Gravita India Ltd Q4 FY26 Earnings Analysis

Published 17 Aug 2026 | Minerals & Mining | Market Cap: ₹12.5K Cr

Price

₹1,794

Market Cap

₹12.5K Cr

P/E Ratio

31.8

Earnings Summary

Gravita aims to scale total installed capacity to around 800,000 tons by FY 2029 with 60%-65% utilization, resulting in approx. Gravita India targets a volume capacity of around 800,000 tons by FY '29 with expected utilization of 60-65%, equating to approximately 500,000 tons (Page 19).

📊 Revenue & Sales Performance

→Gravita aims to scale total installed capacity to around 800,000 tons by FY 2029 with 60%-65% utilization, resulting in approx. 500,000 tons volumes by FY 2029.
→The company is targeting a consistent volume CAGR of 20%-25% over the next three years.
→Copper segment volumes are expected to grow 40%-50% in the current year.
→Expansion includes scaling lead recycling to 800,000 tons, adding 30,000 tons copper recycling capacity, and ramping up value-added products.
→Backward integration in copper recycling to improve EBITDA per ton from INR 45,000 to INR 65,000-70,000 in the future.
→Working capital days expected to remain around 85-90 days despite added copper imports.
→Revenue growth in FY 2026 was 10% YoY; the medium-term target includes increasing value-added product contribution to 50% of revenues.

📈 Profitability & Margins

→Gravita India targets a volume capacity of around 800,000 tons by FY '29 with expected utilization of 60-65%, equating to approximately 500,000 tons (Page 19).
→EBITDA per ton is expected to remain stable across segments, with aluminum EBITDA sustainable at INR 14-15 per kg and plastic EBITDA around INR 10-12 per ton (Page 18, 14).
→The company aims for a revenue CAGR of 20%-25% over the next three years driven by capacity expansions and operational efficiencies (Page 10).
→Expansion includes lead capacity growth to 800,000 tons and significant copper business scaling via acquisitions and new recycling plants, expected to improve margins from 8% to 9-10% over 2-3 years (Pages 6, 11).
→Adjusted consolidated EBITDA grew 12% YoY to INR 452.48 crores in FY '26 with margins at 10.6%, and PAT grew 21% YoY with PAT margins at 8.88% (Page 5).
→Blended tax rate expected around 17%-18% going forward (Page 10).
→Interest costs expected to remain stable at INR 4-5 crores per quarter barring increased working capital debt when copper recycling scales (Page 20).

🏗️ Capital Expenditure Plans

→Total CAPEX planned over next 3-4 years: INR 1,700 crores (increased from earlier INR 1,200 crores due to copper addition).
→Copper-specific CAPEX: Approx. INR 700 crores for recycling capacity and value-added products.
→Capacity targets:
→ - Copper capacity to grow from 30,000 tons to 60,000 tons by FY ‘29, with plans up to 100,000 tons after further expansions.
→ - Lead capacity to increase from 700,000 tons to 800,000 tons by FY ‘29.
→ - Rubber capacity planned at 30,000 tons, with phased expansions including Mundra and Romania plants.
→Mundra lead expansion commissioned; Phagi lead expansion (~45,000 tons) expected in Q1 FY ‘27.
→Copper recycling plant at Mundra to be commissioned within 12 months.
→Working capital requirement estimated around INR 1,200 crores due to copper business, with peak working capital debt expected around INR 800-900 crores post copper start.
→Steel recycling under consideration but deferred.

💰 Fundraising & Capital Structure

→No specific mention of new equity fundraising; earlier equity raised via QIP used for CAPEX, internal equity, and acquisition.
→Debt increased significantly from INR 286 crores in March 2025 to INR 736 crores in March 2026 due to acquisition.
→Interest cost expected around INR 4-5 crores per quarter for FY27 based on current debt of INR 736 crores.
→Management expects working capital debt to increase to around INR 800-900 crores with the start of the copper recycling business next year.
→Peak net debt is projected to rise by approximately INR 600-700 crores due to copper business working capital needs.
→CAPEX of INR 1,700 crores planned over next 3 years to be primarily funded from internal accruals, but working capital requirements will be funded by debt.
→No formal mention of additional fundraising beyond working capital debt increase.

📋 Order Book & Pipeline

→No explicit mention of current or expected order book/pending orders in the transcript.
→Management highlighted strong interest and volume growth, especially with capacity expansions at Mundra, Phagi, and newly acquired RMIL in copper business.
→Q4 volume growth guidance: 20-25% growth overall; 40-50% growth specifically in copper segment for FY ‘27.
→Discussions indicate ongoing demand from OEMs and other customers but no quantified order book size shared.
→The company expects steady revenue growth driven by capacity utilization improvements and new business additions.
→Expansion in lithium-ion battery and copper recycling plants is underway, indicating a growing pipeline.
→Importantly, no specific numbers on confirmed orders or backlog reported during the call.

Key Metrics

Frequently Asked Questions

What were Gravita India Ltd Q4 FY26 results?

What is Gravita India Ltd share price analysis?

Gravita India Ltd currently shows a neutral. The stock trades at a P/E of 31.8 with a market cap of ₹12,465 Cr. Investors should review the full earnings analysis for detailed insights.

Is Gravita India Ltd planning capital expenditure?

Total CAPEX planned over next 3-4 years: INR 1,700 crores (increased from earlier INR 1,200 crores due to copper addition). - Copper-specific CAPEX: Approx.

This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.