Lloyds Metals And Energy (512455) Q2 26/27 earnings summary

Executive summary

• H1 FY27 delivered record revenue, EBITDA and PAT on standalone and consolidated bases, with best-ever H1 margins.

• Growth was supported by higher volumes, improved product mix and logistics efficiencies; strategy centers on integrating mining, beneficiation, pipelines, pellets, steel, power and copper.

• Board approvals include a 360 MW thermal plant, enabling investment in captive renewable power, further subsidiary investment and potential foreign-currency debt issuance.

Financial highlights

• Consolidated Q2 revenue was ₹5,712.06 crore and PAT ₹1,023.24 crore; H1 revenue was ₹13,009.01 crore and PAT ₹2,790.98 crore.

• Standalone Q2 revenue was ₹4,220.60 crore and PAT ₹1,111.89 crore; H1 revenue was ₹9,728.91 crore and PAT ₹2,638.82 crore.

• H1 consolidated EBITDA was INR 45,956 Mn, up 151% YoY; consolidated Q2 EBITDA was INR 18,035 Mn, up 75%.

• Standalone H1 EBITDA was INR 36,582 Mn, up 126% YoY; Q2 EBITDA was INR 15,380 Mn, up 83%.

• Consolidated H1 basic EPS was ₹49.28 versus ₹23.16 YoY; Q2 basic EPS was ₹18.57 versus ₹11.04.

Outlook and guidance

• FY27 production guidance: iron ore 26 MnT, pellets 7.75–8 MnT and DRI 825 KT; management expects iron ore volumes above 8 million tons and pellet capacity to rise from 8 million to 9.6 million tons within 3–4 months.

• Blast furnace and coke oven startup is expected in Q4; steel plant and wire rod mill startup is targeted for Q1 2027, with the steel plant delayed by about a quarter.

• Chemaf copper and cobalt projects target completion by FY-end and production in FY28; the FY27 copper target was revised to 5,850 tons from 8,000 tons.

• BHQ beneficiation benefits are expected from FY29; deliverable iron ore capacity is expected to remain 26 million tons.

• H2 volumes are expected to rise in iron ore, MDO, pellets and DRI, while copper operations are expected to be slower; savings from mining and pellet initiatives could exceed INR 2,000 crore per annum as they mature.