Thank you, moderator. On behalf of Antique Stock Broking, I would like to welcome all the participants on the 3Q FY '26 earnings call of Gravita India.

We have with us leadership team represented by Mr. Yogesh Malhotra, Whole-Time Director and CEO; Mr.

Sunil Kansal, Whole-Time Director and CFO; Mr. Naveen Sharma, Executive Director; and Mr.

[Anand?] , Investor Relations on the call.

Without any delay, I would like to hand over the call to Mr. Malhotra for opening remarks, post which we'll open the floor for Q&A.

Thank you and over to Yogesh ji.

Thank you, Mr. Manish.

Good afternoon, everyone, and welcome to our Q3 and 9 months FY '26 earnings call. I hope you have had an opportunity to review the earnings presentation and financial results uploaded on the stock exchanges.

I'm pleased to share that Gravita delivered a consistent performance in Q3 and 9 months FY '26, reflecting steady progress across operational and financial parameters in all major business verticals. In 9 months FY '26, the company delivered year-on-year growth of 9%, 15%, and 32% in revenue, EBITDA, and PAT.

Before delving into the results, I would like to take a moment to highlight our ongoing expansion plans and strategic updates. There have been some delays in our capacity expansion plans, although broadly we are progressing as with installed capacity now at about 3.40 lakh metric ton per annum.

We expect to cover it up in the upcoming quarters to meet our medium-term target of scaling this up to over 7 lakh metric ton per annum by FY '28, in line with our focus on building a larger and more diversified recycling platform. On the investment side, we have earmarked a total capex of ₹1,225 crore through FY '28.

Of this, around ₹850 crore is being deployed towards strengthening and expanding our existing businesses, while the balance will support entry into new recycling verticals like lithium-ion batteries, paper, and steel. During the first 9 months of 2026, we have already incurred capex of about ₹125 crores.

At Mundra, lead capacity expansion of 80,000 metric ton per annum is targeted for completion by Q4 FY '26. At Jaipur, lead capacity expansion up to 45,000 metric ton per annum is target for completion by Q4 FY '26.

The Mundra rubber project is slated for commissioning in Q1 FY '27, with revenues expected to begin flowing from Q2 FY '27, aided by stabilization of the Romania operations as well. Gravita Netherlands BV, our step-down subsidiary, has approved an additional investment in Gravita Europe SRL through the acquisition of 3.5 lakh shares, representing a 15% stake.

Post this transaction, GNBV's shareholding in Gravita Europe SRL will increase from 80% to 95%, further strengthening our presence in the European market. On the operational front, the regulatory environment remains favorable for organized recyclers.

Stronger enforcement of the BWMR and EPR frameworks has enhanced accountability across producers, recyclers, and collection agencies, leading to more efficient collection channels, reduced leakages to the unorganized sector, and improved traceability. These measures have materially increased domestic scrap availability, driving higher local sourcing.

In terms of volumes, Q3 FY '26 saw a modest sequential improvement overall. The lead segment reported steady growth on both YoY and QoQ basis.

The plastic segment recorded a strong rebound, with volumes rising 55% QoQ to 3,160 metric ton. In contrast, aluminum volumes declined on both a year-on-year basis and quarter-on-quarter basis.

The decline in aluminum volumes during the quarter was primarily driven by higher metal prices in the market. In such periods, scrap aggregators typically withhold material in anticipation of further price increases, which temporarily tightens scrap availability.

This led to lower procurement and, consequently, reduced processing volumes during the quarter. As prices stabilize and scrap flow normalizes, procurement is expected to improve, supporting a recovery in aluminum volumes in the coming quarters.

Lead, aluminum, and plastic EBITDA per ton stood at 23,000 rupees, ₹14,215, and ₹10,462 respectively. In Q3 FY 2025-'26, revenue remained flat on both year-on-year and quarter-on-quarter basis at ₹1,017 crore.

Adjusted EBITDA stood at ₹116 crores, up 13% year-on-year and 4% quarter-on-quarter, with margins remaining strong at 11.41% plus, supported by operating efficiencies and mix improvements. PAT increased by 32% year-on-year to ₹97.67 crores, with PAT margins remaining healthy at 9.60%.

