India: Gravita expands Jaipur lead recycling capacity amid rising battery demand

• Jaipur unit capacity rises by 40,500 t/year 
• FY26 revenue crosses INR 3,480 crore

Gravita India Limited has expanded its lead recycling capacity at its Phagi facility in Jaipur, Rajasthan, by 40,500 metric tonnes per annum (t/year), taking the plant’s total lead recycling capacity to 75,819 t/year, according to a regulatory filing dated 20 May 2026. The expansion reinforces the company’s focus on strengthening its position in India’s secondary lead market amid growing demand from automotive batteries, telecom backup systems, and energy storage applications.

Capacity expansion to improve scale efficiencies

Gravita disclosed the expansion to stock exchanges under SEBI norms. The added capacity is expected to improve scale and strengthen its secondary lead market presence. Founded in 1992 by Rajat Agrawal, the company operates recycling businesses across lead, aluminium, plastic, rubber, and batteries, with lead contributing nearly 88% of FY24 revenue.

Financial performance underpins expansion

The company’s healthy financial performance supported its latest expansion strategy. Gravita reported revenue of INR 3,481.37 crore in FY25-26, while net profit stood at INR 297.02 crore. Operating profit margin (OPM) was recorded at 11.2%, with net profit margin (NPM) at 8.53%. In the March 2026 quarter, revenue increased to INR 914.60 crore from INR 863.79 crore in December 2025, indicating stronger business activity, although quarterly net profit eased marginally to INR 69.67 crore from INR 72.18 crore.

Battery demand likely to support utilisation

Industry participants expect India’s secondary lead demand to remain firm, supported by replacement demand in automotive batteries, expanding telecom infrastructure, and growth in renewable energy storage systems. Gravita’s FY25 annual report also highlighted a strong focus on battery waste management and circular economy solutions, aimed at strengthening raw material security and long-term margins.

A market participant noted that organised recyclers with higher processing capacities are likely to benefit from rising preference for recycled metals and tighter environmental compliance in the battery value chain.

Outlook

The Jaipur expansion is expected to improve Gravita’s economies of scale and reinforce its competitive positioning in India’s recycled lead market. In the near term, higher battery consumption and increasing preference for sustainable raw materials are likely to support stable utilisation for secondary lead recyclers.