Gravita India Q1FY27: Revenue Jumps 42% as Recycling Business Expands into Copper, Lithium and New Verticals

Gravita India Limited, a diversified recycling company with operations across lead, aluminium, plastic, rubber, copper and lithium-ion battery recycling, highlighted strong business momentum and an expanding growth strategy in its July 2026 investor presentation. The company, founded in 1992 by Rajat Agrawal in Jaipur, has transformed from a lead recycling business into a global recycling platform with operations across India, Africa, Asia, Europe and the Americas. Gravita’s strategy is centred on building a diversified and sustainable recycling business, increasing the contribution of value-added products, entering new recycling verticals and improving returns on capital. The company has identified copper, rubber and steel as important areas for future diversification while continuing to strengthen its core lead, aluminium and plastic recycling operations.

Q1FY27 Revenue Rises 42%, EBITDA Up 29% and PAT Grows 14%

Gravita delivered strong year-on-year growth in Q1FY27, supported by volume growth, capacity additions, operational improvements and a higher contribution from value-added products. Revenue increased 42% YoY, EBITDA rose 29% and PAT grew 14%, while volumes increased 4% YoY. Revenue for the quarter stood at ₹1,475 crore compared with ₹1,173 crore in Q1FY26 and ₹1,040 crore in Q4FY26. EBITDA increased to ₹144.54 crore from ₹111.70 crore in Q1FY26 and ₹112.91 crore in Q4FY26. EBITDA margin stood at 9.80% compared with 9.63% in Q1FY26 and 10.74% in Q4FY26. PAT increased to ₹106.39 crore from ₹93.26 crore in Q1FY26 and ₹91.88 crore in Q4FY26, while PAT margin stood at 7.21% compared with 8.97% in Q1FY26 and 7.83% in Q4FY26. The company said the EBITDA figures are after adjustment for income or loss from currency and metal hedging and ECL reversals or charges.

Capacity Expansion Remains a Key Growth Driver

The company continued to invest in capacity during the quarter, with approximately ₹30 crore of capex incurred in Q1FY27. Gravita expanded its Phagi lead recycling capacity by 40,500 MTPA to 75,819 MTPA. The company’s broader capacity expansion plan targets more than 8 lakh MTPA of capacity by FY29. The presentation indicates a planned capex programme of ₹107 crore in FY25, ₹200 crore in FY26, ₹250 crore in FY27E, ₹375 crore in FY28E and ₹190 crore in FY29E, with investments spread across existing and new verticals. The company intends to use this capacity expansion to support volume growth, strengthen its presence across recycling categories and create additional opportunities for value-added products.

Vision 2030 Targets Volume Growth and Higher Value-Added Contribution

Under its Vision 2030 strategy, Gravita is targeting approximately 20–25% volume CAGR while seeking to sustain ROIC at around 25%. The company is also targeting 30–35% profitability growth and expects value-added products to contribute around 45–50% of its business mix. Non-lead businesses are targeted to account for approximately 35–40% of the overall business, reflecting the company’s strategy to reduce dependence on its traditional lead recycling operations. Gravita is also targeting greater use of renewable energy, with renewable power usage expected to reach approximately 25–30%, alongside an 8–10% improvement in energy efficiency. The company’s stated priorities include disciplined capital allocation, return-accretive growth and shareholder value creation.

Strategic Entry into Copper Through ₹561.84 Crore RMIL Acquisition

One of the most important developments in Gravita’s diversification strategy is its entry into the copper and copper-alloys segment through the acquisition of Rashtriya Metal Industries Limited (RMIL). Gravita acquired a 99.44% stake in RMIL for ₹561.84 crore as of May 7, 2026. Founded in 1946, RMIL is one of India’s established copper and copper-alloy manufacturers and operates a manufacturing facility at Sarigam, Gujarat, with a capacity of 31,200 MTPA. RMIL reported revenue of ₹1,040 crore and EBITDA of ₹82 crore for FY26. Gravita expects the acquisition to strengthen its non-lead portfolio, expand its value chain and provide access to high-barrier segments including electrical and defence applications. The company also expects opportunities for cross-selling, backward integration and improved cost control through copper scrap-to-alloy capabilities.

