Graphite India Q2 FY27 results: net profit down 55.0% to ₹94 crore, revenue down 40.7%

How did Graphite India perform in Q2 FY27?

Graphite India reported consolidated revenue of ₹826 crore in Q2 FY27, down 40.7% from ₹1,394 crore in Q2 FY26 and 1.9% from ₹842 crore in Q1 FY27. EBITDA was ₹83 crore, compared with ₹86 crore a year earlier and ₹144 crore in the previous quarter, while the margin was 10.0% against 6.2% and 17.1%, respectively.

The company reported a net profit of ₹94 crore in Q2 FY27, down from ₹209 crore in Q2 FY26 and ₹171 crore in Q1 FY27. Basic EPS was ₹4.89, against ₹10.78 and ₹8.82, respectively. On the standalone basis, revenue was ₹806 crore and profit after tax was ₹128 crore, with basic EPS of ₹6.56.

What changed in Graphite India's costs and profit?

Compared with Q2 FY26, total expenses fell by ₹590 crore to ₹771 crore and other income fell by ₹133 crore to ₹106 crore. Cost of materials declined by ₹153 crore to ₹417 crore, employee cost by ₹66 crore to ₹71 crore, other expenses by ₹205 crore to ₹285 crore and depreciation by ₹24 crore to ₹24 crore; finance costs were ₹4 crore against ₹5 crore.

Q2 FY27 included an exceptional charge of ₹22 crore for employee restructuring costs and inventory write-down arising from the closure of German operations. Tax was ₹45 crore, down ₹18 crore from ₹63 crore in Q2 FY26. Against Q1 FY27, total expenses rose by ₹46 crore, including a ₹57 crore increase in cost of materials, while other income rose by ₹9 crore and tax rose by ₹2 crore.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets were ₹7,691 crore, compared with ₹7,580 crore on 31 March 2026, and total equity was ₹5,988 crore against ₹5,856 crore. Borrowings fell to ₹274 crore from ₹367 crore, while cash rose to ₹73 crore from ₹22 crore; inventories were ₹1,180 crore, trade receivables ₹626 crore and trade payables ₹325 crore.

For the first half of FY27, operating cash flow was ₹181 crore, compared with an outflow of ₹19 crore in the first half of FY26. Investing cash flow was ₹108 crore against ₹87 crore, financing cash flow was negative ₹238 crore against negative ₹134 crore, and capital expenditure was ₹219 crore against ₹79 crore.

How has Graphite India done over the last 8 quarters?

Quarterly revenue reached its highest level in Q2 FY26 at ₹1,394 crore and its lowest in Q3 FY25 at ₹523 crore. Revenue was ₹826 crore in Q2 FY27, below ₹842 crore in Q1 FY27 but above ₹642 crore in Q3 FY26 and ₹816 crore in Q4 FY26.

Net profit peaked at ₹209 crore in Q2 FY26, while the bottom was a net loss of ₹105 crore in Q4 FY26. Q2 FY27 profit was ₹94 crore, below ₹171 crore in Q1 FY27. The EBITDA margin peaked at 17.1% in Q1 FY27 and bottomed at negative 17.0% in Q4 FY26, before easing to 10.0% in Q2 FY27.

Which businesses drove the quarter?

The Graphite and Carbon segment reported revenue of ₹707 crore, down 43.7% from ₹1,256 crore in Q2 FY26, while segment EBIT rose to ₹82 crore from ₹38 crore. Its EBIT margin was 11.6%.

The Steel segment reported revenue of ₹119 crore, up 3.5% from ₹115 crore, and EBIT of ₹18 crore against ₹16 crore. Its EBIT margin was 15.1%. The Others segment reported EBIT of negative ₹2 crore, compared with ₹12 crore in the year-ago quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors' limited review report, on 3 November 2026. The same-day filings and excerpts do not disclose a dividend, fund raise or appointment.

What did Graphite India's management say?

Management said Q2 FY27 sales growth was driven by higher volumes and realisations, while higher input costs limited margin expansion. It said standalone capacity utilisation was 96%, compared with 99% in Q2 FY26 and 104% in Q1 FY27, and identified Indian steel demand and increasing adoption of the Electric Arc Furnace process as medium-term demand drivers.

Management said the US preliminary tariffs on graphite electrodes were not expected to have a material impact because of Graphite India's geographically diversified export revenue base. It also said the company remained focused on operational efficiency, sustainability, cash-flow generation and long-term value creation, and remained optimistic about the medium-term graphite-electrode outlook.

Management identified the closure of German operations and the related ₹22 crore exceptional charge as a risk, alongside higher input costs and lower capacity utilisation. No quantitative guidance or analyst-question responses were disclosed in the provided investor-presentation excerpts.

How did Graphite India shares react?

After the filing appeared, the stock was up 0.1% after 5 minutes, down 0.3% after 15 minutes and down 0.8% after 30 minutes. The reaction-day close was unchanged from the previous close, and by the next day's close the stock was down 1.2% from its pre-results close.

The Electrodes & Refractories sector's median reaction-day move was 0.4%, while Graphite India's unchanged reaction-day close represented an excess-sector move of negative 0.4 percentage points. By the next day's close, the sector median had risen 2.9%, and Graphite India's excess move was negative 4.1 percentage points.

Earlier reaction-day moves were 7.1% on 4 August 2026, negative 2.8% on 28 May 2026, 3.0% on 9 February 2026 and negative 7.2% on 10 November 2025. No five-day reaction was available.

How did other Electrodes & Refractories companies do?

Five other Electrodes & Refractories companies had filed for the quarter by 4 November 2026. Their median revenue growth was 3.6%; all five grew faster than Graphite India, while none grew more slowly, based on the reported comparison basis.

Three of the five peers reported higher profit, compared with five peers for which profit was compared. Graphite India recorded consolidated revenue of ₹826 crore in the quarter.