GRAVITA INDIA LTD (NSE: GRAVITA) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Yogesh Malhotra — Whole Time Director & CEO
Sunil Kansal — Whole Time Director & CFO
Naveen Prakash Sharma — Executive Director
Analysts:
Manish Mahawar — Analyst
Amit Lahoti — Analyst
Nilanjan Dey — Analyst
Amit Dixit — Analyst
Sucrit Patil — Analyst
Aniket Madhwani — Analyst
Kunal Devendra Kothari — Analyst
Sagar Shah — Analyst
Vinayak Kariwal — Analyst
Amay Sharda — Analyst
Gaurav Shah — Analyst
Sumant Kumar — Analyst
Sumangal Nevatia — Analyst
Netra Deshpande — Analyst
Devang Shah — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to 3Q&NM FY26 post results conference call of Gravita India Limited hosted by Antique Stockbroking. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Manish Mahavar from Antique Stockbroking. Thank you. And over to you sir.
Manish Mahawar — Analyst
Yeah, thank you. Moderator on behalf of Antique Stockbroking, I would like to welcome all the participants. On the 3Q FY26 earnings call of Gravita India Riya with US leadership team represented by Mr. Yogesh Malhotra, full time Director and CEO Mr. Sunil Kansar, old. Time Director and CEO Mr. Naveen Sharma, Executive Director and Mr. Anand, Investor Relations on the call. Without any delay, I would like to hand over the call to Mr. Malhotra. For opening remarks post which we will open the floor for Q and A. Thank you. And over to you vaiji.
Yogesh Malhotra — Whole Time Director & CEO
Thank you Mr. Manish. Good afternoon everyone and welcome to our Q3 and 9 months FY26 earnings call. I hope you have had an opportunity to review the earnings presentation and financial results uploaded on the stock exchanges. I am pleased to share that Gravita delivered a consistent performance in Q3 and 9 month FY26 reflecting steady progress across operational and financial parameters in all major business verticals. In nine months FY26 the company delivered year on year growth of 9%, 15% and 32% in revenue. EBITDA and PAT before delving into the results, I would like to take a moment to highlight our ongoing expansion plans and strategic updates.
There have been some delays in our capacity expansion plans. Although broadly we are progressing with installed capacity now at about 3.40 lakh metric ton per annum. We expect to cover it up in the upcoming quarters to meet our medium term target of scaling this up to over 7 lakh metric ton per annum by FY28 in line with our focus on building a larger and more diversified recycling platform. On the investment side, we have earmarked a total capex of Rupees12.25 crore through FY28. Of this, around Rupees 850 crore is being deployed towards strengthening and expanding our existing businesses.
While the balance will support entry into new recycling verticals like lithium ion batteries, paper and steel during the first nine months of 2026, we have already incurred capex of about rupees 125 crores. At Mundra, lead capacity expansion of 80,000 metric ton per annum is targeted for completion by Q4FY26. At Japan, lead capacity expansion up to 45,000 metric ton per annum IS target for completion by Q4FY26. The Mundara rubber project is slated to slated for commissioning in Qify 27 with revenues expected to begin flowing from Q2 FY27 aided by stabilization of the Romania operations as well.
Gravita Netherlands bv, our step down subsidiary has approved an additional investment in Gravita Europe SRL through the acquisition of 3.5 lakh shares representing a 15% stake. Post this transaction, GNBV’s shareholding in Gravita Europe SRL will increase from 80% to 95% further strengthening our presence in the European market. On the operational front, the regulatory environment remains favorable for organized recyclers. Stronger enforcement of the BWMR and EPR frameworks has enhanced accountability across producers, recyclers and collection agencies leading to more efficient collection channels, reduced leakages to the unorganized sector and improved traceability. These measures have materially increased domestic scrap availability, driving higher local sourcing.
In terms of volumes, Q3FY26 saw a modest sequential improvement overall. The lead segment reported steady growth on both YNY and Q on Q basis. The plastic segment recording recorded a strong rebound with volumes rising 55% Q1Q to 3160 metric ton. In contrast, aluminium volumes declined on both a year on year basis and quarter on quarter basis. The decline in aluminium volumes during the quarter was primarily driven by higher metal prices in the market. In such periods, scrap aggregators typically withhold material in anticipation of further price increases which temporarily tightens scrap availability. This led to lower procurement and consequentially reduced processing volumes during the quarter.
As prices stabilize and scrap flow normalizes, procurement is expected to improve, supporting a recovery in aluminium volumes in the coming quarters. Lead aluminium and plastic EBITDA per ton stood at 23,000 rupees, 14,215 rupees and 10,462 rupees respectively. In Q3FY25 26, revenue remained flat on both year on year and quarter on quarter basis at Rupees10.17 crore. Adjusted EBITDA stood at Rupees 116 crores up 13% year on year and 4% quarter on quarter with margins remaining strong at 11.41% plus supported by operating efficiencies and mix improvements. PAT increased by 32% year on year to Rs. 97.67 crores with PAT margins remaining healthy at 9.60%.
