Graphite India Limited submitted its Q1 FY2027 earnings presentation to BSE and NSE on August 4, 2026, containing unaudited financial results for the quarter ended June 30, 2026.

Financial Performance Highlights

Consolidated Results:

  • Net Sales: ₹842 Crore, up 26.6% YoY (from ₹665 Crore in Q1 FY2026) and up 3.2% QoQ (from ₹816 Crore in Q4 FY2026)
  • EBITDA: ₹241 Crore, up 24.9% YoY (from ₹193 Crore)
  • EBITDA Margin: 28.6% (vs 29.0% in Q1 FY2026)
  • Net Profit: ₹171 Crore, up 28.6% YoY (from ₹133 Crore)
  • Net Profit Margin: 20.3% (vs 20.0% in Q1 FY2026)
  • Earnings Per Share: ₹8.82, up 28.4% YoY (from ₹6.87)
  • Other Income: ₹97 Crore, down 35.3% YoY (from ₹150 Crore)
  • Capacity Utilization: 97% (vs 82% in Q1 FY2026)

Standalone Results:

  • Net Sales: ₹765 Crore, up 19.0% YoY (from ₹643 Crore)
  • EBITDA: ₹222 Crore, up 11.0% YoY (from ₹200 Crore)
  • EBITDA Margin: 29.0% (vs 31.1% in Q1 FY2026)
  • Net Profit: ₹157 Crore, up 8.3% YoY (from ₹145 Crore)
  • Net Profit Margin: 20.5% (vs 22.6% in Q1 FY2026)
  • Earnings Per Share: ₹8.02, up 7.9% YoY (from ₹7.43)

Balance Sheet Position

Consolidated:

  • Cash & Cash Equivalents: ₹4,205 Crore (as of June 2026)
  • Total Debt: ₹266 Crore
  • Net Cash: ₹3,939 Crore

Standalone:

  • Cash & Cash Equivalents: ₹3,977 Crore (as of June 2026)
  • Total Debt: ₹143 Crore
  • Net Cash: ₹3,834 Crore

Segment Performance (Consolidated)

  • Graphite and Carbon: Revenue ₹687 Crore (up 15.5% YoY), Profit before tax and interest ₹56 Crore
  • Steel: Revenue ₹111 Crore, Profit before tax and interest ₹43 Crore
  • Others: Revenue ₹45 Crore, Profit before tax and interest ₹42 Crore

Inventory Valuation Impact

The company recognized inventory at Net Realizable Value (NRV) basis per Ind AS:

  • Inventory write-down of ₹24 Crores as of June 30, 2026
  • Previous write-downs: ₹47 Crores (March 31, 2026) and ₹77 Crores (June 30, 2025)

Strategic and Operational Updates

  • The first phase of electrode capacity expansion is expected to be commissioned in the current financial year (FY2027)
  • Synthetic Graphite Anode Materials (SGAM) project continues as previously announced
  • Decision to close operations of Specialities and Coating divisions in Germany due to Russia-Ukraine conflict impact and reduced competitiveness
  • Advancements in developing products for aerospace and defence applications in line with Aatmanirbhar Bharat vision
  • Focus on manufacturing other advanced materials for wide range of applications

Industry Context and Outlook

Global Steel Production (H1 2026):

  • Global production: 931.7 million MT, declined 0.3% YoY
  • China production: 500.0 million MT, declined 2.9% YoY
  • India production: 87.0 million MT, increased 7.5% YoY (highest growth among major markets)
  • North America: 56.5 million MT, increased 6.2% YoY
  • European Union: 65.4 million MT, remained stable

Q2 CY2026 Steel Production:

  • Global production: 466.8 million MT, declined 0.2% YoY
  • China production: 251.7 million MT, declined 1.6% YoY
  • India production: 42.0 million MT, increased 5.0% YoY

Industry Outlook:

  • World Steel Association forecasts steel demand growth of 2.2% to 1,762 million MT in 2027
  • India's steel demand expected to grow 9.2% in 2026, driven by infrastructure, construction and automotive sectors
  • Increasing adoption of Electric Arc Furnace (EAF) process driving future demand for graphite electrodes
  • India's National Steel Policy 2017 targets 300 million MT steel production capacity by 2030

Company Background

Graphite India is the largest Indian producer of graphite electrodes with manufacturing capacity of 80,000 tonnes per annum across plants at Durgapur and Nashik. The company has over 60 years of technical expertise, with exports accounting for less than half of total revenues. The company maintains significant financial capacity for organic or inorganic expansion.