Gravita India Q2 FY27 results: net profit up 6.3% to ₹102.03 crore, revenue up 37.8%

How did Gravita India perform in Q2 FY27?

Gravita India reported consolidated revenue of ₹1,427 crore for Q2 FY27, up 37.8% from ₹1,036 crore in Q2 FY26 but down 3.2% from ₹1,475 crore in Q1 FY27. Total income was ₹1,445.35 crore, up 36.1% year on year and down 5.1% sequentially.

EBITDA rose to ₹133.98 crore from ₹102.01 crore a year earlier, a 31.3% increase, and rose 22.1% from ₹109.71 crore in Q1 FY27. EBITDA margin was 9.4%, down 0.5 percentage points from 9.9% in Q2 FY26 but up 2.0 percentage points from 7.4% in Q1 FY27.

Profit before tax was ₹124.21 crore, compared with ₹111.28 crore in Q2 FY26 and ₹131.28 crore in Q1 FY27. Net profit was ₹102.03 crore, up 6.3% year on year but down 4.1% sequentially, while basic EPS was ₹14.01 against ₹13.18 and ₹14.60, respectively. On a standalone basis, revenue was ₹786.91 crore and profit before tax was ₹47.34 crore.

What changed in Gravita India's costs and profit?

Total expenses rose to ₹1,321.14 crore in Q2 FY27 from ₹950.54 crore in Q2 FY26, an increase of ₹370.60 crore. Cost of materials was the largest increase, rising ₹320.93 crore to ₹1,259.25 crore; employee cost rose ₹14.07 crore to ₹53.70 crore, other expenses increased ₹19.87 crore to ₹72.98 crore, finance costs rose ₹6.06 crore to ₹13.88 crore and depreciation increased ₹4.66 crore to ₹13.89 crore.

Other income fell ₹8.32 crore to ₹18 crore from ₹26.32 crore in Q2 FY26. There was no exceptional item in either period. Tax expense rose ₹6.87 crore to ₹22.18 crore from ₹15.31 crore, while profit before tax increased ₹12.93 crore to ₹124.21 crore and net profit rose ₹6.06 crore to ₹102.03 crore.

Against Q1 FY27, total expenses fell ₹70.18 crore to ₹1,321.14 crore, although cost of materials increased ₹105.26 crore to ₹1,259.25 crore. Employee cost fell ₹7.34 crore, other expenses declined ₹10.10 crore, depreciation fell ₹0.60 crore and finance costs rose ₹2.40 crore. Other income fell ₹29.54 crore to ₹18 crore, tax fell ₹2.73 crore to ₹22.18 crore and net profit declined ₹4.34 crore to ₹102.03 crore. The filing did not state reasons for the changes.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹2,902.41 crore, up 39.8% from ₹2,075.44 crore in H1 FY26. Total income rose 39.2% to ₹2,967.95 crore from ₹2,131.82 crore, while profit before tax increased 12.4% to ₹255.49 crore from ₹227.21 crore.

Net profit for H1 FY27 was ₹208.4 crore, up 10.2% from ₹189.03 crore in H1 FY26. Basic EPS increased to ₹28.61 from ₹25.99. The company’s presentation also stated that H1 revenue was ₹2,902 crore, EBITDA was ₹288 crore and PAT was ₹208 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹3,834.23 crore, compared with ₹3,416.95 crore at 31 March 2026. Total equity rose to ₹2,648.97 crore from ₹2,458.41 crore, while borrowings increased to ₹868.14 crore from ₹732.32 crore. Cash fell to ₹72.65 crore from ₹80.32 crore.

Inventories increased to ₹1,189.49 crore from ₹1,023.27 crore, trade receivables rose to ₹633.39 crore from ₹430.92 crore and trade payables increased to ₹108.92 crore from ₹67.35 crore at the previous balance-sheet date.

H1 FY27 operating cash flow was negative ₹58.44 crore, compared with negative ₹50.53 crore in H1 FY26. Investing cash flow was negative ₹55.44 crore against negative ₹74.6 crore, financing cash flow was ₹106.21 crore against ₹98.97 crore, and capital expenditure was ₹81.78 crore compared with ₹105.39 crore.