Lithium-Ion Battery Recycling Adds Another Growth Opportunity

Gravita has also entered the lithium-ion battery recycling opportunity by commissioning a pilot lithium-ion battery recycling project. The company views battery recycling as a strategic emerging vertical as demand for electric vehicles, energy storage and battery materials increases. The move forms part of Gravita’s broader strategy of expanding beyond its established lead, aluminium and plastic businesses. Alongside lithium-ion recycling, the company has expanded into rubber recycling and identified steel as another potential future diversification area. The objective is to build a multi-material recycling platform capable of benefiting from the long-term expansion of the circular economy.

Global Recycling Network Provides Procurement Advantage

Gravita has developed a broad global procurement network that supports its recycling operations and helps the company source scrap close to raw-material markets. The company reported more than 2,200 touch points, 39 own yards and scrap collection of more than 3.30 lakh MT. Its network spans Asia, Africa, Europe, the Americas and Australia. Asia represents the largest collection network, while Africa has more than 900 touch points and 32 own yards. This geographically diversified procurement infrastructure allows Gravita to source scrap across multiple markets and potentially reduce logistics costs by establishing recycling facilities close to raw-material sources and consuming markets.

Diversified Customer Base Across 37 Countries

The company has also built a diversified international customer network. Gravita reported more than 400 customers across 37 countries, with more than 2.13 lakh MT of recycled products delivered. Its customer base includes more than 250 domestic customers across 22 Indian states and more than 50 overseas customers across 25 countries. The company delivered more than 1.54 lakh MT to customers across Asia, while the Middle East accounted for more than 35,700 MT. Europe, the Americas and Africa also contribute to the company’s international customer base. This geographic diversification provides Gravita with access to multiple end markets and reduces dependence on any single geography.

Value-Added Products Remain Central to Margin Expansion

Gravita continues to focus on customised and value-added recycling products as a means of improving margins and increasing its share of customers’ product requirements. Its portfolio includes customised lead alloys, lead bricks, lead sheets, red lead, aluminium alloys, plastic granules, copper sheets, brass cups and copper foils. The company believes its ability to customise products for different customer segments can provide better margins and increase its participation in the overall customer product mix. Increasing the contribution of value-added products toward the targeted 45–50% range is therefore an important component of its Vision 2030 strategy.

Turnkey Recycling Solutions Add Another Business Layer

Beyond recycling and manufacturing, Gravita provides turnkey solutions for recycling projects. The company has executed more than 70 turnkey projects globally, including projects in Qatar, the UAE, Saudi Arabia, Poland and Chile. Its capabilities cover planning, design, fabrication, testing, installation, operation and handover, along with annual maintenance contracts and technical consultancy. The company also develops PLC-based control and monitoring systems for advanced recycling plants and conducts R&D aimed at improving processing efficiency and environmental performance. This integrated capability allows Gravita to participate across multiple stages of the recycling value chain.

Operational Scale and Manufacturing Footprint

Gravita operates six recycling verticals with 14 manufacturing plants and a global network of more than 2,200 touch points. The company reported more than 4.76 lakh MT of production capacity, over 60,000 MT of order book and 63% capacity utilisation based on the presentation’s stated figures as of July 27, 2026, excluding internal rubber. The company’s manufacturing and procurement footprint across multiple geographies is a key component of its strategy to improve supply-chain efficiency and expand recycling volumes. The company is also focused on establishing facilities closer to scrap sources and consuming markets to reduce logistics costs and improve operating efficiency.

Strong Historical Financial Track Record and Focus on ROIC

Gravita highlighted a strong five-year financial growth trajectory, reporting a revenue CAGR of 25% and PAT CAGR of 48% over FY22–FY26. The company has maintained EBITDA margins in the 9–10% range and has a long history of dividend payouts spanning 15 years. The company is targeting ROIC of more than 25% for new projects and has outlined a maximum payback period of three years, along with a target of more than eight asset turns. Management expects improving industry dynamics, lower working-capital requirements, better demand-supply conditions and increasing value-added products to support returns on capital.

