Gravita India Ltd Q2 FY26 – ₹1,036 Cr Revenue, ₹96 Cr PAT, EPS ₹13.01: Recycling Trash, Minting Cash, and Casually Doubling Capacity
1. At a Glance – The Scrap Dealer That Became a Cash Machine
If recycling had a Bollywood biopic, Gravita India would be the protagonist who starts by collecting scrap batteries and ends up casually talking about lithium-ion, Europe, Africa, and a ₹1,225 Cr capex plan like it’s pocket change. As of today, Gravita sits at a market cap of ₹11,668 Cr with a stock price around ₹1,581. Over the last three months, the stock has done a polite -1.38% (aka digestion phase), while six months looks uglier at -12.9%, reminding everyone that even great companies need time-outs.
Operationally though? Absolute menace. Q2 FY26 revenue came in at ₹1,036 Cr with PAT of ₹96 Cr, translating into a YoY profit growth of 33.3%. ROCE stands at a healthy 21.5%, ROE at 21.2%, and debt-to-equity is a chill 0.20. Dividend yield is small (0.40%), because management clearly prefers building plants over throwing laddoos.
This is not a “hope and pray” company. This is a “scrap in, money out” industrial compounder. And the latest quarter makes that very clear.
2. Introduction – From Kabadiwala to Global Recycling Don
Founded in 1992, Gravita India started in lead recycling when recycling wasn’t sexy, ESG wasn’t a buzzword, and lithium-ion wasn’t even invited to the party. Fast forward to FY26, and Gravita is now one of India’s largest lead recyclers with meaningful operations in aluminium, plastics, rubber (tyre oil), and turnkey recycling projects across continents.
What makes Gravita interesting isn’t just growth, but controlled aggression. The company has expanded capacity, geography, and product mix while keeping leverage low and margins stable in a commodity-adjacent business. That alone deserves a slow clap.
Gravita doesn’t mine. It scavenges. It turns used batteries, scrap metal, plastic waste, and tyres into value-added products that industries actually need. This is circular economy with spreadsheets, not Instagram sustainability.
And now, with lithium-ion recycling entering the picture, Gravita is basically saying: “Old batteries, new batteries, future batteries – sab idhar lao.”
But does the financials back this confidence? Let’s open the hood.
3. Business Model – WTF Do They Even Do?
Let’s simplify. Gravita buys waste. Processes it. Sells refined, usable materials back to industry. Repeat. Profit.
Core Verticals:
Lead Recycling (87% of revenue): Used battery scrap is processed into pure lead, lead alloys, lead oxide, red lead, sheets, and bricks. These go straight back into battery manufacturers, cable makers, paint and pigment companies. Circular economy unlocked.
Aluminium Recycling (9%): Customized aluminium alloys for die-casting and industrial use. Less sexy than lithium, but very cash-generative.
Plastic Recycling (4%): Plastic granules and food-grade PET flakes. Margins improve as value-added share rises.
Rubber & Tyre Oil: Tyre waste converted into oil. Sounds shady, prints money.
Turnkey Recycling Projects: Gravita designs, installs, and maintains recycling plants globally. 70+ projects executed across Qatar, UAE, Saudi Arabia, Poland, Chile, etc. Basically: “We recycle AND teach others to recycle.”
Value-added products already contribute 46% of revenue, with a clear target of 50% by FY27. That’s how you protect margins in a commodity-linked business.
Question: how many recyclers do you know with tech, global presence, and pricing power?
4. Financials Overview – Numbers That Don’t Need Motivation
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