Gravita India Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,427.35 Cr (+37.84% YoY) and PAT growth of +6.31% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,427.35 Cr (+37.84% YoY) |
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| PAT (Q2) | Rs. 102.03 Cr (+6.31% YoY) |
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| EBITDA margin | 9.39% (-47 bps YoY) |
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| EPS (Q2) | Rs. 14.01 (+6.30% YoY) |
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| Market cap | Rs. 10,433.57 Cr |
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| CMP | Rs. 1,413.60 |
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Quarter Snapshot
Consolidated revenue grew 37.84% YoY on the RMIL/copper consolidation, but PAT grew only 6.31% and normalized H1 PAT just 1.04% as MTM gains inflated reported earnings. The legacy lead business contracted on the Gulf scrap disruption while the copper ramp (margin 6.87% vs 4.17% QoQ) is onside, but H1 CFO was negative Rs.58.44 Cr and net debt of Rs.795.49 Cr is near the guided Rs.800–900 Cr peak, leaving little slack.
Key Investment Insights
Key Positives
- Consolidated revenue grew 37.84% YoY to Rs.1,427.35 Cr; H1 revenue Rs.2,902.41 Cr (+39.85% YoY)
- Copper segment revenue Rs.419.83 Cr (+11.64% QoQ) with segment result nearly doubling QoQ to Rs.28.86 Cr and margin at 6.87% vs 4.17% in Q1
- Aluminium revenue grew 46.48% YoY with margin up 157 bps YoY; plastics revenue more than doubled YoY at a 10.66% margin
- P&L-derived EBITDA margin expanded 194 bps QoQ to 9.39%
- Net debt of Rs.795.49 Cr is within the guided Rs.800–900 Cr working-capital peak
- Interim dividend of Rs.7.70/share (Rs.56.83 Cr) declared; RMIL stake raised to 99.59%
- Other income normalized to Rs.18.00 Cr (~17.6% of PAT) from Rs.47.54 Cr (~44.7% of PAT) in Q1
Risk Factors
- Lead segment (58.5% of revenue) revenue fell 9.96% YoY and 12.54% QoQ with margin down 138 bps YoY on the Gulf scrap disruption; standalone PAT fell 45.72% YoY
- H1 CFO was negative Rs.58.44 Cr vs PAT of Rs.208.40 Cr; FCF was −Rs.140.22 Cr, funded by Rs.184.68 Cr net current borrowings
- Normalized H1 PAT grew only 1.04% YoY vs 10.25% reported, with Rs.56.17 Cr of MTM/FV gains and write-backs in H1 PBT
- Finance costs rose 77.49% YoY to Rs.13.88 Cr; gross debt up Rs.135.8 Cr since March to Rs.868.14 Cr
- Working-capital cycle lengthened to ~108 days vs the ~85–90-day target; trade receivables up to Rs.633.39 Cr from Rs.430.92 Cr
- ETR rose to 17.86% from 13.76% YoY, with deferred tax at 31.6% of the Q2 tax charge