Gravita India Limited (GRAVITA.NS): BCG Matrix [Dec-2025 Updated]

Gravita's portfolio reads like a strategic pivot: high-growth 'stars'-aluminium recycling, value‑added alloys/PET and profitable international hubs-are being aggressively scaled with a large CAPEX push, while its cash‑generating lead business, turnkey projects and deep domestic scrap network fund diversification; promising but early-stage bets in Li‑ion, rubber, steel and paper sit as question marks that need capital and scale, and legacy low‑margin products, underperforming sourcing points and old lines are being culled to protect margins and ROIC-a capital-allocation play that could reshape Gravita from a lead-centric recycler into a diversified global circular‑economy player.

Gravita India Limited (GRAVITA.NS) - BCG Matrix Analysis: Stars

Stars - Aluminium Recycling Segment

The aluminium recycling vertical is a high-growth star as of December 2025, recording a 62% year-on-year volume surge in the latest fiscal quarters and delivering substantial scale with a current production capacity of 38,000 MTPA. Revenue from aluminium accounts for approximately 9% of consolidated revenue, with management targeting a 35-40% volume CAGR for this vertical to capture accelerating demand from automotive and casting end-markets. Unit economics are robust: EBITDA per ton is ~INR 14,786, supporting strong margin profiles and cash conversion. Gravita has earmarked a material portion of its INR 1,225 crore CAPEX through FY28 to expand aluminium capacity, upgrade furnaces, and enhance downstream casting and billet facilities.

Key aluminium metrics

• Capacity expansion: furnace additions, casting lines, and billet plants.
• Product diversification: high-purity aluminium ingots and automotive-grade alloys.
• Demand focus: OEMs, foundries, and engineering metals consumers.

Stars - Value-Added Products (Lead Alloys, PET Flakes, etc.)

Value-added product verticals have evolved into core stars across Gravita's global footprint, delivering superior margins and strategic positioning. As of H1 FY26, these premium offerings contribute 47% of total revenue and are on track to surpass the Vision 2029 target of a 50% revenue share. This segment underpins consolidated pre-tax ROI of 27%, above the 25% internal benchmark, and is a primary driver of the company's 5-year PAT CAGR of 57%. The shift to value-added materials is reinforced by a 60% increase in domestically sourced scrap, improving cost stability and supply security for high-margin production.

Value-added segment performance

• Focus on premiumization: lead alloys, specialty lead products, and PET flakes for food-grade and industrial markets.
• Margin enhancement: higher gross and EBITDA margins compared with commodity streams.
• Supply chain: increased domestic scrap reduces import dependence and procurement volatility.

Stars - International Recycling Operations

International operations represent a high-growth, high-profit star cluster that materially enhances geographic diversification. Overseas units account for ~32% of total revenue but deliver ~53% of consolidated profits due to superior international margins and efficient cost structures. Gravita operates 12 eco-friendly facilities globally, including recent capacity ramps in Ghana and the Dominican Republic. These hubs support management's ambition to achieve a 25% total volume CAGR by FY27. Strategic capacity acceleration overseas leverages lower logistics outlays and cheaper sourced scrap, positioning the international segment as a central pillar for Gravita's objective to be a top-five global recycler by 2028.

International segment snapshot

• Geographic focus: West Africa, Caribbean, and other low-cost sourcing regions.
• Margin drivers: lower feedstock cost, favorable local economics, and efficient export logistics.
• Growth levers: rapid capacity add, partnerships with local scrap aggregators, and eco-compliance certifications.

Gravita India Limited (GRAVITA.NS) - BCG Matrix Analysis: Cash Cows

Cash Cows

Lead recycling remains the dominant revenue generator with massive market share. As the core business unit, lead recycling accounted for over 88% of Gravita's total revenue as of late 2025. The segment operates 10 specialized recycling plants with a combined production capacity of approximately 236,559 MTPA. Reported sustainable EBITDA guidance per ton is between INR 19,000 and INR 20,000, supporting steady profitability and high cash conversion. The lead vertical delivered a 5-year revenue CAGR of 23% and provides the primary cash flows used to fund diversification into higher-growth recycling sectors.

