Risk Intelligence
Middle East disruption impact on margins
View Risks →Gravita India reported a strong Q4 FY26 with revenue of ₹1,172.76 crore (+13% YoY) and EBITDA of ₹112.91 crore (+4% YoY), though margins compressed to 9.63% due to Middle East disruptions impacting value-added product sales.
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Gravita India reported a strong Q4 FY26 with revenue of ₹1,172.76 crore (+13% YoY) and EBITDA of ₹112.91 crore (+4% YoY), though margins compressed to 9.63% due to Middle East disruptions impacting value-added product sales. Full-year revenue grew 10% to ₹4,265 crore and PAT rose 21% to ₹378.80 crore, driven by capacity additions and operational efficiencies. The company is aggressively expanding into copper, lithium-ion, and rubber recycling, with a total capex plan of ₹1,700 crore through FY29. Management guided for 20-25% volume CAGR over the next three years, with copper EBITDA per ton expected to rise from ₹45,000 to ₹65,000 post-backward integration. Key risk: Middle East tensions could continue to pressure near-term margins and delay volume recovery in value-added segments.
Middle East disruption impact on margins
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Read Transcript →Total sales volume for FY26, driven by lead segment growth of 7%.
Sustainable lead EBITDA per kg guided at ₹19-20/kg, with temporary arbitrage opportunities.
Current EBITDA per ton for RML; expected to rise to ₹65,000 with backward integration.
Total installed capacity target by FY29, up from 457,000 MT currently.
Management expects 20-25% volume CAGR consistently for the next three years, with FY27 slightly higher due to catch-up from FY26.
Geopolitical tensions in the Middle East have disrupted value-added product sales and increased logistics costs, pressuring near-term margins.
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