Gravita is progressing steadily towards Vision 2029 backed by a clear roadmap to scale its core business while expanding into new recycling segments such as lithium ion, rubber, steel and paper. The company is targeting strong growth metrics including a volume CAGR of over 25%, profitability growth above 35% and ROIC exceeding 25% alongside increasing the non led segments contribution to 30% of revenue, raising renewable energy usage to 30% and reducing energy intensity by over 10%. With more than three decades of experience, 13 environmentally responsible facilities and a presence in over 70 countries, Gravita is well placed for sustainable long term value creation supported by disciplined capex, capacity expansion, operational efficiency and strong governance.
That’s all from my end. I would now request to open the floor for questions and answers. Thank you and over to you moderator.
Questions and Answers:
operator
Thank you so much sir. Ladies and gentlemen, we’ll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Amit Lahoti from MK Global Financial Services Ltd. Please go ahead.
Amit Lahoti
Thanks for the opportunity. My first question is on capacity expansion projects like you highlighted there was a delay. So what were the bottlenecks in the last two to three months which led to this delay?
Yogesh Malhotra
Sir, we already have the installed capacity there but there is some delays from the government authorities in giving the license to operate because of various reasons in Gujarat because of this vibrant Gujarat into play. So some of the government officials are not regularly attending the offices right now. So we are expecting this to probably happen in either month end of January or maximum in Feb itself. So in this quarter we are expecting both the foggy as well as Mundra plant to get the license to operate.
Amit Lahoti
Okay so is there a change in. Government stance on decycling and hence there is no sense of urgency around the approvals because even for the regulations like reverse charge mechanism we have been waiting for quite some time but government support hasn’t been coming so far and then there is a delay in approval. So is there a trend or this is just like one off kind of a delay that we are looking at.
Yogesh Malhotra
It’S a one of a kind delay because you know, these consent to operate are given by state governments and not the central government. And I mean it’s not that they have told us not because we already have cte, which is the consent to establish so that we’ve already got. So generally after that they just inspect the, your site to see whether it is in line with the, the approval they have given. And once they are sure, they will give you the consent to operate. So it’s merely a formality, but because of, not, I mean because of this vibrant Gujarat theme, they are not regularly attending the office.
So that is why the delay is there. But we are very confident that it will happen now in this quarter itself.
Amit Lahoti
Okay, got it. My second question is that our margins have been holding up pretty well and above our guidance consistently. But still our guidance remains where it is, like 19 to 20 rupees per kg. But we have been reporting 23 rupees per kg. So at what point do we leave this restraint and holding the guidance? Because our peer group is already talking about margin upgrades for quite some time.
Yogesh Malhotra
Sir, I think the margin would remain at around 19 to 20 rupees. As we mentioned earlier that we sacrifice some revenues to ensure that these margins are intact. And so that is why, because there are arbitrage opportunities. So we ship some material from our African branch into India taking advantage of those benefits. So fortunately for us, for the last whole year that that has been the case. So there are, there has been some arbitrage opportunities which we have been able to benefit from. But consistently getting more than 19 to 20 rupees margin will have to probably wait for maybe six more months to see whether we can sustain these, these kind of margins or not.
Amit Lahoti
Okay, got it. And lastly a housekeeping question. What Was our domestic versus overseas mix in Q3.
Yogesh Malhotra
Sir? Domestic, because as we mentioned that there were some arbitrage opportunities and also we were having a lot of stock in place because the capacity expansion is taking place. So we wanted to stock up all the raw materials. So we have reduced some local purchases. So overall in the, in the quarter, how much was the
Sunil Kansal
so quarter it was 25% from domestic and 75% was imported. So but overall we should be back to the normal one, which is around 45% from domestic and 55% from the imported one. So once we have the capacity live. Sure.
Amit Lahoti
Okay. Thank you so much.
operator
Thank you so much, Ladies and gentlemen. In order to ensure that the management will be able to address all the questions from the Participant and the conference call kindly limit your question to two question per participant. If you have a follow up question please rejoin the queue. Our next question come from the line of Nilabja Dev from ASMO Research. Please go ahead.
Nilanjan Dey
Sir. Thanks for patience sir. One question is that Dane as per your opening remarks whatever you mentioned then since the top line growth is not expected to pick up before FY28 is my understanding correct? Because you are metal is all at boil currently and people are expecting it is also moving up and you are telling that procurement of the raw materials is a challenge because the suppliers are holding it so and then your capacity expansion also get delayed. So how to would we interpret these two issues?
Yogesh Malhotra
Yeah. So in terms of capacity expansion as I mentioned that we are very confident of getting the expansion in line in the next few quarters.
