Gravita India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Gravita India Ltd filed with BSE on 11 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Gravita India reported FY26 consolidated revenue of Rs 4,265 crores, up 10% year-on-year, with adjusted EBITDA of Rs 452.48 crores and PAT of Rs 378.80 crores. The company completed the acquisition of a 99.44% stake in Rashtriya Metal Industries Limited for Rs 560 crores to enter the copper segment, and raised its total capex plan to Rs 1,700 crores through FY29 to fund expansion across lead, copper, lithium-ion and rubber recycling. Management said Q4 EBITDA per ton was impacted by disruption in Middle East sales of value-added products and higher inward logistics costs.
Numbers mentioned
Revenue: INR 4,265 crores (FY26)
p. 5
“Revenue stood at INR 4,265 crores reflecting a Y-on-Y growth of 10% driven by increased capacity utilization and operational efficiencies.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Adjusted consolidated EBITDA: INR 452.48 crores (FY26)
p. 5
“Adjusted consolidated EBITDA for FY ‘26 stood at INR 452.48 crores reflecting a growth of 12% year-on-year with margins remaining healthy at 10.6%.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Consolidated PAT: INR 378.80 crores (FY26)
p. 5
“Consolidated PAT came at INR 378.80 crores registering a year-on-year growth of 21% with PAT margins at 8.88%.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Revenue: INR 1,172.76 crores (Q4 FY26)
p. 5
“Revenue grew by 13% year-on-year and 15% quarter-on-quarter to INR 1,172.76 crores.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Adjusted EBITDA: INR 112.91 crores (Q4 FY26)
p. 5
“Adjusted EBITDA stood at INR 112.91 crores reflecting a growth of 4% year-on-year with margins remaining strong at 9.63% plus supported by operating efficiencies and an improved mix.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
PAT: INR 91.88 crores (Q4 FY26)
p. 5
“PAT for the quarter came in at INR 91.88 crores with PAT margins remaining healthy at over 7.83%.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Total volume growth: 5% to 56,208 metric ton per annum (FY26)
p. 5
“In FY ‘26 total volume increased by 5% to 56,208 metric ton per annum.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Lead segment sales growth: 7% to 48,889 metric ton per annum (FY26)
p. 5
“The lead segment reported growth in sales of 7% to 48,889 metric ton per annum driven by capacity additions and stabilization.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
EBITDA per ton (lead, plastic, aluminum): INR 23,043; INR 16,043; INR 12,328 (FY26)
p. 5
“FY26 EBITDA per ton for lead, plastic and aluminum stood at INR 23,043 and INR 16,043 and INR 12,328 respectively.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Value-added products contribution to revenue: 42% (FY26)
p. 5
“Value-added products contributed 42% to the overall revenue demonstrating steady progress towards Vision 2029 where the target is a 50% contribution from such offerings.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Total installed capacity: about 4.57 lakh metric ton per annum
p. 3
“Our expansion program is progressing broadly as planned, with total install capacity now at about 4.57 lakh metric ton per annum.”
Yogesh Malhotra, page 3 of the filed PDF · View the filing
Mundra lead capacity addition: 80,300 metric ton per annum, taking total to 145,100 metric ton per annum (Feb 2026)
p. 3
“In Feb 2026, Gravita expanded its lead recycling capacity at Mundra by 80,300 metric ton per annum, taking the total capacity to 145,100 metric ton per annum.”
Yogesh Malhotra, page 3 of the filed PDF · View the filing
FY26 capex incurred: INR 372 crores (FY26)
p. 4
“During FY ‘26, we incurred a CAPEX of INR 372 crores.”
Yogesh Malhotra, page 4 of the filed PDF · View the filing
ESG rating: 65
p. 4
“Gravita has been assigned an ESG rating of 65 by NSC Sustainability Ratings and Analytics Limited reflecting the Company’s strong commitment towards sustainable business practices, responsible growth and long-term value creation.”
Yogesh Malhotra, page 4 of the filed PDF · View the filing
RMIL current EBITDA per ton: around INR 45,000 per ton
p. 9
“So, currently on a sustainable basis, we are getting around INR 45,000 per ton.”
Yogesh Malhotra, page 9 of the filed PDF · View the filing
RMIL capacity utilization: around 50%
p. 8
“So, current capacity utilization is around 50% and we would want to take it to around 60%-65% in the next year itself.”
Yogesh Malhotra, page 8 of the filed PDF · View the filing
Net debt: INR 118 crore
p. 13
“Currently we are INR 118 crore of net debt we are having and which will go up by INR 600 crores to INR 700 crores approximately.”
