According to reports from The Hindu BusinessLine, Gravita has acquired Rashtriya Metals Industries Limited (RMIL), one of India's oldest copper manufacturers, for ₹800 crore. RMIL recorded a turnover of ₹910 crore in FY25, marking Gravita's entry into the copper recycling business. The acquisition will increase Gravita's total copper capacity from 334 ktpa as of FY25-end to 340 ktpa. An additional 45 ktpa capacity will be commissioned this quarter, with both projects expected to be completely operational by Q2FY27. As per latest reports, this strategic move positions Gravita for growth in the copper recycling segment, with the company's diversification strategy being amplified by key developments in the recycling sector.
As reported by The Hindu BusinessLine, Gravita has expanded its lead recycling capacity by 80,300 tpa to 1,45,100 tpa using internal accruals of ₹49 crore. The company has also launched a 6,000-tpa lithium-ion battery recycling plant at Mundra at an investment of about ₹14 crore. These expansions are expected to bolster recycling capabilities and cater to rising demand for sustainable lead products, while the Mundra plant will benefit from focus on electric vehicles and clean energy. According to recent reports, these expansions are expected to drive volume growth from the latter half of FY26 onwards, with management guiding for 8-9% volume growth in Q4FY26 and long-term revenue and PAT CAGRs of approximately 18% and 26% respectively. The battery recycling venture aligns with India's rapidly growing EV market, which surpassed 5.6 million EVs on its roads by 2024, with the Indian EV battery recycling market projected to surge from USD 12.9 million in 2023 to USD 463.0 million by 2030.
According to latest financial data, Gravita reported robust performance for Q3 FY26 with consolidated net profit jumping 25.33% year-on-year to ₹97.67 crore, while revenue increased by 2.07% to ₹1,017.07 crore. EBITDA saw a robust 13.48% YoY rise to ₹116.06 crore, pushing EBITDA margins to 11.41% from 10.26% in the prior year. The nine-month performance also showcased consistent progress, with revenue, EBITDA, and PAT growing by 9%, 15%, and 32% respectively. This performance is underpinned by a focus on value-added products and increased domestic scrap sourcing, reflecting gains from its integrated operational model. The company expects rising supply of scrap resources, favourable policies, implementation of Battery Waste Management Rules (BMWR), EPR, and Reverse Charge Mechanism (RCM) to boost output. The company aims to achieve 50 per cent of its contributions from value-added products (VAPs) by FY29.
According to the report, Gravita expects rising supply of scrap resources, favourable policies, implementation of Battery Waste Management Rules (BMWR), EPR, and Reverse Charge Mechanism (RCM) to boost output. The company aims to achieve 50 per cent of its contributions from value-added products (VAPs) by FY29. At the current market price, Gravita trades at a 33x/27x multiple on FY27E/FY28E EPS. However, as per latest reports, the company is trading at a significant valuation premium with P/E ratio around 30.85x to 39.11x on a trailing twelve months basis, considerably higher than the industry average P/E of approximately 16.57x. Competitors like Hindustan Zinc Ltd. and Vedanta Ltd. trade at P/E ratios of 21.8x and 17.1x respectively, highlighting Gravita's rich valuation. This elevated P/E suggests that any miss in projected earnings or operational hiccups in its complex diversification could lead to significant downside pressure. As of late February 2026, Gravita's P/E ratio stands between 31.35 and 39.36 times its trailing twelve-month earnings, considerably higher than established metal giants like Hindalco Industries (P/E of approximately 11-13) and Vedanta Limited (P/E of around 16-19).
As reported by The Hindu BusinessLine, Mirae Asset Sharekhan maintains a Buy rating with a price target of ₹2,000, representing a 28x multiple on FY28E EPS. The brokerage cites the company's strategic acquisitions, capacity expansion, and favorable market conditions as key drivers for the positive outlook. Despite these positive factors, the analyst community faces challenges with historical data indicating vulnerability to market volatility, with Gravita's stock seeing a sharp decline of over 21% in February 2025. Key risks identified include regulatory tailwinds on scrap procurement, highly volatile global aluminium prices that could affect procurement and processing volumes, and increased competition in the lithium-ion battery recycling segment. The integration of RMIL, while strategically sound for copper capacity, introduces integration risks and the challenge of aligning operational efficiencies with Gravita's existing business. The nascent EV battery recycling sector, characterized by high informality and emerging competition, potentially leads to margin compression as formal recycling infrastructure develops. Despite these considerations, a consensus of nine analysts indicates a 'Strong Buy' rating with an average 12-month price target of approximately ₹2,145.89, suggesting potential upside of over 30% from current levels.
