Gravita India Q1 FY27: Copper-led mix shift amid scrap disruptions

For Q1 FY27, management reported revenue of INR 1,475 crore, adjusted EBITDA of INR 145 crore (EBITDA margin 9.80%), and PAT of INR 106.39 crore (PAT margin 7.21%). YoY growth was 42% in revenue, 29% in EBITDA, and 14% in PAT.

Management attributed the decline in lead volumes to supply chain disruptions linked to the Middle East conflict. They stated around 15% to 20% of imports come from the Gulf region and some non-Gulf material also routes through Gulf ports, causing material to be stuck and limiting utilization.

GRAVITA M is the brand name under which Gravita’s Mundra plant lead metal received London Metal Exchange brand listing. Management said the listing improves global acceptance, supports OEM approvals internationally, and improves product liquidity since it is deliverable to LME-approved warehouses.

Management stated the copper segment operated at about 50% capacity utilization and contributed INR 376 crore revenue in Q1 FY27. They also indicated copper is 100% value-added, helping lift the value-added share of consolidated revenue to 63% in the quarter.

Management stated total capex earmarked through FY29 is INR 1,680 crore, with INR 850 crore allocated to strengthening existing businesses and the balance for new verticals including lithium-ion batteries, copper and steel. The company reiterated a target to scale installed capacity beyond 8 lakh MTPA by FY29.

Management stated net debt was close to INR 150 crore and the working capital cycle was close to 95 days, citing increased inventory for copper and inventory in transit.