Graphite India: Sparking the Next Electrode Upswing

GRAPHITE

• Company snapshot

India’s largest graphite electrode manufacturer; also produces specialty graphite, impervious graphite equipment, GRP pipes and high-speed steel.

Capacity of ~98,000 TPA across plants at Durgapur and Nashik; Germany plant closed. Utilisation stood at ~83% in FY25.

Investing in advanced carbon technologies; announced ~25,000 TPA capacity expansion (~123,000 TPA target).

• Market context

Rising share of electric-arc-furnace (EAF) steel globally supports electrode demand.

US anti-dumping duty (~93.5%) on Chinese graphite improves non-Chinese producers’ competitive positioning.

Valuation & stock stats (Oct 2025)

Share price ~₹625; 52-week range ~₹365–₹638.

Market cap ~₹122 billion; P/E ~34; P/B ~2.1; dividend yield ~1.8%.

Peer: HEG and other electrode-cycle players.

• Key fundamentals

Q1 FY26 results: Total income ~₹789 crore; PAT ~₹145 crore; EBITDA ~₹200 crore.

Business mix (FY25): Graphite & Carbon ~89%; Steel ~9%; Others ~2%.

Ownership: Promoters ~65% (no pledge); FIIs ~6.6%; MFs ~7.5%; DIIs ~9.6%.

Capacity & capex

Base electrode capacity ~98,000 TPA; plan to expand by ~25,000 TPA.

Expansion capex ~₹600–650 crore; timeline yet to be fully disclosed.

• Technical view

Trend: Price is above 200-day moving average (~₹559); near 52-week high.

Support zone: ~₹480–₹510–₹546.

Resistance/breakout zone: ~₹630–₹640.

Strategy: Positive momentum; consider buying on dips with support around ₹540.

• Actionable watch-points

Electrode price trends and needle-coke spread (core margin driver).

Execution of the ~25,000 TPA expansion—schedule, funding, payback.

EAF steel cycle developments in India and globally.

Policy/anti-dumping updates impacting Chinese graphite supply.

Capital allocation: capex vs dividend, progress in advanced carbon tech.

• Key risks

Slowdown in EAF steel or electrode demand; sharp rise in raw-material (needle coke) costs.

Reversal of favourable trade or tariff policies.

Expansion delays or weaker‐than‐expected product mix shift to lower margin grades.

• Stance

Fundamental: Strong balance sheet, favorable cycle exposure, expansion potential.

Technical: Bullish bias


⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.


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Trade Secrets By Pratik
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