Shares of Graphite India Ltd remained in focus on Thursday after the company announced the closure of its Graphite Specialties and Coating divisions in Germany, a strategic move aimed at addressing prolonged operational challenges in Europe. 

According to the company’s regulatory filing, the decision follows the continued impact of the Russia-Ukraine conflict, elevated operating costs, and weak market demand, all of which have significantly reduced the competitiveness of these businesses. The closure process is expected to be completed over the next six months, subject to consultations with the local Works Council.

During FY2025-26, the two German divisions generated a combined turnover of Rs 105.29 crore. However, as of March 31, 2026, they reported a negative net worth of Rs 322.53 crore, compared with the group’s consolidated net worth of Rs 5,859 crore. By exiting these loss-making operations, Graphite India aims to improve operational efficiency and sharpen its focus on businesses with stronger long-term profitability.

The announcement follows a challenging fourth quarter for the company. Graphite India reported a sharp decline in profitability, with net profit falling to Rs 16 crore from Rs 29 crore in the corresponding quarter last year. Revenue also slipped 12% year-on-year to Rs 720 crore, while the company posted an operating loss of Rs 10 crore against a positive EBITDA of Rs 62 crore a year earlier, reflecting continued pressure on margins amid subdued global graphite electrode demand.

Over the past six months, the company has continued engaging with institutional investors through multiple analyst meetings and investor presentations while maintaining regular regulatory disclosures. It also announced a final dividend of Rs 7 per equity share for FY2025-26, reaffirming its commitment to shareholder returns despite the challenging business environment.

Following the latest announcement, Graphite India shares traded around Rs 583 in early trade on July 9, rising nearly 0.7%. Although the stock has declined over the past month, investors will closely monitor whether the restructuring helps strengthen the company’s financial performance in the coming quarters.

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