Electrodes & Welding Equipment · Founded 1974 · www.graphiteindia.com · BSE 509488 · NSE GRAPHITE IN. · ISIN INE371A01025
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Business
Graphite India Ltd. is a leading global manufacturer of graphite electrodes, which are critical consumables primarily used in Electric Arc Furnaces (EAF) for steelmaking and in other non-ferrous industries. The company also manufactures Graphite Reinforced Plastic (GRP) products, carbon and specialty products, and has a presence in power generation, primarily for captive consumption. Its core business model revolves around producing high-quality graphite electrodes and selling them to steel producers worldwide, thereby making money from the volume and value of these sales, supplemented by its diversified products.
Revenue Mix
Graphite Electrodes: This is the primary and largest revenue-generating segment, accounting for the majority of the company's sales and profitability. These electrodes are essential for melting scrap steel and other raw materials in EAFs.
GRP (Graphite Reinforced Plastic) / Carbon & Specialty Products: This segment includes products like GRP pipes, fittings, and equipment, which find applications in chemical processing, chlor-alkali, and other corrosive environments. It also encompasses various other carbon-based specialty products.
Power: The company operates captive power plants (thermal and hydroelectric) to meet its internal energy requirements, selling surplus power when available.
Industry
The global graphite electrode industry is characterized by high capital intensity, significant technological expertise requirements, and high barriers to entry, resulting in an oligopolistic structure dominated by a few large global players. Graphite India is one of the top 3-5 global manufacturers of graphite electrodes, holding a strong market position both domestically in India and internationally. It competes with other major global players like GrafTech International, Resonac Corporation (formerly Showa Denko), Tokai Carbon, and its domestic peer HEG Ltd. The industry's demand is directly linked to global steel production, particularly via the Electric Arc Furnace (EAF) route.
MOAT
Scale and Technology: Graphite India possesses significant manufacturing capacity and benefits from economies of scale. Its long-standing experience and continuous investment in R&D provide it with technological know-how to produce high-performance electrodes.
Raw Material Sourcing: Established long-term relationships with global suppliers for critical raw materials like needle coke, which is a key input and whose supply can be constrained.
High Entry Barriers: The substantial capital investment required, complex manufacturing processes, and specialized expertise make it difficult for new entrants to compete effectively.
Customer Relationships: Long-standing relationships with major steel producers globally ensure a steady client base.
Growth Drivers
Global Steel Production Growth (EAF Route): Increased adoption of Electric Arc Furnace (EAF) steelmaking due to its lower carbon footprint compared to traditional blast furnace methods.
Decarbonization Trends: The global push towards "green steel" and decarbonization initiatives favors EAFs, thereby driving demand for graphite electrodes.
Infrastructure Development: Robust infrastructure spending globally, especially in emerging economies, will drive overall steel demand, benefiting electrode consumption.
Product Diversification: Growth in its GRP and specialty carbon products segments can provide additional revenue streams and reduce reliance on the core electrode business.
Capacity Utilization: Optimizing existing capacity and potential future expansions to meet rising demand.
Risks
Cyclicality of Steel Industry: The demand for graphite electrodes is highly correlated with the highly cyclical global steel industry, making revenues and profitability vulnerable to downturns.
Raw Material Price Volatility: Prices of key raw materials, especially needle coke, are highly volatile and can significantly impact margins if not managed effectively.
Currency Fluctuations: As a major exporter and importer, the company is exposed to currency exchange rate risks.
Intense Competition: The oligopolistic nature of the industry means intense pricing pressure and competition from global peers.
Environmental Regulations: Increasingly stringent environmental norms could lead to higher operating costs or require significant capital expenditure for compliance.
Global Economic Slowdown: A slowdown in global economic growth would directly impact steel demand and, consequently, electrode demand.
Management & Ownership
Graphite India Ltd. is part of the Thapar Group, with the promoter group (K.K. Thapar family) holding a significant stake and providing strategic direction. The company generally has an experienced management team with long tenure in the industry, possessing deep sector-specific knowledge. The ownership structure includes the promoter group, along with substantial holdings by institutional investors (domestic and foreign) and public shareholders.
Outlook
Graphite India is strategically positioned to benefit from the long-term global shift towards greener steel production via EAFs, driven by decarbonization efforts. Its strong market position, established customer relationships, and technological capabilities provide a solid foundation. However, the company remains highly susceptible to the inherent cyclicality of the global steel industry and the volatility of raw material prices, particularly needle coke. While strong infrastructure spending and EAF adoption present growth opportunities, a prolonged global economic slowdown or intense pricing pressures could impact its performance. The company's diversified GRP and specialty products offer some mitigation against the core business's cyclicality, contributing to a more balanced revenue profile over time.