Gravita is progressing steadily towards Vision 2029, backed by a clear roadmap to scale its core business while expanding into new recycling segments such as lithium-ion, rubber, steel, and paper. The company is targeting strong growth metrics, including a volume CAGR of over 25%, profitability growth above 35%, and ROIC exceeding 25%, alongside increasing the non-lead segments' contribution to 30% of revenue, raising renewable energy usage to 30%, and reducing energy intensity by over 10%.

With more than three decades of experience, 13 environmentally responsible facilities, and a presence in over 70 countries, Gravita is well placed for sustainable, long-term value creation, supported by disciplined capex, capacity expansion, operational efficiency, and strong governance. That's all from my end.

I would now request to open the floor for questions and answers. Thank you and over to you, moderator.

Thanks for the opportunity. My first question is on capacity expansion projects.

Like you highlighted, there was a delay, what were the bottlenecks in the last 2 to 3 months which led to this delay?

Sir, we already have the installed capacity there, but there is some delays from the government authorities in giving the license to operate. Because of various reasons in Gujarat, because of this Vibrant Gujarat into play, some of the government officials are not regularly attending the offices right now.

We are expecting this to probably happen in either month-end of January or maximum in Feb itself. In this quarter, we are expecting both the Phagi as well as Mundra plant to get the license to operate.

Okay. Is there a change in government's stance on recycling, and hence there is no sense of urgency around the approvals?

Because even for other regulations like reverse charge mechanism, we have been waiting for quite some time, but government support hasn't been coming so far. Then there is a delay in approval.

Is there a trend or this is just like one-off kind of a delay that we are looking at?

It's a one-off-a-kind delay, because these consent to operate are given by state governments and not the central government. It's not that they have told us not because we already have CTE, which is the consent to establish.

That we've already got. Generally, after that, they just inspect your site to see whether it is in line with the approval they have given.

Once they are sure, they will give you the consent to operate. It's merely a formality, but because of this Vibrant Gujarat theme, they are not regularly attending the office.

That is why the delay is there. We are very confident that it will happen now in this quarter itself.

Got it. My second question is that our margins have been holding up pretty well and above our guidance consistently, but still our guidance remains where it is, like ₹19 to ₹20 per kg, but we have been reporting ₹23 per kg.

At what point do we leave this restraint and holding the guidance, because our peer group is already talking about margin upgrades for quite some time?

Sir, I think the margin would remain at around ₹19 to ₹20. As we mentioned earlier that we sacrifice some revenues to ensure that these margins are intact.

Because there are arbitrage opportunities, we shift some material from our African plants into India taking advantage of those benefits. Fortunately for us, for the last whole year, that has been the case.

There has been some arbitrage opportunities which we've been able to benefit from. Consistently getting more than 19% to 20% ₹20 margin, we'll have to probably wait for maybe 6 more months to see whether we can sustain these kind of margins or not.

Got it. Lastly, a housekeeping question: what was our domestic versus overseas mix in Q3?

Sir, domestic because, as we mentioned, that there were some arbitrage opportunities, and also we were having a lot of stock in place because the capacity expansion is taking place, we wanted to stock up all the raw materials. We've reduced some local purchases.

Overall in the quarter, how much was the Quarter, it was 25% from domestic and 75% was imported. Overall, we should be back to the normal one, which is around 45% from domestic and 55% from the imported one.

Once we have that capacity live.

Sure. Okay.

Thank you so much.

Sir, thanks for the patience, sir. My question is that then, as per your opening remarks, whatever you mentioned, then means that top-line growth is not expected to pick up before FY '28.

Is my understanding correct? See, metal is on a boil currently, and people are expecting it is also moving up.

You are telling that procurement of the raw material is a challenge because suppliers are holding it. Then your capacity expansion also get delayed.

Would you interpret these two issues?

Yeah. In terms of capacity expansion, as I mentioned, that we are very confident of getting the expansion in line in the next few quarters.

