Graphite India delivered impressive June quarter results with consolidated net profit surging 28.36% to ₹172 crore compared to ₹134 crore in the corresponding quarter last year. According to the latest financial results approved by the Board of Directors on August 4, 2026, revenue from operations grew 26.62% to ₹842 crore from ₹665 crore, while EBITDA margins expanded significantly to 17.10% from 6.47% in the year-ago period. The company's standalone net profit also climbed to ₹157 crore from ₹145 crore, with earnings per share (basic) standing at ₹8.82 compared to ₹6.87 in Q1FY26. The substantial improvement in profitability metrics reflects effective cost management, favorable product mix, and the reversal of exceptional items related to labor code assessments from the previous year.
The Graphite and Carbon segment remained the primary revenue contributor, generating ₹687 crore in consolidated sales, up from ₹595 crore in Q1FY26. The Steel segment showed exceptional momentum with revenue doubling to ₹111 crore from ₹51 crore year-on-year. Segment results for Graphite and Carbon improved significantly to ₹56 crore from ₹21 crore, while the Steel segment's result jumped to ₹43 crore from ₹5 crore. The disproportionate rise in EBITDA relative to revenue growth indicates effective operating leverage, with fixed costs spread over higher volumes or easing input cost pressures. Additionally, inventory write-downs under Net Realizable Value (NRV) amounted to ₹24 crore as of June 30, 2026, down from ₹47 crore at the end of FY26, suggesting stabilizing demand or better inventory management practices.
Following the earnings announcement, shares of Graphite India were trading 3.2% higher at ₹679 on the National Stock Exchange during the afternoon session. The positive market reaction reflects investor confidence in the company's operational turnaround and improved financial performance compared to recent quarters. As of August 4, 2026, Graphite India shares closed at ₹710.05, touching a day high of ₹718 and low of ₹657.1. The stock has demonstrated strong momentum with a 24.8% gain in the last 1 year and 303.4% returns over the last 3 years, significantly outperforming the broader market. The company's market capitalization stands at ₹12,854.74 crore, with trading volume of 75.27 lakh shares indicating active investor interest.
The company has been navigating regulatory developments overseas, with Graphite India informing exchanges that it had received communication from the US Department of Commerce regarding a preliminary affirmative determination in its countervailing duty investigation concerning imports of large diameter graphite electrodes from India. As reported by CNBC TV18, the company clarified that no violations or contraventions had been committed or alleged in connection with the investigation, though the financial impact remains uncertain as the process continues. On July 29, 2026, the US Department of Commerce preliminarily imposed a 3.68% countervailing duty on Graphite India's exports of large-diameter graphite electrodes, which poses an operational hurdle for high-margin exports. In a notable post-balance sheet event, Graphite International B.V., a wholly-owned subsidiary, approved the closure of its Graphite Specialities and Coating businesses in Germany on July 8, 2026.
The strong quarterly performance marks a significant turnaround for the graphite electrode manufacturer, which had faced challenging conditions in recent periods. According to CNBC TV18, in the March quarter, Graphite India had reported a sharp decline in earnings with net profit nearly halving and the company slipping into an operating loss as weaker demand weighed on performance. The current results demonstrate the company's ability to recover from these subdued trends and establish a stronger operational foundation, with the domestic market continuing to absorb supply effectively despite global regulatory challenges.
Graphite India is among India's leading manufacturers of graphite electrodes, a key input used in electric arc furnaces for steel production. According to CNBC TV18, the company also manufactures carbon and graphite speciality products and exports to several international markets, making global demand trends and trade policies important drivers of its performance. The company's statutory auditors, S.R. Batliboi & Co. LLP, issued an unmodified limited review conclusion on both the standalone and consolidated financial statements, providing confidence in the accuracy of the reported results. Mutual funds have increased their holdings from 8.61% to 8.80% in the June 2026 quarter, while retail investors increased their holdings from 17.48% to 18.37%, indicating growing institutional and retail confidence in the company's prospects.
