Gravita India Ltd Q2 FY26 – From Scrap to ₹12,000 Cr Empire: 33% Profit Jump, 21% ROE, and the Global Metal Mafia Vibe
1. At a Glance – Lead, Aluminium, Plastic… and Pure Profit
When you think recycling, you imagine kabadiwalas. Gravita India turned that image into a ₹12,358 crore market-cap empire with balance sheets shinier than the metals it melts. Established in 1992, the Jaipur-based recycler now runs a four-course buffet—Lead (88% of FY24 revenue), Aluminium (8%), Plastic (3%), and Turnkey Projects (1%)—each minting money from someone else’s scrap.
Q2 FY26 was its “Revenge of the Waste” episode: Revenue ₹1,036 cr (↑11.6% YoY), PAT ₹96 cr (↑33%), and a tidy EBITDA margin of 10%. EPS? ₹13.0 for the quarter, or ₹49.1 TTM. The stock trades at ₹1,674 with a spicy P/E of 34×, ROE 21.2%, ROCE 21.5%, and a guilt-free Debt/Equity 0.14×—basically, a capital recycler that doesn’t need much capital.
Five-year profit CAGR? 48.7%. Ten-year stock CAGR? 50%. The only thing Gravita hasn’t recycled yet is its own share price correction.
2. Introduction – How a Battery Recycler Became a Global Metals Syndicate
Once upon a time, in 1992, a small Jaipur unit began melting discarded lead batteries. Three decades later, that same company is exporting lead, aluminium, and plastics to 32+ countries across four continents and running 28 subsidiaries.
While the world talks ESG, Gravita quietly built an empire that literally eats waste for breakfast. Its clients? Battery makers, cable companies, paint producers, die-casting shops, plastic processors—basically anyone allergic to virgin metal costs.
The latest quarter reaffirmed its formula: procure global scrap → process locally → sell value-added alloys at fat margins. And if that wasn’t enough, they now build recycling plants for others through turnkey projects—recycling technology meets franchising.
By FY27, management plans to expand capacity from ~1.7 lakh MTPA to 5 lakh MTPA, spending ₹600 crore in capex. That’s not expansion; that’s industrial puberty.
3. Business Model – WTF Do They Even Do?
Gravita’s business model is a financial alchemy lab: turn scrap into gold (well, lead—but profit shines the same).
Lead Recycling (88%) – The flagship. Produces refined lead, alloys, oxides, and red lead used in batteries and pigments. EBITDA/tonne: ₹19,030. Basically, they melt old car batteries into dividends.
Plastic Recycling (3%) – Food-grade PET flakes and plastic granules. EBITDA/tonne ₹20,861. Proof that trash bottles can beat FMCG margins.
Turnkey Projects (1%) – Designs and commissions recycling plants globally. Over 70 projects executed across Qatar, UAE, Poland, Chile, etc.
In FY24, value-added products contributed 45% of revenue; the goal is 50% by FY27. The overseas operations (32% of revenue) punch way above their weight—accounting for 53% of total profits.
With 31 scrap-procurement yards and 1,700 touchpoints, Gravita runs a logistics network so wide it could probably find your lost charger cable too.
4. Financials Overview
Metric
Latest Qtr (Q2 FY26)
YoY Qtr (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue (₹ Cr)
1,036
927
1,040
+11.8 %
-0.4 %
EBITDA (₹ Cr)
102
63
101
+61.9 %
+1 %
PAT (₹ Cr)
96
72
93
+33 %
+3 %
EPS (₹)
13.0
10.4
12.6
+25 %
+3 %
Annualised EPS ≈ ₹52 → P/E ≈ 32×.
Commentary: Revenue stayed flat sequentially, but margins flexed harder than a gym influencer. 10% OPM and 9% NPM in a metals business? That’s practically FMCG.