The Indian expansion is going to be there in Q4 itself. As far as the vendors holding up scrap is concerned, generally it's a short-term thing, because their holding capacity is also not that huge.

Generally when there is an increase in prices, they generally tend to hold some of their inventories. The moment the prices stabilizes, they will start releasing those inventories.

I don't think that it is going to be and even if the prices increase from here onwards, because their capacity is limited, they will not be able to hold more than that. It will start coming.

It has already started coming to us, and we believe that we will be back to the normal numbers in the coming quarters.

Okay. See, another thing.

Then if the raw material prices are elevated, then your margins will get hit, or you are taking a cost-plus approach so that you don't think that will be an issue?

No, no, not at all, because there we buy scrap at a discount over the LME prices. When the prices increase, also the absolute price of the scrap increases, but the percentage of the scrap remains the same.

The margin between the selling price and the buying price remains intact, more or less.

Okay. Thank you.

Thanks a lot.

Yeah. Good afternoon, everyone, and thanks for the opportunity.

A couple of questions from my side. One is more of a macro question on the adoption of EPR and BWMR, particularly what is the progress of the trading of aluminum alloy on MCX.

If you can briefly highlight this, because these are some of the tailwinds that will drive our performance. That is my first question.

Okay. On the part of EPR and Battery Waste Management Rules, this is already been reviewed, and yesterday, NITI Aayog has recommended few recommendations strengthening the EPR process, strengthening the portal and linking of all data from GSTN portal, and there are further collection rules are also being framed.

We are hopeful that by April 1st, 2026, these rules will be amended or modified and SOP will be created for collection side in Battery Waste Management Rules, and also audit rules are also being formed for EPR. When it comes to MCX on aluminum, this is also under consideration with MCX, and I'm hopeful in FY '26 it should come by Q1 of FY '26-'27.

Sir, just wanted to understand the constraints behind that, because we have been expecting this for over a year. There has been a very limited progress around particularly the trading of aluminum on MCX.

Just wanted to understand where the bottleneck lies. Or is it something regulatory, or something that is being discussed with the government, or some data that they're looking at?

Just wanted to understand the key constraint.

Yeah. Constraints are over.

The key constraint was that it has to get passed through under Security Contract Regulation Act. That took almost one and a half year, and it came from Ministry of Finance and Ministry of Mines and BIS.

Now the second part was creating a contract. That also has been formed by MCX.

Now it's a call of MCX, their business call, because they will be the one who will be the beneficiary as a platform, exchange platform. There was certain gap because there was change of their higher authority, CEO change was there somewhere in November, and it has already discussed in their meetings.

Frankly speaking, the call has to be taken by MCX. Regulation is over, and that's their business call.

They also created specification committee also, but anytime they should do it.

Sir. The second question is more of a bookkeeping question, if you can mention the revenue and profit from overseas, percentage terms.

Sir, it's not right to understand our profitability from overseas, and you cannot differentiate the overall profitability, as we mentioned earlier also, that there were areas when we import those materials that we process overseas into India for further processing because Indian market is better. The profitability would keep on changing, but just for your knowledge, around 72% of the revenue came from India and 28% of the revenue came from overseas.

The profits also, 76% was from India and 24% was from overseas.

Great, sir. Thank you so much, and all the best.

Thank you.

Good afternoon to the team. As Gravita scales its recycling operations across lead, aluminum, and plastics, how do you see capacity utilization and product mix evolving over the next one to two quarters?

Specifically, what technical levers, such as process automation, backward integration, or efficient improvements, are you using to enhance the process and maintain global competitiveness while maintaining ESG commitment? That's my first question.

I'll ask the second question after this. Thank you.

Yeah. If you look at our lead capacity utilization, it's in India more than 90% capacity utilization is there.

Incidentally, we also have our own project division, which works with the operational division to keep on reinventing things on how processing is being done, how to bring in automation, how to improve technology. That is why in terms of our operational cost and yield, we are better than the competitors across the globe.

Not only do we use our own plant and machinery, we also supply turnkey solutions to people doing lead and aluminum recycling across the globe. That gives us an edge as compared to all our competitors.