So the Indian capacity expansion is going to be there in Q4 itself. As far as the vendors holding up scrap is concerned generally it’s a short term thing because their holding capacity is also not that huge. So. But when there is an increase in prices they generally tend to hold some of their inventories but the moment the prices stabilizes they will start releasing those inventories. So I don’t think that it is going to be. And even if the prices increase from here onwards because their capacity is limited they will not be able to hold more than that.
So it will start coming. It has already started coming to us and we believe that we will be back to the normal numbers in. In the coming quarters.
Nilanjan Dey
Okay. And see another thing then then if I take the is in the raw material prices are then your margins will get hit or you are taking a cost plus approach so that you don’t think that will be an issue?
Yogesh Malhotra
No, no, not at all. Because you know there we buy scrap at a discount over the LME prices. When the prices increase also the. The absolute price of the scrap increases but the percentage of the scrap remains the same.
So the margin between the the selling price and the buying price remains intact more or less.
Nilanjan Dey
Okay. Okay, thank you. Thanks a lot.
operator
Thank you. Our next question come from the line of Amit D from GS. Please go ahead.
Amit Dixit
Yeah, good afternoon everyone and thanks for the opportunity. A couple of questions from my side. One is more of a macro question on on the adoption of EPR and bwmr particularly how we are seeing what is the progress of the trading of aluminum alloy on mcx. So if you can briefly highlight these because these are some of the tailwinds that will drive over performance. That is my first question.
Sunil Kansal
Okay. So on the part of EPR and battery waste management rules this is already been reviewed and yesterday NITI IO has recommended few recommendations. Strengthening the EPR process, strengthening the portal and linking of all data from GSTN portal. And there are further collection rules are also being framed. So we are hopeful that by 4-1-2026 these rules will be amended or modified and SOP will be created for collection site in battery based management rule. And also audit rules are also being formed for EPR. And when it comes to MCX on aluminum. So this is also under consideration with MCX and I’m hopeful in FY26 it should come by Q1 of FY26 27.
Amit Dixit
So just wanted to understand the. Understand the constraints behind that. Because you know we have been expecting this for over a year and there has been a very limited progress around particularly the trading of aluminum on mcx. So just wanted to understand where the, you know where the bottleneck lies or visit something regulatory or you know something that is being discussed with the government or there is something that some data that they are looking at. Just wanted to understand the key constraint.
Sunil Kansal
Constraints are over. The key constraint was that it has to get passed through under Security contact Regulation Act. So that took almost one and half year and it came from Ministry of Finance and Ministry of Mines and bis. Now the second part was creating a contract that also has been formed by mcx. Now it’s a call of mcx, their business call because they will be the one who will be the beneficiary as a platform action platform. So there was certain gap because there was change of their higher authority CEO. Change was there in somewhere in November and it has already discussed with in their meeting and frankly speaking the call has to be taken by M6 regulation is over and that’s their business call.
And they also created specification committee also. But anytime they should do it.
Amit Dixit
Okay sir, the second question is a more of a bookkeeping question. If you can mention the revenue and profit from overseas, I mean percentage terms.
Yogesh Malhotra
So we. I mean it’s. It’s. It’s not right to understand our profitability from overseas and you cannot differentiate the overall profitability as we mentioned earlier also that there were areas when we import those materials that we process overseas into India for further processing because Indian market is better. So the profitability would keep on changing. But just for your knowledge around 72% of the profits revenue came from India and 28% of the profit revenue came from overseas. So as for profit profits also 70% was from India. And 24% was from overseas.
Amit Dixit
Great sir, thank you so much and all the best.
Yogesh Malhotra
Thank you.
operator
Thank you. Our next question come from the line of Sucrit Deepartil from ISIGHT Fin Trade Private Limited. Please go ahead.
Sucrit Patil
Good afternoon team. As Gravitas scales its recycling operations across lead, aluminum and plastic, how do you see capacity utilization and product mix evolving over the next one to two quarters? Specifically, what technical levers such as process automation, backward integration or efficient improvements are you using to enhance the process and maintain global competitive competitiveness while maintaining ESG commitment? That’s my first question. I’ll ask my second question after this. Thank you.
Yogesh Malhotra
Yeah, so if you look at our wet capacity utilization, it’s in India, more than 90% capacity utilization is there. So incidentally, we also have our own project division which works with the operational division to keep on reinventing things on how processing is being done, how to bring in automation, how to improve technology.
And that is why in terms of our operational cost and yield we are better than the competitors across the globe. And not only do we use our own plant and machinery, we also supply turnkey solutions to people doing lead and aluminum recycling across the globe. So that gives us an edge as compared to all of our competitors. And what was your other question, sir?
