GRAPHITE
Large CapGraphite India Limited
Industrials
Graphite India is India's largest producer of graphite electrodes, a consumable for EAF steel mills. It also manufactures specialty graphite products, high-speed steel, and has investments in graphene and advanced chemistry battery technologies. The company operates two graphite electrode plants in India and a specialty graphite facility in Germany.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 2/100PAT -314% YoY · margin compression · Rev +23% YoY · +27% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹816 Cr | +22.5% | +27.1% |
| EBITDA | ₹-139 Cr | -456.4% | -431.0% |
| Operating margin | -17.0% | -2300 bps | -2400 bps |
| PAT | ₹-105 Cr | -314.3% | -256.7% |
| PAT margin | -12.9% | -2023 bps | -2331 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Graphite India reported FY2026 consolidated Net Sales growth of 11.4% YoY to Rs. 2,852 Cr, but Net Profit declined 62.7% to Rs. 171 Cr. Q4 FY2026 saw Net Sales up 22.5% YoY to Rs. 816 Cr, but recorded a consolidated Net Loss of Rs. 105 Cr due to inventory write-downs and treasury income impact.
While FY2026 sales volume improved and capacity utilization increased to 104%, Q4 saw a consolidated net loss of Rs. 105 Cr, primarily due to inventory write-downs and reduced treasury income. The long-term thesis on EAF steelmaking shift remains, but short-term profitability is under pressure.
Revenue by Segment (FY2026 Consolidated)
Latest issuer-disclosed distribution across 3 reported categories.
Global Shift to EAF Steelmaking
EU's Carbon Border Adjustment Mechanism (CBAM) is expected to accelerate the global shift from Blast Furnace to EAF based steelmaking, driving graphite electrode demand.
India's Steel Demand Growth
India's steel demand is projected to increase by 9.2% in 2026, supported by infrastructure, construction, and automotive sectors.
Electrode Capacity Expansion
First phase of electrode capacity expansion is expected to be commissioned in the current financial year (FY2027).
Diversification into Advanced Materials
Synthetic Graphite Anode Materials (SGAM) project continues; investments in graphene and advanced chemistry battery technologies (Godi India).
Electrode Capacity Expansion
The first phase of electrode capacity expansion is expected to be commissioned in the current financial year (FY2027).
Synthetic Graphite Anode Materials (SGAM) Project
The SGAM project continues as previously announced.
Increased Sales Volume
Graphite India recorded improved sales volume during the quarter, driving YoY sales growth.
High Capacity Utilization
Capacity utilization increased to 104% in Q4 FY2026, up from 81% in Q4 FY2025.
Robust Indian Steel Market
India delivered another quarter of robust performance, with production rising 9.7% y-o-y to 44.0 million MT.
Decarbonization Driving EAF Adoption
Stringent environmental regulations and CBAM are increasing support for the Electric Arc Furnace (EAF) process, driving graphite electrode demand.
Geopolitical Challenges & Market Volatility
Ongoing conflicts in West Asia impact logistics and freight costs. Treasury income was severely impacted due to volatility in financial markets.
Pressure on Input Prices
Current situation has led to a rationing of certain energy based inputs and pressure on prices of key inputs.
Global Steel Production Decline
Global crude steel production declined 2.8% y-o-y to 449.2 million MT in Q1 CY2026, with China down 6%.
Electrode Price Fall & Inventory Write-down
Overall fall in electrode prices led to inventory write-down of Rs. 47 Cr (consolidated) in Q4 FY26, impacting profitability.
Commodity Price Volatility
Overall fall in electrode prices led to inventory write-downs. Pressure on prices of key inputs.
Geopolitical Instability
Ongoing conflicts in West Asia continue to impact logistics and freight costs. Treasury income impacted by financial market volatility.
Global Steel Demand Weakness
Global crude steel production declined 2.8% y-o-y, with contraction in China, Middle East, EU, and South America.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company provides both full-year (YoY) and quarterly (YoY and QoQ) results. Full-year YoY growth indicates overall business trajectory, while Q4 QoQ/YoY highlights recent operational challenges and sequential momentum, especially with the Q4 net loss.
Consolidated Net Sales Growth (FY26 YoY)
Net Sales of Rs. 2,852 Crores, a growth of 11.4% y-o-y.
Consolidated Net Sales Growth (Q4 FY26 YoY)
Net Sales of Rs. 816 Crores, a growth of 22.5% y-o-y.
Consolidated EBITDA (FY26)
EBITDA of Rs. 375 Crores.
Consolidated EBITDA (Q4 FY26)
EBITDA of Rs. (100) Crores.
Optimistic on Realization Improvement
The Company remains optimistic about improving realizations to absorb the costs increases.
Focus on Operating Best Practices
As we enter FY2027, the Company is focused on delivering operating best practices.
Capitalizing on Long-Term Demand
Positioning itself to capitalize on the long term demand growth for graphite electrodes globally.
Diversification Strategy
Ongoing growth and diversification plans are progressing, including electrode capacity expansion and SGAM project.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated Net Profit | Rs. (105) Cr in Q4 FY2026 | Return to profitability and sustained positive net profit margins. |
| Capacity Utilization | 104% in Q4 FY2026 (Standalone) | Sustained high utilization rates and successful ramp-up of new capacity. |
| Electrode Realizations | Flat realizations in FY2026, overall fall in electrode prices in Q4. | Management's ability to improve realizations to absorb cost increases. |
| SGAM Project Progress | Project continues as previously announced. | Updates on commissioning, commercialization, and revenue contribution from SGAM. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +17.0% / mo
Technical chart
GRAPHITEweekly · 3Y+28.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 44. Wait for confirmation.
- SMA20 rising (~14.5% over last month) — short-term momentum positive.
- RSI(14) at 44 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 17% off 52W high · 32% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 14/15 to the score.
- Growth contributes 14/25 to the score.
Main drags
- Fair-value margin of safety is negative at -66.3%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 3/30; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 45th percentile within Industrials. Main check: results consistency is weak at 29/100.
Healthy Trust Lite: Promoter holding is 65.3%. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 45th pctile, median 68 · Large: 28th pctile, median 74
97 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 65.3%.
- ▸Promoter pledge is zero.
- ▸10 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 4.6%.
- ▸ROE is low at 3.1%.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 72.30
- P/B
- 2.24
- EV/EBITDA
- 45.60
- Market Cap
- 13131.00Cr
Profitability
- ROE
- 3.10%
- ROCE
- 4.57%
- ROA
- 2.26%
- Dividend Y
- 1.64%
Growth (CAGR)
- Revenue 5Y
- 8.00%
- EPS 5Y
- 51.00%
- Revenue 3Y
- -4.00%
- EPS 3Y
- -8.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- 8.04×
- Altman Z
- 6.39
- Book Value
- 300.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 10/5
- OCF
- 82.00 Cr
- EPS TTM
- 8.96
Shareholding
- Promoter Hold
- 65.34%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 56%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.