Gravita India Q1 2026 Results: Net Profit Jumps 38% as Growth Momentum Stays Strong

Gravita India, one of India’s prominent recycling companies, has announced its financial results for the first quarter of 2026, delivering a strong performance across key financial metrics. The company reported a 38% year-on-year (YoY) jump in net profit, reflecting continued operational efficiency and sustained demand for its products in domestic and international markets.

Let’s delve into a detailed breakdown of the company’s performance for the quarter ended June 2025 and evaluate what’s working in Gravita’s favor.

A Quick Overview: Gravita India at a Glance

• Stock Price: ₹1,815

• Market Capitalization: ₹13,396 Crores

• Price to Earnings Ratio (PE): 39.7

Gravita India has carved a niche for itself in the metals and recycling industry. With a strong presence in lead recycling, aluminum, and plastic recovery, the company continues to expand its reach in sustainable materials processing and value-added metal solutions.

Gravita India Q1 2026 Financial Highlights

The data shows that Gravita maintained stable sales quarter-on-quarter (QoQ), while significantly improving its year-on-year performance. The consistency in quarterly revenue indicates strong demand across its product segments.

Breaking Down the Profit Growth

One of the standout figures from Gravita India’s Q1 2026 results is the 38% increase in net profit, which rose to ₹93.1 crore compared to ₹68 crore in the same quarter of the previous year. This surge reflects not only robust revenue growth but also cost efficiency and improved margins.

Key drivers of this profit growth include:

• Operational Expansion: Gravita has been expanding its recycling capacities and entering into new geographies.

• Raw Material Optimization: Strategic sourcing of scrap materials and enhanced processing technology reduced input costs.

• Export Market Tailwind: A significant portion of revenue comes from exports, which benefited from a favorable global commodity cycle.

Revenue Growth Driven by Volume and Value

Sales increased by 15% YoY, touching ₹1,040 crore for the quarter. Despite a marginal increase from ₹1,037 crore in the previous quarter, the YoY rise highlights the effectiveness of Gravita’s integrated business model. The company has been steadily increasing the share of value-added products in its portfolio, particularly in the lead and aluminum segments.

What makes this growth noteworthy is the fact that the global metals market has remained volatile in recent quarters. Gravita’s ability to maintain topline growth in this environment underscores its resilience and diversification.

EBITDA Margin Expansion Signals Operational Efficiency

Gravita posted an EBITDA of ₹101 crore, marking a 15% YoY growth. The EBITDA margin improvement reflects better plant utilization and operating leverage. The company’s ongoing efforts to reduce energy consumption and waste disposal costs are also beginning to reflect in the numbers.

EPS Growth Reflects Shareholder Value Creation

Earnings Per Share (EPS) came in at ₹12.64, up 30% YoY from ₹9.75 in Q1 2025. This significant improvement underlines the company’s focus on improving returns for its shareholders.

Such a strong EPS performance, despite the overall economic headwinds, strengthens Gravita’s case as a consistent performer in the mid-cap space.

Market Valuation and Investor Sentiment

With a PE ratio of 39.7, Gravita is trading at a premium compared to some of its sector peers. However, given the company’s solid fundamentals and future expansion plans, investors seem willing to pay for the growth potential.

The company’s stock price at ₹1,815 reflects growing confidence among retail and institutional investors alike. Over the past year, Gravita has rewarded its shareholders handsomely, and the trend appears to be continuing into 2026.

Industry Outlook: Tailwinds for Sustainable Recycling

Gravita operates in a sector that is expected to see massive growth due to the rising demand for sustainable practices, especially in the metal recycling and e-waste management space. With governments and corporations doubling down on ESG goals, companies like Gravita are well-positioned to benefit from the shift toward circular economies.

Furthermore, rising environmental regulations globally are making recycled metals more attractive. Gravita’s strong presence in the export markets makes it a potential beneficiary of global policy tailwinds.

Challenges Ahead

Despite the robust numbers, Gravita does face some potential risks:

• Commodities Price Volatility: Being in the recycling and metal recovery business, margins can be squeezed in case of sudden shifts in base metal prices.

• Global Economic Uncertainty: Any global slowdown, especially in the automotive or infrastructure sectors, may impact demand.

• Currency Fluctuations: A significant portion of revenue comes from exports, making the company sensitive to currency swings.

Strategic Focus Areas for 2026

Looking ahead, Gravita India is likely to concentrate on the following:

1. Capacity Expansion: Adding new facilities in India and abroad to scale up output.

2. Product Innovation: Focusing on higher-margin, value-added products.

3. Sustainability Goals: Increasing the share of green energy use and minimizing environmental footprint.

4. Digitalization: Implementing ERP systems and AI-driven logistics to optimize supply chains.

Analyst Take: Gravita Remains a Mid-Cap to Watch

With a strong balance sheet, improving margins, and promising growth opportunities in the recycling sector, Gravita India continues to be a mid-cap stock worth tracking. While the valuation is on the higher side, the consistency in performance and the long-term outlook for sustainable industries justifies the premium.

Investors with a long-term horizon might consider Gravita as a strong ESG-aligned pick in the industrial segment. However, those seeking entry should watch for any consolidation or correction in the stock for better risk-reward opportunities.

FAQs

Q1: What is Gravita India’s net profit for Q1 2026?
A: Gravita India reported a net profit of ₹93.1 crore for Q1 2026, a 38% increase YoY.

Q2: What contributed to Gravita’s earnings growth in Q1 2026?
A: Growth was driven by improved operational efficiency, higher sales, and better margins in the recycling business.

Q3: Is Gravita India a good investment in 2026?
A: Given its strong performance, expansion plans, and focus on sustainability, Gravita presents a compelling mid-cap investment opportunity, though valuation remains a consideration.

Q4: What are the major risks to Gravita India’s business?
A: Commodity price fluctuations, global economic uncertainty, and currency risks are key challenges.

Q5: What is the current PE ratio of Gravita India?
A: The company is trading at a PE ratio of 39.7.

About TOD News Desk:
TOD News Desk is a team of dedicated digital journalists who specialize in breaking down complex news across business, tech, and markets into simple, insightful stories. Our mission is to help readers stay ahead with timely, accurate, and helpful updates that matter.

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