Turnkey recycling solutions provide high-margin intellectual property and steady cash inflows. Leveraging 30+ years of technical expertise, Gravita designs and installs complete recycling plants for external clients. The company has executed over 70 turnkey projects across regions including UAE, Qatar, and Poland. Although this segment contributes roughly 1% to consolidated revenue, it delivers high ROI with minimal ongoing CAPEX compared to manufacturing operations and helps maintain consolidated ROIC targets above 25% via margin-rich service revenues.

• Turnkey projects executed: >70
• Geographies served: UAE, Qatar, Poland, and other international clients
• Revenue contribution: ~1% of consolidated revenue
• Strategic impact: High-margin, low-CAPEX cash inflows supporting ROIC >25%

Domestic scrap procurement network ensures low-cost raw material security and margin resilience. Gravita's network of 33 owned yards and over 1,900 touchpoints across India has increased domestic sourcing to 52% of total scrap intake. This mature collection infrastructure reduces dependence on imported scrap and exposure to international freight volatility. Regulatory tailwinds from BWMR and EPR have accelerated formalized collection channels, improving feedstock predictability and contributing to the core business maintaining an EBITDA margin of 10.80% and operating cash flows of INR 282 crore in the most recent fiscal year.

Key cash-cow implications for capital allocation and risk management:

• Core cash generation funds capex for diversification into battery, aluminum, and specialty recycling.
• High-margin turnkey services monetize IP with low incremental investment and bolster consolidated ROIC.
• Domestic procurement network reduces input cost volatility and import exposure, enhancing margin resilience.
• Concentration risk: >88% revenue from lead recycling necessitates prudent reinvestment to mitigate single-segment dependency.
• Stable EBITDA per ton and predictable capacity utilization enable multi-year financial planning and dividend/cash-return strategies.

Gravita India Limited (GRAVITA.NS) - BCG Matrix Analysis: Question Marks

Dogs - Question Marks: Lithium-ion battery recycling. Lithium-ion battery recycling represents a high-potential entry into the EV ecosystem. Gravita has operationalized a pilot recycling unit at Mundra to capture EV battery waste. Vision 2029 allocates ~INR 375 crore for diversification; the lithium-ion pilot is funded within this envelope. Current revenue contribution: negligible (<1% of consolidated revenue). Target profitability: management expects recycling initiatives to contribute to a 35% profitability growth target for non-lead businesses once scaled. Critical success metrics: scale collection to >50,000 MWh/year equivalent feedstock within 3-5 years and achieve processing yields comparable to lead recycling (target metal recovery >90%).

Dogs - Question Marks: Rubber and tyre recycling. Gravita acquired an 18,000 MTPA waste tyre recycling plant in Romania to establish a European foothold; a rubber recycling plant at Mundra is slated to start contributing by FY27. CAPEX implication: portion of the INR 1,225 crore total CAPEX pool earmarked for tyre/rubber expansion (estimated incremental CAPEX for rubber/tyre projects: INR 200-300 crore). Management target: non-lead business (rubber/tyre + others) to exceed 30% of total revenue by FY28. Current revenue contribution from rubber/tyre: effectively zero (pre-commercial); target revenue from these verticals by FY28: INR 400-600 crore (management guidance range). Market drivers: infrastructure demand, tyre manufacturers' circular procurement; addressable European and Indian scrap tyre market estimated at >5 million tonnes/year.

Dogs - Question Marks: Steel and paper recycling. Early development, CAPEX being deployed to set up initial processing capabilities. Objective: reduce 88% dependency on lead segment to below 60% by FY29 through diversification. Target volume CAGR for steel and paper verticals: >25% to align with long-term growth objectives. Initial CAPEX allocated (estimated): INR 150-250 crore combined. Current market share for Gravita in these verticals: negligible (<1% relative share in both domestic steel scrap and paper waste recycling). ROI monitoring benchmark: >25% return on invested capital (ROIC) within 3-5 years post-commercial production.

