Godawari Power & Ispat (GPIL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw steady operational performance with EBITDA and PAT margins of 24% and 15%-16%, respectively, and production volumes in line with guidance, despite lower iron ore mining due to regulatory delays.

• Consolidated revenue from operations for Q1 FY26 was ₹1,323.25 crore, down from ₹1,468.08 crore in the previous quarter and ₹1,342.48 crore in Q1 FY25.

• Strategic CapEx of INR 1,600 crore approved for a cold rolling mill and a battery energy storage system (BESS) project, both targeting commissioning by March 2027.

• Over 25 years of industry experience with a fully integrated value chain from iron ore mining to finished steel products.

• Strong ESG focus with significant investments in renewable energy and decarbonization initiatives.

Financial highlights

• Q1 FY26 consolidated revenue: ₹1,323 Cr (down 10% QoQ, down 1% YoY); operating EBITDA: ₹324 Cr (up 2% QoQ, down 20% YoY); EBITDA margin at 24%.

• PAT: ₹216 Cr (down 2% QoQ, down 24% YoY); PAT margin at 16%.

• EPS dropped from ₹4.59 to ₹3.52 YoY, mainly due to lower selling prices.

• Net cash position at ₹863 Cr as of FY25.

• Consolidated EBITDA for Q1 FY26 was ₹349.65 crore.

Outlook and guidance

• Management confident of achieving full-year volume guidance, with 20%-30% of FY26 volume already achieved in Q1.

• FY26 production guidance: 3.0 MnT iron ore, 3.0 MnT pellets, 0.594 MnT sponge iron, 0.5 MnT steel billets, 0.375 MnT rolled products, 91,500T ferro alloys.

• Expectation of improved pricing and profitability as the industry enters a busier season.

• Major capex projects (CRM, BESS, solar) on track for phased completion by FY26.

• Pellet expansion and mining capacity upgrades are on track, with key approvals expected by Q3 FY26.