Gravita India Limited has successfully secured a reaffirmation of its existing credit ratings from India Ratings and Research. The agency has assigned an IND AA-/Stable rating for long-term and IND A1+ for short-term bank loan facilities totaling INR 1,500 million. This assessment reflects the company’s strong business profile, diversified global operations, and stable financial performance, underscoring its solid creditworthiness and ability to meet its financial obligations as it continues its expansion into new industrial segments.
Key Credit Highlights
The rating reaffirmation acknowledges Gravita India Limited’s robust standing as a global leader in the recycling industry. With an aggregate annual recycling capacity of over 4,00,000 tonnes, the company has demonstrated consistent growth and operational resilience. The affirmation is supported by the company’s strong consolidated revenue performance, which reached INR 42,653 million in FY26, representing a 10% year-on-year growth.
Operational and Financial Strength
Gravita’s financial health is underscored by a significant improvement in its EBITDA margin to 10.2% in FY26 compared to 8.4% in FY25. The company has maintained a conservative capital structure, with a net leverage ratio of 0.35x, well below the industry-standard thresholds. Furthermore, its ability to service debt is highlighted by an impressive interest coverage ratio of 17.55x, reflecting disciplined financial management and healthy internal accruals.
Strategic Growth and Diversification
The company is actively diversifying its business beyond the core lead segment, expanding into aluminium, plastics, rubber, copper, and lithium. A pivotal part of this strategy includes its entry into the copper segment via the acquisition of Rashtriya Metal Industries Limited. Gravita aims to increase the revenue contribution from these non-lead verticals to approximately 35% by FY29. This strategic shift, combined with a robust back-to-back sales purchase model and effective hedging of commodity price risks, positions the company for sustained stability and growth in the medium term.
Future Outlook
Looking ahead, Gravita plans to invest over INR 15,000 million in capital expenditure over the next three to four years to scale its existing and new product capacities. The rating reflects the agency’s confidence in the company’s ability to fund these expansions through internal accruals while maintaining its strong credit metrics and comfortable liquidity position. The firm’s established relationships with key clients and its growing focus on value-added products remain significant drivers of its competitive advantage.
Source: BSE
