By: ICN Bureau
Last updated : November 03, 2026 6:20 pm
Revenue from operations grew by 13.3% YoY to reach Rs. 826 crore
Leading graphite electrode manufacturer Graphite India Limited announced its consolidated financial results for the second quarter ended September 30, 2026 (Q2 FY27), showcasing robust operating performance driven by structural changes in global pricing and volumes.
The company reported a consolidated net profit of Rs. 94 crore for Q2 FY27, marking a substantial 23.7% growth year-on-year (YoY) compared to the Rs. 76 crore posted in the corresponding quarter of the previous fiscal year.
Revenue from operations grew by 13.3% YoY to reach Rs. 826 crore, up from Rs. 729 crore reported in Q2 FY26. The top-line expansion indicates stabilizing industrial demand and firmer global realization trends for graphite electrodes, which are heavily used in electric arc furnace (EAF) steelmaking.
The star metric of the quarter was the company's operating efficiency. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) skyrocketed by 43.2% to Rs. 189 crore.
Crucially, the company maintains a robust, low-risk balance sheet, boasting an impressive net cash position of Rs. 3,827 crore, providing significant financial stability to steer through cyclical commodity headwinds.
Commenting on the result, K K Bangur, Chairman, Graphite India, said: “During the quarter, Graphite India delivered Net Sales of Rs. 826 Cr, up by 13.3% y-o-y, driven by higher volumes and realizations. The company recorded EBITDA of Rs. 189 crore and net profit of Rs. 94 crore, after an exceptional item of Rs. 22 crore arising from the closure of German operations. Capacity utilization was 96%, compared to 99% in Q2 FY2026. The company maintained a strong balance sheet, with Net Cash of Rs. 3,827 crore at the end of September 2026.
Global crude steel production remained subdued during the nine months ended September 2026, declining by 0.5% y-o-y to 1,367 million MT, with performance varying across major regions. Chinese crude steel production decreased by 2.9% y-o-y to 725 million MT, while production in the European Union remained broadly stable. North America recorded growth of 5.2%, while the production in the Middle East as expected declined by 9.3%. In sharp contrast, India’s crude steel production increased by 6.2% y-o-y to 130 million MT, significantly ahead of global production trends.
India’s steel demand outlook remains encouraging, supported by infrastructure development, real estate activity and manufacturing expansion plans. Renewable energy investments, growth in automotive production, export opportunities and supportive policy measures, continue to drive steel consumption.
Graphite electrode prices have shown some improvement during the quarter, supported by a continued recovery in demand.
However, higher input costs have limited the extent of margin expansion. The USA recently imposed preliminary tariffs on graphite electrodes, but given the Company’s geographically diversified export revenue base, this will not have any material impact.
The steel industry’s focus on decarbonisation including the adoption of low carbon technologies is expected to shape its long term development. Against this backdrop and ongoing industry consolidation, Graphite India remains optimistic about the medium-term outlook for graphite electrodes. The company as always remains focused on operational efficiency, sustainability, cash flow generation and long term value creation for all its stakeholders.”