Lloyds Metals And Energy (512455) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-yearly income, with Q2 FY26 total income at INR 25,754 million (up 75% YoY) and H1 FY26 at INR 49,838 million (up 28% YoY), driven by new pellet and DRI plant ramp-up and operational synergies.

• Pellet plant reached over 100% capacity utilization within four months, contributing robust EBITDA per ton due to captive ore and slurry pipeline efficiency.

• Strategic integration of Thriveni and acquisition of 79.82% equity in Thriveni Earthmovers and Infra Pvt Ltd completed, expanding large-scale operations.

• Board approved subscription of up to 20% equity stake in LT Gondwana Skill Hub Private Limited and purchase of approximately 290 acres of land in Gadchiroli for future expansion.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved, with statutory auditors issuing unqualified limited review reports.

Financial highlights

• Q2 FY26 total income reached INR 25,754 million, up 75% YoY; H1 FY26 total income was INR 49,838 million, up 28% YoY; consolidated H1 FY26 income was INR 61,185 million, up 57.2% YoY.

• Q2 EBITDA was INR 8,693 million, up 95% YoY, with margins at 33.75%; H1 EBITDA was INR 16,778 million, margin at 33.67%.

• Profit after tax for Q2 was INR 6,056 million and for H1 was INR 12,402 million, both up year-on-year; consolidated H1 PAT was INR 12,090 million.

• CapEx for H1 FY26 was INR 2,400 crore, with full-year guidance of INR 5,000 crore and next two years at INR 6,600 crore.

• Standalone and consolidated assets as of 30th September 2025 were ₹12,026.80 crore and ₹20,133.12 crore, respectively.

Outlook and guidance

• Confident of sustaining momentum through FY 2026, driven by new capacities, operational synergies, and disciplined execution.

• Iron ore dispatches expected between 20-22 million tons for the year, with pellet production guidance of 5.5-7 million tons and DRI 450-550 kt.

• Third pellet plant targeted for commissioning around 2028-2029, with total pellet capacity planned at 12 million tons.

• Land acquisition in Gadchiroli is intended for future expansion and related business purposes.

• Investment in LT Gondwana Skill Hub aims to promote skill development and ensure a steady supply of skilled manpower.