Yogesh Malhotra, page 13 of the filed PDF · View the filing
Working capital days: around 90 days (FY26)
p. 9
“So, current working capital was for this year, including the copper part, was around 90 days, which was slightly higher because there were… we kept some more inventory considering the upcoming capacity at Jaipur and Mundra.”
Yogesh Malhotra, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Total installed capacity — over 8 lakh metric ton per annum · FY29
stated firmly by Yogesh Malhotra
p. 3
“We continue to work towards our medium-term target of scaling this up to over 8 lakh metric per annum by FY ‘29, in line with our focus on building a larger and more diversified recycling platform.”
Yogesh Malhotra, page 3 of the filed PDF · View the filing
Total capex — INR 1,700 crores · through FY29
stated firmly by Yogesh Malhotra
p. 4
“On the investment side, we have earmarked a total CAPEX of INR 1,700 crores through FY ‘29.”
Yogesh Malhotra, page 4 of the filed PDF · View the filing
Copper recycling facility capacity (Phase 1) — 29,400 metric ton per annum · within the next 12 months
stated firmly by Yogesh Malhotra
p. 4
“Commercial operations are expected to commence within the next 12 months.”
Yogesh Malhotra, page 4 of the filed PDF · View the filing
Value-added products contribution to revenue — 50% · Vision 2029
stated as an aspiration by Yogesh Malhotra
p. 5
“Value-added products contributed 42% to the overall revenue demonstrating steady progress towards Vision 2029 where the target is a 50% contribution from such offerings.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
Rubber recycling capacity — around 30,000 tons · Q1 or Q2 this year
stated firmly by Yogesh Malhotra
p. 8
“And the total capacity that we are planning for rubber is around 30,000 tons.”
Yogesh Malhotra, page 8 of the filed PDF · View the filing
RMIL capacity — from 30,000 ton to around 60,000 ton · next three years
stated as an aspiration by Yogesh Malhotra
p. 8
“So, we would take this current capacity to almost double the current capacity from 30,000 ton to around 60,000 ton in the next three years.”
Yogesh Malhotra, page 8 of the filed PDF · View the filing
RMIL EBITDA per ton (backward integration) — INR 65,000 per ton to INR 70,000 per ton · future
stated conditionally by Yogesh Malhotra
p. 9
“And going forward, I think, if we do the backward integration, it would go up to INR 65,000 per ton to INR 70,000 per ton in future.”
Yogesh Malhotra, page 9 of the filed PDF · View the filing
Volume CAGR — 20%-25% · next three years
stated firmly by Yogesh Malhotra
p. 10
“But overall, in the next three years, we are very confident of getting a CAGR of 20%-25% in volume terms consistently over the next three years.”
Yogesh Malhotra, page 10 of the filed PDF · View the filing
Copper volume growth — 40%-50% · this year
stated firmly by Yogesh Malhotra
p. 10
“So, volume numbers, overall, we are planning to grow at around 40%-50% in copper in this year.”
Yogesh Malhotra, page 10 of the filed PDF · View the filing
RMIL margins — 9% to 10% · next 2 to 3 years
stated as an aspiration by Yogesh Malhotra
p. 11
“So, that will improve the margins in next 2 to 3 years to around 9% to 10% from current around 8%.”
Yogesh Malhotra, page 11 of the filed PDF · View the filing
Peak working capital debt — INR 800 crores to INR 900 crores · once copper business starts next year
stated conditionally by Yogesh Malhotra
p. 13
“So, debt should be working capital debt of around INR 800 crores to INR 900 crores after the copper coming in once the copper business starting say next year.”
Yogesh Malhotra, page 13 of the filed PDF · View the filing
Aluminum EBITDA per kg — INR 14 to INR 15 per kg · sustainable basis
stated firmly by Yogesh Malhotra
p. 14
“But on a sustainable basis, we have always said that it’s going to be around INR 14 to INR 15 per kg.”
Yogesh Malhotra, page 14 of the filed PDF · View the filing
Plastic EBITDA per ton — INR 10 to INR 12 · going forward
stated firmly by Yogesh Malhotra
p. 14
“But on an average basis, you can expect around INR 10 to INR 12 EBITDA margins in plastic going forward also.”
Yogesh Malhotra, page 14 of the filed PDF · View the filing
Lead EBITDA per kg — Rs.19-INR 20 per kg · sustainable basis
stated firmly by Yogesh Malhotra
p. 15
“So, lead again is around Rs.19-INR 20 per kg and copper currently is around INR 45 per kg.”
