Shares of Gravita India Ltd. fell nearly 8% after the company announced that it would discontinue the operations of its subsidiary, Gravita Metal Inc., with effect from August 1, 2026. The company's board approved the closure at its meeting held on July 27, alongside the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.
Gravita India said the subsidiary's operations were being discontinued because the same line of business was being carried out at its manufacturing facility in Jaipur, which offered better operational and cost efficiencies.
The decision was taken to ensure optimal utilisation of the group's resources and was not expected to have any material impact on the company's financial position, it said in an exchange filing.
During the financial year ended March 31, 2026, Gravita Metal contributed Rs 92.24 crore, or 2.65%, to the company's turnover. The subsidiary had a net worth of Rs 1 crore, representing 0.05% of Gravita India's net worth, while its profit after tax stood at Rs 1.63 crore, accounting for 0.55% of the company's PAT.
Separately, Gravita India reported a 14% year-on-year increase in consolidated net profit to Rs 106 crore for the June quarter, compared with Rs 93 crore in the corresponding period last year.
Revenue rose 41.8% to Rs 1,475 crore from Rs 1,040 crore a year earlier. Earnings before interest, tax, depreciation and amortisation increased 9% to Rs 109.7 crore from Rs 100.6 crore. However, the company's Ebitda margin contracted to 7.4% from 9.7% in the year-ago quarter.
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Gravita India Ltd. Share Price Today
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The scrip fell as much as 7.93% to Rs 1647 apiece on Tuesday at 11:00 a.m. This compares to a 0.10% rise in the NSE Nifty 50 Index.
It has fallen 7.77% in the last 12 months and 9.85% year-to-date. Total traded volume so far in the day stood at 0.27 times its 30-day average. The relative strength index was at 64.46.
Out of nine analysts tracking the company, all nine maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target of Rs 2096.56 implies an upside of 25.3%
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