Gravita India is a metals recycling company turning lead, copper, aluminium and plastic scrap into value-added products, and its Q2 print arrives with Gulf supply disruption still squeezing the 15%-20% of import scrap sourced through the Middle East. The results will speak to whether lead volumes and the Rs. 19-20/kg lead EBITDA framework hold up, and how quickly the newly acquired RMIL copper business scales toward its Rs. 60/kg interim profitability target.
| Results date | October 27, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,475.06 Cr |
| Previous quarter PAT | Rs. 106.37 Cr |
| Previous quarter EBITDA margin | 9.80% |
| Net debt (latest quarter) | ~Rs. 150 Cr |
| Market cap | Rs. 10,044.71 Cr |
| CMP | Rs. 1,361.7 |
The board meets on October 27, 2026 to consider the Q2 FY27 (quarter/half-year ended September 30, 2026) results and an interim dividend for FY 2026-27 with record date. The trading window has been closed since October 1.
A post-results 2QFY27 earnings call is scheduled for October 28, 2026 at 3:00 PM IST, organised by Antique Stock Broking. CEO Yogesh Malhotra, CFO Sunil Kansal and ED Naveen Sharma will attend.
The quarter's central question is whether Gravita can defend its FY27 volume growth guidance of slightly above 20-25% after Q1 volumes grew just 4% YoY and management flagged that 'in Q2 also there may be some impact' from the Gulf disruption affecting 15%-20% of import scrap. Copper is the swing factor: LME copper rose 7.9% in Q3 2026 to record levels near $14,875/t, directly supporting a segment that jumped from 744 MT in Q4 FY26 to 4,055 MT in Q1 FY27 post-RMIL, with copper EBITDA/ton at Rs. 55,151 against the interim ~Rs. 60/kg target by year-end. Margin direction looks flat to compressing: the copper mix dilutes consolidated margins (RMIL segment margin ~4.2% vs lead's 11%+), finance costs rose 89.75% YoY to Rs. 11.48 Cr in Q1 on acquisition debt, and net debt is guided toward a Rs. 800-900 Cr working-capital peak as copper inventory builds. End-demand is a tailwind, with SIAM passenger-vehicle dispatches up 20.9%-34.3% YoY through July-September 2026 supporting the lead-heavy revenue mix, while the rupee's fall past 95/USD in September raises landed costs on the import-heavy scrap mix. The upcoming call is expected to cover the reaffirmation or re-dating of the scrap-normalization timeline, the copper ramp quality, and the interim dividend decision at the October 27 board meeting.
Performance vs guidance tracking: The Q1 FY27 call set out a full FY29 roadmap; here is where each tracked item stands.
Gulf scrap disruption and utilization recovery: The Middle East conflict remains the dominant operational overhang this quarter.
Copper ramp and RMIL integration: RMIL is the pivotal swing factor for the medium-term earnings mix.
Other watch items on the call: Smaller but concrete items worth listening for.
Management has guided working-capital debt of Rs. 800-900 crores post-copper, with net debt rising Rs. 600-700 crores to a peak of around Rs. 800-900 crores as the copper business scales. Net debt stood at ~Rs. 150 crores in Q1 FY27.
Management targets copper capacity doubling to 60,000 MT in 3 years, with margins ramping to Rs. 75,000 per ton and Rs. 60-65/kg on a backward-integrated basis versus RMIL's current ~Rs. 45/kg. Copper ROIC is guided at 25% within 2 to 2.5 years.
Management has said RMIL's margin 'in terms of percentage would not improve. In terms of absolute, it would improve per ton', with RMIL EBITDA/ton guided from Rs. 45,000 to Rs. 65,000-70,000 post backward integration within 2 years. Plans include scrap-mix optimization and sourcing through Gravita's yard network in the US, Europe, South America and Australia.