Yogesh Malhotra, page 15 of the filed PDF · View the filing
Rubber EBITDA per kg — Rs.7-8 per kg
stated firmly by Yogesh Malhotra
p. 15
“So, rubber would be around Rs.7-8 per kg.”
Yogesh Malhotra, page 15 of the filed PDF · View the filing
Copper capacity — around 100,000 tons · FY29
stated as an aspiration by Yogesh Malhotra
p. 16
“But then when we increase our recycling capacities further, then part of it would go to RMIL and the balance part we are planning to make probably go into some other valuated products or some other products and therefore the total capacity would be around INR 100,000 tons in FY ‘29.”
Yogesh Malhotra, page 16 of the filed PDF · View the filing
Copper working capital cycle — around 90 days · next 3-4 years
stated firmly by Yogesh Malhotra
p. 17
“So, basically, the working capital cycle for copper is going to be around 90 days.”
Yogesh Malhotra, page 17 of the filed PDF · View the filing
Copper division ROCE — 20% plus
stated as an aspiration by Yogesh Malhotra
p. 17
“So, if you consolidate this, both the businesses together, the overall, the margin profile will be better and ROCE should be in the range of 20% plus.”
Yogesh Malhotra, page 17 of the filed PDF · View the filing
Total volume — around 500,000 tons · FY29
stated as an aspiration by Yogesh Malhotra
p. 19
“I am sorry, that is the total capacity and you can expect around 60% to 65% utilization of those capacities, which would come to around 500,000 tons by FY ‘29.”
Yogesh Malhotra, page 19 of the filed PDF · View the filing
FY27 volume growth — slightly more than 20%-25% · FY27
stated conditionally by Yogesh Malhotra
p. 18
“So, volume plan is like same 20%-25% growth and in additional growth, slightly additional growth because we missed some volumes in the last year.”
Yogesh Malhotra, page 18 of the filed PDF · View the filing
Interest cost — INR 4 crores to INR 5 crores per quarter · FY27
stated conditionally by Yogesh Malhotra
p. 20
“So, interest will be in the similar range, whatever we are doing around INR 4 odd crores for a quarter.”
Yogesh Malhotra, page 20 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the increase is due to the addition of copper capacity, not a reduction in lead plans, and lead capacity target has actually increased.
Answered by Yogesh Malhotra
Asked by Akhilesh: Why has the capex plan increased from INR 1,200 crores to INR 1,700 crores and is lead capacity being rationalized?
p. 6
“No, we are not changing the capacity of lead. So, lead capacity will be as per plan because earlier the plan was to take this capacity to 700,000 tons but now we are taking it to 800,000 tons.”
Yogesh Malhotra, page 6 of the filed PDF · View the filing
Management attributed the EBITDA decline to reduced value-added sales to the Middle East and higher inward logistics costs, and said there would be some short-term impact in Q1.
Answered by Yogesh Malhotra
Asked by Akhilesh: What caused the decline in absolute EBITDA in Q4 despite copper addition, and how will West Asia disruption affect Q1?
p. 7
“See, in the short term, it definitely will have some impact.”
Yogesh Malhotra, page 7 of the filed PDF · View the filing
Management said the initial phase would consolidate existing RMIL products and add backward integration via a Mundra plant, with no meaningful change to working capital.
Answered by Yogesh Malhotra
Asked by Vileh Kumar Rai: What is the copper business strategy and will it elongate the working capital cycle?
p. 7
“Working capital, this would not be impacted because, I mean, it’s a backward integration only.”
Yogesh Malhotra, page 7 of the filed PDF · View the filing
Management said utilization is around 50%, targeted to rise to 60-65% next year, with capacity potentially doubling to 60,000 tons in three years.
Answered by Yogesh Malhotra
Asked by Nirvana Laha: What is RMIL's current capacity utilization and growth outlook?
p. 8
“So, current capacity utilization is around 50% and we would want to take it to around 60%-65% in the next year itself.”
Yogesh Malhotra, page 8 of the filed PDF · View the filing
Management expects working capital to remain in the 85-90 day range even as copper, which is more import-dependent, comes online.
Answered by Yogesh Malhotra
Asked by Aadesh Gosalia: What is the outlook for FY27 working capital given new product lines and expansion?
p. 9
“So, that was the reason. But going forward, we see it with the copper business coming in and copper business, since that will be more imported one, so it should be close to 85 to 90 days going forward.”
