Graphite India Ltd

ESG rating disclosure

• Crisil ESG Ratings assigned ESG 60 and Core ESG 66 to Graphite India Ltd.
• Rating prepared independently from public information; company did not engage Crisil.

Meeting Details

• Senior management to participate in Emkay Confluence 2026 on 14 August 2026.
• Q4 FY2025-26 earnings presentation to be delivered; available on the company's investor site.
• Event organiser: Emkay Confluence 2026.

Regulatory update: US CVD duty on large diameter electrodes

• Regulatory update: US Department of Commerce preliminarily imposes 3.68% countervailing duty on Graphite India's large diameter graphite electrodes.
• Authority: U.S. Department of Commerce; receipt date: 27.07.2026.
• Impact: financial impact is unascertainable at this juncture.
• Annexure-A contains the detailed disclosure per Listing Regulations.
• No violations reported; no material counterclaims disclosed.

Meeting Details

• Board meeting on 4 August 2026 to consider unaudited standalone/consolidated results for quarter ended 30 June 2026.

Key Agenda Items

• Approval of unaudited standalone and consolidated financial results for quarter ended 30 June 2026.

Other Notes

• Trading window closed on 1 July 2026 and will reopen on 7 August 2026.

Dematerialisation processing and listing status

• Dematerialisation requests processed; certificates mutilated and cancelled after verification; depository substituted as registered owner within prescribed timeline.
• Securities dematerialised listed on stock exchanges where the earlier issued securities are listed.
• Confirmation certificate received from the Registrar for compliance and listing.

German divisions closure

• Discontinue and close Graphite Specialities and Coating divisions in Germany.
• FY25-26 turnover from unit: INR 1,05,29,07,925 (4% of group turnover).
• Unit net worth as on 31 March 2026: negative INR (3,22,52,74,216) (-6%).
• Estimated closure timeline: about 6 months, subject to Works Council discussions.
• Reasons: lasting impact of Russia-Ukraine crisis and weak demand.
• No binding sale agreement for the unit has been entered.
• Overall consolidated net worth: INR 5,859 crores.

Overview

• Standalone BRSR for FY2025-26; core activities include graphite electrodes, CPC, impervious graphite equipment, and HSS.
• Exports contribute about 41.4% of turnover; operations at 7 domestic plants and 2 international sites.
• Main product mix accounts for 95.8% of turnover.
• CSR applicable under Companies Act; turnover Rs 281,205 lakh; net worth Rs 563,686 lakh.
• External assurance provided by TÜV India Private Limited for BRSR Core.

Key ESG Risks & Opportunities

• Natural resource availability: efficiency, water reductions, ZLD, and renewables drive sustainability and cost savings.
• GHG emissions & energy management: cleaner fuels, energy efficiency, and ongoing monitoring with corrective actions.
• Waste management: reduction, reuse, recycling with regulatory compliance and cost optimization.
• Climate change: TCFD-aligned risk assessment and structured ERM with mitigation proposals.
• Gender diversity: targets to raise female representation and foster inclusive hiring.
• Training: structured programs enhance skills, productivity, and innovation.

Governance & Policy Highlights

• Board oversight led by Executive Director; quarterly review of NGRBCs with board reporting.
• Policies cover all nine NGRBC principles; Code of Conduct, Vigil Mechanism, Whistle Blower, and Anti-Bribery policies.
• Some policies approved by Board; others managed by management; policies available on the company site.
• External assurance for BRSR Core provided by TÜV India; scope limited to nine attributes.
• No substantial fines or penalties in FY2025-26; robust anti-corruption and conflict-of-interest controls.

Social Responsibility & Workforce

• Total employees: 878; women represent 4% of employees; workers total 2512 with ~0.5% women.
• LTIFR for workers 0.36; 9 total injuries; 1 fatality; no employee fatalities.
• ISO 45001 safety management across all plants; 100% safety/working conditions assessments.
• Retirement benefits: Provident Fund, Gratuity, ESI coverage 100%.
• Human rights training: 46% of employees and 54% of workers trained; grievance mechanisms in place.

Environmental Performance

• Total energy: 2,251,388,502 MJ; renewable share 23%; energy intensity 0.08 MJ/INR turnover; 2.28 MJ/MT.
• Water: 220,471 KL withdrawal; ZLD across all facilities; water intensity 78.41 KL/₹ crore; 1.73 KL/MT.
• GHG emissions: Scope 1 93,195 MT CO2e; Scope 2 195,996 MT CO2e; total 289,191 MT CO2e; intensity 102.84 MT CO2e/₹ crore.
• Waste: total 39,923.9 MT; recycling 489.2 MT; reuse 34,509.8 MT; other recovery 4,924.8 MT; zero wastewater discharge.
• Renewable energy 23% of energy; EMS ISO 14001, OHS ISO 45001, IS0 50001, and SA8000 certifications.