What was your other question, sir?

My other question is to Mr. Sunil.

With margins supported by steady cash flow, how are you planning to sustain profitability while funding expansion into new recycling verticals? From a technical standpoint, what is your framework for managing working capital cycles, hedging raw material price volatility, and optimizing capital allocation to ensure ROE stays steady over the medium term?

Thank you.

Sir, I can answer your question, because this has been the policy of the group that whatever new verticals we would go into or whatever brownfield expansions also we do should meet one of the criteria, and that is the return on investment of around 25% from all our new ventures. That is intact, and that is why whatever products we choose, whether it is currently lead, aluminum, plastic, or going forward we are planning to go into steel, paper, lithium-ion, we would ensure that it meets this criteria of 25% ROCE.

That remains the core of the business strategy that we have. Overall on the funding side, we plan to spend approximately 1,200 crores in next 2 to 3 years for capex, and approximately 1,500 crores will be needed for working capital.

We have something in liquidity which we generated through QIP last year, and remaining is to be funded from the internal accruals, which we generate as cash flow in next 2 to 3 years. Additionally, we may take some debt to a limited extent, where we plan to raise some debt within some limits.

We are fully confident of taking this growth fully funded from internal accruals and liquidity we have.

Thank you. I think the last part was very important.

Thank you for the detailed answers and all the best.

Hello. Am I audible?

Yeah. Hi.

I just want to know the volume generated this quarter and in lead, aluminum, and plastic, as you mentioned there is a decline in volume in aluminum. Could you just clear us on the numbers?

Total quantity that we've sold in lead is around 46,269 tons. We sold around 3,500 tons of aluminum, 3,550 tons, and 3,160 tons of plastic scrap.

Total overall numbers are 52,982 tons. Okay.

Have we recognized any revenue from rubber or lithium-ion segment, your No,

lithium-ion is not functional right now. It will probably come in this quarter.

The consent to operate for lithium-ion is also expected to come in the next couple of days, probably. It's in process.

Whereas rubber, definitely, currently we are just using it for in-house consumption only. There has been no revenue coming from rubber.

It's very insignificant revenue which is coming from our Romania facility, which is just started in this quarter itself, which is almost 3 and 1/2 crore in this quarter itself. Going forward, we have plans to scale up this Romania facility also in rubber.

Got it. You previously mentioned that you are targeting to achieve a 25% CAGR in volume terms.

That should be reflected in your top line as well, right? As 90% approx 90% of your revenue comes from the lead segment.

Here I can see in the last three quarters you have achieved around ₹3,000-odd crores. What are you expecting to close in Q4?

Sir, there are two things here. Although when we talk about volumes, we generally talk about the production volumes, because, as I mentioned earlier, that some of the material that we produce in our Africa plants, when there is arbitrage opportunities, we move that material into India and process it again here.

It gets eliminated when we talk about the overall revenue growth in terms of volume. If you consider that, then we've grown at around 8% to 9% overall if you don't eliminate that part.

In Q4, as I mentioned that we are expecting capacity expansion to take place. Because of that, we would see some volume increase coming in the Q4.

Thank you for the opportunity. My first question is that we are adding up around 125 kt of lead in quarter 4 FY '26.

By when you think we can optimize fully? Does it take a quarter or two, or we can ramp up fully?

This is my first question.

In H1 next year, we'll be able to ramp up it Some of the volumes will start coming from Q4 itself, but major incremental volume will start coming from Q1 and Q2 of next financial year.

By Q2, we will be able to fully ramp up.

Absolutely, sir.

Sir. Sir, second question is on capex.

We did around 125 crore capex in first 9 months, but the trend what we are seeing is declining from around 650 million in quarter 1, 400 million in quarter 2, and now 200 million in quarter 3. What is the specific reason for the declining trend?

Secondly, you had target of around 200 crore capex for the entire FY '26, how much you think that it is achievable? Adding to that, by FY '28, as you mentioned, the total capex will be higher of ₹1,200 crore.