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| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 690 | 720 | 728 | 643 | 523 | 666 | 665 | 729 | 642 | 816 |
| Other Income | 63 | 72 | 194 | 168 | 19 | 57 | 150 | 89 | 108 | 39 |
| Total Income | 753 | 792 | 922 | 811 | 542 | 723 | 815 | 818 | 750 | 855 |
| Total Expenditure | 703 | 730 | 615 | 533 | 531 | 627 | 622 | 686 | 600 | 955 |
| Operating Profit | 50 | 62 | 307 | 278 | 11 | 96 | 193 | 132 | 150 | -100 |
| Interest | 4 | 3 | 3 | 4 | 2 | 2 | 2 | 3 | 2 | 18 |
| Depreciation | 21 | 22 | 20 | 22 | 23 | 25 | 24 | 24 | 24 | 23 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -27 | 16 |
| Profit Before Tax | 25 | 37 | 284 | 252 | -14 | 69 | 167 | 105 | 97 | -125 |
| Provision for Tax | 8 | 21 | 48 | 58 | 7 | 20 | 34 | 29 | 30 | -20 |
| Profit After Tax | 17 | 16 | 236 | 194 | -21 | 49 | 133 | 76 | 67 | -105 |
| Adjustments | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Profit After Adjustments | 18 | 16 | 237 | 195 | -20 | 50 | 134 | 77 | 68 | -104 |
| Adjusted Earnings Per Share | 0.9 | 0.8 | 12.2 | 10 | -1 | 2.6 | 6.9 | 3.9 | 3.5 | -5.3 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 1711 | 1532 | 1468 | 3266 | 7858 | 3094 | 1958 | 3027 | 3181 | 2950 | 2560 | 2852 |
| Other Income | 35 | 49 | 86 | 89 | 210 | 174 | 316 | 294 | 133 | 304 | 438 | 386 |
| Total Income | 1746 | 1582 | 1554 | 3355 | 8068 | 3268 | 2274 | 3320 | 3314 | 3254 | 2998 | 3238 |
| Total Expenditure | 1574 | 1398 | 1428 | 1822 | 2835 | 3173 | 2163 | 2552 | 2869 | 3094 | 2307 | 2863 |
| Operating Profit | 172 | 184 | 126 | 1533 | 5233 | 95 | 111 | 768 | 445 | 160 | 692 | 375 |
| Interest | 16 | 9 | 8 | 8 | 12 | 18 | 6 | 5 | 13 | 17 | 11 | 25 |
| Depreciation | 44 | 49 | 46 | 52 | 62 | 51 | 52 | 55 | 57 | 80 | 90 | 95 |
| Exceptional Income / Expenses | -6 | 0 | 0 | 0 | -55 | 0 | 0 | 0 | -53 | 954 | 0 | -11 |
| Profit Before Tax | 107 | 125 | 72 | 1473 | 5101 | 19 | 43 | 693 | 322 | 1017 | 591 | 244 |
| Provision for Tax | 49 | 43 | 1 | 441 | 1705 | -26 | 75 | 188 | 123 | 212 | 133 | 73 |
| Profit After Tax | 58 | 83 | 70 | 1032 | 3396 | 45 | -32 | 505 | 199 | 805 | 458 | 171 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 4 | 4 |
| Profit After Adjustments | 58 | 83 | 70 | 1032 | 3396 | 45 | -32 | 505 | 199 | 808 | 462 | 175 |
| Adjusted Earnings Per Share | 2.9 | 4.2 | 3.6 | 52.8 | 173.8 | 2.3 | -1.6 | 25.8 | 10.2 | 41.4 | 23.6 | 9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -13% | -5% | -4% | 4% |
| Operating Profit CAGR | 333% | -3% | 49% | 15% |
| PAT CAGR | -43% | -3% | 59% | 23% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 27% | 23% | -2% | 25% |
| ROE Average | 8% | 9% | 7% | 16% |
| ROCE Average | 10% | 12% | 10% | 22% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 1746 | 1788 | 1858 | 2732 | 5351 | 4554 | 4542 | 4947 | 4964 | 5611 | 5866 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 4 | 1 |
