Shares of Graphite India Ltd. are in focus on Wednesday, September 9, on the back of the GrafTech International's stock rising 15% overnight on the Wall Street. GrafTech International shares surged after the company announced a minimum 30% increase in graphite electrode prices.
It cited the need to restore electrode pricing to sustainable levels. This comes after its recent announcement of 51kt capacity reduction. According to analysts, GrafTech's latest announcement is a positive read through for Graphite India and HEG's Graphite Electrodes business.
At the moment, Graphite India is the only listed entity in this space, as HEG's Graphite Electrodes business is set to be listed on the exchanges next month, after the company's demerger. As per rough calculations, GrafTech's average Graphite Electrode realization stood at $4,100 per tonne.
Analysts expect that figure to reach $6,250 per tonne by financial year 2028. In case the prices do move in this trajectory, this could potentially translate into an increase in Indian Graphite Electrode Realisations by $1,500 per tonne. Graphite India reported its first quarter earnings last month.
Its net profit increased by up 28.4% at ₹172 crore in the June quarter from ₹134 crore last year. Its revenue increased 26.6% to ₹842 crore from ₹665 crore in the previous fiscal. The company's earnings before interest taxes depreciation and amortization surged to ₹144 crore from ₹43 crore in the June quarter last year.
Its operating margin expanded to 17.1% from 6.4% in the year-ago period. Shares of Graphite India ended 2.5% higher on Tuesday at ₹734.95. The stock has also turned positive on a year-to-date basis, and is now up 13.4% so far for 2026.