Gravita India: 42% revenue, but volumes grew only 4%

Gravita India Limited (NSE: GRAVITA) grew Q1 FY27 revenue 42% to ₹1,475 crore. Volumes rose just 4% to 55,455 tonnes. Profit grew 14% to ₹106.4 crore. What happened EBITDA rose 29% to ₹145 crore, but margin narrowed against last year. Value added products were 63% of revenue. The new copper business, bought through Rashtriya Metal Industries, contributed ₹376 crore at only 50% capacity. Lead brought in ₹954.8 crore. Capex guidance has been raised from ₹1,200 crore to ₹1,700 crore through FY29, with about ₹700 crore for copper. The Mundra lead brand is now listed on the LME. Why it matters A recycler's real constraint is scrap, not customers. Conflict in the Middle East cut 15% to 20% of its usual scrap imports from the Gulf. That is why new domestic waste streams, including old solar panels, matter here. My view Read the volume line, not the revenue line. Revenue grew 42% while volumes grew 4%. The gap came from metal prices and the copper acquisition, not from processing more material. That shows up in profit. Revenue rose 42%, EBITDA 29%, net profit only 14%. Copper is a lower margin metal, so a bigger copper mix lifts sales and dilutes the margin. The plan needs money. Capex of ₹1,700 crore against a market value near ₹12,000 crore is a big commitment, and management targets over 20% return on capital. At about 30 times earnings and five times book, the stock already assumes they deliver. What I am watching Q2 FY27 results, volume growth above 10%, copper utilisation above 50%, and the scrap supply. On the chart, ₹1,914 is the high and ₹1,400 is where I would add. My stance: Hold. Accumulate near ₹1,400. Judge this on tonnes, not on turnover. Disclosure: I do not hold a position in Gravita India Limited at the time of writing. This is not investment advice.