| Borrowings | 42 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 85 | 91 | 87 | 48 | 112 | 81 | 95 | 820 | 944 | 962 | 1015 |
| Total Current Liabilities | 722 | 2006 | 616 | 951 | 1439 | 943 | 891 | 3319 | 3143 | 1031 | 1150 |
| Total Liabilities | 2595 | 3884 | 2560 | 3731 | 6902 | 5578 | 5527 | 9086 | 9052 | 7608 | 8032 |
| Fixed Assets | 640 | 591 | 667 | 702 | 664 | 637 | 640 | 691 | 789 | 948 | 1094 |
| Other Non-Current Assets | 136 | 132 | 124 | 205 | 639 | 716 | 1178 | 1833 | 1966 | 1961 | 1995 |
| Total Current Assets | 1819 | 3161 | 1769 | 2824 | 5598 | 4224 | 3709 | 6563 | 6297 | 4699 | 4944 |
| Total Assets | 2595 | 3884 | 2560 | 3731 | 6902 | 5578 | 5527 | 9086 | 9052 | 7608 | 8032 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 30 | 28 | 17 | 11 | 41 | 400 | 364 | 0 | 68 | 23 | 37 |
| Cash Flow from Operating Activities | 171 | 268 | 260 | 760 | 2323 | 253 | 584 | -488 | -160 | 680 | 500 |
| Cash Flow from Investing Activities | 7 | -90 | -225 | -554 | -1271 | 526 | -534 | 213 | 330 | -239 | -202 |
| Cash Flow from Financing Activities | -173 | -192 | -39 | -179 | -676 | -839 | -199 | 105 | -213 | -427 | -226 |
| Net Cash Inflow / Outflow | 4 | -14 | -4 | 27 | 375 | -59 | -149 | -170 | -44 | 14 | 72 |
| Closing Cash & Cash Equivalent | 31 | 17 | 11 | 41 | 400 | 364 | 230 | 68 | 23 | 37 | 109 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 2.95 | 4.24 | 3.61 | 52.81 | 173.78 | 2.3 | -1.64 | 25.82 | 10.2 | 41.36 | 23.65 |
| CEPS(Rs) | 5.18 | 6.76 | 5.98 | 55.46 | 176.97 | 4.93 | 1.01 | 28.64 | 13.11 | 45.31 | 28.03 |
| DPS(Rs) | 2 | 2 | 2 | 17 | 55 | 2 | 5 | 10 | 8.5 | 11 | 11 |
| Book NAV/Share(Rs) | 89.39 | 91.5 | 95.06 | 139.81 | 273.83 | 233.07 | 232.43 | 253.16 | 254.03 | 287.14 | 300.2 |
| Core EBITDA Margin(%) | 7.66 | 8.36 | 2.55 | 43.88 | 63.93 | -2.56 | -10.48 | 15.68 | 9.81 | -4.88 | 9.9 |
| EBIT Margin(%) | 6.88 | 8.37 | 5.13 | 45 | 65.06 | 1.19 | 2.5 | 23.04 | 10.53 | 35.05 | 23.53 |
| Pre Tax Margin(%) | 5.99 | 7.79 | 4.62 | 44.76 | 64.92 | 0.62 | 2.19 | 22.88 | 10.12 | 34.46 | 23.09 |
| PAT Margin (%) | 3.23 | 5.14 | 4.53 | 31.36 | 43.21 | 1.45 | -1.64 | 16.67 | 6.26 | 27.29 | 17.9 |
| Cash Profit Margin (%) | 5.67 | 8.2 | 7.52 | 32.92 | 44.01 | 3.12 | 1.01 | 18.49 | 8.05 | 30.01 | 21.39 |
| ROA(%) | 2.14 | 2.56 | 2.19 | 32.81 | 63.87 | 0.72 | -0.58 | 6.9 | 2.19 | 9.66 | 5.86 |
| ROE(%) | 3.29 | 4.69 | 3.87 | 44.97 | 84.02 | 0.91 | -0.71 | 10.63 | 4.02 | 15.22 | 7.98 |
| ROCE(%) | 5.66 | 6.42 | 3.79 | 57.85 | 117.34 | 0.69 | 1 | 13.75 | 6.23 | 18.5 | 10.19 |
| Receivable days | 92.53 | 102.78 | 107.56 | 70.14 | 39.05 | 74.36 | 69.19 | 53.04 | 62.31 | 66.06 | 70.58 |
| Inventory Days | 207.28 | 197.23 | 158.64 | 77 | 68.44 | 219.81 | 240.72 | 164.61 | 231.89 | 227.83 | 181.09 |
| Payable days | 87.85 | 88.4 | 105.5 | 145.5 | 130.09 | 71.59 | 64.74 | 107.03 | 101.21 | 43.16 | 67.22 |
| PER(x) | 28.26 | 16.85 | 31.12 | 13.75 | 2.57 | 55.24 | 0 | 19.48 | 25.7 | 14.59 | 20.22 |