Key quantitative snapshot and comparative metrics:

Operational and commercial prerequisites to convert Question Marks into Stars:

• Collection network scale-up: build partnerships with OEMs, scrap dealers, EPR channels to secure steady lithium-ion and tyre feedstock.
• Technology validation: adapt proven hydrometallurgical and pyrometallurgical processes to multiple lithium chemistries with pilot yields ≥85-90%.
• CAPEX deployment discipline: prioritize projects with shortest payback and IRR >25% to meet Vision 2029 financial targets.
• Regulatory and offtake agreements: secure long-term offtake or supply contracts with battery manufacturers, tyre companies, and steel mills.
• Geographic diversification: leverage Romanian plant for EU market access while scaling Mundra facilities for domestic demand.

Principal risks and monitoring KPIs:

• Feedstock availability risk: KPI - tonnes collected per quarter; target ramp to 75% of nameplate within 24 months of commissioning.
• Technology risk: KPI - metal recovery rate (%) and process operating cost (INR/kg); target recovery >90%, OPEX reduction to
• Execution and timeline risk: KPI - CAPEX spend vs. plan and commissioning dates; target commercial operation for rubber by FY27.
• Financial risk: KPI - segment-level EBITDA margin and ROIC; target EBITDA >15-20% and ROIC >25% within 3-5 years.

Gravita India Limited (GRAVITA.NS) - BCG Matrix Analysis: Dogs

Question Marks - Dogs are the low-growth, low-share elements of Gravita's portfolio that management is actively de-prioritizing. Traditional low-margin pure lead products, underperforming regional sourcing points, and legacy non-automated recycling lines are being classified as 'dogs' and targeted for rationalization to protect margins, capital efficiency and strategic focus.

Traditional low-margin pure lead products face declining strategic priority. Basic refined lead without value-added alloys generates materially lower EBITDA per ton versus specialized components. Gravita reports INR 23,196 EBITDA/ton for its value-added lead alloys; by contrast, commodity-grade lead lines deliver substantially less margin and are increasingly exposed to volatile global lead prices and intense spot-market competition.

Key operational moves related to these product 'dogs':

• Reallocating production capacity toward high-margin alloys and specialty recycling outputs to lift overall product mix to >50% value-added revenue.
• Reducing exposure to spot-price volatility by contracting long-term offtakes for specialized products and minimizing basic lead inventory.
• Monitoring EBITDA/ton across SKUs and setting internal cut-offs below which lines are scaled down or closed.

Underperforming regional sourcing points with low volume throughput are being rationalized. Gravita maintains 1,900+ global procurement touchpoints; management applies efficiency and volume thresholds to these nodes and removes low-yield locations that impede scale and increase logistics costs. Sourcing points failing to support the company's 20% annual volume growth objective or causing disproportionate transport and handling spend are candidates for closure or consolidation.

Illustrative actions and recent precedent:

• Closure of the US subsidiary to streamline operations and reallocate resources to higher-growth corridors in Africa and Asia.
• Targeting low-throughput collection centers for consolidation to preserve net debt-free status and protect the 25% ROIC ambition.
• Prioritizing high-yield, low-logistics-cost corridors to sustain the lean operating model.

Legacy non-automated recycling lines are being treated as dogs that constrain margins and sustainability targets. Gravita operates 12 facilities, several of which contain manual or semi-manual recycling lines with higher energy intensity and lower metal recovery rates. These older lines conflict with goals to reduce energy consumption by 10% and to source 30% of energy from renewables by FY27.

Planned modernization steps include:

• Phased replacement of manual lines with PLC-based turnkey technology to improve recovery rates and reduce energy consumption.
• Capital allocation prioritized to automated lines that materially improve per-ton EBITDA and support the 10.80% EBITDA margin target.
• Aligning plant upgrades with renewable energy rollouts to hit the FY27 target of 30% energy from renewables and overall 10% energy reduction.

Overall impact of 'dogs' rationalization on financial and strategic targets: