Gravita Q1: consolidated PAT +14% to ₹106 Cr as copper lifts revenue 42%, margins slip

Gravita India reported consolidated Q1 FY27 (quarter ended June 30, 2026) revenue of ₹1,475.06 Cr, up 41.8% YoY from ₹1,039.94 Cr, but net profit rose only 14.3% to ₹106.37 Cr (₹93.06 Cr year-ago) — profit growth ran at barely a third of the topline pace. The gap is the story: net margin compressed to 7.2% from 9.0% a year ago and operating margin fell to ~7.4% from ~9.7%, so the quarter is one of scale-up over profitability. On the standalone entity the picture is flat — revenue ₹860.13 Cr (+1.1% YoY) and PAT ₹68.05 Cr (essentially unchanged from ₹67.95 Cr) — meaning the entire consolidated growth sits in subsidiaries and the newly consolidated copper business, not the parent; readers comparing the two numbers should not treat either as wrong.

The revenue jump is substantially inorganic. A new Copper segment contributed ₹376.05 Cr (nil a year ago), flowing from the Rashtriya Metal Industries (RMIL) acquisition consolidated from March 2026 — management itself flags in note 7 that YoY figures are not comparable to that extent (a further 0.62% stake was bought this quarter for ₹3.48 Cr, taking holding to 99.57%). The core Lead segment, still ~65% of revenue at ₹954.75 Cr, grew just 2.9% YoY and its segment result actually fell to ₹100.51 Cr from ₹115.60 Cr — the margin squeeze is concentrated here, compounded by thin ~4% copper-segment margins diluting the mix. Finance costs nearly doubled to ₹11.48 Cr (₹6.05 Cr year-ago) on acquisition and capex funding, and a 58% rise in other income to ₹47.54 Cr cushioned the bottom line.

The stock went into the print at ₹1,789.5, up 7.1% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.

Versus the Street the print is a bottom-line miss despite a topline beat: consensus (Univest preview) looked for ~₹1,191 Cr revenue and ~₹127 Cr PAT — revenue came in well ahead but PAT landed ~17% short at ₹106 Cr as margins gave way. Against management's own framing, the quarter validates the diversification thesis from the Q4 concall — copper is now a live, scaling vertical (₹376 Cr) and the Mundra plant secured LME brand accreditation in June, with Jaipur capacity added — but the guided 20-25% three-year volume CAGR and the copper-margin uplift (₹45→₹60/kg via backward integration) are multi-year checkpoints that a single quarter of dilutive copper margin does not yet confirm. Alongside results the Board approved closing loss-adjacent subsidiary Gravita Metal Inc. (₹92 Cr / 2.65% of turnover) from August 1, folding that line into the more efficient Jaipur facility.