💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 22.4% in FY25 to INR 3,868.77 Cr from INR 3,160.75 Cr in FY24. H1 FY26 revenue grew 13% YoY to INR 2,075.44 Cr. The lead segment remains the core driver, while non-lead segments are targeted to reach 30% of total revenue by FY29.

Geographic Revenue Split

Gravita has a diversified global presence across India, Sri Lanka, Ghana, Senegal, Mozambique, Tanzania, Togo, Romania, USA, and Singapore. African operations have significantly increased due to new plant commencements and capacity expansions.

Profitability Margins

PAT margin was maintained at 9.27% in Q2 FY26, with PAT rising 33% YoY to INR 95.9 Cr. FY25 Return on Net Worth decreased to 12.17% from 39.35% in FY24 due to the equity infusion from a INR 1,000 Cr QIP.

EBITDA Margin

Adjusted EBITDA margin stood at 10.80% in Q2 FY26, supported by operational efficiencies and a favorable product mix. H1 FY26 Adjusted EBITDA grew 16% YoY to INR 223.51 Cr with a 10.77% margin.

Capital Expenditure

The company has realigned its capex budget to approximately INR 1,225 Cr by FY28 to support its goal of doubling capacity. Liquidity of INR 890 Cr as of March 2025 is earmarked for future capex and acquisitions.

Credit Rating & Borrowing

ICRA reaffirmed [ICRA]AA- (Stable) and [ICRA]A1+ ratings in September 2025. Total debt declined from INR 599 Cr in March 2024 to INR 314.25 Cr by February 2025 following a INR 1,000 Cr QIP used for deleveraging.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Lead scrap, Aluminum scrap, Plastic scrap, and Rubber scrap. Lead scrap represents the largest cost component for the core lead division.

Import Sources

Raw materials are sourced globally from Africa (Ghana, Senegal, Mozambique, Tanzania, Togo), Sri Lanka, Romania, USA, and Central America (Nicaragua, Costa Rica).

Key Suppliers

Not disclosed in available documents; however, the company maintains an extensive procurement network and a diversified supplier base to mitigate vendor dependency.

Capacity Expansion

Current installed capacity is 3.40 Lakh MTPA. The company plans to more than double this to over 7 Lakh MTPA by FY28 across lead, aluminium, plastic, and rubber verticals.

Raw Material Costs

Operational expenditure was INR 3,544.69 Cr in FY25, representing approximately 91.6% of revenue. Procurement strategies focus on domestic scrap sourcing and an integrated model to drive efficiency gains.

Manufacturing Efficiency

Efficiency is driven by 13 state-of-the-art facilities strategically located to reduce freight costs and improve client connectivity. EBITDA margins of 10.8% reflect high operational efficiency.

Logistics & Distribution

Manufacturing facilities are strategically located near key customers and ports, resulting in significant freight cost savings and better client engagement.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved by doubling capacity to 7 LTPA by FY28, diversifying into new recycling verticals (Lithium-ion, Steel, Paper), and increasing the share of value-added products to over 50% of revenue.

Products & Services

Specific products include Lead Ingots, Lead Alloys, Aluminium Ingots, Plastic Granules, Rubber Crumbs, and Turnkey recycling solutions.

Brand Portfolio

Gravita

New Products/Services

New growth avenues include Lithium-ion battery recycling, Steel recycling, and Paper recycling, aimed at increasing the non-lead segment share to 30% of revenue.

Market Expansion

Expansion plans target Africa, Europe (Romania), and Southeast Asia, focusing on scalable and sustainable growth in environmentally responsible facilities.

Market Share & Ranking

Gravita aims to emerge among the top five global recycling companies by 2026.

Strategic Alliances

Key subsidiaries and JVs include Navam Lanka Limited (Sri Lanka), Gravita Netherlands B.V., and Gravita Europe S.R.L. (Romania).

🌍 External Factors

Industry Trends

The industry is shifting toward a circular economy driven by ESG mandates and sustainability goals. Gravita is positioning itself by expanding into lithium and steel recycling.

Competitive Landscape

Faces rising global competition for quality scrap and evolving ESG expectations from customers and regulators.

Competitive Moat

Durable advantages include an extensive global procurement network, 100% lead inventory hedging, and strategic plant locations that provide cost leadership in freight.

Macro Economic Sensitivity

Sensitive to global LME prices and scrap availability. GDP growth and industrial activity drive demand for recycled lead and aluminium.

Consumer Behavior

Increasing demand from industrial customers for sustainable and recycled raw materials to meet global carbon reduction targets.

Geopolitical Risks

Expanded footprint in Africa (Ghana, Senegal, Mozambique) exposes the company to regional volatility and potential trade barrier impacts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to hazardous waste management rules, pollution control board norms, and international scrap import/export restrictions.

Environmental Compliance

Lead recycling is a highly polluting process; GIL must comply with strict pollution norms. The company is investing in cleaner technologies to meet evolving ESG mandates.

⚠️ Risk Analysis

Key Uncertainties

Scrap availability and regulatory changes in hazardous waste management are the primary risks, with potential impact on volume growth targets.

Geographic Concentration Risk

Revenue is diversified across India and international markets, with Africa being a major contributor to overseas growth.

Third Party Dependencies

Low dependency due to a highly diversified supplier base and an extensive global procurement network.

Technology Obsolescence Risk

The company continuously upgrades to cleaner technologies and state-of-the-art facilities to mitigate technology risks and meet sustainability mandates.