The industrial minerals sector in India is a vital component of the economy, projected to reach approximately $20 billion by FY24. This sector encompasses various minerals essential for construction, manufacturing, and agriculture, contributing significantly to infrastructure development and employment across the country.
With a market capitalization of Rs 14,842 crore, the shares of Gravita India Ltd were trading at Rs 2,149.75 per share, increasing around 1 percent as compared to the previous closing price of Rs 2,130.05 apiece.
Revenue Split:-
In FY23-24, Gravita India’s total segment revenue reached ₹927 crore in Q2FY25, a 2% increase from ₹907 crore in Q2FY24. The majority of revenue, 90% came from the Lead segment, followed by Aluminium at 7.4%, Plastics at 2%, Turnkey Projects at 0.2%, and other sources contributing the remaining 0.01%.
Recent developments:-
Gravita Netherlands, a step-down subsidiary of Gravita, signed an MoU to acquire a 17,000 MTPA waste rubber recycling plant in Romania. This marks Gravita’s first European facility, supporting its vision for diversification and geographic expansion in the global recycling industry.
The Board approved raising up to ₹1,000 crore for capex, M&A, debt reduction, and corporate purposes. The Romanian acquisition involves an estimated investment of ₹40 crore, with Gravita Netherlands contributing ₹32 crore, contingent on successful due diligence, enhancing global expansion efforts.
Capacity expansion:-
The company aims to surpass 500,000 metric tons annual capacity by FY27, supported by ₹600 crore investments in lithium-ion batteries, rubber, and steel recycling. H1 FY25 capex reached ₹30 crores, with an additional ₹100–₹120 crores projected for H2, driving growth across new and existing verticals.
Margin Guidance:-
Margin guidance highlights a sharp EBITDA rise per ton for lead (22% to ₹21,642) and aluminum (57% to ₹18,386), fueled by international-domestic market arbitrage. Sustainable EBITDA per kg for lead is ₹18–₹19, with potential growth depending on favorable market dynamics.
Challenges:-
The company faces challenges from commodity price fluctuations, affecting revenue and profitability. Management acknowledges growth may not be linear, anticipating potential volume fluctuations driven by dynamic market conditions. Strategic adaptability will be key to mitigating these impacts and sustaining long-term performance.
New Projects:-
The company plans to launch a lithium-ion battery recycling pilot and a rubber recycling plant in Mundra by H1 FY26. Expansion focuses on strengthening existing verticals while diversifying into new sectors, including lithium-ion, steel, and paper recycling, to drive sustainable growth and innovation.
Future Outlook:-
Management projects a volume CAGR of 25%, profitability growth over 35%, and ROCE above 25% by FY28. Goals include raising the non-lead business share to 30%+ and utilizing 30%+ renewable energy, reflecting a strong commitment to diversification and sustainable practices.
Company snapshot:-
Gravita India Ltd’s operation is divided into four specialized verticals: lead recycling (flagship), aluminum recycling, plastic recycling, and turnkey projects. The firm also specializes in the recycling of spent batteries, cable scrap/other lead scrap, aluminum scrap, plastic scrap, and more.
Written by:- Abhishek Singh
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