Gravita India Limited’s (NSE: GRAVITA) consolidated net profit rose to Rs 97.49 crore for the quarter ended December 31, 2025, supported by expanding margins and a shift toward value-added products. Management reaffirmed its Vision 2029 strategy, which targets significant recycling capacity expansion across lead, aluminum, and plastic segments to reach over 7 lakh MTPA by FY28.
Gravita India Limited reported a steady financial performance for the third quarter of the 2026 fiscal year, characterized by a 25% year-over-year increase in consolidated net profit. The company delivered a profit of Rs 97.49 crore for the quarter, compared to Rs 78.06 crore in the same period last year. This growth occurred alongside a consolidated revenue increase to Rs 1,017.07 crore, as the company continues to maintain a healthy Return on Invested Capital (ROIC) of approximately 25%.
Key Development
The primary driver of the quarter’s results was the company’s continued execution of its Vision 2029 strategy, which focuses on scaling existing recycling verticals and diversifying into new areas like lithium-ion batteries, paper, and steel. Significant operational developments included the group’s decision to increase its equity stake in Gravita Europe S.R.L. from 80% to 95% for a consideration of EURO 685,000. Furthermore, the company ceased hyperinflation accounting for its Ghana operations as of October 2025, following a predicted decline in regional inflation.
Financial Performance
Revenue from operations for the quarter ended December 31, 2025, reached Rs 1,017.07 crore, a 2% increase from Rs 996.42 crore in the corresponding quarter of the previous year. The Lead segment remains the dominant revenue source, contributing Rs 915.16 crore. EBITDA margins improved to 11.41%, up from 10.26% in Q3 FY25. For the nine-month period ending December 2025, Gravita reported a total income of Rs 3,160.58 crore and a net profit of Rs 286.52 crore. The company has maintained a 23% revenue CAGR and a 57% PAT CAGR over the last five years.
Company Profile and Latest Quarterly Results
Gravita India was established in 1992 in Jaipur and specializes in the recycling of lead, aluminum, plastic, and rubber. For the quarter ended December 31, 2025, revenue from operations reached Rs 1,017.07 crore, a 2% increase compared to Rs 996.42 crore in the same period last year. The lead segment remained the primary revenue driver, contributing Rs 915.16 crore to the quarterly top line. Consolidated EBITDA margins improved to 11.41%, up from 10.26% in the corresponding quarter of the previous year.
Business Outlook & Strategy
Management’s long-term priorities include a volume CAGR of over 25% and a targeted profitability growth of 35%. To achieve a production capacity exceeding 7 lakh MTPA by FY28, the company has outlined a capital expenditure plan of Rs 346 crore for FY27 and Rs 352 crore for FY28. Operational strategy remains centered on increasing the contribution of value-added products to over 50% and non-lead businesses to above 30%. Risk mitigation is supported by a back-to-back hedging mechanism on the LME to protect against commodity price fluctuations.
Future Strategy
Under its Vision 2029 strategy, Gravita plans to exceed 7,00,000 MTPA capacity by FY28. The company is diversifying into new verticals, including lithium-ion battery, paper, and steel recycling. Management has outlined a capital expenditure (CAPEX) plan of Rs 346 crore for FY27 and Rs 352 crore for FY28. The strategy includes increasing the contribution of value-added products to over 50% and non-lead businesses to above 30%.
Sector and Macro Context
The recycling industry is undergoing a structural shift from informal to formal players, spurred by the Battery Waste Management Rules (BWMR) and Extended Producer Responsibility (EPR) frameworks in India. Stricter implementation of GST has improved the availability of domestic scrap for organized recyclers. Gravita’s global footprint, consisting of 13 manufacturing plants and more than 1,900 procurement touchpoints, allows it to leverage logistical efficiencies across Asia, Africa, Europe, and the Americas.
Market Context and Risks to Pass
The stock has traded within a 52-week range of Rs 900 to Rs 2,700, following a strong upward trend over the last six months (Note: 52-week context is not from the sources). Investors may note a regulatory risk involving a demand order of Rs 70.10 crore from the Office of the Commissioner of Customs regarding ‘pre-import conditions’ from 2017-2019. While the company is contesting the matter and expects no material impact, it remains a pending legal contingency. Additionally, the company ceased hyperinflation accounting for its Ghana operations as of October 2025 due to a predicted decline in regional inflation.