Graphite India shares rocket over 18% to extend gains for second session. What’s behind the surge?

Shares of Graphite India surged as much as 18.5% to Rs 870 on the BSE on Wednesday after global graphite electrode maker GrafTech International announced a 30% price increase, raising expectations of firmer electrode pricing globally.

The development gains significance as Graphite India is currently the only listed pure-play company in the space. HEG is also a listed graphite manufacturer, although following the demerger of its Graphite Electrodes business, the new entity is expected to be listed on the exchanges next month.

GrafTech International announced a minimum 30% increase in graphite electrode prices a day earlier, effective immediately for all open commercial negotiations. The company said the move reflects the continued need to restore graphite electrode pricing to sustainable levels that support ongoing investment in production capabilities and reliable long-term supply for customers.


The latest increase follows its March 2026 pricing action, when graphite electrode prices were raised by a minimum of $600 to $1,200 per metric ton.

Higher electrode prices could potentially translate into better margins and realisations for Graphite India. According to the company's Q1 investor presentation, it has a manufacturing capacity of 80,000 tonnes per annum, making it the largest Indian producer of graphite electrodes.

Graphite India financial performance

Graphite India reported a 28.4% year-on-year rise in net profit to Rs 172 crore in the June quarter, compared with Rs 134 crore a year earlier. Revenue rose 26.6% to Rs 842 crore from Rs 665 crore in the previous fiscal.

EBITDA increased to Rs 144 crore from Rs 43 crore in the June quarter last year, while the operating margin expanded to 17.1% from 6.4% in the year-ago period.

Graphite India’s operating margin rose sharply to 17.1% from 6.4% a year earlier, marking a significant improvement in profitability.

The improvement comes after a difficult March quarter for the company, when earnings declined sharply. Net profit had nearly halved during the quarter, while the company reported an operating loss as weaker demand impacted performance.

Graphite India is one of India’s leading manufacturers of graphite electrodes, which are a key input in electric arc furnaces used for steel production. The company also produces carbon and graphite speciality products and exports to several international markets, leaving its performance exposed to global demand trends and trade policies.

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