Revenue and Profitability Trends
Graphite India’s net sales have seen significant volatility over the past six years. The company recorded a peak revenue of ₹7,858 crores in March 2019, followed by a sharp decline to ₹1,958 crores in March 2021. Since then, sales have gradually recovered, reaching ₹2,560 crores by March 2025. This fluctuation reflects the challenges faced in the market and operational adjustments undertaken by the company.
Operating profit margins excluding other income have mirrored this volatility. The margin was exceptionally high at 63.9% in 2019 but plunged into negative territory in 2020 and 2021, with margins of -2.6% and -10.5% respectively. Recovery began in 2022 with a margin of 15.7%, stabilising near 10% in the latest fiscal year. The operating profit (PBDIT) including other income also followed a similar pattern, with a notable dip in 2021 and a rebound to ₹692 crores in 2025.
Profit after tax (PAT) has been equally variable. After a robust ₹3,399 crores in 2019, the company posted a loss in 2021 before returning to profitability with ₹458 crores in 2025. The PAT margin stood at 17.9% in the latest year, down from a high of 43.2% in 2019 but significantly improved from the negative margins seen earlier in the decade.
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Cost Structure and Operational Efficiency
The company’s raw material costs have generally tracked revenue trends, decreasing from ₹2,283 crores in 2019 to ₹1,059 crores in 2025. Employee costs have remained relatively stable, hovering around ₹300 crores annually, while power costs and manufacturing expenses have fluctuated in line with operational scale. Notably, the company has not reported any selling and distribution expenses during this period, which may reflect its business model or accounting practices.
Total expenditure excluding depreciation has decreased from ₹2,835 crores in 2019 to ₹2,306 crores in 2025, indicating some cost control despite revenue pressures. Depreciation charges have risen modestly, consistent with asset base expansion.
Balance Sheet and Asset Growth
Graphite India’s total assets have grown steadily from ₹5,527 crores in 2021 to ₹7,227 crores in 2025. The net block of fixed assets increased from ₹638 crores to over ₹1,093 crores in the same period, reflecting ongoing capital investments. Capital work in progress also rose, signalling continued expansion or modernisation efforts.
Shareholders’ funds have strengthened, rising from ₹4,542 crores in 2021 to ₹5,866 crores in 2025, supported by accumulated reserves. The company’s book value per share has improved from ₹232 in 2021 to ₹300 in 2025, indicating enhanced net worth per share.
Debt levels have been reduced significantly from ₹432 crores in 2022 to ₹172 crores in 2025, suggesting a focus on deleveraging and strengthening the balance sheet. Current liabilities have increased moderately, but net current assets remain robust at nearly ₹3,794 crores in 2025.
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Cash Flow and Liquidity Position
Cash flow from operating activities has shown marked improvement, recovering from negative ₹488 crores in 2022 to a positive ₹500 crores in 2025. This turnaround highlights better working capital management and operational cash generation. Investing activities have generally been cash outflows in recent years, consistent with capital expenditure, while financing activities have seen net outflows, reflecting debt repayments and possibly dividend payments.
Net cash inflow was ₹71 crores in 2025, a significant improvement from prior years’ outflows. Closing cash and cash equivalents increased to ₹108 crores in 2025, up from ₹36 crores in 2024, indicating a healthier liquidity buffer.
Earnings per share have fluctuated widely, from a high of ₹174 in 2019 to a low negative in 2021, before settling at ₹23.69 in 2025. This volatility underscores the company’s cyclical performance but also its recovery potential.
Conclusion
Graphite India’s historical performance reveals a company that has faced significant challenges but is on a path of recovery and consolidation. Revenue and profitability have stabilised after steep declines, while the balance sheet shows signs of strengthening through reduced debt and increased net worth. Operational efficiencies and cash flow improvements further support a positive outlook. Investors should consider these factors alongside market conditions when evaluating Graphite India’s prospects.
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