Sucrit Patil
My other question is Mr. Sunil, with margins supported by cash, by steady cash flow, how are you planning to sustain profitability while funding expansion into new recycling verticals? From a technical standpoint, what is your framework for managing working capital cycles, hedging raw material price volatility and optimizing capital allocation to ensure ROE stays steady over the medium term? Thank you
Yogesh Malhotra
sir.
I will answer your question because you know this has been the furnishing of the group that whatever new verticals we would go into or whatever brownfield expansion also we do should meet one of the criteria and that is the return on investment of around 25% from all our new ventures. So that is intact. And that is why whatever products we choose, whether it is currently lead, aluminum, plastic or going forward, we are planning to go into steel, steel, paper, lithium ion. We would ensure that it meets this criteria of 25% ROCE. So that remains the core of the business strategy that we have.
Sunil Kansal
But overall on the funding side, we plan to spend approximately 1200 crores in next two to three years for CAPEX and approximately 1500 crores will be needed for working capital. So we have something in liquidity which we generated through QIP in last year and remaining is to be funded from the internal accruals which we generate as cash flow in next two to three years. And additionally we may take some debt to a limited extent where we plan to raise some debt up to some extra. Some limits. Within some limits. So we are fully confident of, you know, taking the.
This growth fully funded from internal equals and liquidity. We have.
Sucrit Patil
I think the last part was very important. Thank you for the.
operator
Thank you. Our next question come from the line of Aniket Madhwani from Step Rate Capital. Please quit.
Aniket Madhwani
Hello, Am I audible?
Yogesh Malhotra
Hello. Yes. Yes you are.
Aniket Madhwani
So, hi, I just want to know the volume generated this quarter and in lead, aluminum and plastic. As you mentioned there is a decline in volume in aluminum. So could you just clarify on the numbers?
Yogesh Malhotra
So the lead total quantity that we’ve sold in lead is around 46,269 tons which sold around 3,500 tons of aluminum, 3,550 tons and 3,160 tons of plastic scrap. So total overall numbers are 52,982 tons.
Aniket Madhwani
Okay. And so heavy recognized. Any revenue from rubber or lithium ion segment?
Yogesh Malhotra
I mean years. Is not functional right now. It will probably come in this quarter. The consent to operate for lithium ion is also expected to come in the next couple of days. Probably it’s in process, whereas rubber definitely currently we are just using it for in house consumption only. So there has been no revenue coming from.
Sunil Kansal
Yeah, it’s a very significant revenue which is coming from our Romania facility which is just started in this quarter itself, which is almost three and a half crore in this quarter itself. But going forward we have plans to scale up this Romania facility also in Ramadan.
Aniket Madhwani
Okay, got it, got it. And. So you previously mentioned that you are targeting to achieve 25% cagrin in volume dumps. So that should be reflected in your top line as well, right? As 90%. Approximately 90% of your revenue comes from the lead segment. So here I can see in the. Last three quarters we have achieved around 3000 crores. So what are you expecting to close in Q4?
Yogesh Malhotra
Sir, there are two things here. I mean although when we talk about volumes, we generally talk about the production volumes because as I mentioned earlier that some of the material that we produce in our Africa plants, when there is arbitrage opportunities, we move that material into India and process it again here. So it gets eliminated when we talk about the overall revenue growth in terms of volume. So but if you, if you, if you consider that then we have grown at around 8 to 9% overall in, if you, if you don’t eliminate that part in Q4 as I mentioned that we are expecting some expansions to take place, capacity expansion to take place.
So because of that we would see some volume increase coming in the Q4.
operator
Sorry to interrupt you sir but please rejoin the queue for more questions. Thank you. Our next question comes from the line of Kunal Devendra Kothari from Noama Wealth Management. Please go ahead.
Kunal Devendra Kothari
Yeah, thank you for the opportunity. So my first question is that we are adding up around 125kt in off lead in quarter four FY26. So by when you think we can optimize fully does it take a quarter or two or if we can ramp up it fully? This is my first question.
Yogesh Malhotra
In H1 next year we’ll be able to ramp up it. Some of the volumes will start coming from Q4 itself but major incremental volume will start coming from Q1 and Q2 of next financial year.
Kunal Devendra Kothari
So by Q2 we can, we will be able to fully ramp up.
Yogesh Malhotra
Absolutely.
Kunal Devendra Kothari
Okay sir. So second question is on capex. So we did around 125 crore capex in first nine months but. But trend what we are seeing is declining from around 650 million in quarter one, 400 million in quarter two and now 200 million in quarter three. So what is the specific reason for the declining trend? And secondly you had target of around 200 crore of capex for the entire FY26. So how much you know, you think that it is achievable and adding to that by FY28 as you mentioned the total capex will be higher up for 1200 crore.
So with this declining trend how you see that you will be able to catch up and you know achieve this target?
