Gravita India Commissions 6,000 MTPA Mundra Li-Ion Plant, Targets 8 Lakh MTPA Capacity

Market snapshot: Gravita India has commissioned its 6,000 MTPA lithium-ion battery recycling pilot facility in Mundra, Gujarat. The project establishes the company's execution footprint in battery circularity and aligns with its Vision 2030 to scale overall recycling capacity to over 8,00,000 MTPA by FY29. Although the raw alert claims a planned capital expenditure of ₹1,780 crore (as stated in the source alert; not independently verified), Gravita's official corporate disclosures state a multi-year capex plan of ₹1,700 crore through FY29.

Data Snapshot

• Gravita India commissioned its first 6,000 MTPA lithium-ion battery recycling pilot facility in Mundra, Gujarat, with an investment of ₹14 crore from internal accruals.
• The company has outlined a total capital expenditure roadmap of ₹1,700 crore up to FY29 to expand existing and new recycling verticals.
• Under its Vision 2030 targets, the company's total installed capacity is planned to exceed 8,00,000 MTPA by FY29.
• For Q1 FY27, Gravita India reported consolidated revenue of ₹1,475.06 crore and a consolidated net profit of ₹106.39 crore, up ≈41.83% and ≈14.32% year-on-year respectively.

What's Changed

• Operationalization of the 6,000 MTPA pilot plant at Mundra marks Gravita's transition into the new-age lithium-ion battery recycling segment.
• The capital expenditure plan up to FY29 is confirmed at ₹1,700 crore, structured to support multi-vertical scale-up.
• Gravita is aggressively building a non-lead circular platform, supported by its copper segment which contributed ₹376 crore in revenue during Q1 FY27.

Key Takeaways

• Entry into Critical Minerals: Commissioning of the lithium-ion facility positions Gravita to capture early gains in the high-growth EV battery recycling market.
• Aggressive Capacity Targeting: Gravita's Vision 2030 targets scaling production to over 8,00,000 MTPA, leveraging port proximity at Mundra for import/export efficiencies.
• Execution Momentum: In Q1 FY27, revenue reached ₹1,475.06 crore driven by capacity commissioning and strategic diversification, offsetting near-term margin pressure from Middle East shipping disruptions.

SAHI Perspective

Gravita's operational launch of the Mundra lithium-ion battery recycling pilot plant represents a well-timed structural play. By diversifying beyond its traditional lead-acid battery core into copper, plastics, and lithium-ion, the company is shielding itself from single-commodity cycles. The expansion utilizes port access at Mundra to optimize feedstock logistics. While near-term shipping bottlenecks in the Middle East have temporarily restricted scrap imports, the ₹1,700 crore multi-year capex plan highlights strong long-term expansion visibility funded primarily through disciplined internal accruals.

Market Implications

Organized recyclers like Gravita are prime beneficiaries of mandatory Extended Producer Responsibility (EPR) regulations and waste management guidelines in India. The capability to process lithium-ion batteries and extract critical black mass components will enhance strategic tie-ups with automotive OEMs, while increasing the share of non-lead revenue and stabilizing EBITDA margins over the medium term.

Trading Signals

Market Bias: Bullish

Commissioning of the Mundra lithium-ion plant and a multi-year ₹1,700 crore capex plan provide strong earnings visibility. This execution is backed by ₹1,475.06 crore consolidated revenue in Q1 FY27, representing a 42% YoY jump.

Overweight: Recycling, Metals & Mining, Circular Economy

Trigger Factors:

• Normalisation of global logistics and scrap procurement pipelines
• Ramping up capacity utilization in the copper and lithium-ion segments
• Maintenance of ROIC above the company-guided 25% threshold

Time Horizon: Medium-term (3-12 months)

Industry Context

The battery recycling segment in India is transitioning into a highly organized space, driven by rapid electric vehicle adoption and battery waste rules. Traditional recycling networks are pivoting toward hydrometallurgical processing to recover critical minerals like cobalt, lithium, and nickel. Having integrated, port-adjacent smelting facilities gives organized players like Gravita a major advantage in logistically secure scrap sourcing.

Key Risks to Watch

• Geopolitical shipping disruptions: Conflict in the Middle East has historically affected a portion of scrap imports from the Gulf, affecting near-term capacity utilization.
• Margin compression: Scaling newly acquired low-margin divisions like copper can temporarily weigh on consolidated EBITDA margins, which compressed to 7.4% in Q1 FY27.
• Execution delays: Implementing the ₹1,700 crore capex program across international jurisdictions carries potential timeline and cost escalation risks.

Recent Developments

In Q1 FY27, Gravita expanded its Phagi lead recycling facility capacity by 40,500 MTPA to 75,819 MTPA with a ₹30 crore investment. Additionally, the company completed the acquisition of a 99.44% stake in Rashtriya Metal Industries Limited for ₹561.84 crore to scale its copper operations, and secured a London Metal Exchange brand listing for its lead produced under the brand 'GRAVITA M'.

Closing Insight

Gravita's entry into lithium-ion battery recycling at Mundra reinforces its strategic positioning as a diversified circular economy leader. With a validated ₹1,700 crore capex roadmap to reach 8,00,000+ MTPA capacity, the company is successfully building a resilient multi-metal recycling platform designed for long-term compounding.

High Performance Trading with SAHI.