Gravita India shares in focus after better operating performance in Q3, capex plans for FY28

Shares of Gravita India Ltd. are in focus on Thursday, January 22, after the company reported its third quarter earnings after market hours on Wednesday.

The company's profit after tax increased by 25% from last year to ₹97.49 crore in the December quarter from ₹78.06 crore in the previous year.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 20% to ₹131.4 crore from ₹109.57 crore in the preceding year. This also included other income, which includes hedging-related gains that are essentially part of the core business, as per the company and analysts. Gravita India hedges commodity exposure on the same day it procures scrap. Hence, it is included in the EBITDA.

The company's margins expanded to 12.8% from 10.7% in the year-ago period. The improvement in margins were due to lower finance costs, which halved from the same period last year to ₹6.54 crore from ₹12.84 crore in the year-ago period.

Gravita's topline remained unchanged from last year's quarter at ₹1,028 crore. Among its various business segments, the lead business saw growth of 9% in its topline to ₹915 crore, while the relatively smaller aluminium and plastics business revenue saw a decline of 33% and 39% in their respective toplines from the same quarter last year.

The lead business' volumes were up 5.4% to 46,269 metric tonne and its EBITDA per metric tonne increased by 10% to ₹23,035 crore.

Gravita India has targeted over 7 lakh MTPA capacity for the financial year 2028. It has earmarked a capex of over ₹1,500 crore for the same.

Shares of Gravita India ended the previous session 2.6% higher at ₹1,594 apiece. The stock has declined 26.5% in the past year.

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