Gravita India Ltd
BSE:533282
Gravita India Ltd
In the bustling Indian market landscape stands Gravita India Ltd., a compelling enterprise rooted in the circular economy, focusing primarily on lead recycling. Founded in 1992, Gravita has carved a niche as a significant player in the field of recycling, a critical industry at a time when sustainability is more important than ever. The company's business model is intricately designed around the collection and transformation of lead-acid batteries into pure lead and other allied products. An essential aspect of Gravita's operations is their globally integrated procurement system which sources raw materials from over 60 countries, efficiently feeding a network of recycling plants. These facilities operate at the cutting edge of technological capabilities, ensuring not only the environmental mandates are adhered to but also that the output matches stringent quality standards required by diverse industries ranging from automotive to telecommunications.
Gravita India Ltd. generates revenue predominantly through the sale of recycled lead and its alloys to a diverse client base. This diverse clientele includes battery manufacturers, chemical producers, and industrial product manufacturers, each relying on the consistent, high-quality supply Gravita provides. Beyond lead, the company has diversified into recycling aluminum and plastics, supporting its mission to maximize resource productivity. By harnessing these recycling processes, Gravita not only amplifies its financial resilience but also intensifies its environmental impact, mitigating the pressure on natural lead extraction and its attendant environmental costs. This dual focus on economic and ecological sustainability has positioned Gravita as not just a recycler, but a pivotal contributor to the responsible stewardship of the world's natural resources, navigating the challenges and developing opportunities within the ever-expanding green economy.
In the bustling Indian market landscape stands Gravita India Ltd., a compelling enterprise rooted in the circular economy, focusing primarily on lead recycling. Founded in 1992, Gravita has carved a niche as a significant player in the field of recycling, a critical industry at a time when sustainability is more important than ever. The company's business model is intricately designed around the collection and transformation of lead-acid batteries into pure lead and other allied products. An essential aspect of Gravita's operations is their globally integrated procurement system which sources raw materials from over 60 countries, efficiently feeding a network of recycling plants. These facilities operate at the cutting edge of technological capabilities, ensuring not only the environmental mandates are adhered to but also that the output matches stringent quality standards required by diverse industries ranging from automotive to telecommunications.
Gravita India Ltd. generates revenue predominantly through the sale of recycled lead and its alloys to a diverse client base. This diverse clientele includes battery manufacturers, chemical producers, and industrial product manufacturers, each relying on the consistent, high-quality supply Gravita provides. Beyond lead, the company has diversified into recycling aluminum and plastics, supporting its mission to maximize resource productivity. By harnessing these recycling processes, Gravita not only amplifies its financial resilience but also intensifies its environmental impact, mitigating the pressure on natural lead extraction and its attendant environmental costs. This dual focus on economic and ecological sustainability has positioned Gravita as not just a recycler, but a pivotal contributor to the responsible stewardship of the world's natural resources, navigating the challenges and developing opportunities within the ever-expanding green economy.
Stable Revenue: Q3 FY26 revenue was flat year-on-year and quarter-on-quarter at INR 1,017 crores, as growth in plastics and lead offset a decline in aluminum.
Profit Growth: PAT rose 32% year-on-year to INR 97.67 crores, while EBITDA grew 13% YoY to INR 116 crores, with margins supported by operational efficiencies.
Capacity Expansion Delayed: Capacity additions in lead were delayed due to state government approval bottlenecks, but management expects ramp-up in Q4 and H1 next year.
CapEx Plans On Track: INR 125 crores of CapEx spent in 9M FY26; company targets over INR 200 crores for FY26 and a total of INR 1,225 crores by FY28, including new verticals.
Guidance Unchanged: Despite strong recent margins above guidance, management is maintaining its EBITDA per kg margin guidance of INR 19–20/kg in lead.
Aluminum Headwinds: Aluminum volumes declined due to scrap supply tightness as dealers held back material during price surges; normalization anticipated in coming quarters.
Volume Growth Goal: Company reiterates 25% volume CAGR and 30–35% bottom-line growth targets, expecting improvements once capacity expansions are commissioned.
