💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY2026 was INR 729 Cr, up 13.4% YoY. Segment growth: Graphite and Carbon grew 19.3% YoY to INR 661 Cr; Steel grew 10.3% YoY to INR 64 Cr; Others declined 84.4% YoY to INR 5 Cr.

Geographic Revenue Split

Aggregate export revenue for FY2024-25 was INR 791 Cr, representing 32.7% of total revenue (INR 2,420 Cr), down from INR 989 Cr in the previous year.

Profitability Margins

Q2 FY2026 Net Profit was INR 76 Cr. H1 FY2024 PAT/OI was 50.1%, significantly higher than FY2023's 7.9% due to investment income. FY2024-25 PBT was INR 569 Cr, up from INR 125 Cr YoY, driven by INR 409 Cr in investment income.

EBITDA Margin

Q2 FY2026 EBITDA was INR 132 Cr. FY2023 OPBDIT/OI margin was 9.9%, down from 14.9% in FY2022 due to lower demand and higher production costs.

Capital Expenditure

Not disclosed in available documents, but the company maintains a robust net cash balance of INR 3,921 Cr as of September 2025 for potential organic or inorganic expansion.

Credit Rating & Borrowing

Ratings reaffirmed at [ICRA]AA+(Stable)/[ICRA]A1+ in January 2025. Borrowing costs are minimal as the company is net cash positive with a finance cost of only INR 3 Cr in Q2 FY2026.

⚙️ Operational Drivers

Raw Materials

Needle Coke (CNC), Raw Petroleum Coke, Calcined Petroleum Coke, and Coal Tar Pitch. Needle coke is the principal raw material and a crude oil derivative.

Import Sources

Not specifically disclosed, but the company has balanced exposure to exports and imports, facing foreign currency volatility.

Capacity Expansion

Current total capacity is ~80,000 MTPA. The 18,000 MTPA German plant has been shut since FY2023. No specific planned expansion timeline disclosed.

Raw Material Costs

Raw material costs are highly sensitive to crude oil prices. Needle coke supply disruptions are a material risk. FY2024-25 performance was dismal due to lower realizations despite lower costs.

Manufacturing Efficiency

Capacity utilization increased to 99% in Q2 FY2026, compared to 84% in Q2 FY2025. Production of electrodes was 85,225 MT in FY2024-25, up 5.7% YoY.

Logistics & Distribution

Geopolitical conflicts in the Middle East and the Russia-Ukraine war have disrupted established trade routes, impacting distribution costs.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Focus on vertical integration, penetration of new markets, and inorganic growth. Diversifying into advanced chemistry battery technologies (Godi India) and graphene sheets (General Graphene) to capture decarbonization trends.

Products & Services

Ultra-High Power (UHP) Graphite Electrodes, Calcined Petroleum Coke, Carbon Paste, Impervious Graphite Equipment (IGE), GRP Pipes, High-speed steel, Alloy steel, and Carbon-Carbon Brake Discs (CCBD).

Brand Portfolio

Graphite India Limited (GIL).

New Products/Services

Graphene-based heat transfer additives (partnership with Kivoro) and EV/energy storage battery cells (via Godi India).

Market Expansion

Targeting global move towards decarbonization and adoption of Electric Arc Furnace (EAF) steelmaking, which requires more graphite electrodes.

Market Share & Ranking

One of the leading producers of graphite electrodes globally by capacity.

Strategic Alliances

60.25% stake in General Graphene Corporation (USA), 45.76% stake in Godi India, and exclusive partnership with Kivoro for graphene additives in India.

🌍 External Factors

Industry Trends

Global shift toward decarbonization is driving adoption of Electric Arc Furnace (EAF) steelmaking, which is the primary demand driver for graphite electrodes.

Competitive Landscape

Intense price competition from global competitors in both domestic and international markets.

Competitive Moat

60 years of technical expertise, focus on high-margin UHP electrodes, and a low-cost production base in India provide a durable competitive advantage.

Macro Economic Sensitivity

Highly sensitive to global steel production (declined 1.0% YoY in Q2 FY2026) and India's GDP growth (projected at 6.5% for FY2024-25).

Consumer Behavior

Steel manufacturers are shifting toward EAF processes to meet decarbonization goals, increasing long-term demand for electrodes.

Geopolitical Risks

Russia-Ukraine conflict and Middle East instability disrupt trade routes and influence global commodity prices; US tariffs impact export competitiveness.

⚖️ Regulatory & Governance

Industry Regulations

Subject to US tariffs, protectionist trade policies, and evolving regulatory frameworks for raw material pricing and supply chains.

Taxation Policy Impact

Not specifically disclosed for the consolidated entity; Carbon Finance subsidiary had a tax provision of INR 10.57 Cr on PBT of INR 60.74 Cr (~17.4%).

Legal Contingencies

No significant and/or material orders passed by regulators, courts, or tribunals impacting the going concern status or future operations.

⚠️ Risk Analysis

Key Uncertainties

Global manufacturing activity uncertainty presents ongoing risks to electrode demand and profitability; needle coke availability is a critical risk.

Geographic Concentration Risk

Exports account for 32.7% of revenue (INR 791 Cr), providing geographic diversification that mitigates regional downturns.

Third Party Dependencies

High dependency on suppliers of needle coke, petroleum coke, and coal tar pitch.

Technology Obsolescence Risk

Mitigated by strategic investments in graphene technology (General Graphene) and EV battery chemistry (Godi India).

Credit & Counterparty Risk

Financial distress of major steel producers could adversely affect receivables and financial stability.