Graphite India share price edged higher in early trade on Thursday, July 9, after the company announced the closure of its Graphite Specialties and Coating divisions in Germany. The decision comes as the company continues to grapple with the prolonged impact of the Russia-Ukraine war and subdued demand, which have hurt the competitiveness of these businesses.
At around 12:11 pm, the Graphite India share price was trading 0.7% higher at ₹578.85 apiece. Despite the day's gains, the stock has declined nearly 13% over the past month.
Graphite India said its local management in Germany has decided to discontinue operations of the Graphite Specialties and Coating divisions after evaluating the long-term business environment.
According to the company, the prolonged effects of the Russia-Ukraine conflict, coupled with weak market demand, have significantly impacted the competitiveness of these businesses. The shutdown process is expected to be completed within six months, subject to discussions with the local Works Council.
The two divisions generated a combined turnover of ₹105.29 crore during FY26. However, as of March 31, 2026, they reported a negative net worth of ₹322.53 crore, highlighting the financial strain on these operations. In comparison, Graphite India's consolidated net worth stood at ₹5,859 crore.
The company's latest quarterly results reflected the challenging operating environment.
For the quarter ended March 2026, Graphite India's net profit declined to ₹16 crore, compared with ₹29 crore in the corresponding period last year. It also reported an operating loss (EBITDA) of ₹10 crore, against a positive EBITDA of ₹62 crore a year ago.
Revenue from operations fell 12% year-on-year to ₹720 crore, indicating continued pressure on demand and profitability.
Despite weaker earnings, Graphite India recommended a dividend of ₹11 per equity share (face value ₹2). This marks the company's highest dividend payout since June 2019, when it declared a dividend of ₹35 per share.
Read more: Best Monopoly Stocks in India for July 2026 Based on 5-Year CAGR: Coal India, MCX and Others.
The closure of the German businesses reflects Graphite India's efforts to streamline operations and exit loss-making segments amid persistent global challenges. While the announcement supported the Graphite India share price in early trade, investors with a demat account are likely to remain focused on whether the restructuring improves profitability and supports the company's long-term growth prospects.
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Published on: Jul 9, 2026, 12:11 PM IST
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