Gravita India delivered steady FY26 — revenue ₹4,265 crore (+10%), PAT +21%, EBITDA stable at 10.6% — while making the strategic moves that define its FY29 story: copper recycling via RMIL acquisition, lithium-ion battery recycling entry, and a ₹1,700 crore capex plan targeting 500K MT total volume. With net debt just ₹118 crore, the balance sheet is in good shape to fund this expansion. Q1 FY27 has a Middle East logistics headwind, but the structural narrative is clear: a lead recycler becoming a multi-metal critical materials recycler.
Headline Numbers
| Metric | FY26 / Q4 FY26 | YoY |
|---|---|---|
| Revenue (FY26) | ₹4,265 crore | +10% |
| EBITDA (FY26) | ₹452 crore | — |
| EBITDA Margin | 10.6% | Stable |
| PAT (FY26) | ₹379 crore | +21% |
| Q4 Revenue Growth | +13% YoY, +15% QoQ | — |
| Capex (FY26) | ₹372 crore | — |
| Net Debt | ₹118 crore | — |
| Total Capex (FY24-FY29 plan) | ₹1,700 crore | — |
| FY29 Volume Target | 500,000 MT | — |
What Drove the Results
- Lead recycling core is compounding: Lead capacity expansions drove volume and revenue growth. Lead recycling is structurally driven by battery (automotive + UPS + industrial) replacement cycles, which are non-discretionary and recurring. The core business generates stable 10%+ EBITDA margins.
- PAT growing faster than revenue (+21% vs +10%): Margin expansion at PAT level suggests operating leverage is materializing as capacity utilization improves. This is the quality signal — profitable growth, not just scale buying.
- Copper via RMIL — diversification into higher-margin metal: Copper recycling margins are generally higher than lead (more complex, higher-value end products). The RMIL acquisition adds immediate capacity and customer relationships in copper recycling, complementing Gravita's existing logistics and smelting expertise.
- Lithium-ion — option value on India's EV transition: Li-ion battery recycling is nascent today but will be significant by FY28-29 as the first wave of EV batteries reaches end-of-life. Gravita's early entry builds technology capability before the market matures.
What Management Said
On FY29 plan: "Our ₹1,700 crore capex through FY29 targets 500,000 MT total volume across lead, copper, and lithium. Each material has its own structural demand driver — lead for batteries, copper for electrification, lithium for EVs. We are becoming a critical materials recycler, not just a lead recycler."
On Q1 FY27 uncertainty: "Middle East disruptions are creating short-term logistics and raw material headwinds in Q1 FY27. We are managing through it. The medium-term trajectory is unchanged."
StockMirror AI Signal Summary
| Signal | Reading |
|---|---|
| Overall Sentiment | Good |
| Management Confidence | High |
| Revenue Growth Status | Expansion (+10% FY26, +13% Q4) |
| Margin Direction | Stable (EBITDA 10.6%, PAT growing faster) |
| Earnings Quality | Clean |
| Market Share | Gain — capacity additions gaining volume share in recycling |
📊 Full Gravita India FY26 earnings analysis →
Key Takeaways
- FY26 revenue ₹4,265 crore (+10%); PAT +21%; EBITDA 10.6% stable — quality growth
- Copper (RMIL) + lithium-ion recycling added; ₹1,700 crore FY29 capex → 500K MT volume target
- Net debt ₹118 crore — conservative leverage, self-funding expansion possible
- Q1 FY27 has Middle East logistics headwind but FY27-29 trajectory intact
- Structural thesis: lead recycler → multi-metal critical materials recycler
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. StockMirror's AI analysis is based on publicly available earnings transcripts and BSE/NSE filings. Please consult a SEBI-registered financial advisor before making investment decisions.