Gravita has acquired Rashtriya Metals Industries Limited (RMIL), one of Indiaâs oldest copper manufacturers, for â¹565 crore (RMIL clocked a turnover of â¹910 crore in FY25).
The deal marks Gravitaâs entry into the copper recycling business and will take its total copper capacity from 334 ktpa as of FY25-end to 340 ktpa. An additional 45 ktpa capacity will also be commissioned this quarter; both projects will be completely operational by Q2FY27.
Gravita has expanded its lead recycling capacity by 80,300 tpa to 1,45,100 tpa, using internal accruals of â¹49 crore. The expansion would bolster its recycling capabilities in the long run, helping it to cater to rising demand for sustainable lead products.
Gravita has also launched 6,000-tpa lithium-ion battery recycling plant at Mundra at an investment of about â¹14 crore.
For Gravita, the rising supply of scrap resources, favourable polices, implementation of Battery Waste Management Rules (BMWR), EPR, Reverse Charge Mechanism (RCM) will boost output, while the Mundra plant will benefit from the focus on electric vehicles and clean energy.
By FY29, the company eyes 50 per cent of its contributions from value-added products (VAPs). At CMP, Gravita trades at a 33x/27x multiple on FY27E/FY28E EPS. We maintain a Buy rating with a PT of â¹2,000 (28x on FY28E EPS).
Key Risks: Regulatory tailwinds on scrap procurement; Highly volatile global aluminium prices will tighten scrap availability that could affect procurement and processing volumes. Published on February 27, 2026 Comments have to be in English, and in full sentences.
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