Gravita India Q1 FY27 Results (NSE: GRAVITA)
Signal: Margin expansion
The read
Gravita's Q1FY27 results are a milestone quarter: the copper segment launched in Q4FY26 already contributes 25% of group revenue, diversifying the business beyond lead recycling. Revenue surged 43% YoY to ₹1,475 Cr, a record, while EBITDA margin expanded 230bps YoY to ~10.7%, marking the 3rd consecutive quarter of margin expansion (Q3FY26 OPM 12%, Q4FY26 9%, Q1FY27 ~10.7%). However, PAT growth lagged at 15.9% due to sharply higher finance costs (+90% YoY) and lead segment PBIT weakness (-13% YoY). The copper ramp-up is capital-intensive (assets ₹960 Cr on ₹376 Cr revenue), and the pending ₹70 Cr customs liability remains a contingent overhang.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,475.06 Cr | 43.1% | 25.8% |
| EBIT | ₹143.76 Cr | 23.6% | |
| Net profit | ₹106.37 Cr | 15.9% | |
| EPS | ₹14.6 | 15.7% | |
| EBIT margin | 9.4% |
P&L walk
Revenue surged 43.1% YoY driven by the new copper segment contributing ₹376 Cr (25.5% of revenue) and broad-based growth across other segments. EBITDA margin expanded 230bps YoY to ~9.4% (EBITDA calculated as EBIT + D&A ~₹158.25 Cr, margin ~10.7%) as input costs as % of revenue declined. PAT grew 15.9% YoY, slightly lagging EBITDA growth due to higher finance costs (+89.8% YoY) and a lower other income contribution.
Segments
Copper segment, launched in Q4FY26, contributed ₹376 Cr revenue (25.5% of total) and ₹15.70 Cr PBIT, becoming the second-largest segment by revenue and the primary growth driver. Lead segment revenue grew only 2.9% YoY and PBIT declined 13.1%, indicating margin pressure in the core business. Aluminium and plastics posted strong growth of 17.1% and 62.3% respectively.
Key positives
- Copper segment contributed ₹376 Cr revenue and ₹15.70 Cr PBIT in its first full quarter, validating the diversification strategy.
- EBITDA margin expanded 230bps YoY to ~10.7%, driven by input cost tailwind (RM-to-sales fell from 81.3% to 78.2% YoY) and operating leverage.
- Revenue grew 43.1% YoY, the highest in at least 12 quarters, propelled by the copper ramp-up and broad-based growth in aluminium (+17.1%) and plastics (+62.3%).
- EPS of ₹14.60 grew 15.7% YoY with no equity dilution, and PAT at ₹106.4 Cr is a record quarterly high for the company.
Key concerns
- Lead segment PBIT declined 13.1% YoY despite 2.9% revenue growth, indicating margin erosion in the core business.
- Finance costs surged 89.8% YoY to ₹11.48 Cr, reflecting higher debt for copper capacity; interest coverage ratio declined to 12.5x from 19.2x.
- Consolidated PAT growth of 15.9% YoY was well below revenue growth of 43.1%, as lower-margin copper revenue diluted overall profitability.
- Receivables and inventory days not disclosed; copper segment assets of ₹960 Cr vs revenue of ₹376 Cr imply high capital intensity.
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