With this declining trend, how you see that you'll be able to catch up and achieve this target?

Sir, I couldn't hear your first question properly, but to answer your second question, we've already done the capex of around ₹125 crores till now, and we are expecting it to cross ₹200 crores by Q4. We will meet the targets that we set for FY '26 for capacity expansion.

The

second thing The second thing is that you should also look at the total capacity rather than the capex done, because in some of the cases, we've done capacity expansion in brownfield projects rather than greenfield projects, the overall capex required to do that has been lower than what we had envisaged earlier. That is probably the reason why the capex is lower, but the capacities would be in line with what we've told that would happen by FY

'28. Any specific reason that bulk of the capex is coming in quarter 4?

Sir, some of this capex was supposed to come in Q2 also, but as I mentioned, there have been some delay from our side in terms of setting the plant up, and then there have been some delays for getting those approvals also. Otherwise, some of this capex was expected in the Q2 and Q3 also, but there have been some delays.

We admit that.

Okay. Thank you, sir.

All the best.

Yeah. Thank you so much for the opportunity, and congratulations, sir, for better than expected margins, actually.

Now, my first question was related to actually our capex. You highlighted we incurred around ₹125 crores in capex, just wanted to clarify one thing: the 30,000 tons additional capacity in lead, which you highlighted in Q2, has it been fully commissioned in this quarter?

Another one, 45,000 tons of lead which was going to come up in Q4, is it on track? Just clarify on my first question is this on the capex front.

Then I'll highlight my second question.

To answer your question, the one plant in Jaipur, we're expecting a capacity increase of 45,000 tons by Q4 of this year. In Mundra, we are expecting a 80,000 ton capacity in Q4.

Further increase of 80,000.

In all, in this Q3 the another 30,000 tons has already been commissioned? In the phase one lead expansion?

Yes, sir. For Q4, 125,000 tons of lead capacity expansion would be expected.

Not in Q3, Q4.

Okay. Basically by Q4, 1 120 125,000 tons will be commissioned by Q4 FY '26.

That you're highlighting, right?

Yes. Yes, yes.

Okay. In our plastics and aluminum, there is also some sort of capacity expansion also.

Is it safe to assume that the capacity expansion will be done in these two segments also, or only lead you are planning to expand?

Not in this year, but next year, definitely there are some capacity expansion. In aluminum, the capacity expansion we are holding up because we want to get a MCX approval first.

As Naveen ji mentioned that we are expecting it by Q1 of next year, and then we'll start starting expansions in aluminum capacities. Plastic capacities would start happening in next year also.

In addition to this, we are also adding capacity in India in next year. Lithium-ion also is expected in Q4.

All these capacities would come in next year.

Okay. My second question was related to the plastic segment.

Plastic segment we are running at low capacity utilization, but our margins have come very friendly, actually. The capacity utilization hovers at around 40% for if you compare this 9 months, actually.

Going forward, I wanted some color on the plastics demand and on the kind of products that we are dealing in this segment, and what is the outlook going ahead as well in this segment?

Sir, so as I mentioned that plastic growth will all depend on how the industry would take to secondary plastics going forward, because most of the industry is not using secondary plastic for their primary packaging. They are using it for secondary or tertiary packaging, but primary packaging has yet not started in most of the cases.

We are targeting that segment because that is more profitable compared to other segments. It's a slow process in the sense that you have to develop that product, you have to testing those products, start using those product for years before you give a go-ahead to start using that product on a regular basis.

It's a slow process. We are very confident.

We're making inroads into this. We are developing new products for new customers.

We are very hopeful that although the direction is right, but the moment it will start happening, it will just take off. Currently, you can expect a slow growth of around 8% to 10% for the next couple of quarters, and then probably we can see it increase further.

Can you highlight what are the products that you are planning to make in plastics? It is PP granules or what kind of products?

We are making PP granules, but that is specific to the customer's requirement of their packaging requirements. For example, Asian Paints require recycled plastic for their buckets, or battery manufacturers require PP granules for their battery boxes, and so on, forth.

