Godawari Power & Ispat (GPIL) Q3 25/26 earnings summary

Executive summary

• 9M FY26 saw resilient operational performance with EBITDA and PAT margins at 22% and 14%, despite softer realizations and a temporary pellet plant disruption.

• Strategic progress included doubling Ari Dongri mine capacity, commissioning a new 2 MnT pellet plant, and advancing CRM, solar, and BESS projects.

• Approved disposal of 37.85% stake in Ardent Steels for Rs 90.87 Crores, with completion by June 2026.

• Strong net cash position and ongoing capacity expansions support sustainable value creation.

Financial highlights

• Q3 FY26 consolidated revenue was Rs 1,139.45 Crores, down 13% QoQ and 12% YoY; 9M FY26 revenue was Rs 3,770 Crores, down 4% YoY.

• Q3 FY26 EBITDA was Rs 230 Crores (20% margin), up 4% YoY; 9M FY26 EBITDA was Rs 814 Crores (22% margin), down 7% YoY.

• Q3 FY26 PAT was Rs 143.45 Crores (13% margin), nearly flat YoY; 9M FY26 PAT was Rs 521.51 Crores (14% margin), down 12% YoY.

• Standalone Q3 FY26 PAT was Rs 148.54 Crores (15% margin), up 9% YoY; 9M FY26 PAT was Rs 597 Crores, up 6% YoY.

• Other expenses declined 11% QoQ, mainly due to lower pellet volumes and reduced domestic coal costs.

Outlook and guidance

• FY27 CapEx projected at INR 2,000 crore ± 200 crore, focused on CRM, solar, and BESS; steel plant CapEx not included.

• Revenue guidance for FY28 is INR 12,000-15,000 crore, with free cash flow of INR 2,000-2,500 crore annually if no new steel plant is pursued.

• FY26 production guidance: Iron ore mining 3.0 MnT, pellets 3.0 MnT, sponge iron 0.594 MnT, steel billets 0.5 MnT.

• Additional Rs 200 Crores investment in GNEPL targets BESS plant setup, indicating a strategic focus on energy storage and diversification.

• Decision on a new 1 million ton steel plant (INR 5,000 crore CapEx) expected by next board meeting.