Godawari Power & Ispat (GPIL) has released its investor presentation, outlining its growth strategy for FY26. Key highlights include a focus on expanding capacities for iron ore mining and pellet production, commissioning a 0.7 MnT CRM complex, and investing in renewable energy projects. The company is also pursuing strategic acquisitions and aiming for carbon neutrality by 2050.
FY26 Performance Highlights
GPIL’s presentation highlights slight increases in revenue, EBITDA, and PAT on a year-over-year basis, driven by higher sales volumes of pellets and rolled structural products. However, sales, EBITDA, and PAT were lower on a quarter-over-quarter basis due to declining realizations in iron ore pellets and finished steel. Production volumes of Iron Ore Mining, Pellets, and Value Added Steel Products increased by 29%, 31%, and 5% respectively (YoY).
Sales volumes of Pellets increased significantly by 71%, while Value Added Steel Products experienced a temporary drop of 7% (YoY). Realization for most products, except Ferro Alloys and Galvanized Fabricated Products, experienced a drop (YoY).
Strategic Updates and Expansion
Completed land acquisition of 452 acres for setting up an integrated steel plant and CRM Complex. Approved expansion of mining capacity at Ari Dongri Iron Ore Mines from 2.35 MTPA to 6 MTPA. Approved establishment of a 0.7 MnT CRM Complex for manufacturing Cold Rolled Steel products. Resumed operations at Boria Tibbu Mines after receiving approval for an updated 5-year mining plan. Further, land acquisition is completed to set up 250 MW Solar Project for captive use of ISP and CRM.
Business Model and Growth Drivers
GPIL emphasizes its integrated steel business model, which encompasses the entire value chain from iron ore and pellets to DRI, steel, and finished products. A key competitive advantage is secured through captive iron ore mines, ensuring low input costs. New growth initiatives include non-ferrous metal recycling through a stake in Jammu Pigments Ltd and entry into battery storage systems.
Investment Thesis
The company’s investment thesis is underpinned by captive iron ore mines with substantial reserves. GPIL produces high-grade pellets commanding a premium. The company aims for substantial increases in iron ore mining and pellet plant capacities, targeting 6.7MnT and 4.7MnT, respectively, by the end of FY26. GPIL is committed to sustainability with a Net Zero carbon goal by 2050.
Strategic Projects and Capex
The presentation outlines capital expenditure plans for various projects, including iron ore mining expansion, pellet plant upgrades, SMS and CRM complex construction, and solar power projects. The CRM complex is expected to be completed in Q4. The company plans for solar projects of 165 MW and 125 MW for power consumption and has a 75 Cr capex allocated for Energy Efficiency & Decarbonisation Project.
Emerging Opportunities
GPIL is expanding into new energy solutions through its subsidiary, Godawari New Energy Private Limited, focusing on battery energy storage systems (BESS). The company has acquired 43.96% stake in Jammu Pigments Ltd to focus on non-ferrous metals and aims for synergy benefits in the form of recycling of Zinc residue left over in the galvanizing process.
Source: BSE
