Graphite India Ltd announced on Wednesday (July 8) that it will discontinue and close the operations of its Graphite Specialities and Coating divisions in Germany. According to reports from CNBC TV18 and The Economic Times, the local management decided to shut the operations due to the lasting impact of the Russia-Ukraine war and weak demand. The closure is expected to be completed within six months, subject to discussions with the local Works Council. These divisions are expected to shut down in six months, depending on the discussions with the local Works Council, and had reported a total turnover of ₹105.29 crore in financial year 2025-2026. The company expects to announce its Q1 earnings and dividend after the board meeting scheduled for August 4.
The affected German divisions contributed ₹105.29 crore, or 4%, of Graphite India's total turnover during FY26. As reported by CNBC TV18 and The Economic Times, as of March 31, 2026, these divisions had a negative net worth of ₹322.53 crore, while the company's overall consolidated net worth stood at ₹5,859 crore. The closure reflects the challenging operating environment that has adversely affected the competitiveness of these divisions. The war, which has lasted more than four years now, and weak demand have adversely impacted the competitiveness of Graphite Specialities and Coating divisions in Germany.
For the January-March quarter, Graphite India's net profit fell by nearly half to ₹16 crore from ₹29 crore reported during the same period last year. According to CNBC TV18, the company reported an operating loss of ₹10 crore, compared to a positive EBITDA of ₹62 crore in the year-ago quarter. Revenue for the quarter also declined by 12% year-on-year to ₹720 crore.
The company recommended a dividend of ₹11 per share of face value ₹2 each, representing the highest payout announced by the company since June 2019 when it paid ₹35 per share to shareholders. As reported by CNBC TV18, shares of Graphite India ended at ₹579.3, down by ₹22.75, or 3.77%, on the BSE following the announcement. The stock has declined 13.2% in the past month. According to The Economic Times, Graphite India shares are down around 11% in 2026 so far and have fallen nearly 28% since hitting a 52-week high of ₹802.40 in May this year.
