Gravita India shares dropped to a day’s low of ₹1,647 on Tuesday, even as the company posted strong Q1 FY27 revenue and profit growth.

The drop looks odd at first glance, since the topline story was genuinely good. Revenue jumped 42% year on year to around ₹1,475 crore, and net profit rose 14% to ₹106.4 crore.

EBITDA grew 20% to ₹157.6 crore, but the EBITDA margin actually shrank, slipping to about 10.3% from 12.2% a year earlier.

The culprit was Gravita’s newly acquired copper business, which added revenue but came in at a much thinner margin than the company’s core lead operations, dragging the overall profitability ratio down even as absolute earnings grew.

Breaking it down by segment helps explain what happened. The lead business, still Gravita biggest earner, grew revenue 3% to ₹955 crore, though its own profit dipped 5%.

Aluminium did better, with revenue up 17% and profit jumping 73%. Plastics had the standout quarter, with revenue climbing 62% and profit more than tripling.

The copper business, newly folded in through the Rashtriya Metal Industries acquisition, added ₹376 crore in revenue and ₹15.7 crore in profit for the quarter, its first full contribution since the deal closed.

That copper deal is a bigger story than just one quarter’s numbers. Gravita bought a 99.44% stake in Rashtriya Metal Industries for ₹561.84 crore, marking its first real move into copper and copper alloys.

The company also got its Mundra plant’s lead metal listed on the London Metal Exchange under the brand GRAVITA M, and started a small pilot project to recycle lithium-ion batteries, both steps toward diversifying beyond its traditional lead business.

Even with the margin dip, Gravita’s core lead unit held up well on a per tonne basis, earning more per tonne than what management had guided for at the start of the year.

At 14:04 pm, the stock was trading around ₹1,658.80 on the NSE, still down over 7,27% for the day.

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