Yogesh Malhotra
I couldn’t hear your first question properly but to answer your second question we’ve already done a capex of around 125 crores till now and we are expecting it to cross 200 crores by Q4. So we will meet the targets that we set for FY26 for capacity expansion. And the second thing is that you should also look at the total capacity rather than the capex done because in some of the cases we have done capacity expansion in brownfield projects rather than greenfield projects. So the well capex required to do that has been lower than what we had envisaged earlier.
So that is probably the reason why the capex is lower but the capacities would be in line with what we have told that would happen by Q FY28.
Kunal Devendra Kothari
So any specific reason that bulk of the Capex is coming in quarter four.
Yogesh Malhotra
So some of these Capex was supposed to come in Q2 also but as I mentioned there have been some delays from our side in terms of setting the plant up and then there have been some delays for getting those approvals also. Otherwise some of these Capex was expected in the Q2 and Q3 also but there have been some delays, we admit that.
Kunal Devendra Kothari
Okay, thank you sir. All the best.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participant in the conference call kindly limit your question to two questions per participant. If you have a follow up question please rejoin the queue. Our next question comes from the line of Sagar Shah from Spark pwm. Please go ahead.
Sagar Shah
Yeah, thank you so much for the opportunity and congratulations sir for better than expected margins. Actually now my first question was related to actually our Capex you highlighted. We incurred around 125 crore crores and capex. So just wanted to clarify one thing. The 30,000 tons additional capacity in lead has it been which you highlighted in Q2 has it been fully commissioned in this quarter? And another one 45000 tons of lead which was going to come up in Q4. So is it on track? So just to clarify on the. On first the. My first question is this on the CAPEX front.
Then I’ll highlight my second question.
Yogesh Malhotra
So to answer your question the one plant in Jaipur we’re expecting a capacity increase of 45,000 tons by Q4 of this year. And in Mundra we are expecting a 80,000 ton capacity in Q4. Further further increase of 85.
Sagar Shah
So in all by. In all in this Q3 the another 30,000 tons is already being commissioned in the phase one lead expansion.
Yogesh Malhotra
Q4 125000 tons of lead capacity expansion would be expected. Not in Q3. Q4.
Sagar Shah
Okay. So basically by Q4 1121 lakh 25000 tons will be commissioned by Q4 FY26 that you are highlighting, right?
Yogesh Malhotra
Yes, yes, yes.
Sagar Shah
Okay. Okay. And so and in our plastics and aluminum some sort of capacity expansion also. So is it safe to assume that the capacity expansion will be done in these two segments also or only lead you are planning to expand
Yogesh Malhotra
not not. In this year but next year definitely there are some capacity expansion in aluminum. The capacity expansion we are holding up because we want to get a MCX approval first. So as Naveenji mentioned that we are expecting it by Q1 of next year and then we will start starting Expansions in aluminium capacities. But plastic capacities will start happening in next year also.
Naveen Prakash Sharma
And in addition to this, we are also capacity in India in next year and lithium oil also is expected in Q4. All these capacities would come in next year.
Sagar Shah
Okay, okay. My second question was related to the plastic segment. Plastic segment, we are running at low capacity utilization but our margins are have come very friendly actually. So the capacity utilization hovers at around, around 40% for if we compare these nine months actually. So going forward I wanted to some color on the plastics and on the kind of products that we are dealing in this segment and what is the outlook going ahead as well in this segment.
Yogesh Malhotra
So as I mentioned that plastic growth will all depend on how the industry would take to secondary plastics going forward. Because most of the industry is not using secondary plastic for their primary packaging. They are using it for secondary, second secondary or tertiary packaging. But primary packaging has yet not started in most of the cases. So we are targeting that segment because that is more profitable compared to other segments. And it’s a slow process in the sense that you have to develop that product, you have to start using, testing those products, start using those products for years before you go ahead to start using that product on a regular basis.
So it’s a slow process but we are very confident we are making inroads into this. We are developing new products for new customers and we are very hopeful that although the direction is right, but the moment it will start happening it will just take off. I mean, but currently you can expect a slow growth of around 8 to 10% for the next couple of quarters and then probably we can see an increase.
Sagar Shah
So can you highlight what are the products that you are planning to make in plastic? It is EP granules or what kind of products.
Yogesh Malhotra
So we are making PP granules, but that is specific to the customers requirement of their packaging requirements. So for example, Asian paints require recycled plastic for their buckets or battery manufacturers require PP granules for their battery boxes and so on, so forth. So all the brand owners require different kind of products and it’s a little difficult to develop those products from secondary plastic. But we are working on with some of these OEMs and developing products for them.
Sagar Shah
Okay, okay, fine sir, thank you so much and I’ll come back in the queue. Thank you so much and all the best.
operator
Thank you. Next question comes from the line of Vinayak Kariwal from Ponen Tribe. Please go ahead.
