Gravita India Limited – Investor Presentation Summary
Key Operational Highlights
- Total volume processed in Q2 FY27: 44,187 MT
- Segment volumes in Q2 FY27: Lead - 39,203 MT, Aluminium - 4,458 MT, Plastic - 3,799 MT, Copper - 4,771 MT
- Global scrap collection network with 3,30,000+ MT scrap collection annually through 2,200+ touch points across 39 owned yards
- Operations span across multiple continents: Europe (Romania), America (Dominican Republic), Africa (Ghana, Senegal, Mozambique, Tanzania, Togo), Asia (India, Sri Lanka)
Key drivers of operational performance: Strategic capacity expansion, operational excellence, focus on value-added products, and global procurement network optimization.
Segment-wise Performance
- Lead segment remains dominant with 39,203 MT volume in Q2 FY27
- Aluminium segment processed 4,458 MT in Q2 FY27
- Plastic segment processed 3,799 MT in Q2 FY27
- Copper segment (new vertical) processed 4,771 MT in Q2 FY27 following RMIL acquisition
Explanation of significant changes in segment performance: The addition of copper segment through RMIL acquisition has diversified the business mix, while lead continues to be the core volume driver.
Financial Highlights
Revenue: ₹2902 crore (H1 FY27)
EBITDA: ₹288 crore (H1 FY27)
PAT: ₹208 crore (H1 FY27)
EBITDA Margin: Approximately 9.9% (based on H1 figures)
PAT Margin: Approximately 7.2% (based on H1 figures)
YoY comparison: 28% EBITDA growth year-over-year, 6% PAT growth year-over-year
Drivers of financial performance: Higher revenue growth, strategic acquisition of RMIL, operational efficiencies, and focus on value-added products.
Key Risks: Raw material price fluctuations (hedging mechanism in place), regulatory changes in recycling industry, global economic conditions affecting demand/supply.
Geographical Revenue Split
Domestic vs Export/Regional Revenue: Not Specified
Regional Breakdown: The company serves 400+ customers across 37 countries globally, with significant presence in Middle East (35,700+ MT delivered), Asia (154,000+ MT delivered), and domestic Indian market (250+ customers in 22 states).
Balance Sheet Snapshot
Net Debt/Equity: Not Specified
Reserves: Not Specified
Current Assets/Liabilities: Not Specified
Working Capital/Leverage Metrics: Not Specified
Financial Health Insights: Company maintains AA external credit rating from ICRA, uses internal accruals for funding expansion projects.
Capex & Cash Flow Health
Capital Expenditure: Significant capacity expansion planned with 800,000+ MTPA capacity target by FY29
Free Cash Flow: Not Specified
Operating Cash Flow: Not Specified
Net Debt Movement: Not Specified
Investment Rationale: Focus on capacity expansion across existing and new verticals (copper, rubber, steel), technology upgrades in recycling processes.
Strategic & R&D Initiatives
Investments in Innovation: Copper recycling capacity expansion in Gujarat, lithium battery recycling, customised aluminium alloys, plastic granules, copper sheets, brass cups, copper foils
Expected impact on growth: Value-added products target ~60%+ contribution, non-lead businesses target ~50%+ contribution
Strategic Rationale: Expanding into high-growth markets through multi-material recycling integration, reducing operational costs through backward integration
Industry Trends & Business Environment
Macro/Industry Trends: Growing focus on sustainability and circular economy, increasing demand for recycled materials, paradigm shift towards alternative energy sources (solar)
Impact on Company: Company generated 2.13 million units of renewable energy, implementing clean technology initiatives including oxygen trials and biomass usage in refining processes
Management Commentary & Growth Outlook
Strategic Outlook: "Gravita continued to strengthen its growth trajectory in H1FY27, driven by strategic capacity expansion, operational excellence, and an increasing focus on value-added products."
FY Guidance: Targets 20-25% volume CAGR, 30-35% profitability growth, sustained ROIC of approximately 25%
Market Share Targets: Not Specified
Risks and Opportunities: Risks include fiscal policy changes, competition, inflationary pressures, and general economic conditions affecting demand/supply and price conditions
ESG Updates
- Zero fatal accidents achieved
- 28% improvement in LTIFR from 3.6 to 2.6
- Women employees at 7%
- 100% health insurance coverage for employees
- 13% reduction in quality complaints YoY
- 100% plants ISO 9001:2015 certified, 50% plants ISO 14001 & 45001 certified
- Talent development program "Gravita Ignite" rolled out
- Target of 25-30% renewable power usage and 8-10% energy efficiency improvement