Gravita India Ltd: Riding the Recycling Boom | Q4 & FY25 Highlights, Share Impact, and Future Outlook

About Gravita India Ltd

Gravita India Ltd, established in 1992 and headquartered in Jaipur, Rajasthan, is one of the most prominent global players in the recycling industry. The company specializes in lead recycling, aluminium recycling, plastic granule manufacturing, and e-waste recycling, serving over 38 countries across continents.

With strong emphasis on environmental sustainability, Gravita operates 13+ plants in India and abroad, including Ghana, Togo, Senegal, Tanzania, Sri Lanka, and Mozambique. The company’s backward integration, robust supply chain, and focus on cost-efficiency make it a compelling story in the green industrial revolution.

📊 Q4 FY25 Performance Snapshot

Despite the quarter-on-quarter dip, the year-on-year growth reflects Gravita’s resilience and growing operational capacity. The dip was attributed to lower realizations in commodity prices and seasonal weakness in export demand.

📅 Full-Year FY25 Financial Overview

Gravita posted stellar numbers in FY25, cementing its position as a top performer in the recycling sector:

• Revenue: ₹3,868.8 crore (+22.4% YoY)

• Net Profit: ₹312.4 crore (+30.6% YoY)

• EBITDA: ₹411 crore

• Net Profit Margin: ~8.9%

• Return on Equity (RoE): ~15.1%

• Interest Coverage Ratio: ~10x

• Price-to-Earnings Ratio: ~43x

💼 Business Strengths & Strategy

Gravita’s multi-pronged strategy focuses on:

1. Global Diversification: Export-driven revenue with presence in Africa, South Asia, and Eastern Europe.

2. Backward Integration: Scrap sourcing units improve margins and reduce dependency on third-party inputs.

3. Capex for Capacity: The company has invested heavily in automation, new plants, and capacity expansion across its lead and aluminium divisions.

4. Policy Tailwinds: India’s focus on EVs and battery storage opens long-term demand for lead recycling.

📌 Technical Overview: Gravita India Ltd Share Price Today

CMP (as of July 26, 2025): ₹1870.00
52-Week High: ₹2700.00 | 52-Week Low: ₹1379.65
Market Cap: ₹1380.2.18+ crore
Promoter Holding: ~72%
Free Float: 28%

Trend Watch: The stock has been consolidating above its 200-DMA with rising volume, signaling potential for a breakout. RSI is below overbought territory, suggesting steam remains in the upside.

🔄 Recent Developments & Updates

📌 Expansion Plans

• Gravita is setting up new aluminium recycling units and plans to triple its aluminium capacity over the next two years.

• The company is aggressively expanding its international presence, especially in Africa, where regulatory support for recycling is growing.

🛢️ Commodity Exposure

• Gravita is exposed to global lead and aluminium prices. The company hedges part of this exposure, but volatility in LME prices does impact quarterly performance.

🔋 EV & Battery Push

• The rising global demand for electric vehicles and energy storage systems (ESS) will drive lead battery recycling. Gravita is positioned to benefit from this structural demand shift.

📈 Share Market Impact

• Post-Q4 results, Gravita’s stock corrected mildly due to QoQ profit decline, but analysts remain bullish on FY26 due to volume growth visibility and rising global recycling awareness.

• The stock has shown a trend reversal signal with accumulation visible on the charts.

• Analysts from domestic brokerages estimate Gravita’s FY26 profit to touch ₹400+ crore, valuing the stock at 22–25x forward PE, implying 20–25% upside potential from current levels.

👨‍💼 How Retail Investors Can Benefit

Gravita India presents an attractive long-term investment for the following reasons:

1. ESG-Centric Business: Global trend toward sustainable business benefits Gravita.

2. Strong RoE & EPS Growth: Over 30% YoY PAT growth, increasing efficiency.

3. High Promoter Holding: Indicates confidence and reduced volatility.

4. Global Scale, Local Roots: Leverages India’s recycling ecosystem with export upside.

Retail traders can look to accumulate the stock on dips near ₹880–₹910 levels with a long-term target of ₹1,200–₹1,350. However, those with low-risk appetite should track commodity price trends and global economic cues.

🎯 Final Verdict

Gravita India Ltd is more than just a metals recycling firm — it is a future-forward company aligned with global sustainability, electric vehicle adoption, and waste-to-wealth transformation.

Despite short-term margin pressures, the long-term story remains compelling with room for both capital appreciation and re-rating. The technical indicators also signal renewed interest from smart money.

📉 Stock Market Disclaimer

Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.