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

Executive summary

• Q1 FY26 saw stable operational performance with consolidated revenue at ₹1,323.25 crore, EBITDA margin at 24%, and PAT margin at 15%-16%, despite lower iron ore mining due to delayed approvals and YoY declines from lower realizations.

• Over 25 years of industry experience with a backward-integrated model, including captive iron ore mines and power generation, supporting a comprehensive steel value chain and new growth initiatives.

• Strategic CapEx of INR 1,600 crore approved for a 0.7MnT cold rolling mill and a 10 GW BESS project, both targeting commissioning by March 2027.

• Galvanized product volumes surged YoY after PGCIL approval, with further growth expected.

• Standalone revenue for Q1 FY26 was ₹1,133.93 crore, with standalone net profit after tax at ₹200.50 crore.

Financial highlights

• Q1 FY26 consolidated revenue: ₹1,323 Cr (down 10% QoQ, down 1% YoY); EBITDA: ₹324 Cr (up 2% QoQ, down 20% YoY); PAT: ₹216 Cr (down 2% QoQ, down 24% YoY).

• Consolidated EBITDA for Q1 FY26 was ₹349.65 crore; consolidated net profit margin was approximately 16.4%.

• EPS for Q1 FY26: ₹3.50 (consolidated, diluted), down 23% YoY.

• Standalone EPS (basic) for Q1 FY26 was ₹3.10, down from ₹4.18 in Q1 FY25.

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

Outlook and guidance

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

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

• Expectation of improved pricing and profitability as the busy season approaches and steel prices rise.

• Iron ore and steel prices expected to remain range-bound; domestic demand supported by infrastructure growth.

• CapEx deployment for the steel plant will proceed only after mining EC approval, with major outlays expected in FY28.