Lloyds Metals And Energy (512455) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 marked by major milestones: commissioning of a 4MT pellet plant and pipeline at Konsari, environmental clearance for mining expansion to 26-55MT, and acquisition of Thriveni MDO operations, boosting cost efficiency and margins.

• Strategic investments in Mandovi River Pellets (Goa) and Brahmani River Pellets (Odisha) expand market access across India, raising pellet capacity from zero to 9.5MT, with a target of 13.5MT next year.

• Construction of the Ghugus steel plant and wire rod mill is progressing, with pre-commissioning of the DRI kiln underway.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2025 were reviewed and approved by the Board and Audit Committee on 12th August 2025.

• Statutory auditors issued unqualified limited review reports for both standalone and consolidated results, confirming compliance with Ind AS and SEBI regulations.

Financial highlights

• Q1 FY26 total income: INR 24,084 million, flat YoY, up 99% QoQ; EBITDA: INR 8,087 million, up 12% YoY and 188% QoQ; PAT: INR 6,346 million, up 14% YoY and over three times higher QoQ; EBITDA margin: 33.6%.

• Standalone revenue from operations for Q1 FY26 was ₹2,377.03 Cr, up from ₹1,182.66 Cr in Q1 FY25; standalone PAT was ₹634.58 Cr.

• Iron ore sales volume was 3.45MT, up 2% YoY and 107% QoQ; average realization INR 6,061/ton, up 6% YoY.

• DRI volume was 78,900 tons, up 3% YoY; DRI realizations down 10% YoY due to market softness.

• CapEx program is on schedule, with INR 13,270 million spent in Q1 FY26 and simultaneous execution across three locations.

Outlook and guidance

• Confident of sustaining growth momentum, with TEPL acquisition consolidation from Q2 FY26 expected to further enhance earnings.

• Guidance for 22MT iron ore mining in FY26, with robust evacuation plans leveraging pipelines, trucking, and rail sidings.

• BHQ beneficiation plant phase one to accelerate to 30MT input, yielding 10MT output, maintaining 26MT total iron ore output.

• CapEx guidance of INR 7,500-8,000 crore per year for the next three years.

• No explicit forward-looking guidance provided, but segment and capital allocation changes indicate ongoing strategic focus on mining and steel segments.