Vinayak Kariwal
Hi sir, thank you for the opportunity. So my question was on the lead volume growth. So what, what we are selling what we are selling in the export market we are mostly selling to South Korea, uae. But according to some reports the lead volumes demand in these countries are saturated and thus many of our peers are starting to sell big chunk of their lead volumes to Singapore and these traders sitting there. So why are we not selling our volumes to these traders sitting in Singapore? And do you see any benefit to selling your volumes in Singapore because of the demand situation in these countries?
Yogesh Malhotra
Sir, currently our volumes are so low that even if there is a decrease in demand, we’ll be able to sell all the material that we produce or manufacture to the OEMs directly in Southeast Asia. Generally in Singapore you sell it to traders and not directly to OEMs which does not give you the the higher margins that we get. And our target is to keep selling 70% to the OEMs and 30% to the traders. Currently we have long term tie ups with major OEMs also and some of the biggest traders also. Whether it is Trafigura, Glencore, Thiessen, we work with almost all the traders and we work with almost all the major OEMs within India also and outside India also.
And whatever products we are making, we are just trying to sell it at the highest price. So if there is any pressure from those OEMs then we may think of shifting it to other geographies. But till the time we are getting enough orders from them which can fulfill all our production then we, we don’t need to go to these other markets. We want to maximize the profit by selling it to the highest bidder basically.
Vinayak Kariwal
So you’re not seeing any demand saturation from these OEMS currently. And like comfortably you could maybe push the incremental volume from your capacity to these OEMs.
Yogesh Malhotra
Sir. And then I mean we also have applied to LME and we probably would get our LME license also in Q4. Expected the license to that. We are expecting the license in Q4 itself. So once that license is there then we can sell any amount on the exchanges. Also currently we are selling it at MCX and in future we would have LME exchanges also as our market. But that said it gives you lesser volumes. I mean lesser sell to exchanges rather than sell directly to the OEMs. So we prefer to sell it to the OEMs.
And if there is any pressure in the future then LME exchanges are there for you to sell to. No, no, no. In the near future we don’t see any pressures at all. Whatever we are producing, there is enough market available both in India as well as overseas which can take our products.
Vinayak Kariwal
Sure, that answers. Thank you.
operator
Thank you. Our next question comes from the line of Ame Sharda from Punarata Investment Advisors. Please go ahead.
Amay Sharda
Hi sir. Thank you for the opportunity. I just had 12 questions. First was what was the percentage of revenues from Exide Industries in the last quarter?
Yogesh Malhotra
So Exide is very small portion. We do because we have just started with excitement. But going forward we are working both models supplying directly to site also. And we are taking some scraps also like we do with Amaraja. So the volumes will grow significantly in next upcoming year.
Amay Sharda
But currently it is like lower single digit kind of numbers.
Yogesh Malhotra
It’s not in the top 10 customers of Gravita currently.
Amay Sharda
And it continues to be a client grow going forward.
Yogesh Malhotra
Sorry sir. Yeah, it is going. Sir, again as I mentioned that we would. So the. The overall requirement of lead is more than what we produce. So we will keep on selling to the customers where we get the highest realization. So for us currently there are better opportunities. If. If we get better opportunity from Xiaid or when we grow our volumes more than what we can currently serve then in those cases we may look at other OEMs also in future.
Amay Sharda
Okay. Okay, got it. Thank you so much.
operator
Thank you. Our next question come from the line of Gaurav Shah from Nitya Capital. Please go ahead.
Gaurav Shah
Hello, can you hear me? Yes sir.
Yogesh Malhotra
Yes, we can.
Sunil Kansal
Yeah, yeah, yeah.
Gaurav Shah
Thank you for the opportunity. My question was more on the volume. So while we see that the volume is remaining stagnant over the last few quarters between 50, 50000 tons and 55000 tons. And we are increasing capacity in terms of volume. How. How do we calculate the capacity utilization at 90%?
Yogesh Malhotra
So the volume is constant. Because the capacity increase has not taken place in India. And that is why we are running it at an optimal capacity of 90%. Generally the. Sorry, the optimal capacity is even less than that. But because there is enough scrap available and enough demand from the customers, we currently running it at 90% of capacities in India. And we are increasing the capacity so that. Because we have scrap availability and we can manufacture those. Those products. But we lack the capacity. So once the capacity is there, we can use it further to make more products in future.
Gaurav Shah
So can I understand that the overseas capacity is not getting fully utilized for now.
Yogesh Malhotra
So overseas capacities, we generally keep a higher capacity in overseas locations. Because scrap availability is not continuous. And in our case the capacity is not a constraint. Should not be a constraint. Because you know, It’s a. The capex to revenue is around 8 to 10 times. So we generally keep a higher capacity in overseas locations. Keeping in mind that the that we can get higher, higher scrap also in future. And currently if you look at our overseas capacity utilizations it is at around 65%.
