Graphite India Faces Margin Pressure Amid Rising Costs and Price Competition

Graphite India Limited, one of the world’s largest graphite electrode manufacturers (98,000 TPA capacity), reported a 13.4% YoY rise in Q2 sales to ₹729 crore, driven by higher volumes and stable realizations. However, EBITDA fell 52.5% to ₹132 crore and net profit dropped 60.8% to ₹76 crore due to intense price competition and elevated raw material costs—particularly petroleum needle coke. Despite margin pressures, the company achieved near-full capacity utilization of 99% (up from 84%) and maintains a strong net cash position of ₹3,921 crore as of September 30, 2025. While global crude steel output declined 1%, India’s production grew 14.9%, offering domestic demand support. The long-term outlook remains positive, with the shift toward decarbonization and Electric Arc Furnace (EAF) steelmaking expected to boost graphite electrode demand. Chairman K.K. Bangur acknowledged near-term headwinds but expressed confidence in favorable industry dynamics ahead. With robust finances and operational efficiency, Graphite India is well-placed to weather current challenges and leverage future growth in green steel production.