All the brand owners require different kind of products, and it's a little difficult to develop those products from secondary plastic. We're working with some of these OEMs and developing products for them.

Okay. Fine, sir.

Thank you so much, and I'll come back in the queue. Thank you so much, and all the best.

Hi, sir. Thank you for the opportunity.

My question was on the lead volume growth. What we are selling in the export market, we are mostly selling to South Korea, UAE.

According to some reports, the lead demand in these countries are saturated. Thus, many of our peers are starting to sell big chunk of their lead volumes to Singapore and the traders sitting there.

Why are we not selling our volumes to these traders sitting in Singapore? Do you see any benefit to selling your volumes in Singapore because of the demand saturation in these two countries?

Sir, currently our volumes are so low that if there is a decrease in demand, we'll be able to sell all the material that we produce or manufacture to the OEMs directly in Southeast Asia. Generally, in Singapore you sell it to traders and not directly to OEMs, which does not give you the higher margins that we get.

Our target is to keep selling 70% to the OEMs and 30% to the traders. Currently, we have long-term tie-ups with major OEMs also and some of the biggest traders also, whether it is Trafigura, Glencore, Thyssen.

We work with almost all the traders, and we work with almost all the major OEMs within India also and outside India also. Whatever products we are making, we are just trying to sell it at the highest price.

If there is any pressure from those OEMs, then we may think of shifting it to other geographies. Till the time we're getting enough orders from them which can fulfill all our production, then we don't need to go to these other markets.

We want to maximize the profit by selling it to the highest bidder basically.

You are not seeing any demand saturation from these OEM-led countries, and comfortably you could maybe push the incremental volume from your capacity to these OEMs.

Sir, and then we also have applied to LME, and we probably would get our LME license also in Q4, we are expecting the license in Q4 itself. Once that license is there, then we can sell any amount on the exchanges also.

Currently, we are selling it at MCX, and in future we would have LME exchanges also as our market. That, sir, it gives you lesser realization sell to exchanges rather than sell directly to the OEMs.

We prefer to sell it to the OEMs, and if there is any pressure in the future, then LME exchanges are there for you to sell to. We don't expect any pressure No.

In the near future, we don't see any pressures at all. Whatever we are producing, there is enough market available, both in India as well as overseas, which can take our products.

Sure, sir. That answers it.

Thank you.

Hi, sir. Thank you for the opportunity.

I just had one, two questions. First was what was the percentage of revenues from Exide Industries in the last quarter?

Exide is very small portion we do because we have just started with Exide. Going forward, we are working both models, supplying directly to Exide also and we are taking some scraps also, like we do with Amara Raja.

The volumes will grow significantly in next upcoming year.

Currently it is lower single-digit kind of numbers, right?

It's not in the top 10 customers of Gravita currently.

Okay. It will grow going forward.

Sorry, sir?

It is growing.

Sir, again, as I mentioned, that so the overall requirement of lead is more than what we produce. We will keep on selling to the customers where we get the highest realization.

For us, currently, there are better opportunities. If we get better opportunity from Exide, or when we grow our volumes more than what we can currently serve, then in those cases, we may look at other OEMs also in future.

Okay. Got it, sir.

Thank you so much.

Hello, can you hear me?

Yes, sir. Yes, we can.

Yeah.

Thank you for the opportunity. My question was more on the volume.

While we see that the volume is remaining stagnant over the last few quarters between 50 50,000 tons and 55,000 tons, and we are increasing capacity in terms of volume, how do we calculate that capacity utilization at 90%?

The volume is constant because the capacity increase has not taken place in India. That is why we are running it at a optimal capacity of 90%.

Generally, the optimal capacity is even less than that, but because there is enough scrap available and enough demand from the customers, we currently running it at 90% of capacities in India. We are increasing the capacity so that because we have scrap availability and we can manufacture those products, but we lack the capacity.

Once the capacity is there, we can use it further to make more products in future.

Can I understand that the overseas capacity is not getting fully utilized for now?

Overseas capacities, we generally keep a higher capacity in overseas locations because scrap availability is not continuous. In our case, the capacity is not a constraint.

