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Graftech, an industry leader in graphite electrode manufacturer in the world, reported steady performance in Q2CY26

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: Graftech, an industry leader in graphite electrode manufacturer in the world, reported steady performance in Q2CY26. Sales volume for Q2CY26 stood at 30.8 KT, up 8% YoY and 10% QoQ. Capacity Utilisation came in higher at 74% in Q2CY26 (vs 65% in Q1CY26). Total operating income for the quarter came in at $127.4 million (down 3% YoY and up 2% QoQ). Adjusted EBITDA for the quarter came in at ~$2 million (vs loss of ~$14 million in Q1CY26). Net loss for the quarter was at ~$41 million.  

View: The company's performance was supported by higher capacity utilization, while net sales realizations remained largely flat sequentially at ~US$ 4,000/tonne. Going forward, the recently announced graphite electrode price increase of US$600-1,200/ton has secured customer commitments at prices averaging more than 15% above previous contract levels. The benefits of higher pricing will be reflected gradually as new contracts are executed, with a more meaningful impact expected in 2027. This development is positive, as it provides domestic graphite electrode manufacturers an opportunity to implement price hikes. However, the ongoing anti-dumping and countervailing duty investigations into Indian graphite electrode exports to the U.S. pose a potential risk. Nonetheless, improving demand prospects, coupled with anticipated price hikes, are likely to support earnings growth for Indian graphite electrode players and is positive development for HEG and Graphite India

Impact: Positive

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