Godawari Power & Ispat (GPIL) Q4 24/25 earnings summary

Executive summary

• Achieved highest-ever production in key segments such as sponge iron, iron ore pellets, ferro alloys, steel billets, silico manganese, and power in FY25, despite a challenging pricing environment.

• Revenue and EBITDA declined slightly year-over-year due to lower realizations, but PAT from continuing operations remained resilient.

• Consolidated revenue from operations for FY25 reached ₹5,455.35 crore, up from ₹5,375.73 crore year-over-year.

• Net profit after tax for FY25 was ₹935.59 crore, compared to ₹812.98 crore in FY24.

• Maintained a net cash balance sheet with zero net debt and consolidated group structure.

Financial highlights

• FY25 consolidated revenue: ₹5,455.35 crore (up YoY); EBITDA: ₹1,194 crore (down 10% YoY); PAT: ₹935.59 crore (up YoY).

• Q4 FY25 revenue: ₹1,468 crore (down 4% YoY); EBITDA: ₹318 crore (up 44% QoQ, down 3% YoY); PAT: ₹221 crore (up 53% QoQ, up 1% YoY).

• FY25 EBITDA margin: 22% (down from 24% in FY24); PAT margin: 15% (down from 17% in FY24).

• Net cash position as of March 31, 2025: ₹863 crore; net cash from operating activities (consolidated) for FY25 was ₹895.46 crore.

• Dividend of ₹1 per share (100% of paid-up capital) recommended for FY25.

Outlook and guidance

• FY26 production guidance: 3 million tons each for iron ore mining and pellets, 5.94 lakh tons sponge iron, 500,000 tons steel billets, 375,000 tons rolled products, 90,000 tons ferro alloys.

• Capex plan underway to double iron ore mining and pellet capacities by FY26, with major projects expected to complete by Q3/Q4 FY26.

• Expected 5-7% topline growth in FY26, driven by new pellet plant and rolling mill.

• EBITDA margin guidance for FY26 similar to FY25 (20%+), subject to market conditions.

• Focus on energy efficiency and decarbonization, with additional 11MW power generation and significant CO2 reduction initiatives.