Should not be a constraint because the capex to revenue is around 8 to 10 times. We generally keep a higher capacity in overseas locations keeping in mind that we can get higher scrap also in future.

Currently, if you look at our overseas capacity utilizations, it is at around 65%. Basically the overseas capacities, because we are not able to import in those countries, it is mostly dependent on the local scrap.

In India, as compared to other countries, India we can import the scrap. That is the reason we're increasing the capacity in India.

We can import overseas also, we can take domestic also. That is the reason India is looking more volumes.

Understood. Thank you, sir.

Also, as we mentioned earlier, that we are importing some of our scraps from overseas locations into India because there is a better arbitrage opportunities. In that case also, some of the overseas capacities remain unutilized.

Understood, sir. Thank you so much.

Yeah. Hi.

My first question is any impact and can you quantify the new labor law for us?

Sir, currently, we don't see any impact, but definitely the impact would come from the recalculation of gratuity and leave encashment for the labor. We are expecting overall in future going forward, we expect a overall impact of around ₹4.2 crores going downwards.

Sir, this year, not in the next

In this year, the total impact of this amount was approximately ₹4.2 crores, out of which ₹3.5 crores was pertaining to previous years, and roughly 60 to 70 lakhs was pertaining to these 9 months.

This ₹4.2 crore you are talking about for annual, right?

For annual number, yeah, absolutely.

Okay. The FY '27, we can see this kind of a impact, correct?

Right.

Okay. Then the next question is regarding aluminum, I have seen a significant decline, 50% decline, and 5% growth in lead side.

What is happening in aluminum, why our growth is significantly down, sales volume growth? Sir,

we mentioned earlier that there has been some increase in aluminum prices. When such things happen, then the scrap dealers tend to withhold the scrap and don't sell it to the recyclers.

This causes tightening of scrap availability, and that has led to lower volumes in the quarter. Going forward, we are expecting the normalcy to continue, and we will start getting more aluminum scrap going forward.

Okay. That is why we have seen a margin expansion from ₹10 per kg to ₹14 per kg because of rising aluminum prices?

No. It's around the same, sir.

₹14 per kg was even in last quarter, we had around ₹14 per kg. This is the normal

Earlier quarter, we have a ₹10.

₹10 was in plastic, not in aluminum.

Sorry. Right.

Yeah. It was ₹20.

Yes.

₹20 was specifically higher because of increase in aluminum prices last year, because we imported a lot of material into India, and because of that, there was an increase in the overall profitability coming out of higher prices of aluminum.

Scrap duty in aluminum has gone down YoY.

Sorry?

Scrap duty in aluminum has gone down YoY.

Yes, sir.

Okay. Thank you.

Good afternoon, sir. Thank you for the chance.

Most of the questions are answered. Excuse me if I've missed: is it possible to give some volume guidance for FY '27, given that we have such significant capacity addition and a decent visibility on scrap?

If you look at last 4, 5 years, now our volume CAGR, assuming similar or some ramp-up in fourth quarter, for last 5 years, our CAGR of volume is around 16%, 17% now versus 25% guidance. How fast we can catch up over the next 1 year to kind of get the CAGR back as per our long-term target?

I think guidance for '27 volumes across division would be very helpful.

As we are mentioning that there may be some volatility in terms of volume growth on a year-on-year basis, but overall our target of 25% remains intact. More than that, we talk about 30% to 35% growth in the bottom-line numbers.

That is the EBITDA numbers or the PAT numbers, because, as I mentioned, that sometimes although the volume that we've done is higher, but it does not reflect in the overall consolidated statement, because some of the materials we move from Africa into India. The overall top-line numbers may vary, but you can expect the same kind of bottom-line numbers of around 30% to 35% increase in EBITDA numbers in next year and then going forward also.

Okay. Sir, when do we start expecting contribution of external sales of rubber division from which quarter?

As Sunil ji mentioned, there was some contribution from rubber coming in last quarter also, but it was not significant, it was not shown in the segment-wise numbers. From next quarter onwards, we will start sharing the numbers for rubber also.