So basically the overseas capacities because we are not able to import in those countries. So it is mostly dependent on the local scrap. So in India as compared to other countries India we can import the scrap. So that is the reason we are increasing the capacity in India. We can import overseas also. We can take domestic also. So that is the reason India is looking more volumes. Understood. Thank you sir. And also as we mentioned earlier that we are importing some of our scraps from overseas locations into India because there is a better arbitrage opportunities.
So in that case also some of the overseas capacities remain unutilized.
Gaurav Shah
Understood? Understood. Thank you so much.
operator
Thank you. Our next question come from the lineup. Sumant Kumar from Motila Loswell Financial Service Ltd. Please go ahead.
Sumant Kumar
Yeah. Hi Michael. First question is any impact and can you quantify the new labor law for us?
Yogesh Malhotra
Sir, currently we don’t see any impact. But definitely the impact would come from the recalculation of gratuity and leave engagement for the labor. And we are expecting a overall in future going forward we. We expect a overall impact of around 4.2 crores. Going downwards. Sorry. This year. Not, not. Not in. In the next.
Sunil Kansal
In this year the total impact of this amount was approximately 4.2 crores. Out of which 3.5 crores was pertaining to previous years and roughly 60 to 70 lakhs was pertaining to these nine months.
Sumant Kumar
So this 4.2 crore you are talking about for annual. Right?
Sunil Kansal
For annual number. Absolutely.
Sumant Kumar
Okay. Okay. So the FY27 we can see this kind of impact. Correct.
Sunil Kansal
Right. Right.
Sumant Kumar
Okay. And then the next question is regarding aluminium. I have seen a significant decline 50 decline and 5% growth in lead side. So what is happening in aluminium? Why we our growth is significantly down since volume growth.
Yogesh Malhotra
We mentioned earlier that there has been some increase in aluminum prices. And when such things happen then the scrap dealers tend to withhold the scrap and don’t sell it to the recyclers. And this causes tightening of scrap availability and that has led to lower volumes in the quarter. But going forward we are expecting the normalcy to continue and we will start getting more aluminium scrap going forward.
Sumant Kumar
And that is why we have seen a margin expansion from 10 rupees per kg to 14 rupees per kg because of rising aluminum prices.
Yogesh Malhotra
No, no. It’s around the same sir. 14 rupees per kilogram was even in last quarter we had around 14 rupees per kilogram. So this is the 10 rupees. 10 rupees was in plastic not in aluminum.
Sumant Kumar
Okay, sorry. Okay. Yeah, it was 20 rupees. Yes. Thank you.
Yogesh Malhotra
Sir, if you follow specifically higher because of increasing aluminum prices last year. Because we imported a lot of material into India. And because of that there was an increase in the overall profitability coming out of higher prices of aluminum.
Sumant Kumar
Profitability in aluminium has gone down. Sorry, Profitability in aluminium has gone down.
Yogesh Malhotra
Yes, sir.
Sumant Kumar
Okay, thank you.
operator
Thank you. Our next question come from the line of Sumangal Navatia from Kotak Securities. Please go ahead. So Mangal, you may please proceed ahead with the question.
Sumangal Nevatia
Yeah. Good afternoon sir. Thank you. For a chance most of the questions are answered. I just want to know. Excuse me if I’ve missed. Is it possible to give some volume guidance for FY27 given that we have such significant capacity addition and decent visibility on scrap. And I mean if you look at last four or five years now our volume CAGR assuming similar some ramp up in fourth quarter for last five years our CAGR of volume is around 16 17% now versus 25% guidance. So how, how fast we can catch up over the next one year to kind of get the CAGR back as per our long term target.
So I think guidance for 27 volumes across Division would be very helpful.
Yogesh Malhotra
So as we are mentioning that there may be some volatility in terms of this growth. Volume growth on a year on year basis. But overall our target of 25% remains intact. But more than that we talk about 30 to 35% growth in the bottom line numbers that is the EBITDA numbers of the bad numbers. Because you know as I mentioned that sometimes although the volume that we’ve done is higher but it does not reflect in the in the overall consolidated statement because some of the materials we move from Africa into India. So the overall top line numbers may vary but you can expect the same kind of bottom line numbers of around 30 to 35% increase in EBITDA numbers in next year and then going forward also.
Sumangal Nevatia
Okay. And sir, when do we start expecting contribution of external sales of rubber division from which quarter?
Yogesh Malhotra
So as sunny, as Sunilji mentioned there was some contribution from rubber coming in last quarter also but it was not significant. So it was not shown in the in the segment wise numbers. But from next quarter onwards we will start sharing the the numbers for Also.
Sumangal Nevatia
Understood. And so in the past we’ve talked about.
operator
I’m sorry to interrupt you sir, but please rejoin. Thank you.
Sumangal Nevatia
Sure. Thanks. Thanks a lot. Thanks.
operator
Thank you. Our next question come from the line of Netra Deshpande from Mirai. I said Sherkhan, please go ahead.
