Lloyds Metals And Energy (512455) Q1 24/25 earnings summary

Executive summary

• Q1 FY26 marked by major milestones, including commissioning of a pipeline and 4MT pellet plant, mining expansion, and acquisition of Thriveni MDO operations, with Board approval and unqualified auditor reports.

• Strategic acquisitions in pellet manufacturing (MRPPL and BRPL) and Thriveni, expanding market access and positioning as the 2nd largest pellet producer in India.

• Focus on cost optimization, operational efficiency, and backward integration to enhance margins and resilience.

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

• Employee Stock Option Plan activity: 15,13,784 options granted, 1,04,680 lapsed, 33,568 exercised in Q1 FY26.

Financial highlights

• Q1 FY26 total income/revenue at INR 24,084 million (₹2,377.03 Cr), flat YoY but up 99% QoQ; EBITDA at INR 8,087 million, up 12% YoY and 188% QoQ; PAT at INR 6,346 million, up 14% YoY.

• EBITDA margin expanded to 33.6%-34.1%; PAT margin at 26.35%-26.6%.

• Iron ore sales volume 3.45MT, up 2% YoY and 107% QoQ; DRI volume 78,900 tons, up 3% YoY.

• Standalone and consolidated profit after tax for Q1 FY26 was ₹634.58 Cr and ₹641.59 Cr, respectively.

• CapEx for Q1 FY26 at INR 13,270 million; FY25 CapEx was INR 36,947 million.

Outlook and guidance

• Guidance for 22-26MT iron ore mining in FY26, pellet production 5-6MT, DRI 450-550kt, steel (WRM) 700kt, and robust evacuation/logistics plans.

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

• BHQ beneficiation program accelerated to 30MT input, targeting 10MT output.

• Top-line guidance of INR 40,000 crore over the next four years remains on track.

• Ongoing and future projects include expansion of pellet and steel capacity, new slurry pipelines, and integrated steel plant.