Understood. Sir, in the past, we've talked about

Sure. Thanks a lot.

Thanks.

Hello. Thank you, operator, for giving this opportunity.

Thank you, management. Just would like to ask you, there are the global headwinds and the geopolitical issues which are going in the global front, definitely the commodity prices are very volatile, just like other than non-ferrous metals specifically.

We have seen lead, aluminum, all that stuff. Any other kind of a hedging that you have opted, and how much would be the percentage and what would be the impact on the overall margins, can you please brief?

Secondly, if you can, any other plans for copper addition in the scrap, just like as you have mentioned, the rubber, paper, steel, lithium? We are going to get into this.

By any chance, a copper, zinc, or nickel, the non-ferrous segment? Thank you.

Yeah. To answer your first question, as far as lead is concerned, we are totally hedged.

There will be no impact of these fluctuations on lead. It may have impact on the top line, but there would be no impact on the bottom line because we go 100% hedged in lead.

Aluminum, we are looking at some options to hedge, but currently because we do ADC12, which is not traded on any of the exchanges, we find it a little difficult to hedge, and that is why we've kept our volumes low in aluminum. We are not doing any aluminum recycling in India currently.

The moment that hedging mechanism is in place, we would start doing aluminum recycling also. That will give us some growth in aluminum also going forward.

We are looking seriously on all recycling verticals, including solar panels, paper, steel, and specifically copper also because of the recent ecosystem that is happening in copper and how the copper is behaving and the requirement of copper going forward. We believe that in future copper can also be one of the segments that Gravita would go into.

Okay. Thank you.

Thank you so much.

Hi. Good afternoon, sir.

My first question that in this particular quarter, we came out with a overall operating margin improved by 200 bps to somewhere close to 12% as far as overall margin is concerned. This margin is improvement due to better price realization or operation efficiency?

That is first question. Secondly, moving forward, what kind of trajectory we can expect?

It will expand or continue to remain in this particular range?

From a quarter to quarter, generally it comes from better realization and not from improvement in operations, because it take time for operational improvement to take effect. Going forward, we believe that what we have said is that in lead, aluminum, and plastic, we have given you per-ton EBITDA numbers that would remain there.

Also, some part of it has come because there have been some better opportunities in India, and that has impacted our top line. We have sacrificed some of the top-line growth to get better EBITDA numbers also.

Going forward, you can expect what we've already mentioned that around ₹19 to ₹20 in lead, around ₹14 to ₹15 in aluminum, and plastic would give you around ₹10 to ₹12.

We may continue similar kind of trajectory is in a optimism way, right?

Yes, but in future, in long term, you can definitely expect some additional benefit coming out of better operational efficiencies and better procurement network also and more value-added products going forward. That would be more in a long-term basis.

By FY '28, you can expect probably 0.5 to 0.75 rupees per kg improvement in all the three segments.

Okay. My second question, as far as volume growth is concerned, because in our presentation, we are aspiration to be a 25% kind of guidance as far as our overall vision is concerned, that has been highlighted.

Somewhere we are stuck, and in this quarter also, it's been reflected that, in a overall YoY also, we have not been able to come out with a good volume. Moving forward, as far as FY '27 and '28, I don't want any number, but you can say somewhere close to your guidance or somewhere close to 20% kind of thing we can expect as far as total volume growth is concerned?

Absolutely. Because a part of this volume growth, as I mentioned, we sacrifice because to get higher profitability.

Part of it was because the capacity expansion that we were planning to have in Q2 and Q3 did not happen. There were some delay, and these capacities are going to come in Q4 this year.

Definitely, going forward from Q1 onwards, you can see some improvement in volumes coming from lead. In aluminum and plastic also, because the capacities are there, we can expect some higher numbers.

Definitely, there would be some improvement in terms of volumes coming in the next year.

Okay. Thank you, sir.

Thank you everyone for participating in this call. We trust that we have addressed all your queries during the session.

However, if there are any remaining questions, please feel free to reach out to our investor relations team. Once again, we extend our gratitude to all the participants for joining us today.

Thank you and have a great day.