How has Gravita India done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. It peaked at ₹1,475.06 crore in Q1 FY27 before easing to ₹1,427.35 crore in Q2 FY27; across the earlier series, the lowest revenue was ₹996.42 crore in Q3 FY25.

Net profit peaked at ₹106.37 crore in Q1 FY27 and was ₹102.03 crore in Q2 FY27; the lowest was ₹78.06 crore in Q3 FY25. Profit had risen year on year in each of the last two quarters.

EBITDA margin peaked at 11.8% in Q3 FY26 and fell to 7.4% in Q1 FY27 before recovering to 9.4% in Q2 FY27. The lowest margin in the series was 7.4%, while revenue and profit both eased from the preceding quarter.

Which businesses drove the quarter?

Lead remained the largest reported segment, with Q2 FY27 revenue of ₹835.07 crore and EBIT of ₹89 crore. Revenue fell 10.0% from ₹927.41 crore in the year-ago quarter and EBIT was lower than ₹111.70 crore, with a reported EBIT margin of 10.7%.

Aluminium recorded revenue of ₹137.94 crore and EBIT of ₹11.74 crore, with revenue up 46.5% from ₹94.17 crore and EBIT higher than ₹6.54 crore in the year-ago quarter. Its reported EBIT margin was 8.5%.

Plastics reported revenue of ₹28.34 crore and EBIT of ₹3.02 crore. Revenue rose 117.8% from ₹13.01 crore and EBIT increased from ₹0.74 crore in the year-ago quarter; the reported EBIT margin was 10.7%. Copper contributed revenue of ₹419.83 crore and EBIT of ₹28.86 crore, while no year-ago comparison was given. Turnkey Projects reported revenue of ₹4.46 crore and EBIT of ₹0.98 crore, and Others reported revenue of ₹1.71 crore and a loss of ₹4.26 crore in EBIT.

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, together with the limited review report of the statutory auditors. It declared an interim dividend of ₹7.70 per equity share of ₹2 each for FY2026-27.

The record date for the interim dividend was fixed at 3 November 2026, with payment scheduled by 25 November 2026. The same-day investor presentation said Gravita had acquired a 99.44% stake in Rashtriya Metal Industries Limited for ₹561.84 crore, marking its entry into copper and copper alloys.

What did Gravita India's management say?

Management expects lead volumes to recover from Q3 and targets approximately 18-20% volume CAGR over three years. It said copper EBITDA is expected at ₹65-70/kg in the near term and ₹80-90/kg in 2-3 years after backward integration; RMIL utilisation is expected to reach 65-70% in 2-3 quarters as manufacturing debottlenecking progresses.

Management identified lead scrap disruption linked to West Asia geopolitical and logistics issues, potential RMIL manufacturing bottlenecks, the GST Council’s battery-scrap reverse-charge mechanism not yet being notified, EU proposals restricting scrap exports and battery-feedstock availability as risks. Lithium-ion recycling could contribute in 4-5 years and was excluded from the Vision 2030 revenue target.

CEO Yogesh Malhotra said: “But what I can say is that the worst is over. Now there will be some improvement in the overall volumes from lead also going forward.” He also said: “We will not delay the capacity increase till the time we have a sight on the import of scrap.” No analyst questions were recorded in the provided transcript.

How did Gravita India shares react?

After the filing appeared after market, the stock was up 0.3% after five minutes, down 0.1% after 15 minutes and down 0.5% after 30 minutes. It closed the reaction day down 0.3% from the previous close of ₹1,344.00, while the Industrial Minerals sector median fell 0.6%.

By the next day’s close, the stock was up 5.8% from its pre-results close, compared with a 0.1% rise for the sector median and a 1.0% rise for the Nifty Smallcap 250. Its excess move over the sector was 5.7 percentage points; no five-day reaction was available.

Earlier results-day moves included falls of 8.6% on 27 July 2026, 2.7% on 7 May 2026 and 4.6% on 21 January 2026. The move was positive on 28 July 2025 at 3.0% and 20 July 2024 at 8.4%.