Godawari Power & Ispat (GPIL) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 saw stable to modest revenue and PAT growth year-over-year, with higher production and sales volumes of pellets and galvanized products, though realizations were softer and a pellet plant incident caused temporary disruption.

• EBITDA and PAT margins remained healthy at 22% and 14% for H1, and 20% and 12% for Q2, with consolidated Q2 revenue at ₹1,308 Cr (up 3% YoY) and PAT at ₹162 Cr (up 1% YoY).

• Strategic initiatives included land acquisition for new integrated steel and CRM complexes, expansion of mining capacity, and new solar and battery energy storage projects.

• Approved unaudited standalone and consolidated financial results for Q2 and H1 FY26, with auditor review confirming compliance and no material misstatements.

• Allotted 2,04,08,220 equity warrants at Rs.245 per warrant, raising Rs.125 crore as 25% upfront payment, with the remainder due at conversion within 18 months.

Financial highlights

• H1 FY26 consolidated revenue: ₹2,631 Cr (up 1% YoY), EBITDA: ₹584 Cr (down 11% YoY), PAT: ₹378 Cr (down 15% YoY); Q2 FY26 consolidated revenue: ₹1,308 Cr (up 3% YoY), EBITDA: ₹260 Cr (up 5% YoY), PAT: ₹162 Cr (up 1% YoY).

• Standalone revenue from operations for Q2 FY26 was Rs.1,142.57 crore, up from Rs.1,096.31 crore in Q2 FY25; standalone net profit for Q2 FY26 was Rs.248.40 crore, up from Rs.154.56 crore.

• Dividend income of Rs.94.03 crore from joint ventures and associates contributed to other income.

• EBITDA margin in Q2 FY26 improved to 20% from 19% YoY; PAT margin at 12% in Q2 FY26.

• Standalone PAT for H1 FY26: ₹449 Cr (up 6% YoY), with a margin of 20%.

Outlook and guidance

• 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; H1 FY26 achievement: 43–55% of annual guidance.

• 250 MWp solar power plant to be operational by March 2027, supporting steel operations and reducing reliance on thermal/grid power.

• Battery energy storage system plant investment to be completed by March 2027.

• New pellet plant (2 million tons) commissioning targeted by end of November 2025, with 80-85% utilization expected from Q4.

• Iron ore mining expansion to six million tons expected to ramp up from April 2026, reaching full capacity by January 2027.