeed passed.
Context metrics
- Lead Volume Growth Target: 18-20% CAGR over the next three years.
- Copper Capacity Utilization: 50% in H1 FY27.
- Domestic Sourcing Share: Moving toward a target of 40-50% from the current base.