Stakeholder Engagement & Complaints

• Stakeholders: communities, shareholders, investors, employees, customers, and suppliers; ongoing engagement via visits, AGM, and website.
• Complaints: customers 57 filed in FY2025-26 with 2 pending; shareholders 8 filed with 0 pending;
• Communities: grievances mechanism in place; suppliers via grievance channels; no unresolved systemic issues reported.
• Grievance policies and mechanisms accessible via company grievance portals.

Other Notable Metrics

• Supply chain: 90% of suppliers assessed for health, safety, and working conditions; 90% of value-chain partners covered.
• LCA: cradle-to-gate assessment for graphite electrodes; 75% turnover linked to LCA; results published online.
• Scope 3 emissions: 781,381 tCO2e; calculation in progress; intensity 0.000027 per turnover.
• Data privacy and cyber security: formal policy in place; data breach incidents reported as nil.
• Mangrove plantation initiated in Sundarbans to support biodiversity and coastal resilience.

Financials

• Revenue from operations (Standalone): Rs 2,812 crore.
• Profit after tax: Rs 264 crore.
• Earnings per share: Rs 13.54.
• PBIDT: Rs 460.71 crore.
• Net debt: Rs 240.16 crore; gearing 4.08%.
• ICRA: AA+ (Long term); A1+ (Short term); outlook stable.

Operations & capacity

• Graphite & Carbon revenue Rs 2,508 crore; segment profit Rs 213 crore.
• Graphite electrode capacity expansion planned: 25,000 MT total; first 13,000 MT by Q4 FY27.
• Volumes: Graphite electrodes 92,889 MT; CPC 46,362 MT; Carbon Paste 2,044 MT; IGE 2,097 MT.
• Graphite & Carbon accounts for about 89% of revenue.
• 18 MW hydel power at CCKT; 4.5 MWp solar; renewables share ~23%.
• Overseas: German electrode plant closed; Bavaria entities in liquidation; GIBV/GGC investments.

Dividend & capital allocation

• Dividend proposed: Rs 7 per equity share; record date 20 July 2026; payout by 17 August 2026.
• Board-approved debentures/bonds up to Rs 5,000 crore via private placement.
• Postal ballot approved to pay non-executive directors up to 3% of net profits; 96.49% in favor.
• Godi India Private Limited (GIPL) investments; CCPS converted; stake up to 45.76%; treated as FVTPL.

Capital structure & liquidity

• Standalone borrowings Rs 254 crore; undrawn facilities Rs 346 crore.
• Consolidated borrowings Rs 367.34 crore; net debt Rs 345.06 crore; gearing 5.56%.
• Cash & cash equivalents: Rs 13.84 crore (standalone); Rs 22.28 crore (consolidated).
• Assets pledged as security: Rs 2,541.57 crore.

ESG & CSR highlights

• CSR spend Rs 4.94 crore; unspent Rs 0.36 crore; total CSR obligation Rs 5.30 crore.
• Renewables: energy from renewables ~23%; GHG intensity 102.84 tCO2e per Rs crore turnover.
• CDP rating: B; EcoVadis percentile 61; IMS (ISO 9001/14001/45001/50001); SA8000 at Durgapur; NABL at Durgapur lab.
• 90% of suppliers assessed; 90% of inputs sourced domestically in India.
• TCFD-aligned climate risk assessment; ongoing governance for ESG improvements.

Risks & outlook

• Global steel demand projected to grow 0.3% in 2026; India growth remains robust (6.8-7.2%).
• US/Brazil antidumping investigations add market uncertainty for graphite products.
• Volatility in raw materials, energy prices, and freight costs; currency fluctuations.
• EU CBAM and carbon regulations influence exports; green-steel transition ongoing.

Governance & board

• Debanjan Mandal appointed Independent Director on 14 May 2025; Gaurav Swarup ceased 10 Aug 2025.
• Sudha Krishnan reappointed Independent Director for a second term (2026-2031).
• K. K. Bangur continues as Chairman; five Board meetings held in 2025-26.
• Auditors: S. R. Batliboi & Co. LLP reappointed; Secretarial Auditors: Bajaj Todi & Associates.

Subsidiaries & group notes

• GIPL treated as FVTPL; not consolidated; GGC goodwill impairment not recorded.
• Graphite International B.V. (GIBV) and subsidiaries form core overseas group.
• GGC impairment testing shows recoverable amount above carrying value; no impairment charge.

AGM & notices

• 51st AGM scheduled 4 August 2026 via VC/OAVM.
• AGM notices and annual report available on company website and stock exchanges.