Gravita India Limited Earnings Summary — Q1 FY2027
Gravita India Reports Robust 43% Revenue Growth in Q1 FY2027 Led by Aluminum and Copper Segments
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹1,475 Cr is 41.8% higher year-on-year.
- Revenue has compounded at 26.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹106 Cr is 14.1% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 21.2% annualised across the period.
- Operating margin stands at 7.4% in Q1 FY2027.
- Operating margin compressed by 224 bps year-on-year.
- Over the last two years operating margin has contracted by 222 bps.
- PBT margin is 8.9%.
- Expenses grew 45.4% against revenue growth of 41.8%.
- Operating profit of ₹110 Cr is 9.0% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,475 | 1,173 | 1,017 | 1,036 | 1,040 | 1,037 | 996 | 927 | 908 | 863 |
| Expenses | Improving | 1,365 | 1,060 | 897 | 933 | 939 | 945 | 916 | 864 | 820 | 791 |
| Operating Profit | Improving | 110 | 113 | 120 | 102 | 101 | 92 | 81 | 63 | 88 | 72 |
| Operating Margin | Stable | 7.4% | 9.6% | 11.8% | 9.8% | 9.7% | 8.9% | 8.1% | 6.8% | 9.7% | 8.4% |
| Other Income | Volatile | 48 | 9 | 12 | 26 | 30 | 36 | 29 | 40 | 7 | 25 |
| Interest | Volatile | 11 | 4 | 7 | 8 | 6 | 6 | 13 | 12 | 13 | 12 |
| Depreciation | Accelerating | 14 | 11 | 10 | 9 | 9 | 8 | 8 | 7 | 7 | 12 |
| Profit Before Tax | Improving | 131 | 106 | 115 | 111 | 116 | 115 | 89 | 85 | 75 | 72 |
| Tax | Improving | 25 | 14 | 18 | 15 | 23 | 20 | 11 | 13 | 7 | 3 |
| Net Profit | Improving | 106 | 92 | 98 | 96 | 93 | 95 | 78 | 72 | 67 | 69 |
| Net Margin | Stable | 7.2% | 7.8% | 9.6% | 9.3% | 9.0% | 9.2% | 7.8% | 7.8% | 7.4% | 8.0% |
Key Takeaways
- Revenue grew significantly by 43% YoY to ₹1,475 crore, primarily driven by the full incorporation of the Copper segment and growth in Aluminum recycling.
- Copper segment emerged as a major contributor with revenue of ₹376.05 crore, compared to just ₹51.78 crore in the preceding quarter.
- Consolidated Net Profit rose 14% YoY to ₹106.39 crore, demonstrating resilient earnings despite slight margin compression.
- The company announced the strategic closure of Gravita Metal Inc. (USA) to shift operations to the more cost-efficient Jaipur facility.
- A step-down subsidiary in South Africa (Recyclers South Africa PTY Ltd) was also closed during the quarter as part of resource optimization.
- Finance costs increased substantially to ₹11.48 crore from ₹6.05 crore YoY, reflecting higher working capital needs and acquisition-related debt.
- Lead recycling remains the largest segment at ₹954.75 crore, though its share of total revenue is diversifying toward Copper and Aluminum.
- Acquisition strategy continues with a further 0.62% stake increase in Rashtriya Metal Industries Limited (RMIL) to 99.57% total ownership.
Management Guidance
Management remains focused on optimal resource utilization by consolidating business lines at facilities offering higher operational efficiencies, such as the Jaipur plant. The strategy aims to improve the group's overall cost structure while scaling the new Copper vertical.
Sentiment Shift
Improving
Accelerated volume growth from the recent Rashtriya Metal Industries acquisition and the ramp-up of the Copper segment is beginning to meaningfully impact the top line, offsetting increased interest costs.
Outlook
The outlook is positive driven by the scaling of non-lead verticals (Copper and Aluminum) and the realization of cost synergies from consolidating underperforming overseas units into efficient domestic hubs.
From the Annual Report (Key Quotes)
“The operations of the said subsidiary will be discontinued... which offers greater operational and cost efficiencies.”
“The Company acquired an additional 0.62% equity stake in RMIL for 3.48 crore, increasing its shareholding to 99.57%.”
“The management of the Company is of the view that the order will not have any material impact on its unaudited standalone financial results.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Gravita India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.