1. Opening Hook
Just when markets were busy obsessing over AI hallucinations and PSU reratings, Gravita calmly reminded everyone that boring recycling can print money.
No drama, no “one-time adjustments,” no PowerPoint gymnastics—just scrap, scale, and spreadsheets behaving themselves.
Q3 FY26 wasn’t about fireworks. It was about discipline: stable margins, hedged metals, and management repeating “25% ROIC” like a meditation chant. While others blame China, freight, or the moon cycle, Gravita doubled down on execution and said, “Margins locked, thank you very much.”
And then came the ambition—7 LTPA capacity by FY28, new verticals, lithium-ion buzzwords, and ESG sprinkled generously.
Sounds clean. Sounds confident. Sounds… almost too smooth?
Read on—because the real story hides between volumes, capex, and those suspiciously stable margins.
2. At a Glance
- Volumes up 5% (9M FY26) – Scrap kept moving; no excuses about supply shortages.
- Revenue up 9% – Not explosive, but steady enough to annoy momentum traders.
- EBITDA up 15% – Operating leverage quietly doing the heavy lifting.
- PAT up 32% – Accounting finally smiled back.
- ROIC at ~25% – Management’s favourite number, now framed and hung on the wall.
- EBITDA margins ~9–10% – So stable it feels hedged… oh wait, it is.
- Capex ₹125 Cr (9M) – Expansion mode, but with a calculator, not vibes.
3. Management’s Key Commentary
“We delivered consistent progress across all operational and financial metrics.”
(Translation: Nothing broke, and we like it that way 😌)
“Higher contribution from value-added products improved efficiency.”
(Translation: Plain vanilla recycling is passé; alloys pay better.)
“ROIC remained healthy at 25%.”
(Translation: Please stop asking why valuations look expensive.)
“Capex of ₹125 Cr aligned with VISION 2029.”
(Translation: Don’t worry, we’ve modelled the payback—three times.)
“We aim to cross 7 LTPA capacity by FY28.”
(Translation: Scale first, ask logistics questions later.)
“Non-lead businesses to cross 30% contribution.”
(Translation: Lead dependence reduction, slowly but surely.)
“Back-to-back hedging ensures margin stability.”
(Translation: LME can dance; our P&L won’t 💃)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY Trend | Decoded Take |
|---|---|---|---|
| Volume (MT) | ~46,269 | -1% | Minor blip, not a trend. |
| Revenue (₹ Cr) | ~1,017 | +2% | Price discipline > volume chase. |
| EBITDA (₹ Cr) | ~116 | +13% | Operating leverage alive and well. |
| EBITDA/MT (₹) | ~23,000 | Stable | Hedging doing God’s work. |
| PAT (₹ Cr) | ~98 | +25% | EPS lovers satisfied. |
| ROIC | ~25% | Stable | Capital allocation passing the vibe check. |