| Price/Book(x) | 0.93 | 0.78 | 1.18 | 5.2 | 1.63 | 0.55 | 2.2 | 1.99 | 1.03 | 2.1 | 1.59 |
| Dividend Yield(%) | 2.4 | 2.8 | 1.78 | 2.34 | 12.31 | 1.57 | 0.98 | 1.99 | 3.24 | 1.82 | 2.3 |
| EV/Net Sales(x) | 1.15 | 1.09 | 1.64 | 4.41 | 1.11 | 0.79 | 5.1 | 3.34 | 1.72 | 4.03 | 3.65 |
| EV/Core EBITDA(x) | 11.42 | 9.11 | 19.04 | 9.4 | 1.66 | 25.63 | 90.05 | 13.16 | 12.26 | 74.24 | 13.49 |
| Net Sales Growth(%) | -14.86 | -10.43 | -4.21 | 122.51 | 140.6 | -60.63 | -36.72 | 54.6 | 5.1 | -7.27 | -13.21 |
| EBIT Growth(%) | -48.15 | 9.88 | -40.93 | 1759.71 | 245.2 | -99.28 | 32.26 | 1326.56 | -51.94 | 208.5 | -41.73 |
| PAT Growth(%) | -55.66 | 43.8 | -14.92 | 1364.66 | 229.03 | -98.68 | -171.35 | 1672.66 | -60.55 | 304.34 | -43.07 |
| EPS Growth(%) | -55.66 | 43.79 | -14.93 | 1364.67 | 229.03 | -98.68 | -171.35 | 1672.62 | -60.49 | 305.37 | -42.82 |
| Debt/Equity(x) | 0.21 | 0.17 | 0.14 | 0.1 | 0.07 | 0.09 | 0.05 | 0.09 | 0.09 | 0.03 | 0.03 |
| Current Ratio(x) | 2.52 | 1.58 | 2.87 | 2.97 | 3.89 | 4.48 | 4.16 | 1.98 | 2 | 4.56 | 4.3 |
| Quick Ratio(x) | 1.15 | 1.2 | 1.89 | 2.14 | 2.39 | 2.82 | 3.02 | 1.46 | 1.26 | 3.25 | 3.27 |
| Interest Cover(x) | 7.75 | 14.25 | 10.09 | 183.3 | 439.99 | 2.08 | 8.06 | 152.55 | 25.4 | 60.31 | 53.97 |
| Total Debt/Mcap(x) | 0.23 | 0.22 | 0.12 | 0.02 | 0.04 | 0.17 | 0.02 | 0.04 | 0.08 | 0.02 | 0.02 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 |
| FII | 4.28 | 4.56 | 4.4 | 4.59 | 5.05 | 5.46 | 5 | 6.6 | 6.43 | 6.69 |
| DII | 10.62 | 12.16 | 11.39 | 10 | 9.9 | 10.48 | 10.05 | 9.55 | 9.99 | 10.47 |
| Public | 19.76 | 17.93 | 18.87 | 20.07 | 19.71 | 18.73 | 19.61 | 18.52 | 18.24 | 17.49 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 |
| FII | 0.84 | 0.89 | 0.86 | 0.9 | 0.99 | 1.07 | 0.98 | 1.29 | 1.26 | 1.31 |
| DII | 2.08 | 2.38 | 2.23 | 1.95 | 1.93 | 2.05 | 1.96 | 1.87 | 1.95 | 2.05 |
| Public | 3.86 | 3.5 | 3.69 | 3.92 | 3.85 | 3.66 | 3.83 | 3.62 | 3.56 | 3.42 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -13% | -5% | -4% | +4% |
| Operating Profit CAGR | +333% | -3% | +49% | +15% |
| PAT CAGR | -43% | -3% | +59% | +23% |
| Share Price CAGR | +27% | +23% | -2% | +25% |
| ROE Average | +8% | +9% | +7% | +16% |
| ROCE Average | +10% | +12% | +10% | +22% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 | 65.34 |
| FII | 4.28 | 4.56 | 4.4 | 4.59 | 5.05 | 5.46 | 5 | 6.6 | 6.43 | 6.69 |
| DII | 10.62 | 12.16 | 11.39 | 10 | 9.9 | 10.48 | 10.05 | 9.55 | 9.99 | 10.47 |
| Public | 34.66 | 34.66 | 34.66 | 34.66 | 34.66 | 34.66 | 34.66 | 34.66 | 34.66 | 34.66 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 | 12.77 |
| FII | 0.84 | 0.89 | 0.86 | 0.9 | 0.99 | 1.07 | 0.98 | 1.29 | 1.26 | 1.31 |
| DII | 2.08 | 2.38 | 2.23 | 1.95 | 1.93 | 2.05 | 1.96 | 1.87 | 1.95 | 2.05 |
| Public | 6.77 | 6.77 | 6.77 | 6.77 | 6.77 | 6.77 | 6.77 | 6.77 | 6.77 | 6.77 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 | 19.54 |
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