GRAVITA: Q2 growth and copper gains offset lead sourcing pressure as capacity and procurement expand

What happened

Gravita reported 40% growth in H1 revenue, with EBITDA up 29% and PAT up 10%. Q2 revenue rose 38% year on year as value-added products and copper supported results, while scrap sourcing disruptions weighed on lead volumes. Capacity expansion and sourcing diversification remain priorities.

Confirmed

Global impact / market context

Faster revenue growth than profit growth suggests costs or weaker product mix are compressing profit per sale, which means earnings rise more slowly than sales. The company's plan to expand capacity and diversify scrap sourcing aims to reduce dependence on disrupted lead supply and support future volumes.

Analyst inference

Gravita sits in metals recycling, where raw material availability, meaning access to scrap, drives output and costs. Diversifying procurement and adding capacity may reduce supply risk over time, but near-term lead volume pressure could weigh on results despite strong copper and value-added product demand.

Analyst inference

What to watch

1. Watch whether scrap sourcing disruptions continue to weigh on lead volumes in coming quarters, and whether the company's sourcing diversification efforts begin to ease that pressure. Confirmed
2. Monitor progress on the stated capacity expansion and sourcing diversification priorities, including whether these efforts add volume and reduce reliance on any single scrap supply channel. Proposed
3. Track whether copper and value-added products keep supporting revenue enough to offset lead weakness, and whether profit per sale improves as the revenue base grows. Analyst inference

Evidence

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