Gravita India: Charting a Green Path with Strong Q3 FY26 Performance

Gravita India Limited, a leading player in the recycling sector, has reported a robust and consistent performance for the third quarter and nine months ended December 31, 2025. The company's strategic focus on sustainability and diversification continues to yield positive results, positioning it for long-term value creation in the circular economy.

For the nine-month period of FY26, Gravita delivered impressive year-on-year growth across key financial metrics. Revenue increased by 9%, EBITDA by 15%, and Profit After Tax (PAT) surged by 32%. This strong performance was achieved while maintaining a healthy Return on Invested Capital (ROIC) of 25%. The company attributes this success to a higher contribution from value-added products and increased domestic scrap sourcing, reflecting efficiency gains from its integrated operating model.

Financial Highlights (INR Crore)

Note: 9M FY26 and 9M FY25 specific revenue, EBITDA, PAT figures were not explicitly provided in the Q3 context, but YoY growth percentages were stated.

Strategic Expansion and Diversification

Gravita is actively pursuing its 'Vision 2029' strategy, which aims to scale its core business and expand into new recycling segments. The company targets a volume CAGR of over 25%, profitability growth above 35%, and an ROIC exceeding 25%. A key part of this vision is to increase the non-lead segment's contribution to over 30% of revenue, boost renewable energy usage to 30%, and reduce energy intensity by over 10%.

In a significant move, Gravita India Limited announced its venture into Lithium-Ion Battery Recycling at its existing plant in Mundra, Gujarat. This state-of-the-art facility boasts a capacity of 6,000 MTPA and involved an investment of approximately Rs. 14 Crores. This initiative aligns with the global push for cleaner energy solutions and positions Gravita as a key player in the growing battery recycling market.

The company has earmarked a total CAPEX of Rs. 1,225 crores through FY 2028. Of this, Rs. 850 crores is dedicated to strengthening and expanding existing businesses, while the remainder will support new recycling verticals like lithium-ion batteries, paper, and steel. Despite some delays in capacity expansion due to government approvals, particularly in Gujarat, management is confident in meeting its medium-term target of scaling capacity to over 7 lakh metric tonnes per annum by FY 2028.

Operational Excellence and Risk Mitigation

Gravita's operational strategy emphasizes efficiency and risk management. The regulatory environment, particularly the enforcement of Battery Waste Management Rules (BWMR) and Extended Producer Responsibility (EPR) frameworks, has been favorable. These measures have enhanced accountability across producers and recyclers, leading to more efficient collection channels and increased domestic scrap availability.

To mitigate commodity price volatility, Gravita employs a robust back-to-back hedging mechanism for its lead business, ensuring that margins remain stable. While the aluminum segment experienced a decline in volumes due to higher metal prices causing scrap aggregators to withhold material, the company is actively exploring hedging options for aluminum and expects recovery as prices stabilize.

Commitment to Sustainability

Gravita's unwavering commitment to sustainability is evident in its comprehensive ESG roadmap. The company has set ambitious mid-term targets for FY34, including a 20% reduction in energy intensity, 50% renewable energy power usage, and water neutrality for India operations. Clean technology initiatives, such as planning a 2MW solar plant and commissioning electric refining pots, further underscore this commitment.

The company also focuses on social aspects, with initiatives like 100% health insurance coverage for employees and a talent development program, 'Gravita Ignite'. With 100% of its plants ISO 9001:2015 certified and 50% certified under ISO 14001 & ISO 45001, Gravita demonstrates strong governance and operational standards.

Gravita India Limited continues to forge ahead with strategic clarity, sustained growth, and disciplined execution. Its proactive approach to diversification, operational efficiency, and sustainability positions it as a leader in the recycling sector, poised to create long-term value for all stakeholders.