Gravita India shares gain 4% following Q1 earnings; is it time to buy?

Gravita India share price today: Shares of recycling firm, Gravita India, rose 3.8 per cent on Tuesday, July 29, 2025, hitting an intraday high of ₹1,884.90.

At 02:30 PM, Gravita India shares were trading at ₹1,861.10, up by 2.55 per cent. In comparison, Nifty50 was trading at 24,820.75 level, up by 139 points or 0.57 per cent. The total market capitalisation of the company stood at ₹13,736.49 crore.

The buying interest on the counter came after the company released its earnings for the first quarter of the financial year 2025-2026(Q1FY26).

Gravita India Q1FY26 earnings

The company's net profit for the quarter ended June 30, 2025, stood at ₹93.06 crore, up by 36 per cent from ₹68 crore reported in the corresponding quarter of the previous fiscal year. Consolidated revenue from operations figure stood at ₹1,039.94 crore, as against 907.86 crore reported during the first quarter of the last financial year, marking a double-digit rise of 14.5 per cent.

 

The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at ₹111.70 crore during the quarter under review, up 22 per cent, from ₹91.24 crore reported in the same period of the previous financial year.

"Gravita continues to target 25 per cent+ volume compound annual growth rate (CAGR), 35 per cent+ profitability growth, and 25 per cent+ ROIC, while progressively increasing the share of value-added products to over 50 per cent and non-lead business to over 30 per cent...," said Yogesh Malhotra, whole time director and CEO of the company.

"Value added product contribution grew by 47 per cent and domestic scrap sourcing also increased. Supported by regulatory catalysts, global operations, and an integrated supply chain, Gravita continues to drive forward with disciplined execution, margin-accretive product mix and a long-term focus on sustainable and profitable growth," he added.

Brokerage View- Emkay Global

According to Emkay Global, the next phase of earnings growth for Gravita India is expected to be driven by the commissioning of upcoming projects.

"We see Q1FY26 being a steady quarter, with the next leg of earnings step-up to come from project commissioning, which we see as the next key catalyst. We estimate FY25-28E revenue CAGR logging above 20 per cent, with a return on invested capital at 23 per cent, broadly in line with management guidance. The stock is trading at attractive valuations of 31x/25x FY27/28 earnings, on our estimates," the brokerage firm said. The brokerage firm has maintained a 'Buy' rating on the stock, with a target price of ₹2,100.