Raipur: Godawari Power & Ispat Ltd (BSE Code – 532734; NSE Code – GPIL), a fully integrated steel player, has announced its Q1FY26 results.
Q1FY26 Key Financial Highlights
- Consolidated Revenues from operations decreased by 1% and 10% to Rs. 1,323 Cr. on a YoY and QoQ basis mainly due to a drop in realizations.
- EBITDA increased by 2% on QoQ basis but decreased by 20% on a YoY basis to Rs. 324 Cr.
- PAT decreased on both QoQ and YoY basis by 2% and 25% to Rs. 216 Cr. due to fall in
realizations.
- EBITDA Margins and PAT Margins stood strong at 24% and 16%.
Q1FY26 Key Updates
- Volume Guidance Update – GPIL has already achieved 25% of the FY26 production volume guidance for Rolled Products and 30% for Ferro Alloys. The remaining product categories have reached between 20% and 23% of their respective targets.
- New Capex Announced – The Board has approved a total capital expenditure of Rs. 1,600 crore for two new projects, to be financed through equity and debt, with a 40:60 funding split.
- CRM Complex – The Board has proposed setting up a 0.7 MnT CRM Complex with a capital
expenditure of Rs. 900 crore. This amount includes pre-operative expenses, inter-corporate
deposits (ICDs), and margin for working capital.
- Storage Battery Plant – The Board has also proposed setting up a 10 GW Storage Battery
Plant with a capital expenditure of Rs. 700 crore through GPIL’s wholly owned subsidiary
Godawari New Energy Private Ltd.
- CRM Complex – The Board has proposed setting up a 0.7 MnT CRM Complex with a capital
- Ongoing Capex Plan – Mining expansion approvals are expected to be in place by Q3FY26 and
operations are expected to start in Q4FY26. Pellet plant expansion is going as per plan and trial
production is expected to start from October 2025.
- Got approval of PGCIL for supply of Steel Billets to all manufactures of Galvanized Steel
Structures for their transmission projects.
- Operations at Boria Tibu mines resumed in May’25 after GPIL received approval for updated 5-year mining plan by Indian Bureau of Mines.
B.L. Agrawal, Chairman and Managing Director, commenting on results said that “I’m pleased to report that despite a decline in realizations during Q1FY26, GPIL maintained strong margins, with EBITDA at 24% and PAT at 16%, supported by robust operational performance. Our new capex plans—focused on setting up the CRM Complex and the Storage Battery Plant—are expected to drive operational synergies and enable strategic diversification, strengthening our long-term growth outlook. Coupled with a strong net cash position, ongoing investments in mining and pellet capacity expansion, and a firm ESG commitment, we are well-positioned for sustainable value creation. Efficiency improvements, solar-led cost savings, and the strategic advantage of captive iron ore mines—along with continued stakeholder support—further reinforce our path for future growth.”
