Gravita India Ltd Q1 FY27 Results Analysis: Revenue Surges 42%, EBITDA Margin Compresses 224 bps

Gravita India Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 1,475.06 Cr (+41.84% YoY) and PAT growth of +14.08% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue surged 41.84% YoY driven by the first full quarter of the copper segment (Rs.376 cr, 25.5% of revenue). However, EBITDA margin compressed 224 bps to 7.44% as copper's lower margin diluted the blended mix, and finance costs nearly doubled due to acquisition debt. The key investor question is whether copper margins improve from 4.17% towards lead's 11%+ level in coming quarters.

Key Investment Insights

Key Positives

• Revenue grew 41.84% YoY to Rs.1,475.06 cr, the highest-ever quarterly revenue.
• Copper segment contributed Rs.376.05 cr in its first full quarter, 25.5% of revenue.
• Aluminium segment EBIT margin recovered sharply to 10.27% from 2.32% in Q4 FY26.
• Lead segment EBIT margin improved sequentially to 11.47% from 10.76% in Q4 FY26.
• Subsidiary contribution to PAT increased 51.5% YoY to Rs.38.34 cr, driven by RMIL.

Risk Factors

• EBITDA margin compressed 224 bps YoY to 7.44% due to lower-margin copper segment.
• Finance costs surged 89.75% YoY to Rs.11.48 cr from debt for RMIL acquisition.
• Standalone revenue grew only 1.1% YoY, indicating organic growth is stagnant.
• Working capital strain as inventory build was Rs.65.87 cr vs Rs.2.86 cr a year ago.
• Other income contributed ~45% of PAT, inflating reported earnings quality.
• Customs duty appeal of Rs.70.10 cr remains unresolved, a contingent liability.