Yogesh Malhotra, page 9 of the filed PDF · View the filing
Management said margins could improve to 9-10% via better scrap sourcing and use of the existing yard network, with new sourcing from developed markets like US, Europe, South America and Australia.
Answered by Yogesh Malhotra
Asked by Amit Dixit: Can RMIL margins improve from the current ~8% level and where will copper sourcing come from?
p. 11
“So, that will improve the margins in next 2 to 3 years to around 9% to 10% from current around 8%.”
Yogesh Malhotra, page 11 of the filed PDF · View the filing
Management guided peak working capital debt of INR 800-900 crores once the copper business ramps, from a current small net debt base.
Answered by Yogesh Malhotra
Asked by Vikas Singh: How should investors think about debt increase given copper's working capital needs?
p. 13
“So, debt should be working capital debt of around INR 800 crores to INR 900 crores after the copper coming in once the copper business starting say next year.”
Yogesh Malhotra, page 13 of the filed PDF · View the filing
Management said sustainable EBITDA per ton guidance for both segments has not actually declined and reiterated the INR 14-15/kg aluminum and INR 10-12/kg plastic ranges, pending an MCX hedging mechanism for aluminum.
Answered by Yogesh Malhotra
Asked by Shrenik Mehta: How much of the aluminum and plastics EBITDA per ton decline is due to LME pass-through lag, capacity ramp, or structural pricing pressure?
p. 14
“So, it’s not correct to say that the margins have been decreasing. The margins are still over and above the guidance that we have given.”
Yogesh Malhotra, page 14 of the filed PDF · View the filing
Management gave sustainable figures excluding crisis effects and said Q1 lead EBITDA per ton could be at the lower end of guidance due to ongoing disruptions.
Answered by Yogesh Malhotra
Asked by Ashish Kejriwal: What is the sustainable EBITDA per kg for lead, copper and rubber, and does the lead figure include the Middle East crisis effect?
p. 15
“No. This is on a sustainable basis without any crisis or without any arbitrage opportunities.”
Yogesh Malhotra, page 15 of the filed PDF · View the filing
Management said 18% GST is allowing the unorganized sector to remain competitive, and that a proposed reverse charge mechanism could accelerate formalization once implemented.
Answered by Yogesh Malhotra
Asked by Sumangal Nevatia: What has been the impact of EPR enforcement on lead volume growth, which has lagged expectations?
p. 17
“But at the same time, you know, 18% GST is creating a hurdle because of which most of the battery brand owners are not able to compete with the unorganized market.”
Yogesh Malhotra, page 17 of the filed PDF · View the filing
Management said there was no open market sale, but a dilution via placement to institutional shareholders and the promoter sought personal liquidity.
Answered by Yogesh Malhotra
Asked by Sahil Garg: Why did the promoter reduce their stake in the company over the last 12 months?
p. 19
“So, there was no sale in the open market. There was some dilution by way of selling to some institutional shareholders, where they were looking for some bigger stake in the Company.”
Yogesh Malhotra, page 19 of the filed PDF · View the filing
Risks flagged
Disruption to Middle East sales and raw material sourcing due to geopolitical conflict, affecting value-added product volumes and EBITDA
p. 6
“But as far as the overall EBITDA reduction is concerned, I mean a lot of our material goes to the Middle East, around 10% to 12% of the total sales and most of these products that we sell to the Middle East are value-added products.”
Yogesh Malhotra, page 6 of the filed PDF · View the filing
Higher inward logistics and material costs impacting margins
p. 7
“And also, the inward logistic cost went up and therefore the overall material cost has also gone up.”
Yogesh Malhotra, page 7 of the filed PDF · View the filing
Lack of hedging mechanism on MCX limiting aluminum volume scale-up in India
p. 5
“The volumes are expected to pick up once the hedging mechanism is live on MCX.”
Yogesh Malhotra, page 5 of the filed PDF · View the filing
18% GST allowing unorganized sector to remain price competitive versus formal battery recyclers
p. 18
“So, therefore, I mean, although they are trying their best, at the same time, unfortunately, the lead prices globally have not been, I mean, they were very low over the last years.”
Yogesh Malhotra, page 18 of the filed PDF · View the filing
Uncertain timing of MCX approval for aluminum hedging contract
p. 15
“I understand that we have been expecting this for the past one year. I mean, I can say that we can get it in Q1 next year also, but unfortunately, it’s very difficult to predict because everything is there.”
Yogesh Malhotra, page 15 of the filed PDF · View the filing
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