Netra Deshpande
Hello. Thank you operator for giving this opportunity and thank you. Management just would like to ask you. There are the global headwinds and the geopolitical issues which are going in the global front. So definitely the commodity prices are very volatile just like other, the non ferrous metals specifically we have seen lead, aluminum, all that stuff. So any other kind of a hedging that you have opted and how much would be the percentage and what would be the impact on the overall margins? Can you please bring, and secondly if you can, any of the plans for copper addition in this scrap.
Just like as you have mentioned, the rubber, pepper, sea lithium, they are going to get into this. So by any chance a copper, zinc or nickel, the non ferrous segment. Thank you.
Yogesh Malhotra
Yeah. To answer your first question, as far as lead is concerned we, we are totally healthy. So there will be no impact of these fluctuations on lead both in. I mean it may have impact on the top line but there would be no impact on the bottom line. Because we go 100% hedged in lead aluminium. We are looking at some options to hedge. But currently because we do ADC 12 which is not traded on any of the exchanges, so we find it a little difficult to hedge and that is why we’ve kept our volumes low in aluminum.
We are not doing any aluminium recycling in India currently. But the moment that hedging mechanism is in place, we would start doing aluminum recycling also. So that will give us some growth in aluminum also going forward. And we are looking seriously on all recycling verticals including solar panels, paper, steel and specifically copper. Also because of the, because of the recent ecosystem that is happening in copper and how the copper is behaving in the. And the requirement of copper going forward. So we believe that in future copper can also be one of the segments that Gravita would go into.
Netra Deshpande
Okay, thank you. Thank you so much.
operator
Thank you. Nitrate. Our next question comes from the line of Devang Shah from Elvis Investment Managers Private Limited. Please go ahead.
Devang Shah
Yeah. Hi, good afternoon sir. My first question that in this particular quarter we came out with a overall, you know, operating margin improved by you know, 200bps to somewhere close to 12% as far as overall margin is concerned. So moving forward and this margin is improvement due to better price Realization or operation efficiency, that is first question. And secondly, moving forward, what kind of. Trajectory we can expect it will expand or continue to remain in this particular reach.
Yogesh Malhotra
So from a quarter to quarter, I mean generally it comes from better realization and not from improvement in operations because it take times for operational improvement to take effect. But going forward, we believe that what we have said is that in lead, aluminum and plastic we have given you per ton EBITDA number that would remain there. And also some part of it has come because there have been some better opportunities in India and that has impacted our top line. We have sacrificed some of the top line growth to get better EBITDA numbers also. But going forward you can expect what we’ve already mentioned that around 19 to 20 rupees in lead, around 14 to 15 rupees in aluminum and plastic would give you around 10 to 12 rupees.
Devang Shah
Okay, so we may continue, you know. Similar kind of trajectory is a, you know, optimism, right?
Yogesh Malhotra
Yes, but, but you can you in, in future, in long term you can definitely expect some additional benefit coming out of better operational efficiencies and you know, better procurement network also and more value added products going forward. But that would be more in a long term basis. So in by Q FY28 you can expect probably 0.5 to 0.75 rupees per kg improvement per kg improvement in all the three segments.
Devang Shah
Okay. And my second question in even, you know, as far as volume growth is concerned because we, in our presentation, you know, we are, you know, aspiration to be a 25% kind of guidance as far as our overall vision is concerned, that has been highlighted. But you know, somewhere we are stuck. And in this quarter also it’s been. Reflected that you know, overall yoy also we have not been, you know, able to come out with a good volume. So you know, moving forward or as far as FY27 and 28, you know. I don’t want any number but you know, we, you can say somewhere close. To, you know, your guidance or somewhere, you know, close to 20% kind of thing we can expect as far as total volume growth is concerned.
Yogesh Malhotra
Yeah, absolutely. Because you know, a part of this volume growth, as I mentioned, we sacrifice because to get higher profitability. But part of it was because the capacity expansion that we were planning to have in Q2 and Q3 did not happen. There was some delay and these capacities are going to come in Q4 this year. So definitely going forward from Q1 onwards you can see some improvement coming from lead and in aluminium and plastic. Also, because the capacities are there, we can expect some higher numbers. So definitely there would be some improvement in terms of volumes coming in the next year.
Devang Shah
Okay. Okay. Thank you, sir.
operator
Thank you. Ladies and gentlemen, due to the type constraint that was the last question for today, I would like to hand the conference over to management for the closing comments. Thank you. And over to you, sir.
Yogesh Malhotra
Thank you everyone for participating in this call. We trust that we have addressed all your queries during the session and however, if there are any remaining questions, please feel free to reach out to our investor relations team. Once again, we extend our gratitude to all the participants for joining us today. Thank you and have a great day.
operator
Thank you, sir. On behalf of Antique Stock Broking Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.