Graphite India shares crash 13% as Q3 earnings disappoint Street

Graphite India shares have tanked nearly 16 percent in the last month.

Shares of Graphite India tumbled as much as 13 percent to Rs 402 on February 12 after the company’s third-quarter earnings failed to meet investor expectations. The company reported a net loss of Rs 20 crore, a sharp reversal from the Rs 18 crore profit recorded in the same quarter last year, as revenue and profitability took a hit.

Revenue for the quarter fell 24.2 percent year-on-year to Rs 523 crore from Rs 690 crore, reflecting continued demand weakness. However, the company’s EBITDA loss narrowed slightly to Rs 8 crore from Rs 13 crore in Q3 FY24.

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The company’s near-term outlook hinges on a recovery in global steel demand, as graphite electrodes are essential in electric arc furnace-based steel production. However, persistent cost pressures and sluggish demand continue to pose challenges.

Graphite India’s performance remains under pressure due to weak global demand, cost inflation, and volatile raw material prices. These headwinds have weighed on profitability, with the company struggling to maintain margins despite cost-cutting efforts.

A key player in the graphite electrodes market, Graphite India also manufactures specialty carbon and graphite products, GRP (glass-reinforced plastic) pipes, and steel. It exports graphite electrodes to major markets, including the US, Europe, the Middle East, and Southeast Asia.

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However, shares of the company closed at Rs 44, lower by 3.4 percent, paring almost all losses. Graphite India shares have tanked nearly 16 percent in the last month.

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