Graphite India to discontinue two Germany divisions amid weak demand

Graphite electrode manufacturer Graphite India Ltd on Wednesday (July 8) said it will discontinue and close the operations and associated service activities of its Graphite Specialities and Coating divisions in Germany, citing the lasting impact of the Russia-Ukraine war and weak demand.The company said these factors have adversely affected the competitiveness of the two divisions, leading the local management to take the decision to shut the operations. The closure is expected to be completed within six months, subject to discussions with the local Works Council.

During FY26, the affected divisions contributed ₹105.29 crore, or 4%, of the company’s turnover. As of March 31, 2026, the divisions had a negative net worth of ₹322.53 crore, while the company’s overall consolidated net worth stood at ₹5,859 crore.ALSO READ |

Explained – What is aiding the up to 13% surge in HEG and Graphite India sharesFourth Quarter Results

For the January – March quarter, Graphite India’s net profit fell by nearly half to ₹16 crore from ₹29 crore it reported during the same period last year.

The company reported an operating loss of ₹10 crore, compared to a positive EBITDA of ₹62 crore in the year-ago quarter. Revenue for the quarter also declined by 12% year-on-year to ₹720 crore.

It also recommended a dividend of ₹11 per share of face value of ₹2 each. This is the highest payout announced by the company since June 2019, when it paid ₹35 per share to shareholders. Post approval from shareholders, the dividend will be dispatched within 15 days of the AGM.

Shares of Graphite India Ltd ended at ₹581.10, down by ₹22.75, or 3.77%, on the BSE.