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Graphite India reported mixed performance in Q1FY27

ICICIdirect Research 05 Aug 2026 DISCLAIMER

News: Graphite India reported mixed performance in Q1FY27. On consolidated basis, total operating income came in at ₹842 crore (up 27% YoY, 3% QoQ). EBITDA for the quarter stood at ~₹144 crore, with corresponding EBITDA margins at 17% (vs ~9% in Q4FY26- excluding one-time loss of ₹212 crore from MTM investment in Graftech). PAT for the quarter stood at ₹171 crore (including one-time gain of ₹73 crore MTM investment in Graftech). Net Cash by the end of June'26 stood at ₹3,939 crore. vs ₹3,767 crore (as of March'26).

View: The graphite electrode segment witnessed a weaker operating performance during the quarter, with revenue declining 11% QoQ, primarily due to lower blended realisations (down 4% QoQ) with capacity utilization moderating to 97% in Q1FY27 from 104% reported in Q4FY26. EBIT declined sharply at the graphite electrode space. However, gross margins at standalone level reported a sequential increase by 300 bps to ~56% in Q1FY27, largely driven by higher sales from other segments. Consequently, EBITDA margins improved by 130 bps QoQ in Q1FY27. We continue to maintain a long-term positive view on Graphite Electrode space, supported by the global transition to electric arc furnace-based steelmaking and impending price hikes in this segment. However, at the CMP we don’t foresee any meaningful upside in Graphite India (turning full on valuations) with our top bet in this space as HEG Ltd. 

Impact: Neutral

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