Gravita India Ltd Q3 FY26 – ₹1,017 Cr Revenue, ₹97.5 Cr PAT, 63% Utilisation & a ₹1,225 Cr Capex Plot Twist
1. At a Glance – The Scrap King Who Learned Capital Allocation
Let’s get straight to the point. Gravita India is that rare Indian midcap which converts kachra into cash and then reinvests that cash with a calculator, not vibes. Market cap sits at ~₹11,485 Cr, stock price ~₹1,554, and the last three months have been… meh (-2.7%). But zoom out and the business is still flexing: Q3 FY26 revenue ₹1,017 Cr (+2% YoY) and PAT ₹97.5 Cr (+25% YoY). That’s margin expansion energy, not top-line fireworks.
ROCE ~21.5%, ROE ~21.2%, debt-to-equity a chill 0.20, and interest coverage at an eye-watering 18.6x. Translation? Banks sleep well at night. Promoters hold ~55.9% with zero pledge, FIIs keep creeping up, and DIIs have finally discovered this stock like it’s a new momo stall.
This is not a “story stock”. This is a cash-flowing recycling machine that quietly doubled profits over five years while Twitter was busy chasing solar SPACs. Curious why the market still values it like a commodity player? Good. Keep reading.
2. Introduction – From Battery Kabadiwala to Global Recycler
Gravita started in 1992 doing something deeply unsexy: recycling used lead-acid batteries. No brand jingles, no influencer collabs. Just molten metal, compliance headaches, and logistics nightmares. Three decades later, it’s one of India’s largest lead recyclers with operations across India, Africa, Europe, and Sri Lanka.
The magic? Vertical integration + geographic arbitrage. Scrap sourcing yards (33 of them), 1,900+ touchpoints, 325 global customers, and exports to 32+ countries. They don’t pray for raw material prices to fall; they source smarter. They don’t cry about ESG regulations; they literally are ESG.
But Gravita didn’t stop at lead. Aluminium recycling, plastic recycling, tyre oil, turnkey recycling plants, and now—plot twist—lithium-ion battery recycling. Yes, the same lithium that makes PowerPoint decks moist.
The market still slaps a ~30x P/E and calls it “expensive commodity”. The company quietly compounds EPS at ~49% over five years and says nothing. Who’s wrong here?
3. Business Model – WTF Do They Even Do?
Imagine this: People throw away batteries → Gravita buys them → melts them → sells higher-margin lead alloys back to battery makers → repeats across continents.
Core Verticals:
Lead Recycling (87% of revenue) Products: pure lead, lead alloys, red lead, lead oxide, sheets, bricks. Customers: battery manufacturers, cables, pigments.
Aluminium Recycling (9%) Customized aluminium alloys for die-casting industries.
Rubber / Tyre Oil Waste tyres → pyrolysis → tyre oil. Circular economy with a desi jugaad flavour.
Turnkey Projects Gravita literally builds recycling plants for others in Qatar, UAE, Poland, Chile. Over 70+ projects executed. Consultancy + tech + AMC = asset-light gravy.
Value-added products already contribute ~46% of revenue, targeted to hit 50% by FY27. That’s how you escape the commodity trap. Question is: will margins follow or plateau?
4. Financials Overview – Numbers That Actually Matter
Quarterly Comparison Table (₹ Cr, EPS in ₹)
Source table
Metric
Latest Qtr (Q3 FY26)
YoY Qtr (Q3 FY25)
Prev Qtr (Q2 FY26)
YoY %
QoQ %
Revenue
1,017
996
1,036
+2.1%
-1.8%
EBITDA
120
81
102
+48.1%
+17.6%
PAT
97
78
96
+25.3%
+1.0%
EPS (₹)
13.23
10.56
13.01
+25.3%
+1.7%
Annualised EPS (Q3 rule): Average of Q1, Q2, Q3 EPS × 4 ≈ ₹51.8 (matches TTM sanity).
Revenue growth looks boring, profits don’t. That’s margin expansion + operating leverage + value-added mix kicking in. Would you rather own fast revenue or fast EPS? Be honest.
5. Valuation Discussion – Fair Value, Not Fan Fiction
Disclaimer: This fair value range is for educational
