Godawari Power & Ispat (GPIL) announced its Q3 and 9MFY26 performance, showcasing resilient revenues and improved EBITDA margins. Key highlights include the commissioning of the 2 MnT pellet plant, progress in solar power capacity expansion to 540 MW, and advancement of the 0.7 MnT CRM Complex. The company remains focused on efficiency gains, solar-led cost optimization, and sustainable value creation.
Financial Performance Highlights
GPIL’s Q3 FY26 results show improved EBITDA margins despite a fall in sales revenue due to lower pellet volumes and realizations on finished products. The company’s Year-on-Year EBITDA margins improved to 20%. Furthermore, iron ore mines and value-added products saw increased production by 46% and 5%, respectively. However, the realizations of almost all products except Ferro Alloys and Galvanized Fabricated Products declined year-over-year.
For 9MFY26, revenue decreased due to lower realizations offset by higher production and sales of pellets and galvanized fabricated products. The EBITDA and PAT were lower due to a decline in sales realizations.
Strategic Updates and Expansions
The company commissioned an Iron Ore Pellet Plant of 2.00 MnT capacity, taking the total pellet plant capacity to 4.7MnT. They also received environmental clearance for the expansion of Ari Dongri Iron Ore Mines from 2.35 MTPA to 6 MTPA.
Land acquisition of 452 acres was completed for setting up an integrated steel plant and CRM Complex. The board has approved the establishment of a 0.7 MnT CRM Complex for manufacturing Cold Rolled Steel products. Additionally, the company plans to expand its solar power capacity to 540 MW, and has made plans for 20 GWh Battery Energy Storage project.
Investment Thesis
GPIL has captive iron ore mines with 165 MnT reserves, expected to increase capacity from 3.05 to 6.7 Million tons per annum. The company produces high-grade pellets and has a strong operating cash flow. GPIL also commits to sustainability with a Net Zero carbon goal by 2050.
Capex Plan
The company is undertaking various expansion projects including expanding Iron Ore Mining capacity with an expected completion date in Q4 FY26, Pellet Plant which was commissioned in Dec’25, and setting up CRM Complex for which land acquisition has been completed and orders for equipment have been placed with expected completion in Q4 FY27.
Source: BSE