LME Brand Listing Strengthens Global Positioning

A key recent achievement was the London Metal Exchange (LME) Brand Listing received by Gravita’s Mundra plant for its lead metal under the brand name “GRAVITA M”. According to the company, the listing validates the quality of its lead metal against global standards and enables worldwide LME warehouse deliverability. This could strengthen Gravita’s international market presence and improve its ability to participate in global lead markets. The company also noted that ICRA upgraded its credit rating, which it views as a reflection of its financial profile and capital-management approach.

Sustainability and Renewable Energy Initiatives Continue

Sustainability remains a core part of Gravita’s business model because recycling itself contributes to resource conservation and circularity. The company reported that 20% of total energy usage came from green energy, including biofuels and renewable energy, and it is targeting further improvement in renewable power usage. Renewable power generation increased 26% YoY, with 1.16 million units of renewable electricity generated in Q1FY27. Gravita has also signed a term sheet for 4.7 MWe of hybrid renewable power for RMIL. Other initiatives include oxygen trials at the Phagi facility, planned oxygen trials at Chittoor, introduction of electric forklifts in the Phagi refining section and commissioning of a 10 KLD sewage treatment plant in Senegal.

ESG Initiatives Extend Across Employees, Safety and Governance

Gravita’s ESG programme includes employee development, safety, quality and corporate governance initiatives. The company reported a 29% improvement in lost-time incidents and a 5% increase in man-hours YoY. It launched its first talent-development programme, “Gravita Ignite”, and reported 100% health insurance coverage for employees. Quality complaints declined 67% YoY, while all plants are ISO 9001:2015 certified and half of the plants are ISO 14001 and ISO 45001 certified. The company has also completed reasonable assurance for BRSR core indicators as required under SEBI norms. Gravita reported 50% independent directors on its Board, an ESG committee at Board level and zero reported ethical breaches and statutory non-compliance across its plants.

Management Sees Recycling Industry Undergoing a Structural Shift

Gravita believes India’s recycling industry is undergoing a structural transformation driven by vehicle scrappage policies, Extended Producer Responsibility, better waste-management regulations, GST formalisation, improved logistics, OEM tie-ups and greater availability of domestic scrap. The company expects these developments to support a shift from informal to formal recycling, improve capacity utilisation and reduce working-capital cycles. Increasing formalisation could also create opportunities for organised recyclers with established procurement networks, certified plants, technology capabilities and diversified customer relationships.

Outlook: Diversification and Capacity Expansion to Drive the Next Growth Phase

Gravita India’s investment presentation indicates that the company is positioning itself for the next phase of growth through a combination of organic capacity expansion and strategic diversification. Its established strengths in procurement, global operations, recycling technology, customised products and customer relationships provide a foundation for entering new verticals. Copper through RMIL, lithium-ion battery recycling and rubber are already part of the diversification journey, while steel has been identified as an upcoming opportunity. With a target of more than 8 lakh MTPA capacity by FY29, a focus on 20–25% volume CAGR, increasing value-added products and a target ROIC of 25%+, the company’s strategy is increasingly centred on becoming a diversified global recycling platform.

Point to consider

Gravita India enters FY27 with strong operating momentum, a rapidly diversifying product portfolio and an ambitious capacity-expansion programme. Q1FY27 revenue grew 42% YoY to ₹1,475 crore, EBITDA increased 29% to ₹144.54 crore, and PAT rose 14% to ₹106.39 crore. The acquisition of RMIL for ₹561.84 crore significantly expands the company into copper and copper alloys, while lithium-ion battery and rubber recycling provide additional growth avenues. The company’s global scrap procurement network, more than 400 customers, value-added product strategy and turnkey recycling capabilities further strengthen its business model. Going forward, investors will be watching the integration of RMIL, execution of capacity expansion, growth in non-lead businesses, improvement in value-added product contribution, working-capital management and the company’s ability to sustain its targeted returns as it builds toward its Vision 2030 objectives. The presentation contains forward-looking statements and targets that are subject to business, market, commodity-price, regulatory and other risks, so actual outcomes may differ from management expectations.