Gravita Q2: consolidated PAT ₹102 Cr trails Street as core Lead profit falls 20% YoY

Gravita India's consolidated PAT came in at ₹102.03 Cr for Q2 FY27, up 6.3% YoY and down 4.1% QoQ, missing the ₹105–115 Cr range flagged in our pre-result preview even as revenue of ₹1,427.35 Cr (+37.8% YoY) beat the ~₹1,400 Cr expectation and EPS of ₹14.01 landed inside the ₹14–15 guided band. The headline revenue growth is not organic: the entire increase and more is explained by the new Copper segment (the Rashtriya Metal Industries business, consolidated with control from 12 March 2026), which billed ₹419.83 Cr this quarter against near-nil a year ago. Stripping Copper out, revenue was actually down roughly 2.7% YoY, and the core Lead business — still 59% of revenue — saw both revenue (₹835.07 Cr, -9.9% YoY) and segment profit (₹89.00 Cr, -20.3% YoY) contract, so the adjusted picture is a decline of roughly 14% in underlying (ex-Copper) segment profit against the +6.3% reported PAT growth. Consolidated OPM was 9.39%, down from 9.85% a year ago (margin compression is the primary YoY read) but a clear sequential recovery from the 7.44% logged in Q1 FY27 — consistent with the 'margin recovery test' framing of our preview, which had flagged a 224 bps EBITDA slide in Q1. NPM similarly eased to 7.06% from 9.04% YoY. Part of the sequential recovery is a Copper story: that segment's margin (segment result/revenue) improved to about 6.9% this quarter from roughly 4.2% in Q1, moving in the direction of management's guided ramp toward ₹60,000/ton copper margins by FY27-end. Aluminium was the organic bright spot, with segment profit up 79.5% YoY to ₹11.74 Cr; other income fell to ₹18.00 Cr from ₹26.32 Cr YoY, a modest additional drag on total income. Against the 25-30% PAT CAGR management guided 'going forward' on the Q1 FY27 call, this quarter's 6.3% reported PAT growth — and the roughly 14% YoY decline in segment profit once the new Copper business is excluded — falls well short, reading as a miss against the company's own trajectory rather than a beat. No standalone press release or management commentary specific to this quarter was available in our records to corroborate or contest this read; management gives no quarter-specific guidance on record beyond the FY27 call. The board used the print to declare an interim dividend of ₹7.70 per share (385% of face value, record date 3 November 2026), and the quarter's corporate activity was dominated by international expansion — new wholly-owned subsidiaries incorporated in the USA and Mozambique, and a ₹94.42 Cr investment into RMIL's rights issue — consistent with the FY29 capacity target of 800k+ tons (from 497k tons) and the ₹1,680 Cr multi-year capex plan laid out last quarter, though none of this moved this quarter's P&L materially. Standalone PAT of ₹47.34 Cr versus ₹102.03 Cr consolidated underscores how much of group profit now sits in subsidiaries, primarily the newly consolidated Copper/RMIL business.