Gallantt Ispat (GALLANTT) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue from operations rose 13% YoY to Rs 1,14,589.15 lakh, while EBITDA fell to INR 111 crore and profit for the period declined to Rs 6,051.07 lakh.

• Gorakhpur expansion is in commissioning, with operations expected in November 2026 and 85%-90% utilization targeted by December, subject to commissioning issues.

• Integration advanced with a Singrauli coal-block award; a larger raw-material-led greenfield growth plan is expected in Q4 FY27.

Financial highlights

• Q2 revenue from operations was Rs 1,14,589.15 lakh vs Rs 1,01,275.02 lakh YoY; total income was Rs 1,16,404.39 lakh vs Rs 1,02,596.67 lakh.

• Q2 EBITDA was INR 111 crore vs INR 135 crore YoY and INR 185 crore QoQ; margin was 9.64% vs 12.91% and 16.19%, respectively.

• Q2 PBT was Rs 8,317.37 lakh vs Rs 10,300.75 lakh YoY; profit for the period was Rs 6,051.07 lakh vs Rs 8,892.62 lakh.

• H1 revenue was Rs 2,29,155.86 lakh vs Rs 2,14,052.86 lakh; PBT was Rs 24,798.81 lakh and profit for the period was Rs 18,417.78 lakh, both lower YoY.

• EPS was Rs 2.51 in Q2 vs Rs 3.62 YoY; H1 EPS was Rs 7.63 vs Rs 10.82.

Outlook and guidance

• Expanded Gorakhpur capacity is expected to start in November 2026; management targets 85%-90% utilization by December and full potential in Q4, subject to commissioning.

• Firmer steel prices, post-monsoon construction activity, Gorakhpur restart and added capacity are expected to support H2 recovery; no specific margin target was given.

• Solar projects are expected to save INR 30 crore-INR 40 crore annually in power costs once operational; Prayagraj’s 60 MW plant is on track for Q4.

• Iron-ore mines targeted for FY28 are expected to add ~INR 2,000 per ton to EBITDA as output ramps; full plant feed is not expected in the first 1-2 years.

• A larger raw-material-led greenfield growth plan is expected in Q4 FY27, subject to land acquisition and state incentives.