Gravita India Starts 6,000 MTPA Mundra Lithium-Ion Recycling Plant, Eyeing 800,000 MTPA Capacity

Market snapshot: Gravita India has operationalized its new 6,000 MTPA lithium-ion battery recycling pilot plant at Mundra, Gujarat, marking its formal entry into critical mineral recycling. The expansion aligns with the company's long-term Vision 2030 to scale total recycling capacity to over 800,000 MTPA by FY29. However, the raw alert's claim of a ₹1,780 crore investment remains unverified, as the company's official corporate disclosures outline a 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.
• The company revised its capital expenditure plan upwards to ₹1,700 crore through FY29, dedicating ₹700 crore to its copper division expansion.
• Gravita aims to scale its total recycling capacity across existing and new verticals to over 800,000 MTPA by FY29.
• In Q1 FY27, Gravita's consolidated revenue surged 41.8% year-on-year to ₹1,475 crore, and consolidated PAT grew 14% to ₹106 crore.

What's Changed

• The 6,000 MTPA lithium-ion pilot recycling facility at Mundra has been operationalized, establishing Gravita's execution footprint in battery recycling.
• Gravita's planned capital expenditure roadmap through FY29 has been formalized at ₹1,700 crore, structured to support its core and new verticals. Note that the alert's ₹1,780 crore figure is not independently verified.
• The company is targeting a total recycling capacity exceeding 800,000 MTPA by FY29 under its Vision 2030 strategy, a major scale-up from its early FY27 levels.

Key Takeaways

• Operationalization of the 6,000 MTPA lithium-ion pilot in Mundra establishes Gravita's capabilities in the high-growth critical mineral recycling sector.
• Total planned CAPEX has been set at ₹1,700 crore through FY29, self-funded largely via internal accruals to preserve capital efficiency.
• The overarching expansion strategy is geared to achieve over 800,000 MTPA capacity by FY29, with a clear focus on diversifying into copper and critical minerals.

SAHI Perspective

Gravita India is executing a highly structured transition from a lead-dominant recycler into a diversified circular-economy player. The commissioning of the 6,000 MTPA lithium-ion pilot plant in Mundra marks a major step towards tapping the EV battery value chain. Supported by a disciplined capex strategy and strong internal cash generation, the company is scaling its footprint towards over 800,000 MTPA by FY29 without leveraging its balance sheet excessively.

Market Implications

The operationalization of battery recycling capabilities is positive for Gravita, positioning it well under the Battery Waste Management Rules and Extended Producer Responsibility guidelines. As auto OEMs increasingly seek structured recycling partners, Gravita's organized footprint and port-side infrastructure in Mundra will yield logistical and competitive advantages.

Trading Signals

Market Bias: Bullish

Directional bias is Bullish based on the successful start of the 6,000 MTPA lithium-ion recycling pilot plant at Mundra and the company's long-term expansion target of over 800,000 MTPA by FY29. This growth momentum is backed by strong Q1 FY27 results, showing a 41.8% year-on-year revenue increase to ₹1,475 crore.

Overweight: Metals & Mining, Recycling, Clean Energy / EV Supply Chain

Trigger Factors:

• Ramp-up and commercial utilization of the 6,000 MTPA lithium-ion pilot plant
• Execution of the ₹1,700 crore CAPEX plan to scale capacity to over 800,000 MTPA by FY29
• Commissioning of the newly announced 59,200 MTPA copper recycling plant at Mundra

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

Industry Context

India's critical mineral recycling space is gaining massive tailwinds due to the government's push for sustainable battery waste management. In addition to battery waste norms, organized recyclers are benefiting from a formalization of scrap collection channels. Gravita's strategic port-side Mundra presence allows it to seamlessly manage import logistics for raw scrap and export value-added alloys.

Key Risks to Watch

• Raw material procurement risks and scrap availability in the domestic market.
• Fluctuations in global base metal prices affecting processing spreads.
• Prolonged logistics delays and freight inflation in international operations.
• Execution risk associated with scaling new verticals like copper and lithium-ion downstream extraction.

Recent Developments

In August 2026, Gravita announced plans to add 59,200 MTPA of copper recycling capacity at its Mundra facility with a ₹64 crore investment funded through internal accruals. Additionally, in June 2026, the company's lead metal produced at Mundra received the prestigious London Metal Exchange Brand Listing Certificate under the brand 'GRAVITA M', validating its global quality standards.

Closing Insight

By successfully launching its lithium-ion recycling pilot and committing to an extensive capacity roadmap towards 800,000 MTPA, Gravita is transforming its operational profile. Its focus on capital efficiency, evidenced by self-funded capex and high-margin diversification, positions it as a premier player in the circular economy.

High Performance Trading with SAHI.